Property in Thailand

Property in Thailand - with each passing year the interest to it is growing, but the fastest growing real estate market is in Phuket. Over the past 7 years, the island is transformed: country roads have become a line of the highway, there were huge cinema and shopping centers, the largest network in the UK supermarket chain Tesco Lotus, Big C, Central Festival, shops of famous brands - Gucci, Ferragamo, Cartier. All this makes real estate in Phuket, Thailand more attractive for living.

Phuket annually recognizes the fastest growing province in Thailand. Over the past three years property prices in Phuket have increased more than 7 times! The infrastructure is successfully developed, and this means that in the next 10 years, Thailand has become the most attractive place for rest and lodging, as well as the optimal solution for investing in property in Thailand.

Phuket Island has a international airport providing domestic and international flights on many fronts.

Good lighting and excellent condition of the roads makes it easy to reach even in the most remote corner of the island in just 40 minutes.

Phuket is considered the most environmentally friendly province of the country. Local climate promotes good health and good spirits.

On the island of Phuket, there are two international schools for general and secondary education, as well as the prestigious British school.

Phuket is equipped with its own energy, constant electricity, paid at affordable prices, water and telecommunications.

The island has built several international clinics that offer all types of medical examination and diagnosis; about. Phuket is famous for its medical technologies among the tourists.

Phuket is one of three places in the world, which are concentrated the highest number of water sports: diving, surfing, fishing, snorling, windsurfing, rafting and rafting kayaking.

Every year on the island of Phuket held a world-class sporting events, not excluding Sailing Race for King's Cup (held in December).

Phuket has always been and still remains a place of pilgrimage for people keen on golf. "The Blue Canyon Country Club" one of the best in Asia golfistskih clubs, which conducts the famous golf tournament Johnnie Walker Classic. At about. Phuket is easy to take courses on the golf course, with prices significantly lower than in Europe.

The developers have adapted to the slumping real estate market in Thailand

 

Builders in Thailand perfectly adapted to the slumping real estate market - an example of this is the successful sale of apartments in the residential complex Mandala.

Residential Complex Mandala, located in a prestigious area on the island of Phuket, includes 24 apartments and 8 villas with pools. Since the beginning of December 2009 to date has already sold 10 units of housing, illustrating how the developers were able to adapt to the downturn in the real estate market in Thailand.

According to Tom Travers, managing partner of the company «Indigo Real Estate and agents for the development», the beginning of the global financial crisis in September 2008, foreign property buyers in Thailand have become more demanding.

- Today, buyers are certainly more attentive to purchase real estate in new projects. For example, before a significant part of the apartments could be sold even at the design stage of construction - now this was not observed. Now buyers require the developers of the significant list of closed facilities, financial liquidity, the quality of the finished product, attractive prices - sends property-report.com.

Mr. Travers also said that Mandala is a shining example of how developers need to adapt to foreign buyers in a changing real estate market of Phuket.

Buying houses foreigners in Thailand - the Land Code

 

According to Article 86 of the first Thai Land Code, foreigners can not own land except for special agreements. Versions of a law resolve this situation two:

The first option - the purchase of land by a legal person, which will be considered "Thai". This method of ownership is often called the "clearance on the Thai company." Using it is - you own the company, and owns the house. Under Article 97 of the first companies registered in Thailand, but with more than 49% of the share capital owned by foreigners to refer to foreign legal entities, that is, to a legal person has been "Thai", should that be 51% of the share capital owned by Thais.

Thus, a foreigner can own only 49% of the company, although the Thai Land Code does not prohibit fully control it. It is therefore very important to make an entire package of documents on the company to guarantee the right to effectively and fully the company control. Ownership and management of the Thai company passes through certain procedures and imposes responsibilities and tax liabilities, which also requires additional costs. Although this method of buying some believe is not too reliable, however the last 30 most of the houses were bought by foreigners in this way. With proper preparation of documents - and a mechanism for those years long ago perfected - no problems with the owners never arisen.

The second option - a foreigner can own land through a documented long-term lease.

Long-term lease - a simple way that allows ownership of land (or land with a house) for a certain number of years. As a rule - 30 years with the right to renew the lease on the formula 30, 30 (ie, a total of 90 years). Some prefer this method because of its simplicity and because it does not require very complex procedure for the establishment of the company. The land is leased from the owner of the land: a person or entity, and shall be registered in the Land Management. The amount, stated in the contract for the 30-year lease, will depend on how you arrange with the owner of a small commission + Land Management for the registration of the contract. The contract also specifies an option to renew the lease for an additional 30 years. In addition to the lease contract can be issued for life to the enjoyment of all that is located on the surface of the site as an additional and serious guarantees. However, long-term lease can be considered a reliable way only if, if you rent land from the state. If you rent land from private individuals or firms can never be completely sure that 30 years later, when you will need to extend the lease with them nothing will happen.

You should not assume that the lease allows you to save on the cost of land - usually less than the cost of the rental price of land (the acquisition of the company) only a few percent. Developers cottage settlements is rarely go on clearance through leases and over 90% of homes are made "on a Thai company."

The laws of Thailand on the ownership of real estate and land.

 
Content: The laws on possession of the condominium. | Laws on land ownership.
In general, about Thai laws may say that they are nationalistic, especially in those moments that relate to land ownership by foreigners. The main laws governing the relations of the Kingdom of Thailand and investors, is the act of condominiums (№ 3) of the 1990 Land Code and Law on foreign business.
Buying a condominium and the Act on condominiums.

Condominium Act (№ 3) of 1990. Article 19-I of the Act prohibits foreign ownership of condominiums with a few exceptions which we describe below.

Changes in Article 19 th of April 27, 1999 in the Act on condominiums (№ 3) of 1990 allows foreigners to own condominium, provided that foreigners own the aggregate not more than 49% of the total project area (with the exception of Bangkok and Pattaya, as allowed local municipal law).

In this case the buyer must meet one of the following conditions:
- Private person residing in Thailand.
- Private person invited to Thailand Board of Investment.
- A legal entity, registered in Thailand but classified as "foreign" under the Land Code.
- Legal person who has permission from the Office of Investment.
- The person or entity on the territory of Thailand vvezshee foreign currency to purchase a condominium.
That last option is used most often. In this case, it's important to do only one demand - the legitimacy of importing valyuty.Soglasno Article 86 of the first Thai Land Code, foreigners can not own land except for special agreements (Although Thailand has with any country of a special agreement allowing nationals of that country's land in Thailand). The solution in this situation is to purchase land for a legal entity, which will be considered "Thai". What does this mean? According to Article 97 th to foreign legal entities include companies Registered in Thailand, but with more than 49% of the share capital owned by foreigners. Accordingly, for whatever entity was recognized as "Thai" needed that would be not less than 51% of capital owned by Thais (in practice the local Land Office require 60% or even 70% of the Thai capital, especially in the area of Pattaya).

I should note that now the public authorities staryutsya more closely track the origin of capital of such companies, and require evidence that 51% of the capital actually has a Thai origin and that the land acquired to the detriment of the foreign parent. However, land sales are continuing and will soon come up with new schemes.