DSR Asset Management Overseas Property Investments

Poten­tial investors who are cur­rently con­sid­er­ing an over­seas prop­erty pur­chase in Asia, will prob­a­bly have Thai­land on their short-list at the out­set, but upon look­ing into it will find that prop­erty invest­ment in Thai­land is cur­rently a two sided coin:

On the one hand Bangkok has recently been listed among the top twenty tourism des­ti­na­tions in the world, which should make a prop­erty invest­ment there a good one. Dig a lit­tle deeper how­ever and you find that cap­i­tal appre­ci­a­tion, — pre­vi­ously strong in Thai­land — along with all fac­tors to be con­sid­ered before invest­ing, have been detri­men­tally affected by the recent polit­i­cal tur­moil, namely the Sep­tem­ber 2006 coup.

Never the less Thai­land is still among the best Asian coun­tries for for­eign­ers to invest in, there is no inher­i­tance tax or gift tax, cap­i­tal gains tax is charged like income tax at the stan­dard rate, and for­eign­ers can own con­do­mini­ums free­hold. There are other ways for for­eign­ers to buy in Thai­land but a con­do­minium pur­chase is the eas­i­est. And even with the polit­i­cal tur­moil as it is rental yields are still around the 8% mark in top tourist des­ti­na­tion, Bangkok.

Another ris­ing star in Asia’s tourism indus­try is the Thai island of Koh Samui,which has been largely unaf­fected by tur­moil on the main­land, and where poten­tial investors will find mostly resort property.

As tourism expands on the island, and it begins to attract more of the high end mar­ket, as oppose to pri­mar­ily back-packers, these resort villa prop­er­ties can fetch yields of 10–12% quite eas­ily, and cap­i­tal appre­ci­a­tion is con­ser­v­a­tively esti­mated at around the 15%-20% mark.

Total trans­ac­tion costs are a mod­er­ate 10% — 12.3% in Thai­land, but there is a lit­tle com­pli­ca­tion over the com­pu­ta­tion of buy­ing costs; spe­cific busi­ness tax and stamp duty are paid on what­ever is higher, declared or assessed value — both par­ties must have their own solicitor.

Over­all a Thai­land prop­erty invest­ment can be a very reward­ing endeav­our, espe­cially if you are pur­chas­ing a hol­i­day home with a view to rent­ing it out when not in use.

Liam Bai­ley is media rela­tions exec­u­tive with David Stan­ley Red­fern . He runs the blogs: Emi­gra­tion Now and Emerg­ing Mar­kets.

Find out more about prop­erty Thai­land and buy­ing prop­erty in Thailand.

About DSR Asset Management

DSR is an over­seas prop­erty invest­ment spe­cial­ist, work­ing directly with devel­op­ers in more than forty coun­tries. All prop­er­ties are exclu­sive to DSR , giv­ing an unpar­al­leled selec­tion of resale and new builds.

Please direct all media queries, requests for press infor­ma­tion and edi­to­r­ial details, to media@davidstanleyredfern.com

David Red­fern is the direc­tor of DSR Asset Man­age­ment an over­seas prop­erty invest­ment spe­cial­ist. David works closely with devel­op­ers in more than forty coun­tries and over­sees the DSR edu­ca­tion pro­gramme which lec­tures indi­vid­u­als and organ­i­sa­tions on prop­erty invest­ment. Adver­tise Your Pri­vate Over­seas Property

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