Why Thailand is the Ultimate Place for Rental Return Investments in Thailand
We live in a world of unlimited possibilities, especially in terms of investment opportunities. There are more options to invest your money than ever before, and with the right advice and opportunities, you really can make the most from your money.
Investment opportunities in growing nations such as Thailand are plentiful, and at one point in the distant past, the real estate, villa and condo rental markets were seen as the most lucrative way to make back returns on your money… and it’s still true in some ways. The market has evolved, and with so many condominium and villa developments in Thailand’s major tourist regions such as Pattaya, Bangkok, Phuket and Koh Samui, the market has become flooded, which has driven down prices and limited the opportunities to invest and make back solid returns.
This doesn’t mean that investment opportunities have evaporated, just simply moved to another part of the sector. At Emerging Trends Advisors, we are at the forefront of the investment market in Thailand, in the perfect position to find you the most lucrative and reliable investment opportunities.
The market has now shifted to investing in apartments in 5-Star hotels and resorts, mainly due to the trust and reliability of large corporate hotel chains and brands who even in times of economic hardships are widely believed by holidaymakers and consumers, as opposed to investing in individual real estate projects by smaller developers.
We hope you get some excellent advice from our Free Guide to 5-Star ‘Rental Guarantee” Investments in Thailand to turn make your money work for you.
WHO ARE EMERGING TRENDS ADVISORS?
Emerging Trends Advisors is a global alternative investment company with over fifteen years’ experience in real estate investment and asset management.
Based in SE Asia, Emerging Trends Advisors specialise in markets across both Asia and Europe.
Our specialist team of consultants include a trader of ten years’ experience, a real estate investor with fifteen years’ experience, asset managers, a Chinese economist and a Thai lawyer, all of who have a long history of living and working in both Asia and Europe.
Concentrating on investment options that are secured by tangible assets, before recommending products or investment opportunities to clients, Emerging Trends Advisors carry out full due diligence and study comprehensive research on the strengths of any local economy and the corresponding stability of any local currency.
WE WORK FOR OUR INVESTORS
Emerging Trends Advisors present investment options tailored to each and every client and their specific requirements. To do this properly, we need as much information as possible about your personal situation. The first step is a consultation with one of our consultants. We won’t recommend any products until we have found out some information about what you are looking to achieve, as well as what investments you may already have. This ensures that we can serve you properly.
Emerging Trends Advisors guarantees to invest only in sectors we know inside and out. We concentrate on investment options that provide security for our clients by means of tangible assets like real estate. We understand the heart and soul of our investments and value depth over breadth.
Our team constantly search for investment vehicles that meet our requirements. The first thing we do is scrutinise the local economy and strength of the currency. Once we are satisfied, we have found the right place to invest we then start searching for the best options available. If we don’t find something that meets our criteria we simply move on.
Our clients can feel safe knowing that no stone has been left unturned when we are searching for the ideal investment products.
HOW DO WE WORK AT EMERGING TRENDS ADVISORS?
Firstly, let us explain a little about how we work:
What we do is very simple. We focus on rental guarantee programs that are managed by large hotel management companies; we like these investment vehicles because our client’s money is secured against properties.
We are very selective about what products we put forward to our customers. To simplify what we look for, any projects we will present must meet the following criteria:
- A proven track record stretching back at least five years
- At least five successful projects already completed
- A satisfactory due diligence report carried out by our lawyers
- We need to be satisfied in the business plan backing up the guarantee
- We check the local economic conditions for the location of the projects
- Many projects we offer have agreements with the big hotel management companies such as Best Western, Holiday Inn, Marriott, Amari, Centara, etc. plus a few smaller companies that also have proven track records
At this moment, we can offer you investment opportunities in projects at Koh Samui, Phuket, and Pattaya. These are the ultimate locations in Thailand in terms of investments that are generated by Thailand’s thriving holiday market sector.
We have options from 7% per year guaranteed for a five-year period, to up to 15% guaranteed for 20 years.
All our investment vehicles are secured against properties so aside from a guaranteed income; you have the potential of making capital gains with the cost of real estate rising.
In some cases, once we find a project that we are happy to offer to our investors we generally invest ourselves by blocking lots of the units and looking for a good discount that we then can pass on to our clients.
1. GETTING STARTED
At Emerging Trends Advisors, we are the ultimate solution to finding the best investment opportunities in Thailand with lucrative and reliable rental return programs in 5-star hotels and resorts. When you need the helping hand of experts, who always put their clients first, we have a dedicated team that knows the market inside out.
1.1 Tell us what you are looking to achieve
One of the most important aspects of finding you the perfect investment opportunity is we need to know what you are aiming to make. Please tell us some information about yourself, what you are willing to invest and the kind of returns that would make everything viable for you. With this information in hand, we can streamline the options and tailor the investment to suit your individual specifics.
1.2 Researching investment opportunities
Once you have given us your exact specifics and details, we will then put together some options that suit your requirements. We already have our fingers on the pulse of the hotel apartment rental returns market in Thailand, and will quickly offer you the most lucrative guaranteed rental return programs in Thailand.
1.3 Deciding which options suit you the best
Once we have presented you with the most lucrative deals that will include the exactly guaranteed returns you will make per year, it’s time for you to seal the deal with Emerging Trends Advisors and watch the money flow!
2. MONEY MATTERS – FINANCING YOUR PROPERTY PURCHASE
Purchasing a property, either at home or abroad, in a hotel or development, is an important decision, and one not to be taken lightly. Getting your monetary matters in order is always important, especially so when purchasing in a foreign country, as local real estate nuances will be different to those in your home countries.
Key financial points to consider:
- How much money do you have to invest?
- Will you be investing with one single payment or will you need finance or a mortgage?
- Is there an initial payment deposit to be made or do you have to pay in one go?
- Do you need to consider fluctuations in currency exchanges?
- Are there additional taxes to consider when buying property in Thailand?
- What purchasing terms are available when buying property in Thailand?
2.1 Choosing the best-purchasing terms
We don’t want to confuse you too much or bog you down in Thai purchasing laws, but it is essential that you understand the payment terms of investing in a property in Thailand. We have a Chinese economist and a Thai lawyer in our office that will simplify the local purchasing laws, and will give you the lowdown about your investment, but it doesn’t hurt to know the layout of the market and the purchasing terms available. Here are the options below:
- Foreign Ownership: There is a myth about the Thailand real estate market that says, as a foreigner, you cannot purchase property in your name, but in reality, this is all smoke and mirrors illusion. By utilising the “Foreign Ownership” purchasing terms, you can purchase a condo in your name in an entirely legally-binding sense.
Foreign Ownership is the most hassle and stress-free way to buy condos in Thailand. After which, you can do whatever you desire with your property, such as renting it out to make back money through rental returns, or giving it to someone else as a gift, or even to resell it on to another foreigner or a Thai-Thai company. Inheritance is also not a problem with these terms, although there are still certain rules for which you must adhere.
This Foreign Freehold choice does make it the simplest option for property purchases in Pattaya. Although taxes, approximating to 2-3% of the sale price, are involved with selling your property to another party, there are no other fees, aside from service costs involved when you hold this property.
All the money you use to buy the condo and bring into the country as a foreign currency must be detailed, meaning you have to show where your money came from to buy the property legally. You will need to complete a TorTor 3 Form to transfer the money.
- Company Ownership: Purchasing a Pattaya condo with Company Ownership Terms can be a cheap option, especially if you buy off-plan units because the payment plans usually dictate that you pay the last significant sum of money only when the property is completely constructed, and only then do you receive the keys for the premises and legal ownership. Company Ownership will cut down on the costs, as you won’t have to pay any taxes because you are simply changing the company’s director, which means that the Land Department is not involved in the purchase. The company name stays the same with you becoming its director.
This can cause a few knock-on effects such as inheritance of the property is more difficult unless you make your heirs the shareholders of the company. You will have to pay a yearly accountancy fee of approximately $500 USD to keep your books in check for tax purposes. You need to set-up the company about 1-month before purchase, but at Emerging Trends Advisors, we can introduce you to qualified lawyers in the city who are adept with Thai property laws.
- Off-Plan Payment Procedures: There are a few things to consider when purchasing off-plan properties, such as you don’t need to pay the complete price in total until the property’s construction is complete. Buying off-plan does require an initial down payment of between 15% and 30%, and when the construction starts, there will be interest-free instalments expected on a regular basis depending on the development’s procedures. When construction on the property is complete, there will be an end sum or balloon payment, which when made, the ownership will change hands from the developer to you. Payment structures vary from project to project.
2.2 Exchange Rate Fluctuations
The economic world in which we live today is so dynamic and sporadic, so fluctuating exchange rates can heavily impact on the money you sent from your home countries and what you receive when exchanged into Thai Baht. Thailand enjoys quite a stable currency exchange, but the same cannot be said about other economies around the world. Please keep a fixed eye on exchange rates when sending your money to Thailand, to ensure you are getting the best exchange possible.
2.3 Finance and Mortgages
It is not impossible for foreigners to get mortgages or finance in Thailand, but it mainly depends on the said development’s relationship with the bank. Some developments and resorts specialise in finance packages while others don’t. It is a case of finding the right development that matches your financial situation. At Emerging Trends Advisors, we can give you the best advice on the best places to invest.
3. LEGAL MATTERS WHEN INVESTING IN THAILAND
Most of us are in the dark when it comes to legal matters, even in our home countries, so it’s important to arm yourself with excellent legal representation when buying a property in Thailand. There is no bigger turn-off than being bogged down with legal jargon and the shackles of bureaucracy, but if you fail to adhere to legal nuances, your property dreams can quickly become nightmares.
3.1 Legal Matters – Rental Return Investments Property in Thailand
Without going too heavily into the legal requirements of buying property in Thailand, the first thing we would suggest is getting the best legal advice. There are some excellent lawyers in the Pattaya region, and some not so excellent, so making the right choice at the first time of asking is essential. At Emerging Trends Advisors, we know the terrain of the city well and have onsite lawyers that offer impartial advice, so you don’t have to worry about the legal nuances.
Whether you are purchasing a property in Thailand from a development or a hotel or resort, there are individual nuances you will need to adhere. As mentioned above, obtaining the best legal advice is the only way forward to protect your interests and to manoeuvre your way through Thai real estate laws and why working in conjunction with Emerging Trends Advisors is one of the wisest decisions you will ever make.
MAIN DIFFERENCES BETWEEN INVESTING IN REAL ESTATE AND 5-STAR RESORTS
At Emerging Trends Advisors, we are at the cusp of something new and unique. For many years, the prime focus of investors in Thailand was via the real estate market. However, with so many developments constructed, especially in regions such as Pattaya, the market has become too congested, and many of the city’s developers can no longer uphold their promised guaranteed rental returns, which has affected trust in the marketplace.
Benefits of investing in hotels instead of developments:
– Large-scale hotel brands and chains are trusted the world over. They have operated at high and favourable levels for many years with proven track records that garner reliability and trust. The guaranteed apartment rental returns in such chains are always robust and are backed by the entire resort, which is a stark contrast to individual real estate developers, some of which live right on edge in terms of turning over money and maximising profit margins.
– 5-star hotel brands have vast marketing teams that do get your apartment massive exposure in the public eye, via geared internet and local marketing promotions that ensure more people are renting out your apartment. Real estate developers also have marketing plans but don’t have the same budgets, reputations or exposure than successful 5-star hotels.
– Large hotel brands have dedicated hotel management teams with the sole purpose of managing your property and making sure your clients have a great time. This also means you don’t have to lift a finger and can simply wait for your rental return profits to arrive. It’s hassle-free, which is important if you are investing your money.
– Basically, investing in rental return programs in 5-star hotels and resorts is much safer than investing with a real estate developer. That is just a fact of life and why these brands have become so successful over the years. Would you rather trust your investment with a fly-by-night real estate developer or a proven hotel brand that is known the world over? We all know the answer to that question!
KEY THINGS TO REMEMBER WHEN INVESTING
Now we have detailed what we do at Emerging Trends Advisors, the legal connotations of investing or purchasing property in Thailand, and how investing in hotel brands is more reliable than a real estate developer, these are the key things you need to remember when investing in 5-star hotels in Thailand.
– Know what you want to achieve with your investment
– Understand the budget you have for your investment
– Learn about the guaranteed rental return programs on offer
– Remember that investing in a 5-star hotel makes more sense than investing in a condo development which has no branding
– Take into consideration the legal aspects of investing in Thailand and utilise our onsite law experts
– Use a reputable investment consultant agency such as Emerging Trends Advisors
For more details on the current trends and the best rental return investment opportunities in Thailand, contact Emerging Trends Advisors today and begin making back solid returns on your investments with the minimum of stress and hassle.
Written by: siam.casa