Located at the heart of Southeast Asia, Koh Samui is a hub for business and trade in Thailand. This beautiful island is perfect for those who want to spend their life surrounded by nature, sandy beaches, coconut trees, and azure waters. It is the second-largest island in Thailand as well as one of the most popular tourist destinations in the country. Its strategic location, beautiful landscape, and remarkable culture have made Koh Samui a popular island for tourists, expats, and big companies. In addition, it is also popular among foreign investors because the island is one of the most lucrative investment destinations in the world. If you are considering to invest in Koh Samui, read the tips below so you can get the best and safest property.
The Best Type of Property for You
Investing in real estate means you are making a huge investment. Therefore, you need to make sure that you will love your new property. If you are going to rent it out, make sure that it has all the best features. First, you need to know what type of property you need to buy: condominium, apartment, villa, townhouse, or house. Consider asking yourself questions, such as:
- Is buying a condominium more sensible than a villa or a house because you don’t have to worry about security and maintenance?
- What type of property is easiest to resell?
- What type of property will get you a better rental return?
- Will the number of rooms affects the rent-ability of the property?
- If you want to make your property a luxury holiday rental, should you buy one with a private pool and other amenities?
Once you decided the best type of property for you. You will also need to think about your budget. Calculate the full cost of ownership, then add 10% for good measure on the top of the purchase price. Ensure you know about any hidden costs so you will be financially secure.
Learn Koh Samui Real Estate Market
Yes, Koh Samui has a booming real estate market especially since the island welcomes thousands of visitors every year. However, location is still one of the most important parts before deciding to invest in a property. You need to understand which parts of the island have the best potential to grow in prices and for resale. Some people buy a property in a completely remote and secluded place just because it’s in a beautiful location, but they forget that accessibility is also important. You need to consider if the property is close to popular tourist attractions, the airport, public facilities, and many other things. The most desired areas on the island are Bo Phut, Chaweng, Choeng Mon, Maenam, and Plai Laem because these areas are all surrounded by supermarkets, shops, restaurants, bars, as well as school and medical centers.
Understand Property Ownership Regulations
Legal ownership regulations can be extremely different from the regulations in your home country, which can make property acquisition complicated. But with some good research, you will find that the regulations of buying a property in Thailand are simple and straightforward. The first thing you need to be familiar with is that a foreigner is not allowed to own land in Thailand directly in their name. However, there are ways around it, such as buying a property through a Thai partner or a spouse. But if that does not seem doable or reasonable for you, here are the most practical ways:
- Long-term Leasehold: You can sign a leasehold agreement with the owner of the land for a period of 30 years, but there is the option to renew the agreement for a maximum of three times.
- Thai Limited Company: You are allowed to own 49% of the shares of a Thai company. By having shares of a local company the ownership of the land can be in the name of the company on your behalf.
- Condominium Ownership: Foreigners are allowed to own condominium units as long as the total number of units in the building bought by foreigners doesn’t exceed the 49% quota.
Seek Legal Advice from an Expert
Although very straightforward, buying a property in Koh Samui can be difficult especially if you have little to no knowledge about the property market. Avoid getting yourself scammed by getting a reputable lawyer who understands the regulations and process of buying a property on the island. Having legal advice from an expert will protect your interest with the legal help you need.