Real Estate blogs in this series have reviewed the merits of investing in Bangkok real estate and buying property in Bangkok. Methods of investing in Thailand’s real estate market have been discussed as well as tips on where in which parts of Bangkok it is best to invest property. In this property blog article we will summarize the series so far.

In Part 1 of this series we reviewed how to buy property in Thailand as a foreigner, what are the rules and regulations, what the advantages are and what are the problems to be aware of.

http://www.easyhomes.tv/blog/investing-in-bangkok-real-estate-apartments-and-condos-pt-1/

In Part 2 of this series, we reviewed the difference in purchasing a condo in Bangkok, compared to buying a Bangkok townhouse or buying a detached house in Thailand. Purchasing one type of Thai real estate is not exactly the same as buying another due to the laws of the Thai property market.

http://www.easyhomes.tv/blog/investing-in-bangkok-real-estate-apartments-and-condos-pt-2/

The article covering Part 3 of this series discussed the technicalities involved in selling real estate in Thailand. For example the methods used for Bangkok condos for sale are different to those of townhouses for sale in Bangkok.

http://www.easyhomes.tv/blog/investing-in-bangkok-real-estate-apartments-and-condos-pt-3/

Part 4 of this real estate blog series began are in-depth review of the various locations in Bangkok in which to invest. Reviewing potential investment in the north of Bangkok covered possible investment in real estate in Phahonyothin, property in Ari, condos in Ratchayothin
and real estate in Ratchada and Huay-kwang.

http://www.easyhomes.tv/blog/investing-in-bangkok-real-estate-apartments-and-condos-pt-4/

In Part 5 investment in the South parts of Bangkok were reviewed, in locations such as Silom we reviewed the potential benefits frominvestment in condos near the Silom MRT and buying property in Sathorn .

http://www.easyhomes.tv/blog/investing-in-bangkok-real-estate-apartments-and-condos-pt-5/

The Western districts were covered in Part 6 of the series and the benefits of investing Thonburi real estate were highlighted as well as buying condos along the Chaophraya river.

http://www.easyhomes.tv/blog/investing-in-bangkok-real-estate-apartments-and-condos-pt-6/

In Part 7 the areas around the new BTS stations opened in August 2011 were reviewed, these relatively new entrants to the Bangkok real estate market offered investors potential to gain from buying condos in Udomsuk, investing in Bang Na and as far as Bearing.

http://www.easyhomes.tv/blog/investing-in-bangkok-real-estate-apartments-and-condos-pt-7/

Finally in Part 8 of the series we looked at the most in demand areas of Bangkok, the city centre. Investing in Sukhumvit real estate, buying condos in Asokeand purchasing condos in Chit Lomare just some of the topics covered in the final blog of the series.

http://www.easyhomes.tv/blog/investing-in-bangkok-real-estate-apartments-and-condos-pt-8/

In the two previous ‘Investing in Bangkok Real Estate’ blogs we have looked at the advantages of investing in a property in Bangkok. We have reviewed the individual types of Bangkok property for sale and the formats of buying a townhouse, condo or apartment in Bangkok. In this article we will briefly look at the method of buying a townhouse or detached house in Bangkok.

Before we start it is important to state that we always advise that an individual seeks advice from a Real Estate Agent or/and a legal representative before buying real estate in Thailand or Bangkok. Although legal disputes are rare involving a foreigner buying a property in Thailand or Bangkok, it is of course best to seek advice so that you optimize your Bangkok property purchasing decision.

In an earlier article on www.easyhomes.tv we covered the details involved in buying a Bangkok condominium by a foreigner http://www.easyhomes.tv/blog/how-can-a-foreigner-buy-a-condo-in-thailand . As mentioned in the previous Real Estate Blog in this series Investing in Bangkok, Real Estate, Apartments and Condos Pt. 2 condominiums were identified as the easiest format for a foreigner to purchase in the Thailand real estate market. Therefore buying a condominium is the most popular way to invest in the Thai real estate market.

When purchasing a townhouse or detached house in Thailand it has to be considered that there is a land purchase also involved as the property is ‘grounded’ therefoe under the rules of land ownership in Thailand by a foreigner, the property has to be owned by a Thai registered company. A foreigner can own 49% of the Thai registered company, but the other 51% shares must be in Thai hands.

Most foreigners wishing to buy a townhouse or detached house in Bangkok therefore will form a company particularly to buy a property or more than one property. In effect the company owns the property and the foreigner owns a major shareholding in the company. The other 51% of the shares in the company are often split between 7-8 Thai shareholders who therefore only own minor stakes in the company. Also the format and preparation in setting up the company often means that the other Thai shareholders are not able to contact each other, and therefore their voting right and control over the company is minimal.

As and when the foreign owner wishes to sell his Bangkok Townhouse or detached house, it is relatively simple and even cheaper than if one Thai individual sold to another. Land Taxes in Thailand are fairly substantial and upon sale of any type of property in Thailand the following taxes will need to be paid:

1. Stamp Duty (Land Tax) – 2%
2. Withholding Tax – 1.5%
3. Business Tax (if the property has been owned for less than 5yrs) – 3.3%

However if the property is held by a company then the foreign owner only has to sell the company to the new buyer. This is a simple and inexpensive administrative exercise in changing the shareholder’s details, in effect the foreign shareholder sells his 49% stake to the new owner, thus avoiding all of the above taxes.

So although organizing the ownership of a townhouse or detached house in Thailand and Bangkok may seem more troublesome at first it can be seen that it has its advantages and is cheaper to sell the Thai property than an individual foreigner owning a Thai condo 100% in their name.

Investing in Bangkok real estate may seem a daunting and difficult task, but as can be seen from the below blog it can also be rewarding if the investments are made in the correct districts of Bangkok. A Bangkok property investment in a well located Bangkok condominium can yield both a high rental yield and a high yield in capital gains.

For example Noble Solo condominium units located in Thonglor can yield rentals of over 8% and the capital gains have gone above 10% since the project was first launched 3 years ago, not bad considering the economic crisis that has affected the world at this time. http://www.easyhomes.tv/property/noble-solo-thonglor-1312

In fact highlighted in a recent report by a well-known and highly respected property developer, listed on the SET, states that condominiums in Bangkok’s city center offer on average 7% rental yields across the low-mid, mid and high-end market categories. And the condo resale market within Bangkok remains extremely buoyant despite the economic and political problems of the last 12 months.

Let’s look at some figures, but firstly let’s define some criteria’s we are looking at within our report. Investing in a condominium in Bangkok can range from low-mid end up to high-end luxury Bangkok properties, but all can be found along the BTS and MRT in Bangkok’s city center areas. The main designated areas of Bangkok’s city center are Sukhumvit, Silom, Sathorn, Ratchada and Central Lumpini (near Lumpinin Park and the Royal Sports Club).

Also when we refer to investing in a Bangkok condominium, the main body of the blog will only be referring to brand new condominium projects. In fact none of the condominiums we will have been completed more than 12 months ago. The reason for this is that older units would have been bought at much cheaper, and therefore will neither reflect the current prices of the Bangkok condominiums on the market, or the rental yields as a percentage of the buying price – clearly Bangkok condominiums invested in earlier will yield higher returns as the purchasing prices would have been lower.

For the purposes of this brief blog, we will concentrate in investing in a Sukhumvit condominium. There reasons for this is that Sukhumvit is the most popular district of Bangkok and most foreign buyers invest in condos in Sukhumvit. In the last 12 months there have been approximately 4 500 condominium units completed within the Sukhumvit area of Bangkok. Therefore there has clearly been a large increase in the amount of Sukhumvit condominiums on the market. However this has not stopped the rental yield from remaining attractive, as mentioned earlier with an average 7% return on investing in a Bangkok condo.

The purchasing prices for these Sukhumvit condominiums continues to rise, and on average one can expect to pay approx THB 90 000/sqm for a mid-end Sukhumvit condo, or if you want to invest in a more luxurious Sukhumvit condominium then prices of approximately THB 115 000/sqm are being asked.

Investing in a condominium in Sukhumvit will probably present you with the following returns: For a Studio prices of THB 15 – 20 000/month can be asked; for 1 Bedroom prices of THB 30 – 50 000/month can be asked and for a 2 Bedroom prices of THB 50 – 80 000/month can be asked. Of course all the above depend on several variables such as location, quality of the building, size of the unit and quality of the furnishings in your buy-to-let Bangkok condo investment.

But what about the capital gains on your Bangkok real estate investment? Well as we saw early some projects have offered Bangkok condominium developers rises of up to 25% since launch, The Address Chidlom being such a Bangkok condo investment. http://www.easyhomes.tv/property/the-address-chit-lom-1100

However on average Bangkok condominiums launched in the last 12 months have offered their investors approximately a 10% capital gains return since their launch. However it has been noted the best resale units in general are the larger 2br units. The reasons for this is that developers are generally building more Studio and 1 bedroom units in the newly launched Bangkok condominium projects around the city center, as these often are quicker to sell off-plan and can offer good rental yields. In addition the 2 bedroom units they have launched are on average smaller than those built in the past, with newly built Bangkok condo units over 90sqm becoming rare. So newly built 2 bedroom units of over 100sqm are becoming relatively scarce in the Bangkok real estate market.

Therefore if you are looking for rental return yields you may be best off investing in a Bangkok condo less than 60sqm in size, such as Studio or 1 bedroom. However if it is capital gains you are looking for in your Bangkok condo investment then a larger 2 bedroom unit of up to 100sqm could be your best Thai real estate investment stategy.