Leasehold terms are anticipated to be extended for foreign investors.
Foreign investors in Thailand are permitted to own leasehold properties for a term of 30 years. For some this may seem alien when they are allowed to own land outright on home turf. Whilst there is the option to extend this leasehold for another 30 years, some investors shy away from Thailand as they fear its security of ownership.
However this may all be about to change. The government is mulling over extending the leasehold period to 50 years as revealed by Thailand’s Finance Minister, Apisak Tantivorawong. Good news for developers and investors alike as this will increase the attractiveness of the market.
This hike will also set Thailand inline with some of its neighbours. The Philippines, Myanmar and Cambodia all offer 50 year leases. Only last year Vietnam extended its lease under the Housing Act. Overseas investors can extend their lease by a further 50 years once their initial term of the same term has expired. Ahead of the pack is Singapore and Malaysia who offer 99 year leases. Currently Thailand is trailing behind with Laos and Indonesia all with only 30 year terms.
The hope of this proposed extension is to provide further confidence in the market. Experts believe it would have a positive impact. More so as many foreigners invest in property in Thailand for the long haul often choosing the country as a place to buy their second or holiday home. This is opposed to speculative investors who do not hold onto property for long as their sole goal is to generate a short term profit.
Additionally the government are exploring the idea of a ‘windfall’ tax. Applicable to property owners who profit from increased capital appreciation due to government infrastructure developments.
Should you be looking for a property in Thailand, whether it be an investment orsecond home, check out Thailand Property’s listings found online here.
