New Property
Park Lane Jomtien Resort
Visit our 1millionbaht.com to view this successful development. Start price: 1 Million Baht for 36 sq.m. fully furnished apartments with 1600 sq.m. Lagoon Swimming Pool.
The Apartment Buildings occupy a strategic position with walking distance to Jomtien Beach, only 600 meters to Sukhumvit Road and within 5 minutes you can reach some of the regions finest restaurants, shopping centers...
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How-to Buy
Freehold ownership of a condo for foreigners is allowed by Thai law. A condominium block may be of 49% of non-Thai ownership, if the proper condominium license has been acquired by the developer, this can rise to 100%.
The overseas buyer has two possibilities of owning property in Thailand, these are the freehold or leasehold options. If a condominium is still ...
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Thai Real Estate Status
The Thai property market and specific the Pattaya Jomtien market seems to be subject without a tangible outcome when reading publications be it on- or offline. There is much speculation, opinion, tension and contradiction.
Just a few facts: The property market is not slow. The saturation point is not reached and no, Malaysia will not convince anybody with their 10 year homeowner visas to buy a house in Kuala Lumpur instead of lively Pattaya, because the people of Kuala Lumpur keep coming to Pattaya, whenever...
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Beneficial Prospects of the Thai Real Estate Market
Political turmoil, unclear property ownership and the solid Thai Baht, did not have any impact on the Thai real estate development and investment market, as was feared by many.
The real estate market is sound, substantial medium-term profits are made since 1998 in a steady upward line. In Thailand property is favorably priced when checking countries like U. K., where the average price is 10 times as high when comparing square meter prices of condominiums in London, with the prices of Bangkok and Pattaya. When comparing the facilities, services and luxurious attributes of the condominiums, both Bangkok and Pattaya, leave Western buildings far behind.
"Normal" in Thailand, is luxury in the U.K., Netherlands, Germany or Switzerland. Investors are able to purchase more and better for their money than in many other global locations, this is also one of the many reasons, why investors keep lining up seeking investment opportunities. A quality Thai home costs at the moment approximately 30 - 40% of the price, when compared to an equivalent property in the south of Spain.
The significant returns on real estate purchases are caused by the boom and high pace of developments mainly initiated by international investors, coming mainly from Singapore, Hong Kong, Korea, U.S.A., Europe and Japan that appreciate the diversity and flexibility of the Thai real estate market and value the appreciation of their capital.
Developments take place in the form of joint ventures with local real estate development companies or the investors manifest themselves in the market as an independent Thai company in the form of a SVP. We can state that house prices have doubled over the last two years and market analysts expect that they double again, over the next two to three years. Considering this fact the inflation rate is still low with 2% compared to Europe or U.S. and despite the high fuel prices.
- The growth rate of property is currently approximately 10-15% annually, depending on the location.
- Land prices increased with 26.9% nationwide in 2007.
- Market analysts foresee further expansion and steady growth. Real estate development opportunities are impressing investors through their diversity and solid and sound appreciation.
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The high-end property markets is the preferred investment opportunity, with the focus on a monthly rental yield on both a short and long term basis.
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European property investors consider now more and more the emerging property markets because traditional markets seem to be saturated with the effect that investment returns are gradually declining.
- Thailand has proven it's role as the forefront of the new international and specifically the Asian real estate investment market place.
Significant Economic Growth Potential
Thailand is the most reliable area in Asia - with a solid growth and a true emerging market. It is not only the Asian economic leader and attracted significant foreign investment but it will continue to be the preferred investment growth area as it is not that alien when compared to Beijing, Shanghai or other emerging countries. Main trigger is the tourist industry, supported by a superb infrastructure that is expanded by the day. The government continues to invest heavily in the touristic areas and economy. Specifically the rental market, benefits from the growth in tourism.
Accessibility of Thailand
Suvarnabhumi Airport, the new international airport of Bangkok, is the largest airport in South East Asia and serves as a hub for international air freight and international passenger transfer. All major air lines are landing on this airport during their long distance flights coming from Australia, China and Europe or USA.
Thailand is an affordable destination and is currently the most popular of all Asian tourist destinations. It is also one of the best budget locations to fly to in Asia and domestic flights are cheap. Budget Air lines, like Air Asia, provide fast access to anywhere within the surrounding Asian countries and all the airports Thailand counts. Thailand has a considerable length of 1500 km from North to South and an east-west distance about 800 km, air travel makes mobility possible. Therefore investors are increasingly discovering Thailand in search of lucrative investment opportunities.
Thailand the Hub of Asia
Multinationals choose Thailand as the base for their headquarters, their staff works all around South East Asia and Bangkok is acknowledged as Asia's communication and transportation hub. Main reason is that offices are affordable and long term expatriates and directors can be furnished with a life style that would be either very expensive or not as agreeable or safe in other South East Asian countries.
The advanced road network facilities, especially the Chon Buri by-pass, contribute to Pattaya's popular position as a dormitory town, not only for the Eastern Seaboard, but also for Bangkok's executives and directors.
Foreign Investment in Thailand
Strong business links connects Thailand to Japan, Korea and China. This is obviously a recommendation for Thailand, as all three nations are major players in the international markets.. The expanding growth of new industrial estates attracts foreign companies such as Nestle who will invest 4.3-4.5 billion Baht to build a new factory in Thailand. The huge Amata Estate, just outside Chon Buri, is occupied almost exclusively by Japanese enterprises, contributing to the financial health and the real estate market, foremost in the rental market.
Education for expats kids
Harrow School, operating with the use of a licence from Harrow School in the UK and practiced quality control and supervision from UK and Dulwich College in Phuket, are international schools with a good name. There is German school in Chiang Mai. Pattaya has an International School that caters your kids from kindergarten to secondary school however all kids are required to wear school uniforms and the schools have their price. The fees are three to seven times the average Thai monthly income, starting at around 40.000 Thai Baht to up to 85.000 Baht, all schools request an additional registration fee and most of them have their emphasis on the United Kingdom National Curriculum which might not be your preference when coming from other European or Scandinavian countries where education is more liberated.
Retirement
Thailand grows on you. Living and working here for years and going back to European home countries can be an eye opener for the wonderful quality of life one has, residing in Thailand. Therefore to many of the expats, who have worked in Thailand, it is clear as a bell that they will stay on when they have reached retirement. There are many reasons in favor of Thailand, starting at the affordable and advanced health care system and the loving care for the elderly, which is based on a general respect and appreciation for their experience in the Thai culture. Watching TV and films about the elderly problem in the European and American countries and the neglecting practiced, is probably the main trigger why so many retired couples choose Thailand as either their second home or primary home.
Attractiveness of Environment and People
The breathtaking magnificent Thai coastline is blessed with wonderful beaches with many areas that are not yet exploited by tourism. The nature and landscape of Thailand is versatile, tropical forests and, mountains being as high as 2,595m (Doi Inthanon), rolling mountains in the south and the spectacular Andaman sea with it's turquoise sparkling clear waters, Islands with white beaches or fine coral sand, plateaus where fruit trees are grown and hills where grapes are harvested and wine bottled. The strawberries grown in the North are famous and the coffee grown in the same area is of best quality and beats each espresso in the West. A tropical paradise favored by Westerners that are driven to leave the cold season, with gray skies and a barren nature behind and which are all very much impressed by the true kindness of the Thai people. Thailand has a rich history and an abundance of sightseeing that are worth a visit. These are all major plus points why Thailand's popularity is so high.
The government does what it takes to attract more tourists each year.
Financial benefits
No capital gains tax for private investors and low ongoing taxes are a further source of attraction for the foreign investor.
Drawbacks OF Thailand
Political Instability
The military coup raised the question "how stabile is Thailand.?" Now the elections are in the past, Thaksin Shinawatra is back and facing court, a new government is being formed. Nobody knows if the investments would have been higher than the amount of billions of foreign currencies that poured into this country in 2007, if all this political turmoil would have not happened. The number of investment increased, despite the military coup and despite the fear of some and despite negative presumption.
In fact all went on as had nothing happened. The economy slowed down in certain sectors because productions was shifted to China or Vietnam by their owners, but not because of political instability. Other sectors for all in the real estate market gained and expanded.
Property Ownership
The Amendment of the
Foreign Business Act initiated by the militaries, to surrender all control of the company to the Thai shareholders, when the company owns land, generated an outcry of foreigners living and working and having their own companies in Thailand - and own land.
By Thai law the right to own land is reserved for Thai nationals only, except when the Board of Investment consented or the foreigner has a property that serves only private purpose and has all the necessary papers and brought $40 million Baht for investment into Thailand which has to be invested in a certain way. This exact law could be bypassed, buying the land in the Thai company's name, and dividing the shares in a way, that the foreigners had the full control and could protect their property this way. If this possibility is eliminated it will certainly have a huge impact on many small companies owned by foreigners that own land. Until April 2009 all these companies need to be restructured.
Nobody knows if this law will be also accepted by the new government and then executed. One thing however is certain, most company owners are not willing to surrender their company to their Thai share holders and will probably sell their shares or the company and then leave, before April 2009. Many still hope for favorable changes in the "property ownership law" question during this year. It is however better to prepare for the worst and if the law is then recalled be happy about it..
The Strong Baht
Exporters are complaining about the strong Thai Baht, but it has also interfered with American investors in the real estate sectors, due to a weak US Dollar. However, sterling and Euro investors have not been nearly so badly affected, as the exchange rate has remained stable. The US Dollar is weak at the moment everywhere and the exchange rate in Thailand is still better for Americans than if they would go to Europe, percentage wise it depreciated in Europe much more.
Mrs. Suphin Mechuchep, Managing Director of Jones Lang LaSalle Thailand, said "If overseas investors decide to acquire real estate assets in Thailand now, they may have to pay approximately 8% more, compared to the beginning of the year, due the Baht appreciation. Whilst certain economists encourage the government to reduce interest rates further in an effort to curb the Baht strength, low interest rates would help property developers burdened with borrowings. They would also benefit the residential sectors as mortgages for home purchases will be less costly for buyers."
Conclusions
How this all will develop, is depending on the policies the new government will adopt in regard to improving the prospects of the Thai property market. The leader of the Thai Democratic Party has urged the facilitation of foreign ownership and the easing of current restrictions of foreign business policy. Everybody hopes that his voice shows effect.
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Thai Real Estate News
Property markets are very sensitive everywhere and react to even the smallest changes on the economic, social, or political level of a city, or region or even a whole country will be affected. Questions rises: Why is Pattaya so different...
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SMS Iguana Group
To make swift and efficient feedback possible and to guarantee the highest level of service possible to our clients, we have chosen to implement this online SMS service.
Any questions you might have in regard to investing or the purchase of your domicile in Pattaya area, Thailand, will be answered within 24 hours.
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Testimonials
Read the Testimonials Iguana Group has received from Ross-Tara Co. Ltd., Obelisk International and Uni-Serv Co. Ltd., all well established and known in the Real Estate and Investment Market.
Obelisk International
We choose to collaborate with Iguana Group on the Pattaya Heights project for Obelisk International's first project in the Thailand market. The extensive experience ...
Uni-Serv Company LTD.
We at Uni-Serv Company Ltd. have been partnering Iguana Group within ...
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