market down, but they ended with this very popular prime minister being elected, so a lot of confi dence has gone back into the economy.” While this means that surplus stock
and distressed sales are relatively uncommon, there is still one way to bag a bargain in Thailand, and that is to buy off-plan, says Lee Chettoe at property group Knight Knox International (
knightknox.com). “The pre-launch stage is when a
developer will put the best deals out there to build momentum and gather in sales. In Thailand, people will pay a premium for completed units. A studio I’m selling off-plan at £18,000 would get in the region of £25,000 if it was completed.” New-builds are the most popular
purchases among foreign buyers, and, unsurprisingly, the major travel destinations also draw in the largest number of overseas property buyers, with Bangkok, Pattaya, Hua Hin, Phuket and Koh Samui the major hotspots. So what are the ideal areas if you are seeking to buy for lifestyle and/ or investment?
Making a permanent move Many of the foreigners buying property in Thailand are working
in the capital, either for large multinationals or in the English- teaching industry. Others have internet businesses
or travel in and out of the country for work, so they want to buy either in the capital or in resort areas within easy reach of it, such as Pattaya or Hua Hin. The Bangkok and Pattaya property scene is dominated by condominiums, or what we would generally call apartments. In Bangkok, where the central business district remains popular but is now quite crowded, many new developments are springing up around the airport, says Frank Khan, head of residential sales at Knight Frank Thailand (
knightfrank.co.uk). “In these areas around the airport,
there are some big new supermarkets being built and there is good access to the MRT [Mass Rapid Transport underground system] and Skytrain.” He says the price of a one-bed
apartment in Bangkok is likely to be in the region of £70,000 to £100,000, with those in the CBD or with river views having higher price tags. Pattaya, about two hours from
the capital on the coast, represents a cheaper proposition. Many foreigners choose to live in Jomtien Beach, where studios can be bought for
Above and below: Soneva Kiri resort
around £15,000 to £20,000 and one- bed apartments for around £25,000. In the more exclusive Pratumnak Hill area, one-beds can fetch up to £50,000 when completed.
In Hua Hin, Thailand’s longest
established beach resort area, a little further from the capital, most overseas buyers plump for villas, says Simon Pinnock of Hua Hin Property (
huahinpropertyagent.com). “For foreigners here, the most popular property is a three-bed private pool villa on a development that has security, “ he says. “This will usually
HOW TO BUY THAI
• Foreigners are not allowed to own land under Thai law. They are, however, allowed to own condominiums so long as no more than 49 per cent of a development is owned by foreign buyers.
• Villa ownership is slightly more complicated, as foreign buyers can own their house but can only lease the land it stands on from the government for a period of 30 years, though this can be renewed at the end of the term.
• Some foreigners have also exploited a loophole in the Thai law by purchasing property though a company set up with Thai shareholders. Though not illegal, many property professionals recommend against this route. It’s a very good idea to consult an English-speaking lawyer to guide you through whichever buying process you choose.
• Many developers offer interest-free finance, with typically a 20-25 per cent deposit required and up to five years to pay the remainder. Mortgage finance is difficult to arrange in Thailand: those needing it would be best advised to arrange it in their own country.
• Purchasers have to pay a one-off sinking-fund fee when buying, utility connection fees, title deed fees, furniture costs and ongoing maintenance fees. To be on the safe side, buyers should budget for up to 10 per cent of the purchase price for fees.
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