Thailand going back to democracy after a 15 month military rule has already had a positive impact on the property market. There have been a notable number of deals completing during the high season in Phuket as well as more visitors to the sole agency projects.

The newly elected government has begun to take initiatives toward a more open and favorable policy for foreign property investors. The new government has already taken away the 30% capital control which is thought to support bringing back foreign investments.

Property financing for foreigners in Thailand is available. When we buy a property back home, one of the first things that come to our mind is financing. Even for those who have enough funding and liquidity for owning a property, financing is often perceived as a way of leveraging our investments. For buyers with less access to funding, financing is an unavoidable vehicle they utilize to own that dream home.

Considering this, Thailand is the same as any other country. Most of the financial institutions in Thailand offer loans for real estate purchases to local Thais and Thai companies centered on similar criteria we are familiar with in our home country. However, the similarities do not extend from there for most foreigners buying property in Thailand.

The issuing of the new tax incentive package is also an attractive move for the property market. This is anticipated to fuel market sentiments on both the demand and supply side. Property Transfer fee will be decreased from 2% to 0.01% and Specific Business Tax for property transactions will be decreased from 3% to 0.1%. Reliability in the market could be improved further by longer lease terms, stretching from the current 30 years to 90 years.

The beginning of business lending to foreign property investors should also be considered by the government. Policies like these would enable Thailand to keep pace with its emerging neighbors, Vietnam and Malaysia, relating to property purchase terms. It is expected that there will a more encouraging outlook for the Thai property market in 2008 than in 2007.

Since the December election, foreign investors have shown increased interest. Established developments have witnessed a particularly alive high season. Newly awarded projects have also met with a positive response. A similar trend is witnessed in Samui with a clear rise in visiting and purchases of resort properties. It is anticipated that there will be further demand in Samui with surge in flight schedules.

The Samui market for luxury villas is closing on Phuket, with the establishment of international hotel brands wooing quality tourism. Samui has traditionally been a less favored beach destination, but this not at all the case now as it is emerging rapidly as a beach destination. Lot of high net worth investors is now increasingly keen.

The Treasury Department – recent land value appraisal displayed that land values in Phuket have rose by an average 160 per cent over the past four years, with Samui prices following closely. The steady rise in land prices on Thailand – coast points to the confidence in the market and its long term prospects. If you are ready to forget the unfriendly past of Thailand and show renewed faith you are set to benefit.

Ongoing, an investor may require paying income tax on an income he attains from his investment property in Thailand but may be quite happy to realize that there is presently no capital gains tax in Thailand. There is also a Land Tax and Structures Usage tax that an overseas investor may have to pay on their property assets but both are very much affordable. Wise men always go for the right choice and this is definitely one among them.

It is difficult to determine the type of culture which existed in Thailand before the Christian era, since no written records or chronologies exist but archeological excavations in the area north of Nakorn Ratchasima indicate that there were people living here over 4000 years ago. Thailand (previously known as Siam) has been populated ever since the dawn of civilization in Asia. There are conflicting opinions of the origins of the Thais. It presumed that about 4,500 years the Thais originated in northwestern Szechuan in China and later migrated down to Thailand along the southern part of China. They split into two main groups. One settled down in the North and became the kingdom of “Lan Na” and the other one is in further south, which afterward was defeated by the Khmers and became the kingdom of “Sukhothai”.

In the early 16th century, the European visited Ayutthaya, and a Portuguese embassy was established in 1511. Portugal’s powerful neighbor Spain was the next European nation to arrive in Ayutthaya forward the end of the 16th century. In the early 17th century they saw the arrival of two northern European, the Dutch and the British, and France in 1662.

In the mid-16th century, Ayutthaya and the independent kingdom in Chiang Mai was put under the control of the Burmese, but Thais could regain both of the capitals by the end of the century.

The Burmese invaded Ayutthaya again in 1765. This time Burmese caused much fear to Thais. Burmase soldiers destroyed everything, including temples, manuscripts, and religious sculpture. After the capital fell in their hands for two years, the Burmese effectiveness could not further hold the kingdom. Phaya Taksin, a Thai general, promoted himself to be the king in 1769. He ruled the new capital of Thonburi on the bank of Chao Phraya River, opposite Bangkok. Thais regained control of their country and thus scattered themselves to the provinces in the north and central part of Thailand. Taksin eventually turn himself to be the next Buddha and was dismissed and executed by his ministers who did not approve his religious values.The British gained a colonial foothold in the region in 1824, but by 1896 an Anglo-French accord guaranteed the independence of Thailand. A coup in 1932 demoted the monarchy to titular status and established representative government with universal suffrage. At the outbreak of World War II, Japanese forces attacked Thailand. After five hours of token resistance Thailand yielded to Japan on Dec. 8, 1941, subsequently becoming a staging area for the Japanese campaign against Malaya. Following the demise of a pro-Japanese puppet government in July 1944, Thailand repudiated the declaration of war it had been forced to make in 1942 against Britain and the U.S.

The politics of Thailand took some significant turn on 24 June 1932 when a group of young intellectuals, educated abroad and imbued with the concept of Western democracy, staged a bloodless coup, demanding a change form absolute to a constitutional monarchy, Determined to avoid any bloodshed, His Majesty King Prajadhipok (Rama VII) agreed to the abolition of absolute monarchy and the transfer of power to the constitution-based system of government as demanded. On 10 December 1932, His Majesty King Prajadhipok signed Thailand first constitution and thus ended 700 years of Thailand absolute monarchy. Despite the number of successive constitutions that followed in the span of just over half a century, the basic concepts of constitutional government and monarchy laid down in the 1932 constitution have remained unaltered.

Today Thailand is a constitutional monarchy with His Majesty King Bhumibol Adulyadej, or King Rama IX, the ninth king of the Chakri Dynasty, the present king. The King has reigned for more than half a century, making him the longest reigning Thai monarch. Thailand embraces a rich diversity of cultures and traditions. With its proud history, tropical climate and renowned hospitality, the Kingdom is a never-ending source of fascination and pleasure for international visitors and Thailand property investors. With the incredible number of visitors who simply fall in love with this mesmeric paradise of a country who find themselves returning year after year, its hardly surprising to hear of the high rental opportunities offered to any investor with a Thailand property and real estate. Combined with the fact that globally attractive Thailand boasts 1 of the worlds most empowered and foreign investment boosting economies. Contemporary apartment’s flats and villas that are each ideal for property in Thailand investment or recreational purposes can be found in abundance within the country borders. With the country’s infrastructure developing at a remarkable pace, land prices are on notably on the increase too which, for property owners, is nothing but reassuringly good news.