Real Estate Guide for Koh Tao

4 Jul 2021

Land and property on Koh Tao are purchased for both personal and commercial purposes, and rental return percentages are typically in the double digits. If you're looking for a quiet retreat, a rental or guest-oriented project, or even a long-term family home, now is the time to buy.

 

Life on Koh Tao

While it's doubtful that you'll grow bored diving while living on Koh Tao, there are lots of other things to do on the island while you're not training. Rock climbing, abseiling, and cliff jumping are some of the other activities available. A yoga session or a flying trapeze class could help you relax or get your adrenaline going. You could take a taxi (land or water) or a bike to some of the island's quieter beaches and bays, or go along some of the island's superb hiking paths. You may enrol in Thai cooking classes to learn how to prepare some of your favourite regional foods. Alternatively, you may unwind at one of the numerous beach bars and take in the stunning sunsets before exploring Sairee Beach's busy nightlife scene. There's something for everyone – every afternoon could be a Sunday afternoon, and every evening could be a Friday night!

Potential

Koh Tao has immense appeal as a unique tropical island retreat for mid-and upper-market vacation travellers, as well as the growing number of long-stay and permanent inhabitants. In the case of Koh Tao, a lush, exotic, and beautiful setting, it is the sustainability and accessibility of a pristine tropical environment that draws back past travellers and attracts new ones.

 

Buying a house

Buying property or a house as a foreigner can be done in two ways:

 

1. Long-term contracts with Leasehold
Foreigners can sign into 30-year lease agreements in which they are protected in the same way that freehold owners are. The contract can be renewed or extended twice, with the foreigner having 90 years to possess the land. He/she will not take possession of the asset after the arrangement expires, as the substantial item is removed from the estate.

 

2. Company with Limited Liability 
The formation of a limited liability corporation (LLC) in Thailand is a decision that does not fully accommodate persons with limited financial resources. Every organized company in the name of a foreigner has its freehold land registered in the company's name.
If one foreign investor is only eligible for a maximum of 49 per cent, this method would necessitate the presence of two or more foreign shareholders. The land, on the other hand, is given to the company's international managing director, who has complete authority over voting and other shares.

 

Between the two possibilities, the lease option appears to be far less stressful, owing to lesser expenses. This is due to the fact that it requires adequate legal assistance.

 

Using an agent

To begin, purchasing a home in Thailand necessitates the help of a property lawyer to guide you through the legal process, which can be complicated for foreigners. When we talk about real estate transactions in Thailand, it's typical to think of the land and the house as the main emphasis of the transaction. The Land Code of Thailand, however, places restrictions on foreign land ownership. Although foreign ownership and improvement of land are not permitted, there are exceptions to this rule. When shopping for real estate on Koh Tao, choosing the right real estate agent is even more important than when looking for property in one's own nation. This is because the Thai real estate industries would be far less familiar with them, and hence with market values and varied locales. You may also have a lesser awareness of the legal issues that govern the acquisition of real estate in Thailand compared to those that govern the acquisition of real estate in your home country. Take your time to find the greatest real estate agent for these needs. Look for a reputable, independent agency that isn't tied to any one project.

Location

When you buy real estate, you're making a lifestyle decision as well as an excellent investment. For these reasons, many individuals overlook this and instead focus on the sun, sea, and sand when purchasing a home, rather than considering the location's merits and drawbacks.
It's a good idea to consider resale value and choose a location with easy access to all parts of the island, fantastic tourist attractions, and plenty of facilities. This does not exclude you from purchasing property on the island's periphery, as some of the most beautiful regions are found here. When choosing your land, keep in mind potential future resale, and make a list of the merits and downsides of each location.
While buying land or property here, you should think about your lifestyle when determining where you want to be. Different places have distinct characteristics and elicit extremely different emotions.
There are a few distinct neighbourhoods on Koh Tao, most of which are centred around the island's several bays. We recommend visiting at least three or four distinct neighbourhoods on each visit to Koh Tao to get a good sense of the island.
On Koh Tao, Mae Haad is the main town and ferry port. This village, which has a large selection of stores and restaurants, is also where you'll find the best lodging alternatives. Mae Haad has something for everyone's budget.
Sairee Beach is located north of Mae Haad. This is the island's liveliest and most energetic region, with the best pubs, clubs, and nightlife establishments.
To go to Chalok Baan Koa and Thian Og Bays, travel south of Sairee and Mae Haad. These locations, which are located on the island's southern shore, are known for their beautiful beaches, quiet shallow waters, and diverse wildlife.
Tanote Bay is located on the island's east shore. This harbour, which is difficult to get to, has a stunning natural landscape and beautiful beaches. The area is quieter than the rest of the island, this bay makes up for its lack of nightlife with breathtaking vistas.

 

Property Type

Even if you don't want to build your own home to your exact requirements and instead want something you can use or live in right away, you should carefully examine the type of house or construction you want to invest in. The number of bedrooms, if it has a swimming pool, the size of the living accommodation, how modern the utilities are, and other factors will all influence your decision and lifestyle. There is the option of purchasing managed villas, which are cleaned and maintained by a company for you when you are not present, and which can also be rented. If you want to live there all year, this is a different story, but you can hire cleaners and upkeep for a reasonable price.
If you are building your own home, you will require the services of an architect. It's critical to choose the right design team for the style and budget of your building. The architect/designer should be chosen among designs that are acceptable and meet the design criteria and specification requirements that you desire, based on a proven track record. When a design team is chosen, they will work on the client's design brief. At the conceptual design level, the consumer can pick how active the desire is. Some customers prefer to leave it to the designers/architects, while others enjoy the process and want to be more engaged. This is also true farther down the design level when it comes to crucial features like material needs and finishing.
Some purchasers will demand a lavish multi-bedroomed high-spec villa with a pool, nearly luxury-style, while others will be content with a more modest property that meets some Western-style criteria for year-round living. On Koh Tao, you can choose from a wide range of property types to buy off the shelf or build yourself.

 

Summary

The island of Koh Tao is a fantastic spot to live and invest. Whether it's for rental purposes, as a second house, or as the last home to relocate with family, there's a home for you. There are various agencies that can assist you with the legal side of things, as well as architects and construction businesses that provide high-quality work. While Koh Tao keeps its island charm, it is still possible to live comfortably and make the most out of your hard-earned money.