How to Buy a Condo in Thailand

Nomad Capitalist
14 Jan 202309:21

Summary

TLDRReed Kirkenbauer from investasian.com discusses the Thai real estate market, highlighting its popularity among foreign investors. He shares insights on buying condos, noting the rapid evolution of the market with prices tripling in some areas. Kirkenbauer emphasizes the importance of location, quality, and lifestyle when investing in Thailand, where foreigners can only purchase condos on a freehold basis. He also touches on rental yields and the process of buying property, either through agents or developers, stressing the need for thorough research and choosing reputable developers for off-plan purchases.

Takeaways

  • 🌐 Thailand is a popular destination for foreign investors looking to buy real estate in Asia, especially with the country now open to foreign arrivals.
  • πŸ™οΈ Bangkok's real estate market has seen significant growth over the past decade, with some areas experiencing price increases that have doubled or tripled.
  • πŸ–οΈ Investors have a variety of locations to consider within Thailand, including beach areas like Phuket and Hua Hin, as well as the mountainous region of Chiang Mai.
  • 🏑 Foreigners can only buy condos in Thailand on a freehold basis; land purchases are restricted to locals, though there were discussions about a potential investment program for foreigners.
  • πŸ’° Condo prices in Thailand vary widely depending on quality, standards, and location, with suburban units being more affordable compared to luxury condos in central Bangkok.
  • πŸš‡ Proximity to the BTS (Bangkok's rapid transit system) significantly impacts property values, with properties closer to stations commanding higher prices.
  • 🏞️ Beachfront or beach view properties in tourist areas like Phuket can be more expensive compared to those further away from the beach.
  • πŸ“ˆ Rental yields in Thailand are moderate, generally ranging from 4% to 6%, with smaller units typically yielding higher returns.
  • πŸ” Foreign investors can buy property through real estate agents or directly from developers, with each method having its own advantages and considerations.
  • πŸ—οΈ Buying off-plan (before construction is complete) can offer discounts but requires careful research, especially on the developer's reputation and past projects.

Q & A

  • Why is Thailand a popular destination for foreign real estate investors in Asia?

    -Thailand is popular among foreign investors due to its open market for foreign arrivals and the recent boom in the real estate market, especially for buying condos.

  • What was the speaker's first experience with the Thai real estate market?

    -The speaker, Reed Kirkenbauer, signed an agreement for his first condo in Bangkok in 2009, which was off-plan and completed in 2011.

  • How has the Thai real estate market evolved over the past decade?

    -The market has seen rapid evolution with prices in some areas doubling or tripling, especially in the city center, and offering a variety of investment options across different cities and towns.

  • What are the different types of locations for real estate investment in Thailand?

    -Investors can choose from various locations such as beach areas in Phuket and Hua Hin, mountainous regions in Chiang Mai, or the bustling city of Bangkok.

  • What is the restriction for foreign investors when it comes to buying land in Thailand?

    -Foreign investors are not allowed to buy land in Thailand; it is reserved for locals only.

  • What was the recent proposal regarding foreign investment in Thai real estate, and what was its outcome?

    -There were talks about allowing foreigners who invest 30 million Baht to buy landed real estate, but these talks were scrapped, and the restriction remains.

  • How does the price of a condo unit vary depending on its location in Thailand?

    -The price can range from as low as 60,000 Baht per square meter in suburban areas to over 500,000 Baht per square meter for luxury condos in the city center, especially near a BTS station.

  • What factors influence the rental yields of properties in Thailand?

    -Rental yields, which can range from 4% to 7%, are influenced by factors such as the size of the unit, its location, and proximity to amenities like BTS stations or beaches.

  • What are the two main ways for foreign investors to buy a condo in Thailand?

    -Foreign investors can buy a condo either through a real estate agent or directly from the developer, often in an off-plan purchase.

  • What is the significance of the BTS station in determining property value in Bangkok?

    -Properties closer to a BTS station in the city center are generally more valuable, as they offer better accessibility and convenience.

  • Why is it important for investors to research developers when buying off-plan properties?

    -Investors should research developers to ensure they are well-established with a good track record, as this can affect the quality and reputation of the property being purchased.

Outlines

00:00

🏒 Real Estate Investment in Thailand: Opportunities and Restrictions

Reed Kirkenbauer from investasian.com discusses the appeal of Thailand's real estate market for foreign investors, especially with the country's recent full reopening to foreign arrivals. He shares his decade-long experience in Bangkok's real estate market, noting the rapid evolution and significant price increases in some areas. Kirkenbauer explains the types of properties available, from beachfront locations to city center condos, and the unique restrictions for foreign buyers, such as the inability to purchase land and the limited option to buy condo units on a freehold basis. He also touches on the varying prices depending on the quality and location, with city center luxury condos being particularly expensive. The video script provides insights into the different lifestyles and investment goals that can be met within Thailand's diverse real estate markets.

05:00

πŸ“ˆ Understanding the Dynamics of Thailand's Real Estate Market for Foreign Buyers

This paragraph delves deeper into the specifics of investing in Thailand's real estate, highlighting the importance of location relative to the BTS station in Bangkok and the impact of being close to the beach in tourist areas on property values. Kirkenbauer explains that while suburban property prices have remained relatively stable, prime city center real estate has seen significant appreciation. Rental yields are described as moderate, with smaller units generally offering higher returns. The paragraph also addresses the process of purchasing property in Thailand, either through real estate agents or directly from developers, emphasizing the importance of conducting thorough research and considering the reputation and past projects of developers when buying off-plan. The script concludes by reiterating the diverse opportunities Thailand offers to foreign investors, whether for cosmopolitan living in Bangkok or a serene beach lifestyle in locations like Phuket or Koh Samui.

Mindmap

Keywords

πŸ’‘Real Estate Market

The real estate market refers to the economic sector involving the buying, selling, and development of land, buildings, or housing. In the video, the real estate market in Thailand is highlighted as a popular destination for foreign investors, especially for purchasing condos. The script discusses how the market has evolved rapidly over the past decade, with prices in some areas doubling or tripling.

πŸ’‘Foreign Investor

A foreign investor is someone who invests in a country other than their own. The script emphasizes that Thailand is a favored country for foreign investors looking to buy real estate, particularly condos, but with restrictions on land purchases reserved for locals.

πŸ’‘Condo

A condo, short for condominium, is a type of residential property where individuals own their unit while sharing ownership of common areas with other unit owners. The video explains that foreigners can only buy condos on a freehold basis in Thailand, which is significant for understanding the investment options available to them.

πŸ’‘Freehold

Freehold refers to the ownership of land or property outright, without any leasehold obligations. The script clarifies that foreign investors in Thailand can only purchase condos on a freehold basis, meaning they have full ownership rights to their units.

πŸ’‘Bangkok

Bangkok is the capital city of Thailand and a significant focus of the video script due to its bustling real estate market. It is mentioned as one of the largest cities in the region with a population of 16 million, indicating its importance in the context of property investment and living options.

πŸ’‘BTS Station

BTS stands for Bangkok Mass Transit System, which is the rapid transit system in Bangkok. Proximity to a BTS station is highlighted in the script as a factor that can significantly affect property prices and rental yields, making it a crucial consideration for investors and residents.

πŸ’‘Rental Yield

Rental yield is the income generated by a rental property as a percentage of its purchase price. The script discusses how rental yields in Thailand can range from four to seven percent, depending on various factors, and notes that smaller units tend to yield higher returns.

πŸ’‘Off Plan

Buying off plan refers to purchasing a property before it is completed, often at a discount. The video mentions that the speaker has personally bought off plan and suggests it as a strategy for investors, although it comes with the risk of not being able to see the finished product.

πŸ’‘Developer

A developer in the context of the script refers to a company or individual that constructs new buildings or properties. The video advises that when buying off plan, it's important to research and choose well-established developers with a good track record.

πŸ’‘Phuket

Phuket is a southern province in Thailand known for its beaches and is mentioned in the script as one of the various locations within Thailand where real estate can be invested in. It represents the beach area investment option in contrast to city center properties.

πŸ’‘Chiang Mai

Chiang Mai is a city in northern Thailand often referred to as a mountainous region. It is included in the script to illustrate the diversity of real estate markets in Thailand, offering options for those who prefer a cooler, less urban environment.

Highlights

Thailand is the most popular country for foreign investors to buy real estate in Asia.

The real estate market in Thailand has seen a boom with the country fully open to foreign arrivals.

Reed Kirkenbauer has been active in Bangkok's real estate market for a decade.

Thailand's real estate market has rapidly evolved with some areas experiencing price increases of up to three times.

Foreigners can only buy condos on a freehold basis in Thailand; land is reserved for locals.

A recent program to allow foreigners to buy landed real estate with a 30 million Baht investment was scrapped.

Condo prices in suburban Bangkok can be as low as 60,000 Baht per square meter.

Luxury condos in central Bangkok can cost upwards of 200,000 Baht per square meter, near a BTS station.

There are very luxurious condos in Thailand with prices reaching 500,000 to 600,000 Baht per square meter.

Rental yields in Thailand range from 4% to 7%, with smaller units generally yielding higher.

Property prices in suburban areas have mostly remained flat over the past decade.

Prime real estate in city centers has doubled or tripled in price over the past decade.

Proximity to a BTS station significantly increases property value in Bangkok.

Beachfront or beach view access in tourist areas like Phuket significantly increases property value.

When buying a condo in Thailand, one can either go through a real estate agent or the developer.

There is no MLS system in Thailand, so it's best to do your own research and consult multiple realtors.

Buying off-plan from a developer can offer discounts but requires careful research on the developer's reputation.

Thailand offers a diverse real estate market catering to various lifestyles and investment goals.

Transcripts

play00:00

I'm Reed kirkenbauer with

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investasian.com and you're watching

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Nomad capitalist Thailand is the most

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popular country to buy real estate as a

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foreign investor in Asia and with the

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country now fully open to foreign

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arrivals the real estate market has seen

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a boom of sorts over the past few months

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here I'll tell you all about buying a

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condo in Thailand

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[Music]

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now I've been active in Thailand and

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specifically bangkok's real estate

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market for about a decade I signed the

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agreement for my first condo in 2009 it

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was off plan so the condo was not even

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built yet it finished Construction in

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2011 and since then over the past decade

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Thailand's real estate market has

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evolved rapidly with prices in some

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areas doubling or tripling especially in

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the city center there are all sorts of

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different cities and towns to invest in

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Thailand's real estate market as

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Foreigner all with different goals and

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different Lifestyles everywhere from the

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beach areas down south in Phuket to

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pattyon Hua hin which are Beach area is

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a bit closer to Bangkok each about a two

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hour drive all the way up North to

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Chiang Mai in the mountains and of

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course Bangkok itself which is one of

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the largest cities in the region with a

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population of 16 million people so

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there's all sorts of different real

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estate markets within Thailand itself

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it's not just Bangkok there's all sorts

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of different markets each with their own

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fundamentals and prices and which appeal

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to different people each with different

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lifestyle also if you're not looking to

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invest or if you're looking for a

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lifestyle purchase more so than an

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investment I should say

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prices in Thailand vary one thing though

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worth noting is that you can only buy

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condos units in Thailand on a freehold

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basis as a foreign investor you're out

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of luck if you want to buy land as a

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foreigner those are reserved for locals

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only there were talks recently of

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starting a program where foreigners who

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invest 30 million Baht which is about a

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million US dollars they were talking

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about letting foreigners who invest

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money at that level buy real estate or

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landed real estate I should say in

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Thailand but those talks were scrapped

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and for the foreseeable future you're

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only going to be able to buy condo units

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in Thailand as a foreign investor

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regarding price what you'll pay will

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largely depend on quality standards and

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of course location if you want to buy a

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condo unit out in the suburbs of Bangkok

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for example for example to the east in

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bangana to the West up in pohoniotin or

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on the other side of the river in

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tonburi then you can buy a condo unit

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for as little as sixty thousand baht per

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square meter which is about a thousand

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five hundred two thousand US dollars so

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rather inexpensive by global standards

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but you probably won't be close to a BTS

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station the BTS is the rapid transit

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system that they have in Bangkok you

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probably won't be within walking

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distance of that if you want to buy a

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luxury condo in the city center of

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Bangkok you should expect to pay at

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least 200 000 Baht per square meter

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especially if it's within 500 meters of

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a BTS station and prices can even go way

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up from there there are condos in

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Thailand where units are being sold for

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500 600 000 Baht per square meter those

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are Singapore prices but there are very

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luxurious buildings World standards

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state of the art you know you have your

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own personal Butler and some of these

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properties so there's really a type of

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property for everyone in Thailand

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whether you're looking to live out near

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the beach or uh if you're looking to

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live a luxurious lifestyle in the city

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center along with you know next to

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Michelin star restaurants and huge malls

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some of the largest malls in the world

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so no matter what your goal is there's a

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type of property in Thailand for it

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whether you want to live out near the

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beach or if you want to live a city

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center lifestyle next to Michelin star

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restaurants and some of the largest

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malls in the world you can find that in

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Bangkok with the caveat that you can

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only buy a condo unit in Thailand as a

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foreigner Now where's the property

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Market going from here well if you were

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to ask me 10 years ago if buying real

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estate in Thailand was a good idea I

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would have said well absolutely and

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since then the market as I said has

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evolved rapidly I should note that

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property condo units out in the suburbs

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have mostly stayed flat for the past

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decade a condo unit that you could buy

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for sixty thousand Baht around two

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thousand US dollars per square meter 10

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to 15 years ago is about that price

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today in most Suburban locations on the

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other hand real real estate Prime real

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estate in the city center has for the

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most part doubled in price doubled in

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some cases tripled in Bangkok if you're

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buying property in sukum wit or chitlom

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or urachi Tui or some of the city center

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locations a property you were paying a

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hundred thousand Baht per square meter

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10 years ago is probably worth well over

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200 000 today especially if it's within

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close walking distance to a BTS station

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in general property in Bangkok is worth

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a lot more if it's closer to a BTS

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station in a city center location on the

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other hand if you're buying property in

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a Beach area like Phuket wahin patiovan

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beachfront or even beach view access is

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what will really make property values

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more expensive compared to those located

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further out so you can pay about half

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the price for a similar property if it's

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located out of the city center further

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away from a BTS station or in the case

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of tourist areas if it's further away

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from the beach those are ways to limit

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the price that you'll pay if you're

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buying property in Thailand rental

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yields in Thailand as a whole are

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moderate they're about depending on

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again all sorts of factors they can

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range from four percent yields to six

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and in some rare cases seven percent

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rental yields generally smaller units

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yield higher in Thailand and this is

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really true all over the world if you're

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buying a smaller unit say 36 square

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meters which is about 400 square feet

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that'll yield five or six percent on the

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other hand a two bedroom units probably

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closer to three four percent and larger

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units are even less than that so smaller

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units if you're seeking yields are going

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to be better from that perspective so

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Thailand's real estate market has a lot

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of variance with regards to price

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location lifestyle quality standards if

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you're buying the property in Thailand

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you're going to either do it through one

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of two ways especially as a foreign

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investor if you're buying a condo you're

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either going to be doing it through a

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real estate agent or buying directly

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from the developer in the case of a real

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estate agent I should note that unlike

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the west where if you're buying property

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in the U.S or Europe for example the

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very first place you would probably go

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as well I'm going to go to go to a real

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estate agent and that's not necessarily

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the case in a lot of Asia's emerging in

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Frontier markets there isn't an MLS

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system so to speak so you should keep in

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mind that if you go to one specific

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realtor you're only going to be buying

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or looking at property that which that

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Realtor is listing you're only going to

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be looking at the property which someone

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has gone to that Realtor and said hey

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can you list my property and you won't

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be getting an overall view of the market

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so in many ways it's best to do your own

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research and maybe talk to several

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different realtors if you're going to be

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buying a condo on the resale Market

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now if you're buying property through a

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developer in Thailand it's going to be a

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new building and you'll be buying what

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they call Off plan and this means buying

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a property often several years before

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it's actually complete site unseen and

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this of course has some negatives in

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that you can't really see what you're

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buying but you can also often get a

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large discount on a property bought this

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way as opposed to buying a building

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that's already complete I've personally

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bought off plan a few times and have

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always done well with it some people

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haven't but it's very important to do

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your research especially on the

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developer when you're buying property

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through them it's a good idea to maybe

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look at some of the developers past

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projects go visit them see what

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condition a building they brought they

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built say five years ago is in read

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Google reviews see what uh tenants and

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owners have to say about the project and

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you should always buy a condo from a

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well-established developer ideally one

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with several dozen finished projects

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under their belt and there are many

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developers in Thailand which meet this

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criteria most of which are listed on the

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stock exchange of Thailand which means

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that they aren't only accountable to

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whoever they're selling a condo to

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they're also accountable to shareholders

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and their overall reputation so if

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you're buying from a developer certainly

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do some research on them with all of

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that said Thailand has something for

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everyone whether you want to live a

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Cosmopolitan lifestyle in Bangkok or if

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you want to live in a Scenic Beach down

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in Phuket or Koh Samui out on the

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islands Thailand has something for you

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and for that reason is very popular with

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foreign investors whether they're

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actually seeking to buy in Thailand for

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investment purposes or whether they want

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a second residence or simply a lifestyle

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purchase

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