Thailand's Mixed Bag Property Investment Market

PRLog (Press Release) – Jan 30, 2008 – Potential property investors considering an Asian purchase, may well have Thailand included in their list of potential locations at the outset, when they start researching they will realize that Thailand’s property investment market is currently a mixed bag.

First they might see that Bangkok was recently listed as one of the twenty top tourism locations in the world, which should make a property investment there a good one. But before too long they are bound the discover that capital appreciation, having long been high in Thailand, along with all other investment considerations, has been affected by political turmoil of late, most notably the coup of September 2006.

Nonetheless Thailand is still one of the best countries in Asia for a foreign property investment: there is no inheritance or gift tax, capital gains are treated as income tax charged at the standard rate, and foreigners can buy condominiums freehold. Foreigners can invest in property other ways, but purchasing a condominium is the easiest by far. Even with the political turmoil; rental yields still hit the 8% mark in Bangkok.

A rising star in Thailand’s (and Asia’s) tourism industry is the island of Koh Samui, which has barely been affected by the political turmoil on the mainland -- if at all.  Potential investors will mostly find excellent resort property on Koh Samui.  As tourism grows on the island, and it begins to attract the higher end of the tourism market, as oppose to mainly back-packers, the villa resort properties can attain rental yields of 10-12% relatively easily, and a conservative estimate on capital appreciation is 15%-20%.

David Stanley Redfern Ltd have been wise in their choice of Thailand investment properties, restricting their Thai portfolio to Thailand’s islands only. Most DSR Thailand properties are on Koh Samui, but a couple are on Koh Phangan island.

David Stanley Redfern have far too many properties for me to write about here but I will say that they have everything from 2 bedroom apartments at £100,000 to 5 bedroom villas at £695,000, and literally everything else between -- something for everyone.

Round trip transaction costs are a reasonable 10% - 12.3% in Thailand, but both parties must have their own solicitor, and there is slight confusion over the calculation of buying costs; specific business tax and stamp duty are paid on whatever is higher between the assessed and declared value.

Overall Thailand is well worth investigating as a property investment location, and one of the world’s best for a buy-to-let holiday home investment.

Media enquiries should be directed to Liam Bailey: media@davidstanleyredfern.com