Analysis of current situation of Thai real estate

With the improvement of people’s living standards, more and more people are beginning to plan to immigrate to Thailand. So what is the current situation of Thailand’s real estate? Follow, let’s take a look at the analysis of the current situation of Thailand’s real estate. Welcome to read.

1. Healthy economic growth and steady rise in housing prices

Thailand’s economy is currently growing healthily, and the strong development of manufacturing and tourism has laid an economic foundation for the country. House prices in Thailand have been rising naturally over the past three years, and rental returns are relatively optimistic. Taking real estate in central Bangkok as an example, the rental return rate for a 50-square-meter apartment is 7.41%, while the rental return rate for a 375-square-meter apartment in the same location is 3.97%.

2. There is no need to pay property tax if the total price of the house is low

Data from the Thailand Real Estate Bureau shows that in the first quarter of 2017, the average transaction price of second-hand houses in prime locations in downtown Bangkok was about 30,000. RMB. In Beijing, in April 2017, the average price of second-hand houses in Xicheng District, also located in the central area, was about 60,000 yuan, and the average price of second-hand houses outside the Fifth Ring Road had also reached about 30,000 yuan.

In Thailand, there are no "property taxes" and other fees that need to be paid during the period of holding real estate. Therefore, when purchasing real estate in Thailand, you only need to pay several relevant transfer taxes and fees when transferring the property. The main taxes that need to be paid when transferring real estate in Thailand include: transfer fee: 2%; special commercial tax: 3.3%; Ying tax: 0.5%; personal income tax: depending on the situation of the property and its holder. The total transfer costs are about 6% of the total price of the property. Normally, 50% of the transfer tax is paid by the buyer and seller respectively.

Special commercial tax can be reduced or exempted if the following conditions are met: 1. Owners who have held the property for more than 5 years can be exempted from special commercial tax. 2. If the owner’s household registration has been on the property for more than one year, the special commercial tax can be reduced or exempted. However, other taxes and fees may increase, so to sum up, the final tax on purchasing real estate in Thailand is about 4% of the total property price.

3. Famous tourist resorts have high rental returns

We all know that Thailand is a famous tourist country. It has a warm tropical climate, friendly and hospitable people, lush and exotic atmosphere flora, clear blue sea, beaches with golden sand, delicious local cuisine, and a wide range of entertainment options to suit all tastes. The boom in tourism is good news for the real estate market. It will further develop the local economy, increase demand for housing, and invest in properties that can then be rented out, with substantial returns.

4. Government policies support first-time home loan discounts

To purchase a first-time home (including new housing, second-hand housing and self-built housing) preferential loan program, that is, apply for a loan from the government housing bank Those who purchase their first self-occupied residence with a value of no more than 3 million baht can enjoy the following discounts: zero interest rate for the first two years, a repayment period of up to 30 years, no loan handling fee (normally charged at 1% of the loan amount), no There is a transfer fee (normally charged at 2% of the real estate valuation), etc. The total amount of loans under the entire program is 25 billion baht, accounting for approximately 8.0% of the annual new loans.

5. The cost of living is lower where the local Chinese gather.

There are many Chinese in Thailand. It is more convenient for residents to go to supermarkets, hospitals, restaurants, etc., and the local cost of living is not very high. . As Thailand has undertaken the relocation of multinational labor-intensive enterprises in recent years, the momentum will be beneficial to Thailand's economic development. In addition, most of the local properties are well-decorated, the houses are calculated based on the usable area, and parking spaces are usually provided free of charge.

6. Recognized as a retirement resort, 50-year-old retirement visa

When it comes to where to retire, many Asians and Europeans recommend Thailand. Because Thailand has low prices, good services, and a relatively complete medical care system. The most important thing is that Thai people are friendly. In addition, in order to attract people who want to retire on vacation, the Thai government has already made preparations. Since February 2006, it has launched a "retirement visa", that is, foreigners over the age of 50 can apply for a retirement visa and enjoy permanent visa exemption. Moreover, compared to European and American countries, Thailand is closer to my country and the flight time is shorter, making it easier for the elderly to enter and exit the country.