At present, foreigners cannot purchase property in Thailand. Condominiums are permitted of course but anything else carries a 49% limit when it comes to ownership.
But this could be about to change.
Ministers have discussed bringing in long term leases of up to fifty years, with the option to sell the leases on, although properties will ultimately remain with the Thai people.
Apisak Tantivorawong said real estate is big business in the Kingdom and is closely linked to other markets such as construction and banking but when the economy is not performing too well, this is the area that displays early warning signs, hence we need to pay attention to this sector and act accordingly.
He continued “Allowing leasehold will unleash demand from around the world. It will also change the structure of the property market in which foreigners will become customers alongside Thais.”
On Tuesday, cabinet ministers gave the go ahead for new land and building tax bills to be passed to the lawmakers.
Ceilings were set at 0.2% for farmland, 0.5% for houses and residential land and 2% for land or buildings. It is important to remember that these are “ceilings” and not the actual figures, which in all probability, will be lower.
It is thought that local government income will rise substantially once the new laws come into play at the beginning of January 2019.
Another project to boost the the economy is housing for workers on low incomes, which is something that will please many Thai people.
Would you be interested in a fifty year leasehold on a property?
Tell us what your thoughts are.