PROPERTY BANGKOK REPORT
The housing situation in Thailand is looking bleak for homeowners who are paying mortgages off. More jobs are going and unemployment is starting to increase. The government has helped the workers by their 200baht per each social welfare worker fund but this is only a temporary measure. The Red shirts of Thaksin are mobilizing to upset the Country even more so the country could find themselves in more of a mess. Is it a good time to buy---only if you have adequate funds and buy a condo but do your homework first.
IS PROPERTY STILL A GOOD INVESTMENT IN BANGKOK AND THAILAND?
Best Western plans to add 10 more sites in Thailand
Bangkok Post Mar 16, 2009
The American hotel chain Best Western International (BWI) plans to add 10 new properties in Thailand, bringing its total to 22 by 2010, as it sees high potential in inbound business.
Six hotels will be opened this year: Best Western Premier Amaranth Suvarnabhumi Airport, Best Western Premium Sukhumvit, Best Western Premier Signature Pattaya, Best Western The Alcove Hiptique Bangkok, Best Western Vises Patong Hotel in Phuket, Best Western Green Garden Resort in Hua Hin. The remaining properties are Best Western Premier The Breeze and Best Western @20, which are scheduled to open next year, and another two hotels for which schedules are not fixed.
Although Thailand is not a stronghold for BWI when compared to other destinations in Asia, the company cannot overlook this market because its office is located here. Moreover, BWI sees high potential in Thailand as a famous tourist destination, said Chris Chen, regional manager for marketing services of BWI. In fact, Thailand contributes around 10% of total revenues in Asia.
"It is difficult to predict the revenue growth in Thailand," said Mr Chen. "If the new hotels can be opened on time, it is possible to see growth this year. If not, we may see revenue decline or be on par with last year."
In BWI's financial first quarter of this year (December 2008 to February 2009), the revenue from Thailand decreased by 28% because room rates were cut by 20% due to lower demand. However, given the poor state of tourism at the time, occupancy was good, at around 60-70%.
To spur tourist spending, BWI will join with business partners, especially airlines and credit-card companies. In Thailand, it has collaborated with Krungthai Card, the country's biggest credit-card issuer. Mr Chen said most of his marketing promotions would focus on members, who total eight million worldwide, because this group contributed around 70% of total revenues.
In Asia, BWI has a club with 62,000 members, 35% of them active. The spending of active members in Asia averaged around US$784 per member per year compared with $515 worldwide.
.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 49% of a condominium unless in Company form.If BOI status different
- foreigners can own land being not over 49% in a proper Business orientated company but cannot secure a mortgage. Under BOI can buy.
- 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 but there are restrictions and rules to this as you must have a business running and audited. The other way is to lease for 30 years with R of R or to use an Usufract or superficies to assist you. We can assist you to make sure your company is safeguarded. Remember if you need advice ask us
Beware as its not the first time when foreign Business partners have been cheated by Thai partners. It has happened a lot. Never have a limited Partnership in Thailand and make sure the Lawyer you use is straight and unbiased towards you? Go to www.chiangmailaw.com for any help or www.thaiexpatlaw.com
We have English speaking Lawyers all over Thailand
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WHEN TO PAY FOR YOUR PROPERTY
1/. Never pay deposit or booking fee over the Internet. See what you buy first
2/. Look at progress payment reports when, & how much
3/. Check the builder before you sign
4/. Talk to neighbours & others about the Moo Baan or buildings.
5/. Have a person on site to inspect interim work for you
6/. Do not be bullied into progress payments before work completed. If so then some middle man is getting his cut.
7/. When in doubt ask. Seek advice
Send your questions to us as we would like to help you?
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- We work for you (Both Thai & foreign consultants )
- No hidden charges-everything is up front.
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- Because you have the benefit of foreign help with our Thai lawyers and expat consultants
If you have a property to rent, sell or lease in Thailand then WRITE TO US as we can advertise for you in our hardcopy news in Chiangmai . BANGKOK REAL ESTATE Please go to : www.bangkokrealty.biz