Why Buy Property on Koh Samui?
Investors perceive property purchases on Samui as attractive in the long term as the island can only continue to grow thanks to its idyllic location and constantly improving facilities and services. Indeed, the level of improvement in infrastructure is very noticeable in the most popular areas of Koh Samui. The demand has cooled a little over recent years due to uncertainties surrounding foreign ownership, but most local experts believe a second property boom will follow once the legal aspects are made clearer. Although the island has seen a slowdown during the world recession, there are still plenty of domestic and international investors that believe it’s a good time to get in ahead of the next rush.
For those looking to cash in on the current market conditions, there is an expanding resale sector that offers occasional bargains, especially for those with foreign currency to invest. A consistent supply of foreign buyers and tenants has helped keep prices buoyant and at the same time maintains the value of properties and project developments on Samui.
The fact that Samui is now considered an attractive places to relocate means that the foreign community is growing. This has had an effect on the supply and prices of properties and as the island also becomes more popular for holiday rentals, a robust sales demand based on yields is likely to take over from sales for purely residential purposes.
Investors interested in Samui as alternative to Pattaya or Phuket, will find less options when it comes to completed properties, although there are more options as smaller developments of luxury level properties start to be advertised for sale off-plan. Foreign purchasers most normally buy either through a leasehold structure off-plan or using a Thai Company structure to acquire the property.
Some investors have done well buying land and building their own properties for re-sale, however recent changes to land ownership laws make this option less secure than previously unless bona fide Thai partners can be found with the necessary capital to invest in the project. In-depth knowledge of land titles and due diligence should be a pre-requisite for investors considering land purchases on Samui. The legal process may seem ambiguous to newcomers, but there are certainly procedures to be strictly adhered to in order to guarantee a secure investment.