Thailand Real Estate

2006-08-28T00:24:00.000-07:00

Property Investor information for: Thailand

Exotic, vibrant, tropical, and welcoming - Thailand has it all. From the bustling metropolis of Bangkok to the party islands of Ko Samui and Phuket, Thailand has many attributes to inspire visitors and draw them back again and again.

Thailand is by far the most popular holiday destination for Westerners in South East Asia. Its popularity is such that is now sometimes know as the ' Spain of the East'. Gone are the days when this friendly nation was the preserve of backpackers. Thailand is firmly on the package tour map.

Thailand 's popularity with tourists has led to the development of a strong holiday home market, particularly in Phuket. Many properties are also owned by people from other parts of Asia as either second homes or investment properties. As recovery from the 1997 financial crisis has continued, these individuals have been joined by an increasing numbers of Western investors looking to make strong returns from a second home in this tropical paradise.

The most popular properties tend to be private villas or condominiums on purpose built developments. Resort areas such as Phuket, Ko Samui, Hua Hin, and Pattaya are seeing many such developments either released into the market, or in the pipeline. Interesting opportunities also exist in Bangkok and other major cities such as Chang Mai. Here serviced apartments are popular as both second homes and rental premises.

Currently there are restrictions on foreigners owning freehold property, hence the popularity of leasehold apartments. However, this is expected to change in the near future, providing a further boost to this already buoyant market.

http://www.thepropertyinvestor.net/reports/downloadarea.php?id=TH

2006-08-27T04:53:00.000-07:00

Thailand
Rating:

Property prices in Thailand remain far below those in the more established European markets, although they are experiencing strong growth once again at around 10-15% per annum following a period of depreciation. There is great rental potential, due to the ever-expanding tourist market, and demand is growing.

Thai Baht : Has regained a degree of parity following a period of recession that affected most Far Eastern currencies. Living costs in Thailand are among the lowest in the world. Nevertheless a modern infrastructure provides good facilities.

Economic climate : The Thai economy has rebounded during the past two years and considerably more investment has been finding a home in the property sector. The construction focus has been on higher end condominium properties. Rental returns have not fluctuated and are expected to rise on new inventory as the number of permanent expatriates is on the increase.

Capital Gains Tax : There is no capital gains tax for private investors and very low ongoing costs.

Popular buying areas : Phuket, Pattaya, Hua Hin, Koh Samui and Chiang Mai remain popular locations and a crop of new luxury developments are in progress aimed at foreigners. Bangkok is generally for expatriates who live and work in Thailand and high end business investment in prestigious projects.

Price ranges : Property prices are rising in line with the current economic outlook but range between U.S. $ 80,000 and 5 million and are dictated by the standard of building and location. Condominium projects in central Bangkok and luxury resort developments in Phuket and Pattya tend to be high value purchases.

Budgetary guide : Apartments: 2 bedroom from US$ 160,000, 3 bedroom from US$ 200,000, 4 bedroom deluxe villa US$ 425,000, 5 bedroom deluxe villa US$ 505,000, High Quality House: U.S. $ 85,000 to US$ 168,000. Basic apartments start from US$ 34,000 to two bed houses at US$ 85,000.

Overseas Investors : Despite legislation to the contrary, foreign owners can acquire property on a finite (50 years) or renewable (30 + 30 years + extension) leasehold basis or through a Thai company with a foreign joint venture partner.

Service Fees : Stamp Duty 0.5%, Special Business tax 0.11% (Vendor has owned property for under 5 years), “Income Tax” 1 to 3%( local version of VAT) & transfer fees 0.01% of sale price

Mortgages : Mortgages usually not available to foreigners, but developers often arrange local loans of up to 90% with the actual property as the loan guarantee.

Disclaimer:
Content in the country guide is updated every 3 months and is to the best of our knowledge accurate and up-to-date. The information contained is intented as a general guide - any opinions or property advise expressed are not necessarily those of Property World Middle East. Please contact us if you have any questions or corrections to the content in this section. http://www.propertyworldme.com/content/html/53.asp

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2006-08-27T04:50:00.000-07:00

Thailand: A Guide for Property Investors

As Thailand has become far more universally popular as a tourist destination, so its real estate sector has benefited from increased foreign interest and investment.

A property investor has a wealth of choice and opportunity in Thailand and in recent years the entire real estate sector has returned impressive capital growth figures as well as increased rental yield returns - but issues still remain relating to freehold ownership and these present an investor with a series of challenges to navigate.

Thailand was once such an exotic long haul destination that it acquired an almost mystical appeal with adventurous Western backpacking travellers in search of destinations with a difference. But the sophisticated development of tourism in Thailand now means that it is universally popular and accessible for all types of holiday maker. It is of equal appeal to the young and adventurous in search of vibrancy and excitement with Phuket and Ko Samui offering great nightlife as it is of appeal to those in search of culture and relaxation.

As a result Thailand has become the most popular South Asian country for holidaymakers and has spawned a holiday home market off the back of its tourism sector, especially around the resort town of Phuket.

The 2004 Tsunami’s devastating blow has not dented Thailand’s appeal and it has not restricted tourist numbers or the numbers of those buying second homes, investment properties or retirement real estate in the country.

The rise in the appeal of Thailand was fuelled by the country’s sudden increased affordability for overseas investors and visitors that followed on from a brief but uncomfortable period of economic uncertainty in Thailand that began in 1997 and resulted in the country’s currency, the baht suffering severe depreciation. The depreciation of the baht made holidays and properties in Thailand effectively cheaper for overseas visitors and investors and increased their purchasing power. An increase in overseas interest led to an increase in foreign investment and in turn this helped Thailand recover its economic fortunes and tourism still remains a key sector for ongoing economic success.

Property investors who bought real estate in Thailand post 1999 have witnessed impressive capital growth figures as Thailand has been enjoying a strong period of economic recovery. The best returning investments are apartments in the major cities which rent out to the domestic market and which have been enjoying increasing rental rates chargeable, as well as resort properties for development and resale to overseas second homers, retirees and expatriates.

The appeal of Thailand is obvious, the attractions of the property and holiday market are intense and the future prospects for the profitability of the property sector are very good indeed - however there are restrictions placed on overseas buyers who wish to own land in Thailand. It is possible for a buyer to own a property but not the land it sits on. The majority of those who buy in Thailand are interested in a single property - a holiday home for example - and for these people the typical solution is to purchase a renewable thirty year lease on the land and to pay for up to three renewals upfront and have a contract giving them first right to buy should the laws in Thailand change.

For an international property investor interested in multiple properties or even land to develop this option is not suitable. But as with any restrictive clause like this there are always ways around the problem and in Thailand there are many consultancy companies wiling to assist the overseas investor establish a limited liability company with a local Thai majority holding and negate the effectiveness of the Thai majority through the issuance of preferred and ordinary shares for example. This is just one such solution to a problem that is predicted to change anyway, and basically an investor who can recognise the opportunity for profit in Thailand’s property sector will soon navigate the necessary restrictions and controls and access the market and profit from it.

http://www.amberlamb.com/index.php/property/thailand/

2006-08-27T04:32:00.000-07:00

Thailand Property Investment Potential

The majority of the property investment potential that exists in Thailand today exists because of the tourism industry.

Therefore because there is a symbiosis between the investment real estate sector in Thailand and the tourism sector it’s important for an investor to examine both sides of the coin before making a commitment to Thai property.

Currently property prices in Thailand have been unaffected by the 2004 Tsunami. However tourism numbers are down which means that investors who purchased with the soul aim of letting their properties out to visitors in Thailand have a smaller audience to target and potentially less chance to profit and those who are developing properties or buying off plan for resale to holiday home seekers have a smaller number of people interested in their apartments and houses which may have a negative effect on rental yields and capital appreciation potential over the short term.

Property investors in Thailand previously focused the majority of their attention on Phuket as it was one of the best developed areas of Thailand where the infrastructure was excellent, quality property developments were in abundance, tourism interest was hot and profits were hopefully easy to come by. But because Phuket was quite badly hit by the Tsunami, investor and tourism interest has shifted focus elsewhere. It’s predicted that this reversal in Phuket’s fortunes will be temporary but investors not willing to take that risk have already diversified their investment base.

In Koh Samui in Thailand where the Tsunami’s damage was less and subsequently tourist numbers are remaining quite strong, land prices have increased by 20% in the last year. There are a series of superior property developments currently being constructed that are also receiving substantial interest in both the resorts of Hua Hin and Lanta Island. All of these areas of Thailand are less well developed in terms of infrastructure compared to Phuket but all were less badly damaged by the immediate and after effects of the Tsunami.

A property investor in Thailand would do well to watch and second guess the tourism market if he is to target investments correctly and market to an audience interested in his particular product. Furthermore, an investor purchasing property to let out in Thailand will one day want to resell that property to take the capital appreciation he has hopefully gained and therefore it is unwise to buy properties in Thailand that are too far outside the local economy.

Despite the restrictions on foreign freehold ownership of land in Thailand investors are still keen to get into this market because the overall appeal of Thailand as a destination has not changed. It is a vibrant, exotic, charming, beautiful and exciting country that offers property investors medium to long term potential.

http://www.amberlamb.com/index.php/a/m/property-investment-potential-in-thailand/

2006-08-27T04:13:00.000-07:00

Amberlamb Thailand Property Buyer Guides

Thailand Property Buying Guide for Foreigners

There are many restrictions placed on foreign investors who wish to own land and property in Thailand, but because the investment opportunities in Thailand are so great, many foreigners commit to the market anyway and use the various ways and means that exist that allow them to get around or work with the restrictions.

The property buying process for foreigners in Thailand can therefore differ from person to person and from property transaction to property transaction – but here’s an overview of the general process involved for an overseas investor.

In Thailand foreigners are not permitted to own the land on which any piece of property sits, furthermore they are not allowed to purchase a condominium in a building where there is already a foreign percentage ownership of 49%...this naturally restricts the options an investor has.

There are two real ways around both of these issues and they are either establishing a local Thai limited company and buying property assets through the company, or leasing real estate for 30 year renewable periods.

The first option is the one most commonly taken by non-Thai residents. The requirements are that a foreign shareholder cannot hold more than 49% of a Thai limited company and that there must be a minimum of seven shareholders in the company.

Usually the overseas property investor will be the single foreign shareholder and six Thai shareholders will be appointed; the foreign investor will be named as the only executive director in the Articles of Association for the company and upon the company’s incorporation each of the Thai shareholders sign undated share transfer contracts which effectively transfers control of the company to the foreign director and gets around the issue of them having a smaller share of the company.

The other option is the limited land lease option which gives the property buyer the right to lease land for 30 years and automatically be offered an extension of 30 years to continue for a period of 990 years maximum. The family of the person offering the land for lease has to abide by the contract after his death and the overseas investor leasing the land can will their rights to their future heirs.

Whichever option an investor takes their first step in the property buying process in Thailand will be securing both a lawyer and an estate agent’s services. Local knowledge of the property market is essential in Thailand where very few properties are ever advertised as being for sale; a local estate agent and lawyer will make the hunt for property that much easier.. Unsurprisingly realtors in Thailand are unregulated though and everyone from the receptionist at the hotel to the taxi driver from the airport will know of real estate that the overseas investor may be interested in which is why it’s essential that an investor spends sufficient time in Thailand to understand its property market and to understand where market demand could come from to help the property buyer realize an income or gains from his property.

Once properties have been viewed that meet an investor’s objectives and an offer to purchase has been made and accepted, the property investor’s lawyers will need to check the history and validity of any title deeds that exist on the property. In Thailand many parcels of land and pieces of property have title deeds but there are some areas of the country that have yet to be surveyed and in these areas a lawyer will need to check documents known as Nor Sor documents which show transfer transactions but not ownership rights. Basically a certain amount of due diligence should be conducted by the investor and his lawyer into the rights of the vendor to offer the real estate for sale and the rights of the foreign buyer to purchase the property that is now under offer.

If all is found to be in order with the sale of the property the sale can complete and funds can be transferred to the vendor. For the real estate to be transferred into the name of the buyer or the corporation making the purchase the following taxes and fees will have to be paid: -

Stamp Duty – 0.5%
Transfer Fee – 0.01%
Business tax – where applicable 0.11%
Lawyer and estate agent fees

Ongoing, an investor may have to pay income tax on an income he derives from his investment property in Thailand but may be pleased to know that there is currently 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 minimal figures.

http://www.amberlamb.com/index.php/a/m/property-buying-process-for-foreigners-in-thailand/

2006-08-26T08:21:00.000-07:00

House Buying in Thailand

It is a good time to buy property
in Thailand. Banks are lending & property prices are now dropping
due to the insecurity of the present economic situation. The
exchange rate is roughly around Baht 41 = US$1.LAND
AREAS: 1 rai = 4 ngarn = 400 wah2 = 1600 m2; 1 talang wah = wah2
= 4 m2; 1 acre = 2.53 rai & 1 ha = 6.25 rai.

To date foreigners may own

- a unit in a registered Condominium

- a building (as distinct from its land)

- a registered leasehold of up to 30 years for all types of titled land
(and/or buildings).

- a company can purchase land and buildings only.

- more than 40% of a condominium unless in Company form.

- foreigners can own land being 49% in a company

- if you invest 40m baht you can buy 1 Rai of land in Thailand outright.

A 30-year lease can be a good idea with right to renewal to a freehold purchase, or a Thai company (7 PARTNERS) can be established with Thai majority shareholders. Foreigners
only own 49% shares in a company with individual ownership of the foreigner holding land based on 39% ownership. We can assist you to make sure your company is safeguarded. Remember if you need advice ask us.

Thailand has so many different types of properties for sale that whatever your dream home is, you can realize it here if you do the paperwork right. Prices are a lot cheaper than Western houses but some aspects need close scrutiny especially wiring, water & most importantly the deed title. Now that you want to buy a house what should you look for?

The first thing you need to do is obtain the services of a reputable real estate agent or lawyer on your behalf. The Thailand Realty Industry is not regulated so watch out for agents forcing you to sign contracts, & check the title deed to make sure the property is what it says. Do yourself a big favour and obtain a House Inspection report which in effect pulls the holes out of the property! Some buyers have bought the house only to find the land is on a different title & visa versa or the cracks have been disguised. Once you buy then its your problem. Many Estates will try to sell a house in a developing block which has but one title with say 10-20 houses on it. They probably have 2 mortgages and want to unload the houses before they pay off the loan & secure the titles for their owners. Or will they???--- we had a case & saved the foreign buyer 2.8m baht that he would have lost if he did not use our service. The same goes with the boundaries of the property which need to be the same as the title deed. In Thailand there's no survey pegs as such but they do use concrete pegs & it is an important point. Sometimes vendors deliberately understate property area or move so called pegs. If the building is under construction or the land is having a subdivision look carefully at the provisions for issuing a title, and easement rights for say roadways. if you are a foreigner you can lease for 30 years or form a company to hold the house. Remember also do not start a company for the sake of securing your house. If you do not carry out business and do not have employees ( and I mean NO nominees that your law firm has provided) you will find yourself in hot water. As at 2006 march Immigration and Company Regsitration are not checking all foreign companies for employees and they will be interviewed as well as what business you are doing????

what it all means:
Sor Kor 1 This document means that land occupants are occupying or making use of certain land plots, whose ownership has not been claimed by any entity. The document does not indicate legal possession of the informer so one cannot transfer the ownership of the property to any one else. The Sor Kor 1 is rare now as the government's land ownership legislation has covered most area of the country.

Nor Sor 2 states the government's permission for person or legal entity to make use of land temporarily. Need to utilize at least three-quarters of the land plot within three years after the document issuance. This right is non transferable. At the finish, land occupants can seek the right to demand higher privileged title deed.

Nor Sor 3 is a governmental letter certifying a utilization of certain land plot by certain people and that the plot of land has been surveyed and its official map created.

Nor Sor 3 A is similar to the Nor Sor 3 certification. The only difference is the map survey of the land plot based on an aerial-viewed photograph of the land.

Ownership Title Deed or chanote is the ultimate certification of land ownership. Holders of the title deed have full rights to transfer or sell the properties and to bar other parties from violating their rights over the land protected by the ownership title deed law.

BUILDING YOUR HOUSE

Recently in 2002 we have been asked to help foreigners who have paid too much to have their house built. Please note the following----there are 3 types of builders in Thailand:

1/. A builder 2/. A broker 3/. a worker/builder. Those who have been caught out are using (2) which could be a friend who procures a builder for the foreigner then has a separate contract with the builder for his cut which is 1/2 of the asking price. Thus you are giving money away & in fact are being ripped off as inevitably the actual builder will never be able to meet his deadlines. Plans & fees etc should not be more than 50,000 baht yet we have seen charges of 400,000 baht. The fees for 1 sq metre is 1/2 a satang which is not even a baht. If you need a good builder in Chiangmai and architect refer to your architect for the prices. You also need to have a builder who can complete an average house in 3-4 months & check his equipment and formwork supplies, how many workers he/she has & work he/she has carried out. Talk to the referrals & your architect to see if they keep to their word. Remember also Thai holidays workers will stop work on buddhist holidays and funerals etc. Make sure the contract is overseen by a lawyer or ask us as we can give you a quote with times etc if you want us to do. Tel (00-66)019527812. We have seen single storey houses charged at 6.8m baht when the price should have been 1/2 this. Just remember having a Thai friend doesn't necessarily mean they are a builder---they are only getting a commission --when it comes to progress payments and they ask in advance you could find yourself in a bad situation. Itemize the materials and also how many men they will have on the job and also if building multi-stories, their deadlines and time limits.

Prices per sq metre to build are approx: 7-8,000 baht. But, remember this will vary according to the extras and items like marble and appliances etc.

OFFERS FROM DEVELOPERS
All developers in Thailand can and will offer you discounts and extras just to get your business. If youre not happy with some detail ask to change or add on to. Compare what they might offer you with what you would like. Look for Special home loan packages, Extra loan rate -- nowadays, local banks offer home buyers rates that are even below their minimum lending rates (MLR), Discount on land price, Gift voucher, extra room etc & ground maintenance. Have everything in writing. If the phone doesn't work and they say it will be installed next week or month don't believe a word same with the water, gas lines if any etc. Do not pay a booking fee as then you are locked in. Never put deposit down until your lawyer has searched the title out.

ESCROW SYSTEM When making a down payment on unfinished project, protect your money from fraud by the Escrow account system which will ensure your money will not be paid, unless the developer completes construction of your new home and meets the agreed requirement on specification. If you decide to build use a [ LAWYER ]

FORMING A THAI COMPANY Some people will say this is the best idea for a foreigner to hold a house in ones name. However with a Thai company yes you can hold a property within the structure of the company. However be warned that if your books show nil profit after 3 years then you may be asked especially by immigration & the Commercial Reg via the tax dept why?? This may affect your visa and the status of your company after that period so be warned if you are told its easy to do. It is, however its also easy for the Commercial Registration Dept to fine you if you are not in profit mode or even take the property from you??? Wait and see.

USING A NOMINEE AND MORTGAGE

Usufruct Interest (Sidhi-kep-kin) - gives you temporary ownership rights to structures on or arising from the land. In practice, a usufruct is limited to a 30 year maximum period; like leases, the agreement can be successively renewed. In contrast to a lease, a usufructury interest can be sold or transferred, although it expires upon the death of the holder of the usufruct and therefore cannot be inherited. This is better than a lease which by law can only be for a period of 30 years.

STARTING A COMPANY TO HOLD YOUR HOUSE

You may be told by some that you can have a Thai Company to use as an umbrella to hold your property once pruchased. This is correct. However if you start a company you must conduct a business and the Labour office will inspect you. This means you must have 4 employees and they will be interviewed. Ths means some law companies have offered their staff to form your company when in fact all they are after is the cost of the company from you. YOU ARE TO BLAME not them if you find yourself in hot water so do not do this just to hold a house. As at March 2006 ALL foreign owned companies are being investigated.

Condo mortgages to foreigners

BANGKOK: -- Foreigners will find it easier to buy condominiums in Thailand under a new service offered by Bangkok Bank. The bank's Singapore branch has begun offering offshore financing for foreigners seeking to purchase condominiums in Thailand. Loans of up to 70% of a condominium's value were available to foreigners both in Thailand and other countries who want to buy this type of property.
Applicants can e-mail their details or send them by DHL to the bank's Singapore branch, he said.
The applicant's earning ability determines how much he or she can borrow. For example a person seeking a loan to buy a condominium worth 20 million baht should be earning around 300,000 baht a month, Mr Torphong said.
While foreign nationals are allowed to purchase condominiums in Thailand, financing has often been problematic, with local financial institutions reluctant to offer loans due to uncertainties regarding credit risk.
The Bangkok Bank service is just what Phuket needs, according to Stephen O'Brien, managing director of the real estate agency Knight Frank Phuket
''Well over half of the inquiries we receive ask for lending or mortgagee finance and up until now there wasn't anything available, except a number of private firms offshore offering lines of credit or personal loan financing,'' he said.
''I am sure buyers will feel much more relaxed dealing with such a credible name as the Bangkok Bank, than an Isle of Man-registered company offering unattractive financing terms.''
Bearing in mind that the bank's terms apply to freehold condominium title, Mr O'Brien said he expected the takeup rate would be significant.
Under Thai Law, foreigners can own freehold title up to 49% of a condominium project. Generally speaking, when a condo project is launched, sales are always brisk, because foreigners want to hold their units as freehold. If the unit is in the remaining 51% allocation, foreign buyers can either lease or set up a Thai firm and hold freehold through that company, a rather cumbersome structure.
Mr O'Brien is confident that this is the start of more widely available mortgage financing for foreigners in Thailand.
''I suspect that other Thai banks will shortly start offering similar terms and conditions. All of this of course will result in a competitive environment bettering the consumer, whereby the banks will try to outdo one another with more favourable terms, similar to Australia and the UK.''
He said Thai property market had a good future because investors viewed the rental yields of 5-6% as attractive.
''Singaporeans are interested in Thai property because it is three times cheaper than what is available in their own country,'' he said.
--Bangkok Post 2005-06-22

PAYMENT:

A deposit of 10- 30% is usually required to secure a property and total payments should be made within 30-60 days (see your lawyer first) but normally once the transfer has gone through. If signing a purchase agreement then up to 30% down & 70% following transfer. Normally the seller will pay the changeover tax which starts at 2.5%. However if the seller has owned the house longer than this [period it is discounted. Some Land Offices will charge up to 8% depending on the area and office. An agreement can be made between buyer and seller than each pay 50%. You can obtain longer periods but you will probably be required to pay a higher deposit. Deposits are normally non refundable, except by default of the vendor, so bear in mind that once the deposit is placed you are committed.

This situation also prevails for the vendor. He must refund your deposit and pay a penalty of an equal amount if he defaults on the contract. Deposit in escrow is still rare in Thailand, but it is becoming an increasingly recognized way of proceeding. It generally trades off greater security for the buyer's deposit versus a weakened claim for damages in the event of vendor default.

Beyond the price, payment and closing schedules, it's important that a contract includes clauses to cover who will pay the legal fees, transfer fees and taxes (there is often a business tax and always an income tax assessment made at time of sale) as well as an understanding of the value at which the sale will be declared - this is typically (for tax reasons) at or close to the government minimum assessed value.

A foreigner buying a condo must transfer funds from a bank account out of Thailand in foreign currency and verify the transfer on paper. The transfer of funds must be in the same name as the name that will appear on the final purchase contract ie. the buyer. Funds must be transferred into a Foreign Currency Account in Thailand opened in the Buyer's name. Use Bangkok Bank, Thai Farmers Bank and Siam Commercial Bank and make sure you tell them that the purpose of his or her opening a Foreign Currency Account is to purchase a condo in Thailand. This law is somewhat a catch 22 situation as the Foreign Banks usually will not write such a letter but don't worry. You can remit as much as you like to Thailand via your bank. Transfers out of this Foreign Currency Account in Thailand into a Thai Baht Account or some form of Thai Baht draft or check to the Seller must be made in amounts US$5000 or more in order to qualify for a "Tor Tor 3" Certificate issued by the Buyer's bank to verify that the originating funding came from outside Thailand in a currency other than Thai Baht. On the "Tor Tor 3" Certificate, it should state explicitly that the Thai Baht funds are used "to purchase a condominium" in Thailand. Taxes are payable by the buyer or seller of a condo in Thailand such as the Transfer Fee/Stamp Duty Tax of 0.5% usually payable by the seller upon the date of the actual sale or a Special Business Tax of 3.3% which is usually payable by the seller if the property has been owned for less than 5 years. By the way there is no limit on how much you can remit into a Thai account from overseas and no tax. Tax levied at 15% is on interest earnings only.

REMITTING FUNDS: If sending over funds to purchase a house you must tell the National Bank what you are using this money for with sums exceeding 2,000,000 baht quantities. If remitting funds from abroad to purchase property which is the law over sums of 2m baht it may save you when it comes to a divorce situation of whose funds were used to purchase the property. If you wish to know more than ask us.

http://www.infinityqatar.com/thailand.htm

2006-08-26T08:16:00.000-07:00

Buying a Business in Thailand

Thailand differs from every other country and when you decide to buy a service or hospitality business here the first and most foremost thing you do is ascertain who your management structure will be. If you think you can buy a business for under 1m baht and make it forget it. With any business you now need a company for safety and if you want to work with work permit and have the premises under the Company name. The days have gone where you can run a business and make a profit when you only have 500,000 baht. The location is second to management and if you do not have your management sorted out first then you will find it hard to make headway in Thailand eg. honesty. Running a company with 4 employees, paying taxes etc you need 500,000 baht for the first year in fees alone and remember whatever you go into the off or low season is from April= November so make sure you bring plenty of money.

2006-08-26T08:15:00.000-07:00

Buying a Condo in Thailand

A foreigner can ONLY own a condo in his / her name OUTRIGHT. You cannot own a house and land in your name unless you invest 40m baht = 1 Rai of land. Bank's do not lend to foreigners; only Thais or Companies and you must lease, or have a Thai Company to own a house in your name. Ask us if you wish to borrow (must have overseas collateral).

Just a note about buying Condos. ---Find out what the monthly maintenance costs are from the managers. Ask for this in writing. Avoid unfinished projects as they may run out of money or be over mortgaged. If very few condos have been sold in a building with good amenities like landscaped grounds, security Guards and a receptionist and office have the title searched but most of all someone has to pay for all this, plus the electricity for lighting and lifts. The total cost (often inflated) has to be divided up among the condo owners, which can be a lot if only a few units have been sold. Ask for an exact statement of maintenance costs and how they are paid. If the project has different size condos in the same building, large units will pay more towards maintenance costs than small units. If you are a legal resident you can obtain a mortgage but you need to check with your bank and credit. The best idea though is pay cash as you can negotiate but you must remit from abroad. In Bangkok look at around 25,000 -100,000 baht per sq m. A foreigner can only buy max 40% of a condo unit so if that 40% has been taken up and you are the 42% person you may find you are buying a lemon so to speak. If the developer owns a majority of units you may not like his manager but if the owners have majority votes than they can remove him.

The Condominium Act has been amended. Now 49% of units in all condominiums and 100% of units in condominiums in a total development area under 5 rai located in Bangkok, all municipal districts and such other areas as shall hereafter be announced by the Minister of the Interior (which is expected to include rural Phuket) can be foreign owned. Funds used to buy a condominium & remitted from abroad are recorded by a Thai Bank on a Tor Tor Sam. Purchases of condominiums by foreigners come under the Condominium Act B.E. 2535 (1992). The owner of each condominium is issued with a certificate of unit ownership. The certificate also has a statement with percentage rights over the common areas of the building each owner has.

http://www.infinityqatar.com/thailand.htm

2006-08-26T08:10:00.000-07:00

Stay In Phuket Thailand?

http://www.infinityqatar.com/patong.htm

2006-08-26T08:00:00.000-07:00

New property law stuns foreigners

Bangkok (dpa) - Thailand's booming property sector has been thrown into
confusion by a new regulation issued this month that requires all partly
foreign-owned companies to prove the source of their funding before
purchasing land, industry sources said Tuesday.

The new Interior Ministry regulation that went into effect on May 25 2006
has already started to slow sales of housing estates in Thailand's popular
seaside resorts, such as Pattaya, Phuket, Hua Hin and Samui Island, which
have been specifically targeting well-to-do foreigners as vacation
getaways or retirement homes.

Thailand has strict laws prohibiting foreigners from directly purchasing
property themselves although loopholes in the law allow them to own land
and their houses through long leases or a "nominee company,"
providing the company is majority Thai-owned.

It is common practice for such "shell companies" to include Thai
nationals who have been paid to act as nominees to facilitate the deal and
who have invested nothing in the purchase. The new regulation, signed by
Suraart Thoingniramol, deputy permanent secretary of the Interior
Ministry, is designed to halt the use of such companies for property
purchases in the future.

"If it appears that an alien holds shares or is a director or it is
reasonable to believe that a Thai holds shares as a representative of an
alien, the officers shall investigate the income of Thais holding shares,
delving into the number of years [they have spent] in the current
profession and monthly salary," reads a translation of the law.
"The provision of necessary evidence is required."

The new regulation is actually an enforcement of Thailand's existing laws,
legal experts said. "It's not a radical change. It's a radical
implementation," Ronachai said.

The regulation has already started to stall home sales to foreigners,
sources said.

"There's a lot of confusion," said Simon Landy, managing
director of the Primo Co, a property-development firm. "Some land
offices don't know what to do with it, and many have simply stopped
transferring land." Source Bangkok Post

2006-08-26T07:59:00.000-07:00

Investment in Phuket, Thailand Real Estate

From Houses to Shop Houses

Phuket is one of the last havens in the world where you can invest in property safely and receive a handsome return on capital.

There are currently over 150 new developments happening on the island (September 2005) and many more to come as the property boom here is still in its infancy. All developments are selling well and remarkable quickly and already many are sold out and the same developers moving on to new ones. Most experienced brokers and developers in Phuket see no end in sight to the property boom here and many see at least 10 years of growth ahead, if not more!

Why invest in Phuket?

Phuket is undoubtedly becoming the new playground of Asia and although a small island (550 kilometres square) has every modern amenity including, international hospitals and schools, modern infrastructure and roads, broadband communications, beautiful beaches and landscape, the finest hotels and restaurants, international shopping malls, friendly welcoming people, relaxed living and little crime, and last of all a warm climate all year around. Several new marinas and golf courses are also being built.

How it works

When buying off plan (as opposed to resale property) you put down a reservation deposit to reserve the plot, Villa, Condo etc. and then usually within 30 days after seeking legal advice and contracts being vetted and due diligence carried out, you sign contracts and pay the first installment of anything between 15-30 % of the sales price and the remainder over a period in stage payments based on build completion until it is finished which is usually approximately one year hence for most developments. By buying this way you get the opportunity to buy at up to 30% or more below market value. The reason you can save so much is the developers wish to attract early buyers whom have no hurry to occupy the property but realize the benefits and significant savings of buying early. This assists the developer with early buyers' confidence in the project and gives an injection of capital and security for the bank and aids the projects finances. It is a case of WIN, WIN for all parties! During the build stage it is normal for prices to rise substantially due to material cost rises and to enable the developer and buyer to maximize their returns. It is only right that those, whom buy first, pay less than those whom buy last.

Investment return

The above example shows that for a small outlay you can spread your payments over one year and receive a large capital gain even before you move in! Many investors do just that “flip” and sell the property shortly after completion. However, it is probably wiser to hold on to it as with the prices rising by 15-20% per annum plus materials inflation, Phuket property makes a very sound investment indeed over the longer term. You can also rent out the property and receive a rental income as well.

Now is the time to invest here without question and we are available to give advice on the best developments on the island as we represent them all.

We offers a first class service, a "One Stop Shop" to investors, from giving initial advice on local Thai regulations and laws (avoiding pitfalls), recommending the best local lawyers and accountants. Forming a company,doing a land search, buying the land (foreigners cannot own the land only a Thai registered company.

Finding the right location and land, negotiating on your behalf for a fair price, advising on the best use of the land to maximise the return on your investment, (whether a single house or houses); designing the project to your specifications, project managing and overseeing the construction up to completion - these are all part of our services to you.

In the case of multiple houses, marketing the venture from the outset and finding a buyer or buyers and taking deposits prior to commencement of construction minimising risk to the investor. Managing stage payments to builders and ensuring the highest quality standards are maintained and the project is completed on time and to budget.

2006-08-26T07:34:00.000-07:00

Owning and leasing land and houses in Thailand

Owning and leasing land and houses in Thailand

Q & A. - Can I own a property in Thailand?

Can I own property in Phuket??

FOREIGN NATIONALS MAY OWN

A unit in a registered Condominium
A building (as distinct from it's land)
A registered leasehold of up to 30 years for all types of titled land (and/or buildings). However with appropriate extension and purchase options a 30 year lease can become tantamount to freehold purchase.

FOREIGN NATIONALS MAY NOT OWN

Freehold Land
More than 49% of the shares in a Thai company that owns freehold land

How is it measured??

Land is measured in Rai, Ngan and Wah.

1 Rai = 4 Ngan (or 1600 Sq.m.)
1 Ngan = 100 Wah (or 400 Sq.m.)
1 Wah = 4 Sq.m.
1 Acre = 2.5 Rai (approx.)
1 Hectare = 6.25 Rai (approx.)

Metric measures are usually used in the construction and measurement of buildings
Land prices are usually expressed in Baht per Rai or (for smaller plots) Baht per Wah

What will it cost me??

Labour and local building material costs are low, but imported materials and prime beach land cost more than many would expect. Proximity to the beach is the single biggest determinant of land cost. Beach front land can cost up to fifty times that of land plots in the centre of the island.

What kind of visa can I get to stay in Thailand??

There are four basic types of visas available for visitors and residents to Thailand.

Transit visa - valid for 14 days will be issued to those people arriving in Thailand without a visa. Technically you must have an onward flight ticket, but in practice this visa will be issued almost without question. Note : There are a few countries (not many) that do not require visas and will get a three month entry stamp on arrival - in general these countries are the ones that grant the same rights to Thai nationals visiting their countries.

Tourist visa - issued by Thai embassy abroad - these visas will be valid for 60 or 90 days (varies from country to country). Of note is that you may apply for more than one Tourist visa at a time and these multiple visas may be used up consecutively. Many quasi resident visitors to Phuket (who do not work - or want to avoid the red tape of a Non Immigrant visa) live for years on a tourist visa (and go shopping in Singapore or Penang every three months). So long as you are solvent and not engaging in any local business activity, there is nothing wrong with this approach.

Non Immigrant visa - issued at an embassy outside Thailand and valid for a 90 day stay, this visa may be extended within Thailand for periods up to one year at a time. There are three basic grounds to obtain and renew a Non Immigrant visa. 1) that you are employed (and have a work permit) in Thailand. 2) That you have Thai family. 3) That you are retired and can prove adequate pension or other financial means to support yourself. Ownership (or long lease) of property has no bearing on the extension of a Non Immigrant visa. Lengthy form filling and copying of personal documents (in duplicate) are required both when you first apply and for every subsequent renewal of this visa. If you hold a non Immigrant visa, you should obtain a Re-Entry permit if leaving the country if you do not wish your visa to lapse.

Resident visa - rarely issued and hard to obtain. These visas are issued on a very selective quota basis. Qualification requirements include reading and writing Thai, a fairly strong local financial status and some good (influential) Thai references.

Can I work in Phuket??

There are generally very few employment opportunities for a foreigner in Phuket. The biggest employers of foreigners are the hotels (management, finance and chefs), but these appointments are usually filled from abroad. The second biggest employer of foreigners will be the International schools (some of these positions are local hire). Most other legally employed foreigners (and the biggest group overall) on the island are the owner/proprietors of small businesses.

Every foreigner employed needs to have a work permit before he can work. The company employing you must apply for this. Generally no company with a registered capital under 3,000,000 Baht may employ a foreigner (unless it can be proved that the job he will engage in cannot be done by a Thai). There are no fixed capital rules for obtaining a second foreign work permit within any given company. Applications will be judged individually on the basis of total capital investment and the absence of Thai's who could perform the same roles

Further reading

For a more detailed view of legal and ownership issues as well as recent trends in the Phuket Property market - we recommend reviewing the series articles reproduced from the Property Page of the "Phuket Gazette" the islands most respected English language monthly newspaper.

http://www.infinityqatar.com/thailand.htm

2006-08-26T07:28:00.000-07:00

Holiday tours in Phuket Thailand

http://www.infinityqatar.com/phuket.htm