# Capital appreciation

Source: https://www.thailandpropertyinvestor.com/glossary/capital-appreciation

**Definition:** Capital appreciation is the rise in a property's market value between purchase and sale. Together with net rental income, it makes up the total return on an investment property.

The gain that counts is the one left after costs. From the sale price deduct the purchase price, the costs of buying and the costs of selling: your share of the 2% transfer fee, specific business tax at 3.3% if you sell within five years or stamp duty at 0.5% after that, withholding tax and the agent's commission.

Four things shape appreciation for a foreign owner in Thailand:

- Asking prices are not sale prices. Most market price figures track what developers ask for new units, not what resales achieve.
- The resale market is thinner than the new-build market, so selling can take time.
- Tenure matters. A freehold condominium is a permanent asset. A leasehold loses value as its registered term runs down.
- Currency. Your return in your home currency depends on the baht's movement over the holding period, in either direction.

Past price growth in an area is not evidence of future growth, and no developer can promise it. See [selling property and repatriating funds](https://www.thailandpropertyinvestor.com/guides/selling-property-and-repatriating-funds) and [rental yields in Thailand](https://www.thailandpropertyinvestor.com/guides/rental-yields-in-thailand).