{"id":915,"date":"2023-06-27T11:00:00","date_gmt":"2023-06-27T03:00:00","guid":{"rendered":"https:\/\/sgtayjeremiahj.com\/?p=915"},"modified":"2023-11-22T17:41:25","modified_gmt":"2023-11-22T09:41:25","slug":"investing-in-mid-luxury-to-luxury-condominiums-in-bangkok-a-lucrative-option-amidst-singapores-latest-property-cooling-measures","status":"publish","type":"post","link":"http:\/\/sgtayjeremiahj.com\/investing-in-mid-luxury-to-luxury-condominiums-in-bangkok-a-lucrative-option-amidst-singapores-latest-property-cooling-measures\/","title":{"rendered":"Investing in Mid-Luxury to Luxury Condominiums in Bangkok: A Lucrative Option Amidst Singapore’s Latest Property Cooling Measures?"},"content":{"rendered":"\n\n\n
In recent years, Singapore has implemented stricter property cooling measures on purchasing of second and more properties, prompting many Singaporeans to explore overseas investment opportunities. One such enticing option is Bangkok’s mid-luxury to luxury condominium market. This blog delves into why I’m one of the growing number of Singaporeans who have considered overseas properties, particularly mid-luxury to luxury condominiums in Bangkok, as a viable investment alternative and whether my decision made was the right choice.<\/p>\n\n\n\n As a savvy investor seeking lucrative opportunities in the real estate market, Bangkok’s mid-luxury to luxury condominium segment presents an attractive prospect. In 2018, I purchased a freehold mid-luxury condominium in CBD Rama 9, located in the heart of Bangkok, which is a vibrant and rapidly developing central business district that has garnered significant attention from investors in recent years. <\/p>\n\n\n\n Top 5 Reasons Why I decided to Invest in CBD Rama 9, Bangkok<\/strong>:<\/p>\n\n\n\n Rental Yield<\/strong><\/em><\/p>\n\n\n\n Despite the global impact of the Covid-19 pandemic from 2020 to 2022, which caused significant disruptions across various sectors, including real estate, the construction of my property continued as scheduled and was successfully completed. Throughout the process, my agent played a crucial role in facilitating the furnishings of the unit and efficiently securing tenants within a short period. Their assistance and expertise ensured a smooth transition and swift rental process, allowing me to start earning rental income promptly. My current Gross Rental Yield for 2022 is 4.45%, which also happens to the same as the average rental yield in Bangkok (based on Q3, 2022 data) with a yield range between 1.89% to 8.00%.<\/p>\n\n\n\n Capital Appreciation<\/strong><\/em><\/p>\n\n\n\n Property transactions have experienced a significant decline, with a sharp drop observed in the total value of land and building transactions nationwide during the first three quarters of 2022. According to data from the Bank of Thailand (BoT), the recorded value decreased by approximately 35% year-on-year to THB 560.65 billion (equivalent to US$15.96 billion). This decline was evident across all regions, indicating a widespread impact. However, the recent resurgence in tourism has instilled optimism for improved demand, particularly among foreign buyers, in the upcoming months. <\/p>\n\n\n By property type, in Bangkok and vicinities:<\/p>\n\n\n\n As of October 1, 2022, the Thai government has lifted all Covid-related restrictions and extended the length of stay for tourists from countries eligible for visa exemption from 30 days to 45 days. Similarly, tourists eligible for a visa on arrival (VOA) now have an extended stay of 30 days, up from the previous 15 days. These measures are expected to stimulate demand and contribute to the recovery of the property market in Bangkok and beyond. <\/p>\n\n\n\n I recently had a meeting with my Huttons Bangkok agent to gain a deeper understanding of the current property market situation. Similar to my above findings, there is currently an excess supply of residential units in the market. However, an interesting development is the growing interest from Chinese investors, now that China has opened up. This influx of queries from Chinese investors has the potential to boost demand in the market. In addtion, Bangkok is expanding continuously. By 2025, it\u2019s expected that the mass transportation system will run all throughout Bangkok, and land prices are expected to increase after that. For now, I will closely monitor the situation, considering long-term investment prospects and even the possibility as an overseas retirement option. By staying informed and assessing the market trends, I can make informed decisions regarding my investment strategy in the Bangkok property market.<\/p>\n\n\n\n Thailand<\/em><\/strong>–related Tax implications<\/strong><\/em><\/p>\n\n\n\n In Thailand, there are specific tax implications for selling a property within 5 years of its acquisition. This is known as the “Specific Business Tax” (SBT). The SBT applies to the sale of immovable properties, including land and buildings, within a short period of time. Here are the key points regarding the tax implications:<\/p>\n\n\n\n Understanding the tax implications and seeking professional advice can help you make informed decisions when selling a Thai property within 5 years of acquisition, ensuring compliance with the applicable tax laws and regulations.<\/p>\n\n\n\n What are repatriation procedures when selling the Thai property?<\/em><\/strong><\/p>\n\n\n\n When selling a condominium in Thailand as a foreigner, there are certain repatriation issues to be aware of. Repatriation refers to the transfer of funds from Thailand back to the foreign investor’s home country. Here are the key points to consider:<\/p>\n\n\n\n To ensure a smooth repatriation process, it is also advisable to work with reputable professionals, such as lawyers or accountants, who have expertise in handling property transactions for foreigners in Thailand. They can provide guidance on the necessary steps, documentation, and compliance requirements to facilitate the repatriation of funds in accordance with the regulations in place.<\/p>\n\n\n\n In conclusion, purchasing and selling property in Thailand as a foreigner involves various considerations and processes. When buying a property, foreign investors can benefit from attractive investment opportunities, particularly in popular locations such as Bangkok’s CBD Rama 9. Factors such as prime location, rental yield potential, capital appreciation, lifestyle amenities, and proximity to Singapore make Bangkok an appealing choice for overseas property investment. It is essential to engage reputable developers and property agencies to ensure quality construction, timely completion, professional property management, and support for resale or exit strategies.<\/p>\n\n\n\n However, when selling a property in Thailand as a foreigner, repatriation issues come into play. Repatriating funds back to the investor’s home country requires adherence to regulations set by the Bank of Thailand. Documentation, foreign currency transactions, and potential approval from authorities must be considered. Seeking guidance from professionals with expertise in property transactions for foreigners is crucial to navigate the repatriation process, comply with regulations, and fulfill tax obligations.<\/p>\n\n\n\n Throughout the entire buying and selling journey, it is important for foreign investors to conduct thorough research, consult with professionals, and stay informed about the latest regulations and market trends. By doing so, investors can make well-informed decisions, maximize their returns, and ensure a smooth and successful experience when investing in and selling property in Thailand as a foreigner.<\/p>\n\n\n\n Further Online Readings for you:<\/p>\n\n\n\n Rental Yields in Thailand in 2022, Q3 | GlobalPropertyGuide<\/a><\/p>\n\n\n\n Investment Analysis of Thai Real Estate Market (globalpropertyguide.com)<\/a><\/p>\n\n\n\n Property Tax in Thailand | ThaiEmbassy.com<\/a><\/p>\n\n\n\n<\/a>
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