Thailand is rightfully considered the most attractive tourist destination for Russians in Southeast Asia. Foreign exotic lovers discovered this country much earlier and managed to appreciate not only the quality of their holidays, but also the possibilities of buying real estate. "The Thai market is developing, and prices are not standing still," notes Charlotte Fiel of CBRE. – But despite the growing demand from foreign investors, buying a house in one of the Thai resorts is still available. The low cost of living in the country allows you to buy a house in the tropics at an affordable price."
Now several high-end residential resorts are being built on the island of Koh Samui, the second largest in the country. In the northeast of the island, in the area of Bo Phut, the Peak complex is being built. A five-star hotel, a spa center and villas designed in a traditional Asian style will be built on its territory. Property Frontiers sells three-bedroom houses with a swimming pool here for prices starting at $400,000. There is another complex nearby. Bo Phut Residences, where luxury villas on separate plots of land cost from $214,000. The investor is guaranteed a rental income of 10% of the value of the property per year.
Phuket Island is even more popular, where you can find both inexpensive real estate and luxury villas. So, at the Ban Nai Yang resort, CBRE sells single-storey three-bedroom villas, 2 minutes away. from the coast, for only $102,000. In the town of Pruerkpailin, houses with plots of land are put on the market at a price of $111,000. These are some of the most affordable offers, and at the other price pole there are magnificent residences in Barama Bay, which can only be reached by sea or by helicopter. Aylesford is selling a luxury home here for $3 million.
There are also many interesting offers to be found on the continent. The Guti Kiri complex has been built in the popular seaside resort of Hua Hin, located in the northern part of the Malay Peninsula. Colliers International sells duplexes here starting at $210,000, and villas starting at $295,000. The owners of the property also have the opportunity to use the services of the spa center.
A good choice would be to buy real estate in the secondary market of Thailand, where you can find a wide variety of offers in terms of quality and cost. A studio can be bought for $61,000, a small family-type house with a sea view costs from $236,000. A luxury two-bedroom villa 80 m from the coast will cost $1 million already.
In recent years, the interest of private investors has been so high that the Thai government has decided to impose restrictions on the ownership of real estate by foreigners. When buying a house on a separate plot of land, a foreign investor does not receive full ownership, but only the right to live. The land can be leased for 30 years under a contract that can be extended for this period twice more. The exception is the purchase of apartments in condominiums, since there is no question of buying land here.
Ownership can be obtained in several ways. Real estate can be purchased on behalf of a Thai citizen who is the spouse or relative of the investor. One of the most popular options is to set up a company in Thailand and buy real estate and land on its behalf. The adoption of new laws has complicated this procedure, which has slowed down the pace of market development.
Real estate agents' commissions in Thailand amount to about 3% of the real estate value. The transfer of ownership rights will cost the investor 2% of the purchase price, notary services – 1%, and you will also have to pay a stamp duty of 0.5%.
Malaysia
Malaysia, whose government actively encourages foreign investment in real estate, can compete with the over-popular Thailand. For those who want to buy a summer residence or live in the country, there is a special program "Malaysia is my second home". To participate in the program, you must meet a number of financial conditions. A year before the purchase of real estate, at least $86,000 must be deposited into the investor's account opened with the Bank of Malaysia. After making a purchase, the account must always have $30,000 in it. These rules apply to participants who are under 50 years of age. Program participants over the age of 50 must deposit at least $30,000 into their account one year before purchase, or provide proof that their monthly income is at least $3,000. The program gives foreigners the right to buy two residential properties worth at least $43,000. Then the buyer receives a visa with the right to stay for five years, which can be extended, and tax benefits.
"There are many investment opportunities in Malaysia, especially exclusive projects with a good location," says Ray Wieders of Property Frontiers. – It is better to buy real estate in the central areas of the Malaysian capital Kuala Lumpur. An excellent choice would be to buy on the popular tourist island of Langkawi, located 30 km from the northwest coast of Malaysia."
Property Frontiers is selling the real estate of an upscale Goldhill Gardens condominium located in Kuala Lumpur. The complex offers magnificent views of the city and the courses of the prestigious Selangor Golf Club. The condominium has apartments with one, two and three bedrooms, their cost is from $164,000.
"Property prices in the popular central areas of the capital have increased by up to 15% over the past year," said Simon Marshall of Malaysian Property Partners, "The same price increase is observed in neighboring coastal resorts such as Port Dickson, where high–end real estate is being built. Buying real estate here is profitable and safe, thanks to constant demand, one of the highest price growth rates in the country and rental income, which averages 8% per year. The average price of 1 sq. m. m in the capital is $150, and in popular complexes such as Troika, designed by Norman Foster, and K Building, it costs about $300." Investors are also attracted to the new Johor Bharu district, where infrastructure is actively developing and a casino will be built.
In Port Dickson, Malaysian Property Partners is selling apartments in the Marina Views complex for a price starting at $120,000. In another complex, Banyan Curve, real estate is slightly more expensive – from $152,000. The houses with a private pool, garden and balcony are built on supports directly above the sea surface. And at 20 min. from the capital, on the coast there is a luxury residential complex The Mines with villas priced from $ 2 million.
When choosing a house in Malaysia, it should be borne in mind that the purchase price will be about 5% higher than the value of the property – due to the payment of stamp duty and fees for legal paperwork.
"Investing in building your own home will also be beneficial," says Andy Davidson, editor of Expat Magazine. – A plot of land with an area of 4000 sq. m. m can be bought for a price starting from $60,000. Building a four-bedroom house will cost $200,000 or even less if you choose a simple project."
Indonesia
When planning to buy a property in Indonesia, investors most often think about the island of Bali. Prices here range from $100,000 to several million. Three-bedroom villas cost from $300,000 to $500,000 depending on the location. "In the future, Bali will be able to compete with Phuket, as the annual growth in real estate prices could reach 12% by 2010," notes Oki Lukita from Alila Hotels and Resorts. "Now the purchase is especially profitable, as prices have recently decreased and are projected to start rising again soon."
In Indonesia, foreigners cannot legally own land and even development firms do not receive full ownership of land. Therefore, the best choice would be to buy real estate in the resort, where the construction company has received permission to implement the project. One such example is the Alila Resort, where one–bedroom apartments cost from $400,000 and villas are priced from $1.35 million. Upon purchase, the right to use real estate and a land lease agreement for 30 years are issued, which can be extended. The second option, which allows you to own land, is to create an Indonesian company and buy on its behalf.
When buying, you will have to pay VAT in the amount of 10-20% of the value of the property, 5% for the transfer of ownership, and notary services will cost about 1%. In addition, you will have to additionally pay an annual real estate tax of 0.5%, and if the purchase is made through a company, also a tax on the income of legal entities.
Vietnam
Vietnam lags far behind other countries in the region in economic development, but the situation is improving, and more and more tourists and investors are coming to this exotic country. "There is a high demand for high–quality real estate in the local market, but there is a lack of supply," says real estate agent Dinh Huang Thap. "They invest mainly in popular areas near the cities of Hanoi and Ho Chi Minh City."
Real estate in Vietnam's largest and most luxurious Saigon Pearl complex, under construction in Ho Chi Minh City, costs from $112,000. Excellent infrastructure has been created here, many shops, a wellness center. It will be advantageous to purchase real estate for the purpose of renting. The price of 1 sq. m. The cost ranges from $1,300 to $3,300, and the monthly income from renting, for example, modern two-bedroom apartments will be from $1,200 to $2,000.
It is worth thinking aboutbuying real estate on Phu Quoc Island, where many new complexes are being built. Legislative conditions have been created in this area that are more favorable for investors, and it is also planned to expand the local airport. Small cottages in the new complexes sell for $200,000, and large luxury villas cost about $1 million. In Vietnam, foreigners do not receive full ownership rights, but they can lease land for 50 years. In this regard, many investors prefer to buy apartments in condominiums.
China
Buying property in China has been considered very profitable in recent years, as prices in major metropolitan areas such as Beijing and Shanghai have grown by an average of 20% per year. However, the government, concerned about a significant proportion of foreign buyers, artificially reduced demand by banning the purchase of real estate by foreigners who have lived in the country for less than a year. This decision is not retroactive, and investors whose name is already included in the contract registered by the government will not lose their property.
Following the drop in demand, prices also decreased slightly. Ray Wieders from Property Frontiers advises property owners in China not to panic about this, but to wait 5-10 years without selling their property. During this time, prices are likely to rise again, and the legal situation may change, including in connection with China's intention to join the World Trade Organization, the rules of membership in which the new law contradicts. "If you bought a property in China, then you still haven't lost," says Ray Wieders. "There are all the conditions for market development and profit, investors just have to wait a little bit." In general, this example shows that before investing in an emerging market, it is worth thinking about possible risks.
