Even though the “home currencies” of many expats are still weak, and therefore the exchange rates to Thai Baht are still fairly low, buyers should not postpone buying decisions and rather use the favourable buyers market. This in addition the two strong markets of China and Thailand looking to capitalise on condominium bargains in Pattaya has to some extent offset a real estate collapse in the seaside resort. There are basically three reasons why the Pattaya real estate market has stayed fairly stable, and large developers are still building state-of-the-art projects.
In the past the property market in Pattaya has been largely determined by foreign investors. This situation has gradually changed, the more affluent Thai’s are now looking to buy a weekend home or place their hard earned salaries into property investment. And the Chinese property revolution has firmly come to Thailand shores. Concerning foreign buyers the fact that they have little chance of raising a mortgage in Thailand means that any property sales are normally cash and not financed, therefore putting revenue straight back into the market. This means that a credit-financed housing bubble can virtually never happen in Thailand. This in turn gives the whole real estate market in Thailand an enormous stability.
In Pattaya a great proportion of investors are foreigners, and also from very rich countries in the West. This means that if the currency of one country falters, another country might have a better economy and step in to fill the breach. It is the constant balancing of fluctuating countries that gives Pattaya inherent stability concerning the real estate market. There are few places in the world that have such a large and varied potential customer base.
The fact that Thailand has no capital gains tax or similar taxes based on profits from real estate investment is a great attraction to many investors across the world. Even if you buy and sell within a month, all profits are exempt. Taxation on rental incomes is also quite low at 12.5%, so due to the double taxation agreements with most western countries, rental incomes can be enjoyed at low taxation without running the risk of coming foul of home nation tax authorities. The most sensible route before considering investing in Pattaya Real Estate to to talk to people who know the local market. The Global Top Group have a team of knowledgeable experts who can give excellent advice on everything concerned with real estate in Pattaya, it is a good idea to contact us today to get all the relevant current information.