With a strong economy and good capital appreciation, Thailand is increasingly looking like a great place to invest in property. The pull of Thailand has never been difficult to understand. The heady combination of endless perfect beaches with warm, turquoise  waters; breathtaking scenery; delicious food; a low cost of living  and friendly locals have all resulted in a tourist boom.

Plus in recent years, Thailand has also attracted its fair share of property investors keen to snap up their own slice of paradise and make a tidy profit. The 2004 Tsunami has long been forgotten and overseas buyers have returned with a vengeance but smart money still needs to be careful. That being said, Thailand is Asia’s top tourist destination, offering world-class services, fabulous healthcare, good schools and excellent infrastructure. It is now easily accessible and distance is no longer a problem.

Presently capital appreciation is around 10% - 15% per annum. Thailand enjoys the most buoyant tourism industry in South-East Asia, a strong economy and good trade links with China. These strengths are set to continue pushing up property prices.

There is slightly unclear legislation regarding foreigners being entitled to freehold ownership. Foreigners are not currently allowed to own the freehold of any house or villa – however, many industry professionals believe that this will soon change. Thai law does, however, allow foreign freehold ownership of up to 49 percent of a condominium block – provided that the buyer has been granted Thai residency under the Immigration Act, as part of the Investment Promotion Act (IPA). In order to obtain a freehold purchase, overseas buyers have to send the funds into Thailand from a foreign bank. A Foreign Exchange Certificate, Thor Tor 3, will then be issued as proof of the receipt of funds.

Should the limit have been reached for overseas nationals buying freehold in a condominium, or if you intend to buy a villa, the other option is to buy leasehold. Currently, leases are issued for a period of 30 years, after which you can renew the lease for two subsequent 30-year periods (in effect, a 90-year lease is offered). A final option – and one that has been favoured in the past – is to set up a Thai company (many developers actually do this on the buyer’s behalf nowadays). However, following attempts to reduce the number of companies being established for this purpose, many agents are now advising against it. Your first move, should be to consult PeregrineLaw, who will ensure that you receive the best legal advice to guide you through the process.