How to buy Thailand property?

Thailand is a Southeast Asian, predominantly Buddhist kingdom almost equidistant between India and China. For centuries known by outsiders as Siam, Thailand has been something of a Southeast Asian migratory, cultural and religious cross-roads. With an area of some 510,000 square kilometers and a population of some 57 million, Thailand is approximately the same size as France. Thailand shares borders with Myanmar to the west and north, Laos to the north-east, Kampuchea to the west, and Malaysia to the south.

Its shape and geography divide into four natural regions : the mountains and forests of the North; the vast rice fields of the Central Plains; the semi-arid farm lands of the Northeast plateau; and the tropical islands and long coastline of the peninsula South. Thailand enjoys a tropical climate with 3 distinct seasons – summer from March through May, rainy with plenty of sunshine from June to September and cool from October through February.

Thailand is a constitutional monarchy with His Majesty King Bhumibol Adulyadej, or King Rama IX, the ninth king of the Chakri Dynasty, the present king. The capital of Thailand is Bangkok.

Thailand is a beautiful and most desirable country in which to live and there are many thousands of foreigners who have purchased property within the Kingdom of Thailand. Exotic Thailand is Asia's top tourist destination and offers a world class tourist industry at affordable prices, making it a magnet for visitors, re-locators and property investors alike. In many key locations in Thailand, the local economy relies heavily on tourism and increased property investment in these locations is now good news for domestic economic growth and good capital returns.

The country's incredibly beautiful coastal regions including the best-known names such as Phuket and Ko Samui, have lured buyers in who also appreciated the relatively low prices and the country's good investment potential. Thailand remains less exploited in the property investment sector than many other areas and for this reason prices are far below those in more established European markets. However in many areas, prices are moving upwards at a rate of approximately 10-15% per annum.

Foreigners are most welcome in Thailand, so long as they adhere to the law. Recent speculation has dented confidence in investing in Thailand, but stems not from an anti-foreigner sentiment, but more to close the loopholes that allowed too many to undermine the law under the last government. However, there have always been some questions hanging over the legal ins and outs of buying property – as Thailand has a very different land and property ownership system compared to Europe, Australia or the US, for example.

Foreigners and foreign companies are actually not allowed to own a direct interest in land in Thailand, with one exception from this rule; Apartments or condominium units. However there are a few other legal ways to go, for properties as houses and villas. Although a foreigner can own buildings freehold, this doesn't extend to the land they are built on, but various options are available to negotiate this pothole in the unpaved road to paradise. These include 30 year leases with options for renewal and ownership of shares in a land-owning company. Both of these systems have been tried and tested, and whilst it is possible to buy a property subject to an incomplete or poor legal structure, with good advice, people can buy with peace of mind and security.

Author: by Nancy Hamilton
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