Showing posts with label investing in Thailand property. Show all posts
Showing posts with label investing in Thailand property. Show all posts

Sunday, November 6, 2016

Why investing in Thailand Property market can prove to be fruitful for Indians investing in overseas property market?

In October 2016, International Real Estate Expo was held in New Delhi – India. The purpose of the 3 day Expo was to showcase International Properties to Indian investors looking to buy property overseas. Real estate consultants and developers from Thailand, USA, UK, Cyprus, Dubai, Canada, Sri Lanka, and Australia participated in the 3 day event.

Indian nationals have been investing in properties abroad for plethora of reasons namely portfolio diversification, for studies of their children, holiday home to name a few. Singapore, Dubai, USA, UK have been the preferred locations. High Net worth Individuals, Strategic Property investors, Top level executives from India typically form the group of investors that are buying properties abroad.

On May 26, 2015, Reserve Bank of India (RBI) further liberalized Outward Remittance scheme for Indian Resident individuals. Under the scheme, an Individual can now remit US$ 250,000 per Financial Year (April-March) to overseas locations for the purposes of any permitted current or capital account transaction or a combination of both. Therefore many more properties are now under the reach of Indian investors.

According to a report published in October 2014 by US National Association of Realtors (NAR), buyers from India bought residential properties in USA worth 5.8 billion US$ during the one year period ending in March 2014. Similarly, in year 2015, data released by Dubai Land Department depicts that Indian investors carried out a total of 4089 property transactions estimated at 13 billion Dirhams. UK and Singapore also attract substantial real estate investments by Indian investors.

However, one location that hasn’t caught the fancy of Indian investors but can prove to be fruitful for Indian Property Investors is Thailand (Bangkok, Phuket, Pattaya, and other cities in Kingdom of Thailand). Non Resident Indians (NRI) as well as domestic Indian investors can consider including Thailand Properties in their portfolio. Following are the benefits that an Indian Buying Property in Thailand can look forward to:

1. Thailand: A tourists paradise

No foreign power has ever colonized Thailand. Throughout its history, Thailand has been preoccupied with two things: overcoming regional divisions to consolidate central Thailand's power and attracting foreign wealth without allowing it to undermine internal stability. On the surface, the country's politics fluctuate continuously as successive governments attempt to balance regional and foreign interests. Yet Thailand's economic and cultural core remains relatively stable.



Thailand is the member of ‘The Association of Southeast Asian Nations’ (ASEAN). It is an alliance promoting economic and political cooperation by fostering dialogue among its ten members.



Thailand dominated as the most popular regional travel destination last year, with three of its cities making the top ten in MasterCard's Asia Pacific Destinations Index 2015.

   

2. Bangkok Transport Infrastructure

MRT system – Metro
BTS system – Skytrain
BRT system – Rapid Bus





3. Thailand – India historical relations

Thailand and India share a deep historical bond.

The Thai alphabet is derived from the Old Khmer script (akson khom), which is a southern Brahmic style of writing derived from the south Indian Pallava alphabet.

Thai vocabulary includes many words from Pali, Sanskrit ……especially in praying



During the 5th to 13th centuries, Southeast Asian empires were influenced directly from India and followed Mahayana Buddhism. The Mahāyāna and Hindu Khmer Empire dominated much of the Southeast Asian peninsula.

Theravada Buddhism was made the state religion only with the establishment of the Sukhothai Kingdom in the 13th century.

Hinduism played a strong role in the early Thai institution of kingship, and exerted influence in the creation of laws and order for Thai society as well as Thai religion.

Hindu influences, particularly shrines to the god Brahma, continue to be seen in and around Buddhist institutions and ceremonies.

The Ramakien is Thailand's national epic, derived from the Hindu epic Ramayana.

Popular celebrations in Thailand – Diwali, Navratri ( nationwide including the corporate entities), Ganesh Chaturthi.



Phahurat or Pahurat known as Little India - A Sikh community settled there more than a century ago and established a textile trading center that is still thriving. The golden-domed Siri Guru Singh Sabha temple is a landmark of Phahurat. The neighborhood is also home to South Asian Hindus and Muslims.




The number of tourists from India to Thailand is on the rise. In 2016, Expected number of Indian tourists to Thailand are 1.8 million.





4. Thai Economy and its growth

As per the World Bank Data, in 2015, Thailand’ population was 67.96 million, GDP (Gross Domestic Product) was 395.3 billion US$, GDP Growth rate was 2.8%, and inflation was -0.9%.

Economically, Thailand has been one of the great success stories of the ASEAN region. Smart policies adopted by successive governments have enabled the country to become an upper middle income economy.

 

5. Thai real estate and its prospects


Find below the detailed analysis of Bangkok realty market including supply, demand parameters and rental yields.





6. Easy Process to buy property and Liquidation or exit

  • Reasonable investment entrance
  • Growing rental market
  • Growing tourist market
  • Iconic buildings – innovative designs
  • Thailand offers the highest rental return in South East Asia
  • Easy buying and selling process – one stop service
  • International banks present for transfer
Click here to read the Step by Step guide to investing in Thailand Property Market.


7. Portfolio diversification

As the saying goes - ‘Never put all your eggs into one basket’. One can diversify his/her investment portfolio by investing in various asset classes or if one has propensity to invest only in a particular asset class, then, geographical diversification certainly helps in risk mitigation. Investing in lucrative Thailand property market will certainly help in diversification of one’s investment portfolio.

8. Double Taxation Treaty

As the name suggests, levying of tax by 2 countries on the same income is known as double taxation. Since, you will be investing in and operating an income generating property in Thailand, therefore, you must make sure that taxes are not paid in 2 countries on the same income. To avoid double taxation on same income, Government of India has entered into a double taxation avoidance agreement (DTAA) with several countries and Thailand is one of them. Here is a list of countries with whom India has double taxation avoidance agreement (DTAA).