House in Thailand. Bangkok, Phuket, Pattaya.

Getting married and your Thai House

olkhousex — Sun, 17 Oct 2010 13:07:19 +0000

The following video by thailawonline.com explains the two different types of properties in Thailand while you are legally married under Thai law. It gives you an idea of what you need to know before getting married as these concepts may have a huge impact on your properties such as your house, condo or land, in case of divorce.

Types of property between spouses

While married there are two types of property:

Common Property (Sim Somros). Basically what you acquire after marriage.
Personal Property (Sin Suan Tua). What you own before marriage.

Most important to keep in mind

More important is to understand that this distinction between personal and common property is Public Order. This means it cannot be changed by an agreement before marriage. In other words, if you go in a court, the judge will apply this rule regardless of any other agreement you may have reached beforehand.

Exceptions and specific circumstances

Gifts you give to your wife, such as gold jewels, are considered Personal Properties.

Inheritance. What you inherit while being married are considered Personal Properties.

Buying Property with money from a sale before marriage. Let’s suppose you sell a house before marriage and take this amount to buy another house or condo after marriage. This amount will be considered personal property and will be taken off from common property, even if you change it to common property after marriage.

The fruits or benefits from personal property after marriage. They are considered common property.

After divorce takes place

You will be able to keep your personal properties. Common properties will be separated fifty-fifty.

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Russian property buyers coming to Thailand

olkhousex — Sun, 03 Oct 2010 05:04:01 +0000

It is common knowledge that an increasing number of Russian tourists have been choosing Thailand as their favourite tourist destination. While they seem to prefer well-known beach areas such as Pattaya or Phuket, during the last decade their interest in acquiring houses and condo units has had an impact on these areas. Our website House in Thailand will be following this trend and its overall impact on Thailand housing market.

This article analyzes the situation in Phuket where Russian tourist operators seem to expand their businesses as Russian carriers plan to provide more and more flights for Russian visitors.

Russians like to purchase large, expensive villas and there are a number of local real estate agents who specialize in this Russian market. Laguna Phuket is a favourite although most of the units are not used or even in rental pools; they are mainly there for investment only. Russians tend to not like other people using their units. There are Russians working on Phuket for tour companies and there is even a Russian language magazine, a Russian version of the established Phuket Magazine. (http://www.property-report.com/site/the-russians-are-coming-to-phuket-9050)

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Guide to buy a house in Thailand

olkhousex — Sat, 02 Oct 2010 11:05:19 +0000

If you are not a professional investor in the Real estate industry but are considering buying a house in Thailand, asking yourself the following questions may be of great importance.

Personal questions before buying a house or condo unit

Do you want to live, move, have a second residence or just invest in Thailand ?
How much you can afford to pay for the property.
Do you need a loan?. If so, can you get it from your own country ?
Are you prepared to live in a “Thai style” area so to speak, or only in neighbourhoods where English-speaking people and Western food joints can easily be found ?
What size does your house need ?
What are your most important parameters when choosing your residence ? E.g. closeness to specific locations, convenient access to Public Transport routes, high quality materials, neighbourhood, facilities, surroundings,……
Can you prioritize these parameters or rank them according to their importance ?
Which of these parameters would you be willing to forgo in case of having to.

Important things to know

The answer to the above questions will depend on your personal circumstances and probably your own good judgement. In my opinion they are immensely important but not enough to buy successfully a property in Thailand. Furthermore you will need good and independent information. This information will help you to be informed of the market situation and how to deal with legal requirements, as well as take proper precautions when dealing with sellers, Real estate agents or lawyers. The following are important points to keep in mind before starting the process of searching for a house or condominium in Thailand.

Legal requirements and methods for acquiring Houses or Condos in Thailand.
- Buying a house in Thailand
- Buying a condo in Thailand
What are the costs and taxes involved.
- Property Taxes in Thailand
What is the property market situation and trends in Thailand
- Is there a house bubble in Thailand?
The impact of foreign exchange markets on the cost of property
- Buying House in Thailand with a strong Baht
What will happen to my property if I pass away
- Property inheritance in Thailand

How to get a loan, in case you need it

For a foreigner is not easy to obtain a loan in Thailand to buy a house. In case of being granted this loan will likely be provided through a branch abroad, usually in Singapore, and in a foreign currency such as Dollar, Yen or Euro. An alternative is applying for a loan in your own country. In this case lenders will not probably accept your new Thai house as collateral.

Buy Condo in Thailand. Options and Requirements

Khunterix — Sun, 15 Aug 2010 15:04:54 +0000

Purchasing a condominium unit in Thailand is a relatively simple transaction for foreigners. In essence the concept of owning a condominium is similar to many western countries, albeit there are some differences in the process.

In any case certain due diligence should be carried out including there are no registered encumbrances on the property and the title is good.

General Requirements

In Thailand foreigners can own 100% a condominium unit in their own name. However, two preconditions are applicable in this respect:

Foreigners cannot own more than 49% of the total number of units in the condominium.

The funds used to buy the condominium must have been transferred from abroad. Moreover, the transfer must be recorded as such in a document issued by a Thai bank called “Tor Tor Sam”. This document must reflect the receipts of foreign currency into your account in Thailand along with the fact that the transfer of funds is exclusively for the purpose of purchasing a property.

Getting a Mortgage Loan

Strictly speaking you cannot get a mortgage loan in Thailand . However some developers have arrangements with financial institutions. Once you make a down payment the balance can be financed through a loan where the property is required as collateral. The bank provides this type of home loan in a foreign currency such as Dollar, Yen or Euro and they are transferred through a branch abroad, usually in Singapore .

Assistance

Looking for a property in Thailand usually requires some local assistance, especially if you do not speak Thai and are not familiar with the area of your interest. On the other hand you will probably need assistance not only for contacting sellers but consulting legal issues.

Being careful when it comes to choosing a property agent or service center may be key for acquiring successfully a property in Bangkok, Phuket, Pattaya or any other area of Thailand. Choosing a good professional is not always easy. They should be not only honest but charge reasonable fees for their services. They know you can be confused by the legal structure and Real Estate market in a foreign country.

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Title Deeds in Thailand

Khunterix — Tue, 10 Aug 2010 11:48:32 +0000

Title Deeds are usually issued by the Thai Land Department as the competent authority to deal with land and registering and transferring rights over land. They are divided into 4 categories. As each one of these categories provides different rights over land (ownership, possessory, certificate of use,….) the typology is relevant when purchasing land in Thailand.

Main Types of Title Deeds

Chanote or Nor Sor 4. This type of document grants the holder the full rights over the land. This is the best option for the buyer.

Nor Sor 3 Gor. This title confers the right to possess the land with certain limitations, entitling the holder to use, sell or mortgage the land. Unlike Chanote, Nor Sor 3 Gor is not a full land title. The Land Department measures the Land and as a result you know exactly its boundaries. The owner can apply for a change to Chanote.

Nor Sor 3. This title confers similar rights to Nor Sor 3 Gor however there is a significant difference. The land has not been measured by the Land Department. This may lead to boundary disputes when selling or trying to upgrade the land. The holder of the title can file a petition to change the title to a Nor Sor 3 Gor.

Possessory Rights. This is one of the weakest types of land rights, normally recognized by tax payments to local administrative offices. This title has not been validated and certified by the Land Department yet.

There are more types of Title Deeds in Thailand but largely not applicable for most foreigners who are merely interested in purchasing a property.

Conclusion

The most ”real” and freehold ownership land title in Thailand is Chanote, followed by Nor Sor 3 Gor which offers confirmed right of possession. The Nor Sor 3 is not secure as offers lesser rights along with an absence of accurate surveyed outer limits which may eventually lead to boundary disputes.

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Buy house in Thailand. Options and Requirements

Khunterix — Mon, 09 Aug 2010 16:54:59 +0000

Buying a house in Thailand is not as straight forward as buying a condominium unit. Normally, foreigners cannot own houses in their own name because Thai law prohibits them from purchasing land. However there are ways to get around this limitation and still comply with Thai laws.

Two common methods of acquiring a house in Thailand

Domestic company. The first option consist in being the largest shareholder of a Thai registered company whereby you will buy and own the property. You will own less than 50% of the company

Leasing. The second is by a long term lease with a Thai individual or company. Typically 30-year lease with an automatic option of two renewals of 30 year each -you can register land lease at the Land Department for a maximum period of 30 years-. This is a common practice.

The best option according to experts

Everyone has their own opinion and you can get different answers from experts. My advice would be that whenever you ask for financial or legal advice to a lawyer/consultant try to make sure that they are making an effort to adjust themselves to your needs and circumstances and NO otherwise. Normally, it is wise to search for a second opinion. As lawyers might have specialized in a specific solution they may try to talk you into it, regardless of your circumstances.

Pros and cons

Shareholding a Thai company may seem a more “secure” way of acquiring a house so to speak, however many people follow the leasing procedure and experience no problems. On the other hand many consultants consider that leasing is the best option as reduces the cost of transactions as well as ongoing maintenance of keeping a Thai company.

Owning the house but not the land

As stated above a foreigner cannot own the land in their own name. The land must be owned by a Thai individual or entity. However the structure or building on the land can be owned as such by a foreigner .

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Property taxes in Thailand

Khunterix — Sun, 08 Aug 2010 16:48:21 +0000

When buying a property in Bangkok, Pattaya, Phuket, Chiang Mai, Hua Hin or wherever you decide to purchase Real estate in Thailand is important to know the different types of applicable taxes and which party, buyer or seller, usually pays; as well as being able to estimate the overall cost of the transaction.

Property Taxes

Business tax. 3,3% of the government assessed price or sale price, whichever is higher. Levied against a vendor who has been in registered possession of the property less than 5 years.

Stamp Duty. 0,5% of registered value. Temporarily being waived by the government if the transaction is subject to Business tax -possession of the property less than 5 years-. Normally paid by the seller.

Transfer fee. 2% of registered value. Normally paid by the buyer.

Income Tax. The vendor must pay an income tax on what he earns on the sale. This rate varies according to the transaction. Remember that the vendor may have to pay the Business Tax (3.3%) as well, in case of being in registered possession less than 5 years.

Other related Taxes

Land Tax. This tax is levied on land ownership. Despite being an annual tax is often collected for longer periods as the amount is usually very small.

Inheritance Tax. There is no inheritance tax as such in Thailand.

Rental Income Tax. Usually charged between 10% and 30% of rental income depending on the specific circumstances.

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Living in Thailand

Khunterix — Fri, 06 Aug 2010 19:39:22 +0000

Thailand offers many rewarding advantages including friendly people, good value hospitality, beautiful beaches and delicious food. This is the place where many foreigners wish to live the dream of their lives escaping from their cold countries . But Thailand has more benefits to offer such as inexpensive properties and a lower cost of living.

Thailand is also a newly industrialized country that has high quality infrastructures compared to its neighbours in the South East Asia area. This development is especially noticeable in Bangkok and some areas in the South.

Cost of living

Thailand offers acceptable cost of living levels for foreigners. However lately this advantage has become less significant , especially for British, Europeans and Australian people. Inflation and currency rates have been major driving forces in this process. Bangkok and Phuket Island are one of the most expensive areas whereas the northeast region also known as Isaan is one of the most affordable.

With regard to the cost of food Asian and Thai food are usually cheaper. Thai food can be found everywhere along the streets where street vendors sell cheap dishes. As a matter of fact one doesn’t have to cook themselves to keep budget under control. Buying food in malls or grocery stores might be more expensive.

With regards buying other types items home made products are typically more affordable than most Western countries whereas import products are sometimes more expensive.

Authorities and Security

Bureaucracy is an important aspect of everyday life in Thailand. Sometimes you need to be patient and often not loose your temper, especially in case of dealing with the police. Concerning to security Thailand is a pretty safe place.

Society and Culture

Thai culture is strongly influenced by its Buddhist religion. Their people are usually friendly and tolerant. If you move to Thailand you will soon realize that Thai society tries to avoid conflict all the time. As they smile you are supposed to smile when conveying your emotions, especially agreement, understanding or happiness.

As a foreigner you should be very respectful with their religion and Royal Family. First of all because Thai people are and secondly because foreigners should never forget that they are not living in their own country and must respect its culture. Otherwise their behavior would be considered rude.

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Condo in Bangkok

Khunterix — Thu, 05 Aug 2010 16:26:45 +0000

While Thailand’s economy has been growing at a rapid pace in recent years, property markets have shown an even more remarkable expansion, especially in prime areas such as Bangkok, Phuket and Pattaya. With a population of more than 6 million residents Bangkok is not only the capital of Thailand but its largest and primary city.

The Property Boom in Bangkok

Being an important commercial hub in the Southeast Asia region the city is also known as one of the most popular tourist destinations in the World. In addition the capital attracts a large number of nationals from other provinces and immigrants from its neighbour countries, as well as an increasing number of expatriates.

With this demand putting the market under pressure Bangkok building industry has experienced a sustained expansion with price increases of 8-10% a year. This property boom is especially apparent in the condominium and apartment sector where new developments can be spotted all over the city.

Areas

The condominium units located on Chit Lom, Sukhumvit and Ploen Chit are one of the most demanded along with those offering BTS and MRT stations nearby. Convenient transportation is becoming a primary factor when choosing a condo in the city. Traffic congestion is a serious problem in Bangkok where an increasing number of vehicles drive through its streets everyday.

Recently On Nut has become a popular area among expatriates offering a well connected BTS station along with lower property prices.The cheapest areas are usually far from Central Business Districts with no convenient transport connections to the BTS/MRT routes. Prices range from 700,000 Baht for a studio or single-bedroom type of room to 100,000 baht per square meter for a high-end condominium unit in Central Business District areas.

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House Bubble in Thailand set to burst ?

Khunterix — Wed, 04 Aug 2010 18:05:53 +0000

Thailand’s economy has been experiencing a sustained recovery despite the political turmoil and its effects on the always important Tourism industry. Rising exports to China and other East Asian Countries has driven a more than acceptable growth rate boosting the confidence of investors and puting the housing market under pressure.

Strong demand for residential properties

Thailand’s residential property market has been fuelled by the growing demand of an expanding middle class along with injections of cheap credit from the financial institutions. Furthermore the recently expired tax incentives helped boost demand and sales pushing prices even higher. Building industry has experienced a sustained expansion with price increases of 8-10% a year

Market outlook

As many are wondering whether the present house market uptrend is sustainable or not, others contend that the country is heading to a boom and overheated market. The Bank of Thailand Deputy governor warned not to be complacent about the chances of being in the middle of a property market bubble. In which case the chances of a bubble burst would increase if the global economic uncertainty could affect Thailand exports. When global economy is at risk property market bubbles are at risk too. Authorities are starting to worry about banks granting too much lending to housing loan clients as well as assessing the chances of having trouble paying their debts.

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