Complexity of choice: what do they need to do with the land?

In 2020, Thailand will introduce a new land tax, which will be another challenge for the landowners and the Thai real estate market itself.

There is a lot of undeveloped land plots in Bangkok and that raises one significant questions with the owners about usage of these land plots. The main hassle is that when the tax is implemented, they will have to start paying significant amounts of money every month. Now landowners are intensely thinking about the commercial use of their land.

This can cause risky situation for the owners without experience and knowledge of the market. You can simply build something, which has no prospect for demand, and ultimately owe much more to the bank than the amount of property tax. For many properties, commercial development of office, retail or residential rental premises will not be possible due to the location or size of the land.

The only decision is to see how much tax you will have to pay, and then carefully study the options. For example, a parking lot may be the best solution in heavily populated areas. You can also build a condotel, that become the most popular segment of commercial complexes, while the housing cost raises.

There is always a choice!