PROPERTY REPORT: UPDATED DECEMBER 2007

It is a good time to buy property in Thailand. Banks are lending to Thais & property prices are GOOD. Thailand SET index has also been dropping as foreign investment is tending to shift to other countries. The situation with The Baht, is better than in the West due to Thailand keeping foreigners out from speculating. This means foreigners cannot buy land and escalate the prices like in the West where properties have gone well out of proportion on the 3:1 ration of payments to salaries. This has in fact kept properties in Thailand to a subsistence level and allows people to buy at reasonable prices apart from overseas companies speculating on land developments for condos with thai partners. Condos are the same and we will soon have reports on Pattaya, Phuket and Bangkok, Chiangmai for you..

.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

USING OUR SERVICES BUYING A PROPERTY ANYWHERE IN THAILAND:

We receive our commissions off the seller or landlord and no added charges are imposed on you the buyer or renter. What we make sure is you get a professional service with no hidden costs, plus we help you with your lease agreements and oversee everything you need. You may have a Thai friend who says they can get you a better deal. Unbeknown to you they may be getting a commission or scheme --can you read Thai??. Using our services we guarantee that the lease and selling documents are in order as we have our own Barrister at Law. Please do not ask us for mortgages as we cannot help.WE ARE BOTH FOREIGN AND THAI OWNERSHIP

FOR ALL FOREIGNERS BUYING HOUSES IN THAILAND AND PROPERTY. ASK US FOR FREE THE BEST WAY TO BUY FOR YOUR CIRCUMSTANCES. YOU WILL NOT BE DISAPPOINTED.

50 Swedish Homebuyers Cheated For Millions In Thailand source: Scand Asia Apr 26 2008

Up to 50 Swedish families and disabled have been cheated in a property scandal in Thailand. The investors were dreaming about owning a peace of paradise in Bang Phra, but according to the Swedish tabloid Expressen they lost millions of Swedish Kronor in deals with Thai Care, a company dominated by the Swedish citizen Mr. Curt Timhede.

The sale of three rooms apartments and villas started in 2006. Costumers liked what they saw on exhibitions and the Thai Care website. Swimming pool, rehabilitation center, tailor, security, everything was designed to suitable for families with children, people with handicaps, and elderly people. The buyers felt secure with the Swedish speaking sales staff. And happily they made the needed payments up front, to get closer to their dreams. According to Expressen, the money started flowing the very same year, when every signature from a buyer was followed up with a down payment from 100.000 kronor up to 1.000.000 million. The selling continued, and therefore the money kept flowing in 2007. Expressen mentions a total of 30 million Swedish kronor. The first apartment was promised ready in the middle of the 2006/ 2007 season. But one month after the other went by, and nothing happened. At that time, the buyers had no ideas about the financial disaster. Curt Timhede, had, according to Expressen, previosly gone bankrupt three times in Sweden, therefore has a huge debt to the Swedish State (Kronofogeden). And he never told his costumers, that the money was gone down the drain, out of the project. Living in a village further down the cost, in the village of Bang Sare, he just kept silent. To the Swedish tabloid he insists, that it’s not only the costumers who have been lured. He is innocent. Its other people, who destroyed the project. Mr. Timhede claims, that he has been cheated by his Thai partners. Partners he had to involve, because it’s illegal for foreigners to own land in the Kingdom. The Swedish business man says that the problems are rooted in the cooperation with a mysteries Thai woman, whom he had known for several years. Mr. Timhede, his to sons who are Swedish citizens like him self, and the Thai woman registred a company. And, again, according to the Swede, and the Thai woman’s husband faked Mr. Timhede´s signature. All of a sudden, the Thais were in total control. If there still was even the slightest hope among the buyers to at least get some of there money back, it’s now gone for ever. The official papers at the land department in Thailand, says very clearly that the ownership of the land is taken over by the bank, who did lend out the money at the beginning of the project.

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? Go to www.chiangmailaw.com for any help

ELECTION 2008 / BUSINESS SECTORS ASSESS PROSPECTS
Political stability crucial for property market source: Bkk Post

Political stability is key for the country to reinvigorate the overall economy and regain local and foreign confidence to attract investment, say executives in the property industry. Phanom Kanjanathiemthao, managing director of the property agency Knight Frank Chartered (Thailand), said political stability would likely be a lingering issue no matter whether the People Power Party (PPP) or the Democrat Party form the government.

''It's up to PPP whether it wants to establish the government or not,'' he said. ''In the meantime, it will be very difficult for the Democrats, with about 160 seats, to set up a stable government.'' Problems may escalate, he said, if PPP forms the government and tries to keep some of its more contentious campaign pledges, including amnesty for banned Thai Rak Thai executives, Thaksin Shinawatra's return to Thailand and amendments to the Constitution.

Executives want to see if all sides will accept the new government no matter which party leads the coalition. The political situation should be clearer within three months, and if it improves, sentiment should improve by the end of 2008. During the past two years, property demand from foreigners has dropped by 50% in Pattaya and 30-40% in Phuket and Hua Hin. Meanwhile, the Samui property market was very quiet due in part to a land-title scandal. The International Herald Tribune led yesterday's editions with a report on the outcome of the Thai election.

''Foreign buyers and investors in property sector are ready to invest in Thailand as the country's fundamental factors are still attractive,'' Mr Phanom said. ''But now they are sitting on the fence to see the Thai political situation.'' After political stability, foreign investors are most concerned about the Foreign Business Act (FBA) and capital controls. The new government should clear up these issues, he said, as many investors say that both PPP and the Democrats have economic policies that are more friendly to foreign investors than the economic nationalism of the military-appointed government.

''To reduce and prevent any violence, the country's leader for this time should be a negotiator. He should not be talkative or make destructive comments,'' said Mr Phanom. Teerachon Manomaiphibul, the deputy managing director of Property Perfect Plc, said PPP should be able to set up a new government due to its strong showing, while a coalition of many small parties would be too risky. The stability of PPP-led government will depend on its focus, he said. If PPP focuses on economic policy, the political situation will be stable. But stability will be threatened if PPP's focus is on political issues. ''Political stability is the major factor. If it is stable, foreigners are ready to come back for investment,'' said Mr Teerachon. Government spending on megaprojects and infrastructure will be the key factor to revive growth in the property sector as they generate higher employment, investor confidence and economic expansion, he added

WHAT HAS HAPPENED IN THE WEST :

Thailand has laid excellent ground rules down to help their people whereas the Western countries have reached the point of no return. In the West good economies in the past has spurred low mortgage rates & sent the property prices escalating to the point where they are far over the safety factor of 3:1 median.for salaries to payments ratio. This has meant today first home buyers must borrow 100% or 45 year mortgages which in effect offers them another landlord or bank to pay money into for the rest of their lives thinking they own the house they are buying but in fact is a joke. It will never assist them to reach their goal of actually owning a house as their children will inherit their debt. How can it? when one borrows $100,000 this is what you pay back immaterial of interest rates; inflation changes & changes in ones income & lifestyle = $250,000. Rule of thumb to follow: double the borrowing then halve it again and thats what you pay the bank back. In Australia, NZ, UK, USA etc most modest homes cost a minimum $250,000 for just an average 2 bedroom home. So this will mean you have to pay back $625,000. If you think you can pay it back in your lifetime don't kid yourself as the rules will change every year once you start the game..

A Thai ruling 2 years ago when a motorcycle gang speculated in Samui saw the Thai Government change the rules for foreigners owning property. Foreigners have forever speculated in countries like Thailand for self gain only, so the Thai governent put a stop to this by making companies have a business with audited books but not be able to use a company to own a house in ones name. This has always been the norm and our company for one always explained this to home buyers who came via us. ( We were one of the first on the Internet). A lolly scramble ensured which mean't foreigners had to lease their houses and put the house under a Thai name for 30+ years. Gone then was having a company as a holding front to hold their homes.

In countries like Thailand this is the best option to ensure against foreign speculators and we applaud the move. Why, because it allows Thai citizens some respite from climbing prices eg. building costs, labour costs etc and allows Thais to be able to purchase houses and property at a realistic sum without outside changes occurring. Now look in every Western country and see what you now pay for house and then ask yourself is the wood content of building this house worth what youre paying & how does one justify $50-$70 an hour for a builder to hammer in nails; now or look at your utility costs, user pays systems, food & transport costs, restaurants, hotels, higher interest rates --- whatever then look at Thailand and see the reverse. Now see what is happening to the boom in the west --it is dissolving but all the other prices remain the same until the crash starts.

Democracy is slowly losing to the advent of fresh new rules in the west allowing for a more authoritative Police state in many countries. The rights of citizens are slowly being taken away whereas in Thailand this is not the case. The Thailand Government look after their people thanks to having the longest reigning King in the world by their side. It has allowed the Thai people to enjoy a relatively good life without speculators from the west trying to change them. and we applaud this. Just think about it. What would happen if Thailand followed places like the UK, USA & Australia and NZ --- Thais would never ever afford to buy a house in their own country; what if they changed all the rules to match the West -- it would not be a nice country to live in so the solution keep Thailand as it is. Protection is essential to sustain a democracy as in Thailands case and it is working. When you look at what is happening in every western country new homeowners can never now afford a new home of their own. They must now rent.

WHY CHOOSE THAILAND :

Thailand is relatively safe and has all the amenities that a pensioner or foreigner could want. It has many hospitals and clinics, first class optical and dentistry services not inflated l;ike the west; and maid service is within easy reach and cost. It has excellent food, climate year round and the transport services will not break your bank account and are excellent whatever one wishes to travel on. In fact it has lovely people, no attitudes and a well organised cultural system that we can only envy as many in the west are slowly disintegrating. The Thais look after their people which is a far cry from many westerners who put their old folk in homes to spend their last days so they can make more money. The choice is yours but even with websites remember we have been around on the web now for just over 10 years and we also own excellent real websites: www.bangkokrealty.biz & www.chiangmairealty.com

We have English speaking Lawyers all over Thailand

Just click on the banner below:

BUYING YOUR HOUSE:

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 & the builders themselves. Remember there are no rules in Thailand and many builders are handymen and the building industry is not regulated so be careful when choosing the builders. 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. ( Try us as we are upfront on everything including after service support and we are experienced builders.) 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 if you intend to buy an existing building or in a new development block. So many foreigners have been hit by bad contracts, workmanship or not had the balance of work completed after giving the last payment to the developer.! Some buyers have bought the house only to find the land is on a different title & visa versa or the cracks have been disguised or the contract is not what it says. Once you buy then its you now confront a headache. Many Moo Baan Developer 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 just had a case in May 2002 saving 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 it is an important point. Sometimes vendors deliberately understate property area or move so called concrete 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 and if at all it has consent. You may be in for a problem or two.

2007 and as far back as 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 can be 1/2 of the asking price. Thus you are giving money away & in fact are being ripped off. Plans & fees etc should not be more than 50-100,000 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 ask us. You also need to have a builder who can complete an average house in 3 months. Make sure the contract is overseen by a lawyer or ask us as we can give you a quote with times etc. You can email us below.  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 multi stories their deadlines and time limits. WE NOW OFFER THESE SERVICES.

Even if you see your house and stay in it make sure it belongs to the seller?? We had a case that a UK couple bought a house for 19m baht. They stayed in the house and their Thai friends for 5 years who befriended them assisted them all the way. They returned to the UK but had no title. They asked us to search and we did only to find the house they bought was in a National park worthless and they lost 19m baht. This is why we stress do in Thailand like you would do in the west when buying a property. Do not listen to anyone who you have just met or think you may be able to cut corners. We have always told foreigners coming to Thailand --- do it right you have no problem --cut corners & watch what will happen.

PROPERTY PAYMENT:

A deposit of 30% is usually required to secure a property and total payments should be made within 30-60 days but normally once the transfer has gone through. If signing a purchase agreement then up to 30% down & 70% following transfer. 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.

BUYING A CONDO:

A foreigner can ONLY own a condo in his/her name. 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. We can not assist you with any mortgages so please ask your Bank.

Just a note about buying Condos. ---Find out what the monthly maintenance costs are from the managers. Get it 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. In Bangkok look at around 48,000 -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. Check title before you buy --maintenance clauses --- and payment funds as well as 49/51% ownership on titles in the condo. Check rubbish, security, office staff, cleanliness, maintenance before you buy etc.

The Condominium Act has recently 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, provided that the funds for the purchase have been remitted from aboard (which is the already the norm).

COMMISSION PAYMENTS:

Are normally levied on the seller rated at between 3 & 5% of the asking price. Some agents are known to charge a commission from both the buyer and seller. Due to the unregulated realty industry you must use discretion when buying off any agent or person. If they say the price of a house does not include their commission, chances are this company is getting a cut both ends. Our company levies a commission solely on the "seller" & makes sure the person buying is getting the best deal for their money. Our charges 5% for businesses & 3% for land & buildings.

ONSITE INSPECTION REPORT:

If you want to make sure your house is safe and has what it should have & hasn't had recent false renovations, hidden maintenance, then we also conduct a professional onsite inspection house appraisal of the home you want to buy or sell. This inspection is over and above your title search but compliments the title search as we work in with our own lawyer.  This 5-8 page onsite inspection report covers everything from electricity, inside and outside structures, water supply, plumbing, and general condition of your house & land, elevation etc in a check list report. Added to this we give you the buyer, a full written maintenance report plus our suggestions and recommendations all in English. We even oversee the recommendations on your behalf.  Cost for this Inspection ranges from  5000 baht for new houses under 2 years old to 6000 baht for a standard 4-6 bedroom older house, condos 5000 baht as we look at the entire building ( This does not including away travelling expenses). Structural reports 5000 baht additional. We do not conduct land area searches as survey pegs are not shown. For this you need a surveyor which we can obtain for you.  Other buildings like Commercial properties we can quote you. PLAY IT SAFE-- WHY HAVE A HOUSE THAT WILL NOT LAST!!!!!! As of May 2002 we have managed to assist foreign clients before they buy with the knowledge that the seller will initiate our recommendations & saved money for our clients. 

We highly recommend you obtain a Title search and House Inspection report before you purchase ANY property in Thailand. Cost 7000 baht  Comprehensive Title search as well as House Inspection fee starting at 3000 baht. 

KITCHENS & AIR CONDITION INSTALLATIONS:

When buying an existing home or new house you may want to have a new western style kitchen installed or maybe air condition units. If we carry out a Housing Inspection then we also in our report have a free quotation for air condition units and kitchen joinery for you with FREE installation or arrange on your behalf. We can help you with the top Kitchen manufacturers.

 [ Go see Kitchens ]

ARCHITECT: 

Ask no further as we use Khun Da in ChiangMai recommended to us who speaks excellent English and whom one of our partner's Dr. Harry Gair is presently using. We can arrange for you as many foreigners use her services.

INSURANCE:

We use the services of Thai Zurich for all your house insurance. Please just ask us as we are agents for Thai Zurich in Chiangmai. Need to know more then ask Thongjan 09-6311114. We can advise you on all your insurance needs & whether you go through us or you do yourself there is no difference in the price. However using our services we make sure you are happy before you even have to pay------- no hidden agendas. [ See more on insurance ]

Send your questions to us as we would like to help you?

WHY USE OUR SHIPPING SERVICES: 

WE OFFER FREE EMAIL ADVICE 24 HOURS A DAY

• We work for you (Both Thai & foreign consultants )
• No hidden charges-everything is up front.
• Guaranteed conveyancy help &  Company, work permit & land  setup for foreigners
• We will sell your Commercial property, houses, businesses, bars and Guest Houses
• Because you have the benefit of foreign help with our Thai lawyers and expat consultants
• We offer: Full house onsite appraisals. Cost is 5000 baht for a house under 2 years old & 6000 baht for older houses ( plus travel if out of town ). This 5-6 page report is a must if you want to know what your house is really like which includes pics of repair work needed and we even do a air con survey (extra).

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