What are the Advantages ofBuying a Condo or Apartment in Chiang Mai, Thailand?
Chiang Mai has very strong growth in the real estate sector, as well as in most others sectors of the economy. Until recently quite undeveloped compared with other Asian cities, Chiang Mai has recently had a boom in trade, tourism, manufacturing, and technologies, which are all finding welcoming site in this city located in the north of Thailand. With the general growth in the economy, real estate has experienced a corresponding surge.
Why a Condo and not a House?
Condos are popular for several reasons. First, they are more convenient, allowing the buyer/resident to come and go as they like without concern for security. While houses can be victim to burlarlies when left vacant for extended periods, condos as a rule have good security. In addition, it is much harder for a burglar to target a condo as they are less visible to prying eyes.
But safety aside, condos offers a great amount of amenities not available in townhouses or even the larger suburban developments. Many have saunas, pools, and other features that make them desirable to those with a taste for fine living.
It’s not only amenities and safety features that set condos apart as the preferred property acquisition. Location of condos is usually superior to that of available houses, so for anyone who wants to visit the trendiest and hippest areas of Chiang Mai, a condo is usually the best bet.
In addition, foreigners can own condos, while they cannot legally own land. While there are legal arrangements which can be made to acquire land, for foreigners the most convenient option is typically to buy a condo in a building that is majority Thai owned. After the sale of the condo, if the building is still in 51% Thai ownership, all is fine.
Return on investment is typically in the range of 8%-12% of the purchase price, based on renting out the unit. While many condo owners use their property as their accommodation, many others choose to rent it out year-round or for part of the year.
As the property market expands, there is for most property an increase in price from anywhere between 5% to 10% per year. So whether you plan to keep your property or sell it in some time, it will be a good investment.