Article Category - Phuket Property Insider

The only legal way for a foreigner to own real estate in Thailand is to buy a condominium, or ‘condo unit’. In Bangkok, condo unit purchases are now considered trendy among the younger generation of Thais because condominiums are often conveniently located in the inner city area, making it more economical for them to commute to work.

VERY few people are aware of it, but under Thai law, anybody engaging in the act of ‘selling’ a financial services product does not have to disclose any charges a client must pay for the contract he, or she, is being recommended. This includes any disclosure of commissions that are to be awarded to the adviser. The consequences of this are staggering, and indeed, alarming to would-be investor

IN general, foreigners (non-Thais) have no legal rights to own land in Thailand, except for a few rare exceptions. This means that the possibility of land ownership by a foreigner wanting to live, or do business in Thailand is, in most cases, none. Consequently, this gives rise to the need to ‘work around the rules’ or to look for alternative ways to own land in Thailand.

ANYBODY with a UK pension scheme who lives abroad can now transfer their private pension into a QROPS or Qualifying Overseas Recognised Pension Scheme. But it might not always be the best way to go. Many British expats believe the UK pension system is over-complicated and suffocated in layers of regulation and restriction.

SAVVY investors are cashing in on West Sands’ guaranteed 10 per cent return on investment. Ten of the residential and resort project’s Phase Two units have been sold since the guarantee was announced in December last year. Sales director, Barry King said the units had been sold to investors from Switzerland, China, Japan and Russia.

If you thought financial planning was simply a question of saving as much as you can offshore and being heavily insured, think again. Designing a long term financial plan to meet the future costs of both the expected and the unexpected is a core part of financial planning. However, there are other equally important considerations in planning for long term financial security, especially for people with families or other dependants, as well as business owners.

Now is the perfect time to invest in property in Phuket, according to Phuket asset management specialist, Graham Bibby. Mr Bibby, the Chief Executive Officer of the Richmond Group said 2008 was full of challenges, but 2009 could be filled with opportunities. He told real estate agents and investors at the The Residence in Bangtao ‘the future is bright on Phuket’.

Many people who visit Phuket annually have chosen to purchase apartments in Phuket and rent them out the rest of the year when they are not on holiday. Small Phuket apartments or condominiums are a good choice for those who won’t be spending much time in their Phuket apartment, or people who are not interested in the upkeep of a house, villa or bungalow. Condominiums are not as readily available as low-star Thai-style apartments, but there are some available in Phuket. Apartments in Phuket are plentiful, so there’s sure to be something to suit your taste in terms of design, size, location and price.

Phuket presents a relatively safe haven for investors increasingly aware of the credit crunch that has brought many of the traditional property markets under fire. Currently, about one third of our buyers are investors, while at least another third are end-users looking for both a holiday home and an investment. So when asked which are the best investments in terms of capital appreciation and eventual salability, I tend to use a formula which has almost always proven itself over the past 30 years.

The tourist high season is over and it seemed like another solid year for visitors, which was good news for Phuket’s overall economy.

Singapore has seen an unprecendented boom in property prices within the last 18 months and whilst there are those amongst you who will not see an obvious comparison between the Lion City and The City of Angels

In all forms of business and particularly the creation of a new home there are talkers and there are doers (and derivations of both!)

The contrasts between Phuket and Pattaya are many and varied but perhaps nothing illustrates this more than their respective local planning department's attitude towards building height. While Phuket continues to restrict the height of new buildings to a maximum of seven storeys in specified zones Pattaya has adopted a reach for the sky approach.

A few months ago I wrote about different forms of competitive pressure principally focussed on the real estate market. The key messages were aimed to encourage differentiation in products and services and to increase awareness for strong international marketing from which to source potential new buyers.

At a time of uncertainty, fortune certainly favours the brave. Perhaps the correlation between acquired wealth and calculated risk is no better illustrated than in Phuket’s present property market. At a time when one might consider that the present government attitude towards the acquisition of land by foreigners would deter potential buyers of villas with land or indeed land itself, it appears to be having quite the opposite effect on the top-end market.

Recently Phuket Post ran a story on its website – http://kolbis-psit.com – about the effects of the recent coup on the island’s property industry. The story reported that developers and agents are, for the most part, upbeat and some had even seen increased business in the aftermath of Tuesday 19 September. However, the readers of one Bangkok web forum treated the report with more than a modicum of derision. So, the Post has gathered the collected wit and wisdom of its property columnists to give their views on recent events.

I am pleased to report I am back in the Land of Smiles – although it appears that not everyone is smiling. Before I left, the government had decided that a crackdown on companies that appeared to be held in foreign ownership seemed like a good idea.

The allure of a hassle free beach house, a bottle of champagne at the touch of a button, babysitters, boats and massages while receiving solid capital gains and a solid yield in excess of 7% may sound like the mystical Shangri La but, as a few investors are learning, a property purchase at a small resort is indeed a sleep-easy vacation home and investment.

I am finally coming to the end of my Eastern European expedition and write this from a very pleasant sidewalk cafe on a paved pedestrian thoroughfare in the ancient city of Plovdiv in Bulgaria.

I remember an opening sentence to a book on strategy that began “Competition is moving so fast, even the Energizer Bunny can’t keep up”. This was a humorous start to the heavy but nonetheless critical subject of competitive strategy. Industry giants Energizer and Duracell were locked in fierce competition for market leadership.

I am writing this column from Riga, the capital of Latvia. This was one of the first break away states from the former Soviet Union and is a small coastal country next to Estonia and opposite Finland.

The jury is still out as to which destination, Phuket or Bali, is the best place for foreigners to invest in property. As I operate real estate offices in both locations, and have personal investments in both as well, I will try to give an unbiased opinion.

Just over six years ago, my wife and I stood on a wonderful piece of land at the southern end of Chaweng Beach on Samui. The views were quite breathtaking. The land was hillside and, if my memory serves me correctly, it was an old cashew nut plantation.

West and east have always represented opposites whether simply geographic or in terms of ideals and culture. What is even more ironic is that even on an island as small as Phuket this has, until very recently, applied. The west of the island has long appealed to westerners while the eastern side of the island has been largely ignored by all but the reclusive.

It has been an interesting start to the year for the property market, not just in Phuket where we are experiencing an increase in luxury property sales, but also for some of the local regional markets.

I have operated a franchised real estate office under the Exotiq Real Estate banner in Bali for the past six years and more recently in Phuket for the past three years. There is a lot of synergy between these two destinations which are considered to be the two leading destinations in Southeast Asia for foreign property investment.

Clients often ask me where it is best to buy. Obviously, there is no one easy answer to that question, as it takes time to determine precisely what the client’s requirements are before offering advice. I also try to find out whether those requirements are likely to change.

While local property trends are an important indicator of the market, it is easy to overlook how Phuket is influenced by wider international factors. Foreign buyers, especially from Europe, have a wide choice of where to buy a lifestyle home. Increasingly – and perhaps without even realising it – Phuket is competing for the same euros that are being invested with other holiday home markets.