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The current demand for Koh Phangan real estate is fantastic, better than it has ever been when it comes to buying property on Koh Phangan. For both private and commercial purposes, buyers are purchasing properties and rental return percentages are typically well into double figures. The time to buy is present, whether you are looking for your own relaxing getaway, a rental or guest-oriented project or even your long term family home.
One of the best feelings about life on Koh Phangan is a sense of liberation. With a more relaxed lifestyle and the vibes of the island that this tropical paradise offers, living long term or staying in your property amongst nature will surely make you feel freer.
Phangan's warm climate and beautiful environment means it's a lifestyle where you'll enjoy spending a lot of your time outdoors. We all know that spending more time outside is good for us, not being cooped up in cramped offices to work, or constantly on public transport to travel.
Koh Phangan draws tourists from all over the world who do all sorts of activities, as well as friendly Thai island locals. You are likely to meet and become friends with individuals who in your home country would never have crossed your path. One of the major benefits of the island and Thailand as a whole is that the cost of living is more reasonable than elsewhere in the world. This also includes real estate prices, you’ll get much more for your money than back in your home country.
Koh Phangan has enormous potential to cement its reputation as one of the chosen, niche tropical island escapes of Thailand for mid-and upper-market holiday travellers, as well as for the rising number of long-stay and permanent residents. Ultimately, in the case of Koh Phangan, a lush, exotic, and graceful setting, it is the sustainability and accessibility of a pristine tropical environment that draws back past tourists and attracts new ones.
Firstly, in Thailand, buying a house will mean you need the use of a property lawyer who can direct you through the legal process. Thai property law can be confusing and largely unregulated.
It is a common connotation when we talk of real estate transactions in Thailand that the focus of the sale is the land and house. There are, however, limits on foreign ownership of land under the Land Code of Thailand. Although foreign ownership of, and improvement of land is not permitted, there are exceptions to this law.
It is possible to buy a house or villa on Koh Phangan as an outsider with the land in two ways;
1. Long-term contracts with Leasehold
Foreigners can enter into lease contract deals spanning 30 years during which they are equally protected as owners of freehold. The contract may be renewed or extended twice and the land may be possessed by the foreigner for a period of 90 years. He/she will not, however, take ownership of the property after the agreement ends, as the material asset is removed from the estate.
2. Company with Limited Liability
The creation of a limited liability company in Thailand is a choice that does not entirely accommodate individuals with limited financial power. Each organized business bearing the name of a foreigner has its freehold land registered in the company's name.
With this strategy, when one investor is eligible for a maximum of 49 per cent, there would need to be two or more foreign shareholders. The international managing director of the company, however, who controls voting and other shares, gains complete control of the land.
The lease route seems to be much more stress-free, particularly due to smaller fees, between the two options above. This is in view of the fact that adequate legal aid is involved.
Thailand's real estate market, particularly on Koh Phangan, has exploded in the last decade, with more tourists and investors wanting to reside here or use it as a vacation destination. While many individuals want to purchase a home on Koh Phangan, it is important to consider the following factors before doing so:
Always contact qualified lawyers and reputable estate agents when seeking real estate advice in Thailand. Their experience will definitely aid you in finding the best deals and protecting your rights while buying real estate.
Many of the problems that may arise while buying a house on Koh Phangan can be avoided if you start searching for a property early on. Make sure you're familiar with any relevant regulations or legislation. You can read this full guide for buying a house on Koh Phangan to get yourself knowledgeable before looking.
It is critical to determine what you want before purchasing land. Which region do you wish to live in or own property in, and what will you do with it? In most instances on Koh Phangan, getting on your bike and riding about is a smart way to get started. Check out what you can discover by the side of the road with land for sale/rent signs and see what they all have to offer in their own distinctive manner.
Check internet organizations and real estate brokers on the island, or ask your Thai or international friends if they know of any land for sale. Agents may also assist you with the legal aspects of the transaction, making it a fantastic choice for a stress-free purchase. Here is the full guide to buying or leasing land on Koh Phangan should you wish to know more about this particular subject.
You have full control over all of your wants and needs in terms of location, home design, and materials used when you build your own house or villa, and it's a lot less costly than you would think.
Property prices will almost definitely increase as soon as houses are built on Koh Phangan, which has a booming property market and the added benefit of being a natural beauty destination. Building your own house on the island is a wonderful financial and personal investment.
There are many rules and regulations to follow when building on this island so check out this article Building a house or villa on Koh Phangan which has all of the info.
On this map, each colour symbolizes a separate set of construction rules and restrictions. The yellow region, for example, is a business district, whereas the green area is mostly residential, consisting of homes and villas.
The first 12 kilometres of the shore belong to the Kingdom, and you cannot prevent people from going to the beach anywhere on the island. The maximum area of a building is 1000 square meters, and the maximum height is 12 meters.
The choice of the right real estate agent is even more critical when looking for real estate in Koh Phangan than when a buyer is searching for property in his own country. This is because the real estate industry in Thailand, and Phangan, would be much less familiar with them, and therefore less familiar with market prices and different locations. In general, they would also have a poorer understanding of the legal issues that control the acquisition of real estate in Thailand compared to those that exist in their country of residence. Spend some time selecting the best real estate agent for these purposes. Look for a well-established and independent agent, not connected to any specific development.
You are making a lifestyle decision AND an apt investment when buying real estate. For those reasons, many people forget this and see the sun, sea, and sand, and buy a property without really thinking of the location benefits and downfalls.
It might be wise to think about potential reselling and so to choose a place with links to all locations on the island, great tourist spots, and lots of amenities. This does not stop you from choosing property on the outskirts of the island, however, as some of the most beautiful areas are located here. Include your thoughts on potential resale in the future when choosing your land, remember to list the benefits and disadvantages of each location.
You may want to consider your lifestyle while deciding where you will position yourself when you buy land or property here. Different places have different aspects and yet very different feelings.
Popular for the monthly party, but it also has plenty to give and it can be a good place for ex-pats to live in the area just before it, on the hills.
The quietest and least populated side of Koh Phangan is this part of the island and it has some beautiful views both on the coast and inland.
Thong Sala, Koh Phangan's main hub, has developed into a bustling atmosphere full of cool bars and restaurants open both daytime and night, both in western and local styles. Baan Tai, which hosts parties such as Jungle Experience, Waterfall Party, Half Moon and Loi Lay Floating Bar, is now the main party location. If you fancy a dance or a bar crawl, it is a perfect place to be in the evening.
This part of the island is renowned for being the island's diving centre. This neck of the woods is the main village of Chaloklum and it is full of numerous diving centres. Chaloklum is a beautiful, warm community that blends well with the Thai people of the region.
Sri Thanu is known for its yoga and spiritual colleges, and around this place, there is a certain 'calm' in the air. There is Hin Kong along the coastline, a very beautiful coastline with views across the ocean to Samui and some of the island's best sunset spots.
If you don’t want to build your own property to your own specifications and want something you can use or live in straight away then you will still need to consider carefully the type of house or build you want to invest in. Things such as the number of bedrooms, whether it has a swimming pool, size of living accommodation, how modern the facilities are etc will all be important for your purchase and lifestyle. There is an option to buy managed villas, those which are cleaned and maintained by a company for you when you are not there, these would be rentals as well. This is different if you wish to live there all year round, however you can employ cleaners and maintenance for a good cost here.
If you are building your own property then what you will need is an architect. It is important to select the correct design team for your building's style and budget. On an established track record, the architect/designer should be selected from designs that are acceptable and suit the design specifications and specification requirements that you require. When picked, the design team will work on the client's design brief. The consumer may choose how active the desire is at the conceptual design level. Some consumers choose to leave it to the designers/architects, and some love the whole experience and want to get more involved. When it comes to essential elements of material requirements and finishes, this is also true further down the design level.
Some buyers will require an extravagant multi bedroomed high spec villa with a pool, almost luxury-style, whilst others will be happy with a more modest house yet still meeting some more western-style standards for all-year-round living. Whatever you require, all options of property type are available on Koh Phangan to buy off the shelf or to build yourself.
Koh Phangan is a wonderful place to live and invest. Whether it is for rental purpose or as a second home, or even your final one to relocate with family. You will find many agents that can help you with the legal side of things and architects and construction companies which are creating high-level work. Koh Phangan retains its island charm yet you can still have a good level of living here and get more from your hard-earned cash!