Author Archives: Lance

  • -

Real Estate Investment Opportunities in Thailand

Thailand is one of the most interesting real estate markets in the world offering plenty of opportunities to acquire splendid properties and even make a significant profit on your initial investment. Thailand has a unique climate that ensures year round good weather as well as beach side properties that reach out onto the beach and the ocean.

The unique legislation of Thailand makes foreign investments in real-estate rather challenging, however, there are numerous companies and brokers that have facilitated foreign investments creating one of the most profitable markets in Asia particularly due to the somewhat restrictive laws.

Basically, according to the country’s legislative system foreigners are prohibited from acquiring or owning land unless they are part of a group that is at the very least 51% owned by Thai nationals. This has led many people to form mixed association or companies that are investing heavily in real estate, particularly in tourist friendly areas like Pattaya, Phuket or the country’s capital city Bangkok.

No location is perfect. But ideally, you’ll have to research for strong economic signals, a rising number of tourists, and a low unemployment rate. It is helpful to read the news about previous year real estate market situation.

Some of the best investment deals for foreigners are found in Koh Samui luxury condominiums as they generally require a larger investment anyway. This means that forming an association between a series of investors was necessary anyway so the legislation problems that prohibit foreign investors become irrelevant.

Thailand is one of the biggest touristic destinations in the world with millions of visitors each year that come to take advantage of the local beauty, unique culture and stunning locations. Investments in hotels, resorts and spas are considered to be one of the best directions to go with when looking for real-estate deals.  With the industrial and commercial growth the country has registered in recent years residential building in Thailand’s major cities, like Bangkok, Phuket or Pattaya is also growing. A new generation of more demanding young professionals also means the need for a more diversified housing market. This in turn leads to more projects that range from luxurious condominiums to modest apartment blocks or new suburban neighborhoods.

The bottom line is that whether you choose to invest in a condominium with local partners, buy an apartment in a condominium and resell at a later point for profit or bring a sufficiently large enough investment and start up a resort, Thailand is the place to do it. The relatively cheap price of land, abundance of high-quality cheap labor and demand for residential housing make it an attractive investment opportunity that will continue to grow in the next couple of decades.

  • -

Property Types In Koh Samui By Budget

In order to uphold the architectural tradition of the surrounding area the developers of Koh Samui are usually selling a certain style of property that showcases the elements of traditional architecture. This is the reason why there are very few property types that you will encounter in Koh Samui that are offered for investors. You need to keep this in mind when searching for properties that are available to buy here because these are probably the layouts that will be offered to you.

The main type of property that is usually requested by investors is one that has a sea view. This can be an amazing investment option as it can work both as a vacation house, a retirement home or a vacation rental because, let’s face it, who doesn’t want to have an amazing view from their window? So villas with a sea view are the most sought after properties. However, Koh Samui villas for sale come with a hefty price. If you only have a couple of millions to spend, you should reconsider your options and probably search for such a property when you are closer to 10 million Baht. Usually villas at this price come with a smaller pool and are just around 150 square meters. You can also opt for garden style villas which are usually accompanied by a small terrace outside and swimming pools. These allow those who come here to have a glimpse of the lavish Thailand vacation home but you won’t find those at this price.

Those who want a bigger private pool should look for Balinese style villas as they offer more for a smaller price. They are usually around 10 million to 15 million Baht and you can build one or buy one for a lower price. The advantage of such a villa is the large area that surrounds it and the fact that the villa itself is usually larger, with 2 to 3 bedrooms and living room with open plan kitchen, Unfortunately, there are very few Balinese style properties in Koh Samui and those who have already been built are increasing their value. This can be a good investment opportunity for someone who has the money now as they can easily sell them later for a good profit. Make sure that it comes with a garden and a large enough pool as just being Balinese style is not enough to be desirable by potential customers. The most important aspect when purchasing property in Koh Samui is to not expect to find a lot of sea view properties because they are in short supply and those that are for sale have become very expensive.

  • -

Weaker Thai Baht Is Incentive For Foreign Real Estate Investors

The political and military tribulations that have shaken Thailand in the last couple of years have also taken their toll on the country’s currency, with the Thai Baht losing ground versus most major currencies on the market like the pound sterling, the US dollar or the Euro. While this means reduced purchasing power for local investors, foreign investors are faced with an immense opportunity as Thai properties sell for approximately 20 percent less since the fall of the local currency, according to local economists and real estate agents.  This means that from the modern penthouses of Bangkok to the breathtaking villas in Koh Samui, Thai property and real estate is as attractive for investors as it’s ever been.

While the Baht might not shows signs of improving any time soon, particularly with the recent political crisis that is affecting the country, the window of opportunity for foreign investors is not going to last forever. Local property developers are starting to be much better informed about the increased purchasing power of foreign investors and are raising their prices. The realignment of the market will make new and modern properties basically not affordable for the average Thai family while foreign investments will slowly decrease.

Nowhere is this truer than in the beautiful island of Koh Samui where property developers are reporting a record number of closed sales for foreign investors. The most attractive real estate on the island is still on the North East coast with condominiums as well as luxurious villas selling far better than in any other location in Koh Samui. Laem, Bophut and Chaweng are some the areas where demand is highest, particularly for mid-range properties.

The most desirable properties for foreign investors seem to be those that yield a double digit rent and have a good growth potential. The potential for renting vacation villas on the island is huge, and while Thailand and particularly Koh Samui are well-known vacation destination, there is still room for growth in the tourism sector as soon as political stability is achieved.

Economists said that further construction growth is expected in Koh Samui as all the properties that are currently on the market are quickly being purchased by foreign capital. Increased media interest in the region has also increased its potential among both local and foreign investors making Koh Samui one of the current engines for growth in a country where political instability seems to be the norm of late.

  • -

Political Unrest In Thailand Affects Real Estate Market

Category : Thailand

The recent tumultuous political situation in Thailand that culminated with a military intervention has laid waste to an otherwise growing real estate and property market and nowhere is it more visible than in the country’s main development areas, Bangkok and Koh Samui.

According to market analysts the property market in the Thailand’s capital city as well as the rest of the country has dropped, with the take-up of condominiums averaging at only 40 percent in the first quarter of 2014. The disappointing result has continued to affect the mood of potential buyers in the second quarter of the year with take-up dropping again.

The entire economy of the country is suffering as a whole due to plummeting consumer spending. The intervention of the military through roadblocks and curfews as well as the recent string of protests have directly impacted Thai nationals who are more cautious about when and where they spend their money. While there is no problem with liquidity yet, buyers are postponing their real-estate purchases for a time when a clear direction to the current political crisis is reached.

Real estate developers have tried to react to the drop in demand by postponing the launch of new projects until calm and a new government is established. An increase in marketing activities as well as more advantageous offers is also a direction developers will take to try to regain the trust of potential buyers. The fluctuating market is a golden opportunity for foreign investors as most of their finances are not affected by the crisis and can now secure deals at discount prices.

The bank system of Thailand has also increased security measures being more cautious about the mortgage loans they release until the country regains its stability. In fact a total of 25 to 30 percent of applicants for mortgage loans were turned down a move that may force developers to cut costs yet again.

The only segment of the market that has yet to be affected is oddly the luxury real estate sector, with most projects selling up to or over 90 percent of their completed properties. Analysts say that this is an exception, one that can soon be affected as well. They also specified that while the political and military crisis is the main reason behind the drop in the market, other factors that stump growth have been growing for a long time like accumulated debt, reduced cash flow or increased spending caution.

  • -

Aqua Condos

You can finally say that your dream of retiring on an island can finally be a viable option as Aqua Condos is a beautiful and extremely modern project that has been built right in the heart of Koh Samui. This amazing heaven of tranquility has been designed by the award winning architect Gary Fell who was voted the “Best Architect In The World” at the Bloomberg International Property Awards. He has managed to capture the essence of Koh Samui and evoke it into this beautiful project that not only creates a distinct standard of luxury but also celebrates the beauty of the island.

The project has been designed to include various types of Koh Samui condos for sale such as studios, 1 bedroom and 2 bedroom apartments. Each of them comes with a stunning view that manages to capture everything that makes Koh Samui a beautiful place, the lovely scenery and the superb Gulf of Siam. Along with that, owners will also be able to benefit from the amazing 30m rooftop pool, sundeck and lounge area as well as the beautiful gourmet restaurant and the gymnasium that will be at their disposal. Anyone who is looking for an oasis of tranquility will find Aqua Condos to be a perfect fit for their plans. The experience here is simply unmatchable with anything in this world which makes this project extremely unique.

If you want to benefit from this amazing opportunity you should first familiarize yourself with some of the business regulations in Thailand. Although foreigners are restricted to own land here, they are, however, allowed to own a property, which makes this lovely condo a perfect location where you can get the place of your dreams without any hassle.  Also, if you choose to buy one of these properties you choose to rent the land. This can be rented for approximately 30 years and can be easily renewed each time it expires. This is a great way to actually own a vacation or a permanent house in Thailand as the majority of those who will sell you the unit you desire also offer a 90 year contract on the land.

If you want something that is truly unique and has been designed to fit your needs, Aqua Condos are some of the most beautiful properties you will ever encounter in Koh Samui. Since they are not extremely large, they will also not impose a large investment on your part, making them perfect treats if you simply want a beautiful place to spend your vacations or you wish to relocate in a simpler and more picturesque setting.

  • -

Guide to Buying Property in Koh Samui

If you ever dreamed of retiring to an exotic beach on a lovely island buying property in Koh Samui might not be an unusual decision. However, the process of buying property in Thailand is not as easy as some might expect so, in order to make sure that you make the best decision before you are spending your money, here are some guidelines to take into account.

Before starting anything do a little research yourself. Check out the prices for properties in different areas of Koh Samui and make sure that you understand the strong points and the weak points of every area before starting your journey towards the perfect property. Make sure that you include everything in your budget, the trip there, the stay, the experts you are going to need with you, everything. On top of that, add even more money to make sure that you are well prepared and financially secure when it comes to your decision. Depending on your plan, whether you want to keep the property, offer it for rent, invest in the area and sell it, make sure that you do some digging and see what the best places are. Some places are more tourist friendly while others offer high end residential properties, and you definitely don’t want to mix those up when looking for one type or another. You can’t go wrong with areas like Bophut, Maenam, Chaweng Noi, Chaweng and Plai Laem as they are very close to whatever facilities people living there might need: restaurants, entertainment venues, the beach, medical facilities, etc. But there might be other areas of interest that might be as good as those, all you have to do is go there and make sure that you find them.

The bureaucracy in Thailand is pretty high so you might need to make sure that you get accustomed and make a list with everything you need in terms of authorization or papers before starting the process. Make sure that you aren’t in a rush because you will have to be patient to finish the legal documents and eventually find a property you like, more importantly, the perfect property for you. Your preparation should also include getting a lawyer, and while you are searching for one, make sure that you find one with experience in these matters because things can get pretty complicated and you don’t want to be unprepared. However, don’t worry, as usually with an experienced lawyer things are very easy to handle and the process is much faster.