Property Investment Pattaya
Pattaya is a dynamic and relaxing city with miles of beachfront coastline. In recent years, the Thai government carried out a series of important moves such as the motorway expansion to U-Tapao Airport, the improvements to the beach fronts, and the high-speed rail link to improve the infrastructure of this city. Obviously, it promoted the real estate market in Pattaya, the fast-growing number of condominium and villa projects indicated a great demand and a huge potential for property investment in Pattaya.
Benefit of buying real estate in Pattaya
The comfortable lifestyle has tempted more and more international investors to buy property in Pattaya, which enables them to enjoy endless benefits. First, the easy and fast connection between Pattaya and surrounding towns makes it an ideal retreat or weekend getaway. In addition, the high-speed train project will make it possible to commute to Bangkok in just 30 minutes. Second, there is a wide variety of property types to invest in such as well-furnished condominiums that are full of facilities including a fitness center, swimming pool. Third, the price of properties is much more reasonable than in Bangkok. Moreover, as a popular destination, Pattaya offers strong rental demand which ensures faster and higher return on investment with an annual rental yield of between 6-8%. In short, buying a property in Pattaya as a second home or for investment is a wise choice.
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Fees and Property Taxes in Pattaya
When it comes to a transaction of real estate, both for seller and buyer, there are taxes and fees that occur when acquiring, transferring, or renewing a lease for a property that we need to keep in mind.
Transfer Fee (buyer’s duty or shared): 2% of the appraised value of the property. It’s commonly shared in a 50-50 split between seller and buyer, particularly when you buy a pre-sale condominium, except the half of the transfer fee, All other duties and taxes related to the registration and transfer of ownership must be paid by the developer. But in the case of a private sale, it all depends on the agreement between the seller and buyer. So it’s advisable for a buyer of a re-sale condominium to clearly confirm with the seller in the Condominium Sale and Purchase Agreement regarding how to divide the transfer fee and all taxes.
(Tips: The 2% transfer registration fee is reduced to 0.01% until 31 December 2022. )
Specific Business Tax (seller’s duty)
3.3% of the appraised value of the property if sold within 5 years.
Stamp Duty (seller’s duty)
0.5% of the registered value. It’s exempt if Specific Business Tax is charged.
Withholding Tax (seller’s duty)
If the seller is a company, 1% of the registered value or appraised value whichever is higher. If the seller is a private person, it’s calculated at a progressive rate based on the appraised value of the property.
When it comes to a property lease, there are 1% lease registration fee and 0.1% stamp duty are charged based on the total rental throughout the whole lease term. It means the total cost of leasehold is 1.1%.
Return on investment of a property
Buying a property for investment purposes in Pattaya is a choice that should be carefully considered to ensure its profitability and long-term sustainability. Indeed, Pattaya is an ideal place for property investment with a strong rental market. Likewise, you can find many condominium projects in Pattaya that offer a guaranteed rental return, the annual return rate is normally between 6% to 8% of the purchase price, for a term from 5 to 10 years. In fact, that’s what investors can expect as a return on investment before taxes, maintenance fees, and other costs. In addition, and without a doubt, it is a good opportunity to have a second home for hobbies and vocations while obtaining a stable long-term rental income.
Questions we ask ourselves before buying a condo in Pattaya
Is it profitable to buy a condo in Pattaya?
If you buy a condo for investment purposes, the profitability can be different depending on location, project facilities, and other factors. Generally, with a strong rental market in Pattaya and low taxes and fees, you can enjoy a roughly rental yield from 5% to 8% by buying a condo in Pattaya.
As a foreigner can I buy real estate in Thailand?
Yes. Buying a condominium is one of the easiest ways for foreigners to buy real estate in Thailand.
Can I live in Thailand permanently thanks to the acquisition of an apartment in Pattaya?
To live in Thailand permanently, normally you have to hold a permanent residence, which cannot be obtained through the purchase of a property. However, the good news is that it’s possible to get an Investment Visa or be eligible for the Thailand Elite Flexible One program as a property investor. Plus, there is a wide range of visa options that allow foreigners to live in Thailand with a long-stay residency.
Where do the majority of expats in Thailand live?
There are some cities throughout Thailand attracting most ex-pats to live: Bangkok, Pattaya, Chiangmai, Phuket, and Koh Samui.
How much does it cost to buy a condo in Pattaya?
The selling price for a condo unit in Pattaya averages between 80,000 baht to 120,000 baht per square meter, which is cheaper than a similar property in Bangkok or Phuket.
Where to invest in real estate in Pattaya?
When you’re looking to invest in real estate in Pattaya, these locations may be good choices: Pattaya city (with a central location), Wongamat Beach (near the city center with a high amount of privacy), Jomtien Beach (tranquil lifestyle and reasonable price). Actually, as the city has been developing to the south, there are superb locations toward the south like Na Jomtien Beach and even further.
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