Thailand Property Report/News
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THAILAND HOUSING SITUATION MAY 2008
Please remember the articles we publish some are written by Property Managers/ Companies who inflate the situation in Thailand for there own gain. eg Pattaya property when you see the numbers of foreign realtors have inflated the property market to overheating. Thanks to the Thai Govt they have made the best decision to curb foriegn ownership in land as it is these foreigners who inflate the property markets for self gain.
It is a good time to buy property in Thailand IF YOU HAVE EXPENDABLE CAPITAL ONLY. Bangkok Bank will lend only to elligilble business owners & property prices are now dropping due to the insecurity of the present economic situation; the US sub prime which hasn't really kicked in in Thailand as yet. This will mean even better bargains as people need to service loans and interest rates are climbing around 7.5% now. Not only this the cost of oil, fares, food to utilies is also climbing so its a buyers market or will be for foreigners who have that cash to buy. However only if you have the spare cash OK but don't look at condos as a cash earning venture unless you get a bargain from an outgoing expat etc. The worse hightmare will be the Management themselves in Thailand as many condo complexes have bad management and sinking funds are not used appropriately. Don't allow Estate managers to hold your titles as they change the circumstances not to your benefit anytime as well as use your titles for further collateral. When buying check out and talk to other owners in the building and especially about maintenance & other projects the owner has. He/she may have over committed?? on new developments and once you pay deposit theres no comeback. Thailand SET index has also been dropping as foreign investment is tending to shift to other countries but we have yet to see any major upheavals.
Bangkok thrives in CONDO MARKET???
Thailand's new Escrow Act in effect
More protection for buyers of condos
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 within easy reach and maid service to look after you. For instance Chiangmai has 22 hospitals and over 400 clinics, the most advanced Dental hospital and Bangkok has the worlds top Hospital Bumrungrad so what more does one need. It has excellent food fresh as can be, a beautiful climate year round that changes little and the transport services will not break your bank account and are excellent, whatever one wishes to travel on. Just think about it you can hire or buy a vehicle and a small house will cost only 1m baht above -- now is this a lot of money. Remember the Chinese saying "have only what you need and leave the rest at home". I bet know you say that big house back home did we really need it? You will find many foreigners who buy and build big in Thailand actually regret it 5 years down the track and wish they bought a modest house.
Thailand has lovely people, no attitudes and a well organised cultural system that we can only envy. 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 and be oblivious as to what their mums and Dads struggled to raise them to teenages. Well the Thai like the NZ Maoris do not do this. The choice is yours but even with websites you visit, remember this, we have been around on the web now for 10 years and we also own excellent real websites: www.bangkokrealty.biz & www.chiangmairealty.com
HOUSES AND BORROWING:
Thailand, housing loans make slightly above 50% of total household debt. Thailand after suffering from political crises, have not yet recouped the confidence of investors. This resulted in a drop of 5.09% in 2007 in Thailand’s house prices, down from an 8.03% increase in 2006. Housing in Thailand is a buyers market if you have the cash. The only problem is foreigners can only really buy into condos but these are bargains in the right places and locations. Thailand has gone the opposite way from NZ where salaries are not up with the rise of housing prices making it not even worth considering to buy unless you have cash. Although foreigners are unable to borrow in Thailand (can if they own a factory ) if they have cash it’s a good market. Don’t look at the Thailand situation as a rental investment as the rental incomes are not great and there are certain requirement like squatters rights so one may not get the rents if the renter refuses to pay and has nowhere else to go. But as a long term capital investment one should be able to recoup a small profit by adding features like a swimming pool which is always in demand here or a waterfall, landscaping etc. In this respect Thailand is still on a building boom.
We say the best buys for foreigners who wish outright ownership is the condo. You can close the door and go on holiday whenever you want knowing the condo is safe but on the other hand make sure your condo has good security grill door. Theres many condos out there especially in Bangkok and Pattaya, Phuket & lesser in Chiangmai so one can choose what they want. However be careful and follow our Property guide to buying found on both of our websites: www.chiangmairealty.com or www.bangkokrealty.biz which will guyide you to buying here in Thailand. Feel free to ask us questions if youre not sure and if you want to bring your personal belongings to Thailand we also own a Shipping and Freight Clearance Business here in Thailand.
INCENTIVES BY THE THAI GOVERNMENT
The Thai Government has also created incentives to the commercial banks to provide more home loans. The vast network of the commercial banks permit unrestrictive access to borrowers nationwide. The Government allows market forces to determine the mortgage-loan conditions. There are no arbitrary interest rate directives (ostensibly to help low-income borrowers, but usually yielding opposite results). The housing finance system is an integral part of the whole financial system. There are no special channels or conduits that force resources into housing finance. Should the financial system become unfavourable to home mortgage lending, the Government Housing Bank will absorb any spill-over demand. Surging oil prices and higher interest rates are to blame for the slowdown. Rising inflation would hit Thai households, the majority of which keep large amounts of their savings in cash rather than investing it.
THAILANDS BEST INVESTMENTS FOR FOREIGNERS:
1/. Undoubtedly if you have over and above put into Gold & Condos. Do not keep money in the Bank here as the rates are next to nothing 2%?? and only bring what you need when you need.
2/. Condos are the best choice not for rental purposes but perhaps long term these will be OK. With the political situation somewhat still unstable these can be held by foreigners and your safest bet as long as the complex owners are OK and do the required maintenance & theres a Jurassic Management Committee in place as the maintenance in some condos is terrible. Also watch to make sure you are not buying over the 49% limit of condo ownership.
3/.Unless your marriage is stable and you have Thai kids then a house is OK but see a lawyer to make sure you cover yourself and children in the event something may happen to your Thai wife or Thai husband. We emphasis this as the will system here works on an heirarchy system so if your young Thai wife should pass away suddenly you may find the grandmother will now own the house and land not the children. So use a lawyer to make sure the foreign partner has power and remember a freigner can own outright the house? If you are single this is not an option but again draw up contract with lawyer first before you buy anything here.
4/. Stocks and shares -- be careful and never trust a finance company that has no bank backing?? so better to bring just what you need to Thailand and invest the rest back home as safer and better interest rates on your money. Finance companies are going bust in the west due to shodder Govt controls & willy nilly investing by the finance companies themselves so property assets is Ok if you have the cash. Internet banking is getting better by the day as well to assist your transactions but watch out for the sharks you meet in Thailand who know all the ways to spend your money.
THAILANDS HOTSPOTS FOR FOREIGNERS
1/. The islands like Samui are still the best places for foreigners although the costs are expensive in Thailand terms. Up to and over the 85,000baht per sq for condos
2/. Then comes Phuket and the bar scene of Pattaya for the single guys and gay scene. Many condos to choose from and good prices
3/. Hua Hin is the next favourite and prices are the same as Phuket and higher than Pattaya.
4/. Yes 4th place is Chiangmai. Most who come and buy here are retirees who like a cooler and not so fast city which Chiangmai is.
CONDOS BANGKOK, PHUKET AND PATTAYA; around 65000-85,000baht per sq metre.
CHINAGMAI ALTHOUGH AROUND 65,000BAHT you can get from 35,000-45,000baht but theres not a lot one can choose from in Chiangmai. The problem in Chiangmai is that their are not many good condos for sale and some buildings are old. Make sure they have a Jurassic management Committess and they do maintenance as well as upkeep on the condos and many are in poor shape plus the owners will not look after them
WHY USE OUR SERVICES:
[ THAI LAW HELP SERVICE ]: We have many more properties. Just ask us. Let us broker your business or property. If we don't sell we don't charge you. Selling or wanting to Buy a Guest House, Restaurant, Business, Bar or Office then just ask us. We do not charge you to find your business. We even guide you to the best deal & help you form a company, partnership, year visa, agreements, leases, accounting services, taxation etc right to offering you FREE hardcopy promotions if you use our services.
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