Real Estate Property Investment Series: Focus Thailand 2018


There is no rejecting the appeal of Thailand – from a travel and tourist perspective, from a retiree perspective and theoretically from a residential or commercial property financier’s viewpoint. The country is under priced, it is stunningly stunning, it has increasing numbers of visitors each year and gradually however undoubtedly it is building up a worldwide retiree neighborhood … nevertheless, a good deal of the country’s investment appeal has been eliminated from the market for a variety of reasons.

Firstly the federal government does not want short term speculation in any of its financial investment markets and this includes the home market. As a result there are extremely rigorous constraints in place avoiding an investor from owning land in Thailand for example or from owning over 49% of any particular development. There are of course ways around this constraint such as using a well structured Thailand unique purpose company (or SPV) but for smaller sized or one time only financiers the fact that you need to participate in legal agreements over and above those to purchase home limitations and lowers the appeal of Thailand residential or commercial property as an investment commodity. Additionally, the knowledge that you’re purchasing a country where the government is not too happy for investors to derive a great earnings or strong revenues makes financiers careful of commitment in case policies change in the future and make it harder for them to take their investment gets out of the country.

Secondly the Thai economy, just like many in Asia, is presently directly impacted by the Chinese adjustment of their currency – and in a quote to stay competitive Thailand has just recently needed to specific exceptionally strict controls on inward investment to prevent their currency from increasing. This has obviously helped Thai exporters – as was the desire of the government – however it has not helped the appeal of Thailand property investment guide as a good area where to invest. While the home market is not affected by the new steps it has sent a shockwave through the global investment community who are worried about what could occur next.

So – why are we even talking about home investment in Thailand I hear you ask!

Well, since there is so much appeal in Thailand.

First of all, as formerly mentioned there is need for property in Thailand from lots of sectors and this demand is really increasing. On the one hand there is residential need in the main employment centres in terms of rental and resale home, there is massive tourism need for lodging across the nation and this is increasing yearly, there is even substantial industrial demand for home and since in current history the levels of investment in Thailand have actually been relatively low there is really an undersupply in numerous quarters representing immediate investment appeal.

Add to this the fact that the real estate industry in Thailand is now actively taking it upon itself to promote the thrills and chances available in Thailand and lobby the federal government for amendments to rules affecting investors and you could quite perhaps have actually reached a perfect time to enter the market in Thailand with extremely thoroughly researched purchases that you are willing to hold for the long term.

There are certain and definable risks and benefits for a residential or commercial property financier in Thailand. It’s just up to the individual to decide which exceeds the other and make their choices accordingly. Ultimately there is much to be acquired from home in Thailand over the long term however investors need to know that this is not a market for short term focus nor is it a market for amateurs.


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