Absentee ownership in Bangkok’s real estate market is a type of property ownership. This ownership implies that the owner does not reside within the property.
Foreign investors often engage in absentee ownership in Bangkok.
Absentee ownership differs from direct ownership in several key ways. Owners under direct ownership typically occupy their properties.
Absentee owners, conversely, purchase properties primarily for investment purposes, such as condominiums in Sukhumvit or luxury villas in Thonglor.
One popular feature of absentee ownership includes hiring property management services. These services ensure investment properties like high-rise apartments in Asoke remain well-maintained.
Another feature entails using the property for short-term rentals. Platforms like Airbnb allow absentee owners to generate income from their properties.
Absentee owners often leverage local real estate agencies. Agencies facilitate transactions and manage properties on behalf of foreign owners.
Common features of absentee ownership also play a significant role. Absentee owners typically pay property taxes.
These taxes apply irrespective of the owner’s residency status. They also bear legal responsibilities.
Owners must comply with Thai property law, which governs foreign ownership. Absentee owners engage in remote property transactions.
Technological advancements enable owners to buy, sell, or manage properties from abroad.
Unusual features of absentee ownership include participating in leasehold arrangements. Due to Thai laws restricting foreign freehold ownership, foreigners often opt for leasehold options.
Another feature involves engaging in co-ownership structures. These structures allow foreign investors to part-own properties with Thai nationals.
Absentee owners might invest in property development projects. Such investments are strategic, aiming at capital gains over time.
Unique features of absentee ownership entail owning through a Thai company. This method circumvents certain restrictions on foreign ownership.
Owners might also engage in extensive renovation projects. Absentee owners renovate properties to increase value or appeal for rental markets.
Some absentee owners use their properties as part of exchange programs. These programs allow them to stay in similar-value properties worldwide.
Absentee ownership shares similarities with indirect real estate investments, like REITs (Real Estate Investment Trusts), but offers more direct control over the asset. Unlike REIT investors, absentee owners decide on property management, rental rates, and sale timing.
For further details on terminologies and concepts mentioned, refer to our glossary about Bangkok real estate.