PROPERTY REPORT: Property firms prepare for year of hot competition in 2008

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.

Property firms prepare for year of hot competition & Bangkok Bank lends to foreigners

Top News: PP party may cull the Business Act changes to allow foreigners to buy in Thailand 2008

Campaigns already promise attractive deals for investors, and energy-efficient houses seem to take centre stage

Property firms are preparing for another year of intense competition and are planning marketing campaigns to promote their residential projects in hopes of achieving 15-20-per-cent sales growth this year.

Major property developers are working on a wide variety of plans to capture their share of the Bt200-billion property market this year. Colourful marketing campaigns are being devised, with each developer setting a target of 15-20-per-cent growth this year.

From houses designed to save energy and protect the environment to advice that investing in houses gives a better return than keeping money in a bank, developers are preparing to maintain the intense competition that coloured the final months of 2007.

Last year's sluggish economy forced all property firms into heavy marketing activities and big promotional campaigns that reached a peak in the final quarter. With all firms expecting 15-20-per-cent sales growth this year and some having also set targets for next year, there is no end in sight to the cut-throat competition.

The market has now moved firmly beyond the notion that consumers want houses in which to live. Both low- and high-rise projects these days are seeking buyers who want residences as investments, and developers are offering after-sales service that includes finding tenants to rent the properties of new buyers.

The strategy is seen as creating added value to accelerate the performance of property firms, and developers using it successfully include LPN, Asian Property, Plus Property and Preuksa Real Estate. Some have established separate business units - called resell units - to help customers find tenants to rent houses. In some cases, the resell unit begins work at an even earlier stage.

Preuksa Real Estate deputy managing director Prasert Taedullayasatit says the unit can help customers sell their existing homes if they want to buy in one of Preuksa's housing projects. Apart from increasing convenience to customers, it also supports the company's business and represents a major revenue channel.

"We have more products now, particularly condominiums. Therefore, we need to have a tool to support the business. The resell unit will be a major support tool. Today, they're just a department [of the company], but in the future they may transform into a new company," Prasert says.

Many property developers have also focused on websites, which have proven to be an effective marketing channel.

The developers are able to display their model homes, the land, locations and many other potential attractions before customers visit the physical site. Websites are also cheaper than leaflets, brochures or direct mail and can reach precise target groups.

Suparat Veerakul, vice president for corporate communications at Land and Houses, says his company's website also provides information on consumer demand and allows it to customise houses for specific clients.

"We use integrated marketing tools, but next year we plan to focus more on marketing through websites. Although we allocate only Bt7 million for the websites, they can reach exact targets. We've already seen good consumption trends from this marketing channel," he said.

The proportion of Land and Houses' sales made through websites was 10 per cent last year. Already, this figure has risen to 20 per cent and the company expects the proportion to reach 25-30 per cent this year.

With limited consumer purchasing power, marketers feel they must launch products this year with campaigns that make consumers feel comfortable about buying and that it is worthwhile paying for a residence instead of leaving their money in the bank.

Sena Development was the first developer to initiate this kind of campaign, by joining with the Government Housing Bank (GHB). The campaign features new investment alternatives for customers who are hesitating about buying houses out of insecurity arising from economic uncertainty and an unclear political situation.

All houses selling under the campaign are sold at initial prices for ready-to-transfer homes. The bank is asked to extend by two years the period over which customers will be paying instalments. For example, if the contract is for 20 years, customers buying under this campaign will be able to pay instalments over 22 years. However, the interest calculation begins in the third year, so customers pay total interest applying to a loan over 20 years. For the first two years, the customers need not pay instalments to the bank.

Customers with a good credit history can also save the first two years' instalments with the bank, so that they can access a big chunk of money with which to reduce the principal of the original mortgage. For example, if they save Bt10,000 over the first two years, they can borrow Bt240,000, which can be used to reduce the principal sum of the mortgage, resulting in much lower repayments in the third year and thereafter.

Another alternative begins with offering customers two years' ownership of a new house without any payments. Customers may accept this deal on its own or also lease the house, collecting rental fees to enhance their ability to reduce their bank loan.

The campaign, which applies to Sena Development's six housing projects, is still available. There are two projects left with a total of 50 units, including single-detached houses for between Bt2.6 million and Bt5.4 million; Sena Grand Home Rangsit, with homes from Bt2.6 million to Bt6.4 million; Sena Villa Ram-Indra, priced at Bt2.7 million to Bt4 million; and Ruamfan townhouses for Bt1 million to Bt3 million.

Tararom Enterprises is conducting another campaign featuring purchases for investment at its 40-unit Parkway Place project on Ramkhamhaeng Road. The project's "double-front shophouses" allow customers to separate a rental area from the residence. Each house is priced at Bt4.6 million. After a down payment is made, contracts are signed and the property transferred. The Bt3.2-million loan with interest at 8 per cent over 20 years requires monthly instalments of Bt27,000 to the bank. With an ability to rent half the property for about Bt15,000 to Bt20,000 a month, customers can use the rental fees to cover up to 70 per cent of their instalments.

New houses designed with an "environmental preservation" concept are another attractive choice, because they tap into the hot social issue of global warming. Property developers are now joining environmental organisations to build awareness of the problem.

The Energy Ministry said 25 per cent of all energy consumed in Thailand last year was used by businesses and residences. This sector was third in energy use, behind the transport and industrial sectors. Property developers themselves are tending to consume more and more energy, with customers inevitably shouldering increased costs, both directly and indirectly.

To ease the problem in long run, the ministry's Alternative Energy Development and Efficiency Department has organised a competition for energy-efficient houses. It began in 2005 with a campaign for all housing developers to apply thermal considerations to designs. Up to now, more than 90 housing designs have been entered in the competition, and developers are seeing it as an opportunity to promote themselves should they win.

"Property Perfect will use environmental and energy-preservation issues to build awareness," said Property Perfect deputy managing director Teerachon Manomaiphibul. "We will have to arrange big events."

As well, all developers are expected to incorporate environmental and energy-saving considerations in their marketing and brand-building strategies this year.

Supalai president Prateep Tangmatitham believes all developers should join together in the interests of preserving the environment and that the ministry's competition should be expanded to include high-rises, such as office buildings and condominiums.

French development-assistance agency Agence Francaise de Developpement (AFD) has shown its willingness to fund housing loans totalling Bt2 billion with low interest over 15 years for consumers borrowing to buy energy-saving houses. It has discussed the issue with the GHB and three representatives from the property sector.

The discussion followed the signing of a memorandum of understanding between the Neighbouring Countries Economic Development Cooperation Agency and the AFD.

GHB president Khan Prachuabmoh says the bank plans to consider other solutions to support consumers wanting energy-efficient houses. It could separate its own budget for housing loans or combine it with the AFD's financial support to expand the sum available for loans. It will also work with developers in using materials for constructing environmentally friendly houses and ask scholars from Chulalongkorn University to help by studying the details.

"It's a big issue," Khan says. "We must help in the campaigning. Construction costs may increase 5-10 per cent, but if we can then save up to 30 per cent in energy costs, I think it's worthwhile."

Thai Condominium Association director Athip Peechanont agrees with the bank's plan to offer low-interest loans as the basis for a campaign on the energy-efficiency issue. If the plan becomes reality, developers will have to set aside part of each new project for energy-efficient residences that comply with its requirements.

Property reporters The Nation

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.

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