Investment Prospects of Thailand Real Estate Part 1

Purchasing a condominium in this region is traditionally made prior to commissioning. This type of purchase has a special term - "prebuilt". As a rule, the sale is made by several steps increasing the cost at each stage. Delta between the initial and final prices may reach twenty percent and more. This Delta is the potential margin during purchase and sale. Taking into account extremely low and stable inflation in the Kingdom, any step can be considered as a potential net profit. The most important factor in this case – to evaluate risks, to choose the developer and to enter into "the meters" and go for "the money" in a timely manner. An experienced and competent investor can handle it in a correct way.

Land ownership rights are not granted to foreigners in this country but there is an opportunity to buy apartments in a condo. It is only necessary to make out the documents in a proper way. Brief description of the procedure is as follows: seller sends the contract, buyer signs it, attaches necessary payment documents and sends them back. That’s it – the transaction is closed. There is an additional mandatory spending – a three-percent fee for assumption of ownership and utilities, the average tariff for which is 50-70 Baht per 1 square meter. It is also important to know about the size of payments to the tax authorities, so that the amount of tax on the profit during reselling 10% margin up to a million Baht and 15% - up to half a million.

Useful Tips for Owners

Generally it is the owner who is responsible to manage the property. Purchase and sale of property in Thailand is not a licensed activity, unlike Japanese and some other markets. This situation becomes a good ground for private brokers and for renting out real properties in Thailand. Many professional players in this field are dealing only with sales and are not paying any attention to the further consequences and personal situation of the client and the object. After receiving the money and all paperwork such companies usually disappear. Also if the level of competence of such “professionals” is inconsistent, this approach may turn into trouble in the future. If the owner has come up against such situation and has to deal with it by himself, it will cost him a lot of time, money and efforts. Local residents, unlike foreigners, can handle such problems in a more simple way. The next article is devoted to the issue of possible risks when buying a property in Phuket which can be avoided, if you rely on experienced professionals.