Volume 39, Number 05
Business
Thai Property as an Investment
Thailand has a romantic heritage that beguiles visitors: from the razzle-dazzle of Bangkok, to the floating markets and silk emporiums. Picture white-sand beaches, swaying coconut palms, and an evening chorus of cicadas. Rising from jade and turquoise waters are myriad islands girdled by coral gardens and bizarre limestone outcrops smothered in vegetation.
Even though the military coup is now behind us and a new government is in place, what does the future hold for the land of smiles and, more importantly, for someone considering Thailand as a place to invest their hard-earned cash in property?
Thailand has four-million-dollar properties, but you’ll also find nice homes for well under $150,000. (And if you’re prepared to go off the beaten track, you’ll find them for below $25,000.) Even in beach resorts like Pattaya, you can buy a basic studio for under $17,000. In short, there are properties to meet most people’s pockets.
Beware however, it is not possible for foreigners to get local financing for property purchase so you have to raise funds on other properties you own in other parts of the world, to settle the purchase price in cash. The following areas are some you may considering buying property in:
Phuket—Thailand’s largest island and before the 2004 tsunami struck, it was the country’s richest province, richer even than Bangkok. In the past, the wealth largely came from tin production, but nowadays its strength is as a tropical vacation paradise.
Bangkok—There’s no city center as such, but several busy and popular ones. They include the CBD (Central Business District), Sathorn, Central Lumpini, Sukhumvit Road, Pathumwan, and Riverside. They’re all areas which attract expat interest.
At the end of 2002, quality “Grade A” apartments in the Central Business Districts ranged from $148 to $170 per square foot. Ongoing projects in the same area now sell for $193 to $273.
Chiang Mai—An hour’s flight north of Bangkok, Chiang Mai is Thailand’s second-largest city. Dubbed “The Rose of the North,” it’s one of the country’s most culturally rewarding regions. With golden wats (temples), teakwood houses, dragon sculptures, and intriguing alleyways, this is traditional Thailand.
Hua Hin—With a five-mile beach and lots of golf courses, Hua Hin is a seaside city of around 40,000 people on the upper western side of the Gulf of Thailand.
Koh Samui—The country’s third-largest island in the Gulf of Thailand, 400 miles south of Bangkok. It’s a holiday island of beaches, turquoise seas, and plantations of coconut palms. Around two million coconuts are exported each month, most of them picked by specially trained monkeys.
Pattaya—Ninety-two miles southeast of Bangkok, Pattaya is Thailand’s busiest resort. It gets five million visitors annually. A lot of expats choose to live here.
When buying a house in Thailand, make sure you get good advice before parting with your cash so you understand the trials and tribulations of owning a property in paradise. This is a lifestyle choice not necessarily an investment.
Provided by MAGELLAN JAPAN:
THE FINANCIAL PLANNING COMPANY
Email mtt@magellantt.com
Tel. 03-3769-5511