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Do I as the buyer need to pay you a fee?
No.We collect a standard commission of 3% (of the purchase price) from the seller (vendor). It is know that some agents in Phuket will collect a 5% fee for their services, which may also include an advertising to help promote the development etc.
If you are renting a property, a commission is taken from the property owner. Rental contracts in Thailand require the renter to pay a deposit of 2 months rent, and one month in advance. (i.e. 3 months in total)
Can I buy property in Thailand if I am a foreigner?
In short, Yes. If you are intent on buying land and building a house you will need to establish a limited Thai company. We can advise you on the best options, such as setting up a company to own the property. If you're buying an apartment or condominium then its even easier as the property title is either a standard lifetime lease or a "freehold" condominium title available to foreign purchasers. Another very popular purchase option includes buying a pro-rated share of the company that owns the development. No matter what you want to do, we can help point you to legal council and or provide common (Phuket) sense answers to your questions.
What Should I Look for in a Property?
Whether you are considering renting or buying, there are infrastructure and other considerations which should be taken into account:
Location - Other developments, roads, proximity and access to services, shops etc;
Telephone connection and sockets;
Water - Mains water or well water and back up supplies like storage tanks;
Electricity - Mains connection, and backup generators for apartments;
Security - 24 hour security service, door and window locks and security bars;
High speed internet and cordless wireless connection;
Pest Control - localized spraying and fly screens on windows
Hot water facilities;
Air Conditioning;
White Goods like: fridges, stove, hob, washing machines, dishwashers and microwaves;
Access to property management;
Common Area Costs.
What are the zoning regulations like?
You do need to be careful buying in areas of outstanding natural beauty, near a national park, on beaches or in areas that clearly have not been previously occupied or farmed. In such cases, the land or the land around you may not be in private ownership. In a limited number of cases, there have been instances of title being forged or property title being illegally upgraded from agricultural usage rights to residential zoning. Moreover as the zoning laws are not mature, there is no guarantee that the area you buy will be entirely used for residential purposes. If in doubt hire a lawyer and do a land search and check the commerce department for plan approval of construction in the area (if any).
What are Prices like?
Here is a "rough" guide of what you can expect to pay. Prices are dependent on relative proximity to beach, shopping, paved roads (and primarily at cost against interior living space and not include loose furnishings)
House/ Villa:
Entry Level: Plantation / Local Homestead + Interior Kathu & Thalang / East / North + between Bt. 15,000 - 45,000 per m2, + Typical size 75 - 200 m2 + Average price 2 - 5 million baht;
Mainstream: Estate community with NO views + Town / West / South / North + between Bt. 35,000 - 80,000 per m2, + typical sizes 150 - 350 m2, + Average Prices 10 - 30 million baht;
High End: Estate Villas or Houses with Views (Ocean / Valley): West / East & Southern Coastline : Between Bt. 100,000 - 150,000 per m2, typical sizes 300 - 800 m2, Average Prices 70 - 150 million baht.
Apartments:
Entry Level: NO Views + Phuket Town / Kathu / Patong / Kata / Karon / Rawai + between Bt. 20,000 - 45,000 per m2 + typical sizes 45 - 120 m2 + Average price 1.5 - 5 million baht;
Mainstream: NO Views + Cape Panwa / Patong / Karon / Bantao / Surin / Kamala / + between Bt. 45,000 - 90,000 m2, + typical size 60 - 150 m2 + Average price 5 - 15 million baht;
High End: Sea View + Patong / Kamala / Surin / Layan / Yamu / Ao Phor + between Bt. 95,000 - 150,000 per m2, + typical sizes 120 - 300 m2 + Average Prices 12 - 40 million baht;
What are likely payment schedules:
If you are buying a property from a developer expect to pay about 20% of the cost within the time you sign a contact of sale.
This is made up of a 1% (non - refundable) reservation fee and 19% deposit. Staged payments are normally structured into a construction timetable reflecting construction milestones. Usual construction cycles are between 18 - 24 months and if you get in later during the course of development you are expected to top up the payment schedule to the point of where the development is in the construction cycle.
For resale property expect to pay a (non-refundable) reservation of between 1 - 3% of the price and a deposit being either 20 - 30% of the purchase price.
The reservation fee is usually non refundable but the deposit is - assuming any due diligence process fails. The balance due is payable on the execution of contracts by all parties or upon the registration of the property. The time frame for the resale process can be anywhere from 3 weeks to 3 months depending on the speed with which the due diligence takes place.
Will I need to engage the services of a Lawyer?
For your own piece of mind we suggest you do. However, if you are buying from an established resort or property developer, much of the due diligence is already done - as a result of getting the project off ground. Areas to check for are: land titles, construction permits and the revenue (taxation) departments approval of the way the development structures its accounting. If you are buying a land privately owned or finished property, then we suggest you have the title checked - especially the title class, the progression of title upgrade progression and the number of previous (land) owners.
The process for buying land and property from 3rd parties will invariably be more time consuming then buying directly from a property developer.
Nevertheless, you can get good legal council in Phuket for a fraction of the cost you would obtain elsewhere and we can help recommend an agency for you.
Is financing available?
Although some developers are saying there is finance available, its not the sort of bells and whistle finance you get from a car dealership with price and payment schedules broken down into something legible and incorporated into a purchase contract you can sign in a flash. Currently finance is only available for condominium FREEHOLD property through either the Bangkok Bank's Singapore Branch or the United Overseas Bank of Singapore (UOB) According to some local sources Siam Commercial Bank Phuket have advanced mortgage finance but this has been withdrawn since the recent change in the FBA.
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How long can I stay in Phuket?
If you own a property and do not have a work permit you are - as a rule of thumb, generally allowed to stay for 90 days on a visitors entry stamp at the immigration check point on arrival. Be advised that if you leave and return again and expect to get stamped in - you will be using the remaining time allotted from the initial 90 days provided .
Plan ahead - if you are sure you will be traveling and residing here for longer then 90 days, apply for a visa from abroad before entering the Kingdom. This will ensure that you can maxmise your stay within any given 12 month period.
Can I retire here?
Phuket is great place to retire. For retirement purposes - a non-immigrant "O" visa is required and it must be obtained outside Thailand.
General Requirements: Age 50 or older, reasonable health (the health check can be done in Thailand for B40-100 and is cursory at best), a police clearance from your home country or embassy (just noting that you are not an international criminal on the "lam"), Bt800,000 deposited in a Thai bank (or proof of a certain minimum level of income certified by your embassy) - and the document from the Thai bank showing the money came from outside the country.
You may draw down and live on the B800,000 over the year, but it must be "topped up" again when you extend your visa.
How do I pay the utility bills?
Most Thai banks now have internet banking available allowing you to take the money out of your local account. If you are renting, most property managers will ask you to keep a currency float with them for miscellaneous items that fall due for payment when you are not in Phuket.
It's a good idea to find out the cost of utilities before you move in so that can check the costs. For example, most utility bills can be paid direct from your bank account and the receipts sent to your residential address.If you need property management then we will of course have no problems recommending you our partner's services (Phuket Island Property Services).
How safe is Phuket?
Phuket has an enviable reputation as a safe place to visit and live. Even more so, when Westerns consider the disposable income and comparative (economic) well being of many people that they come into contact with.
Thai's are proud and on the whole, friendly, and there is little crime against foreigners. Much of this stems from Buddhist values (not to mention) solid family values, instilled from a very young age. However, like many societies, there is always the potential for confrontation and crime. Its always best to be prudent and sensible. Avoid ostentation - if possible, be weary of money and jewelry and for the most part, keep a level head. Thai's generally won't commit crimes for no reason and most crime, acts of violence etc... can be traced back to instances where there has been a "loss of face" or public humiliation - especially confrontation.
Again, be cool and at all times be respectful. This will not only earn you respect, but will give the perception that you are a sensitive well rounded individual.
Will I need to bring my own furniture?
There are plenty of fully furnished apartments and condominiums available. If you don't plan to stay in Thailand permanently, it may be better to leave your furniture in storage. It will probably be too heavy for the tropics anyway. Even if you plan to rent or buy a house, you can always get one fully furnished. If you prefer to furnish it yourself, we can advise you on the best places to shop. Why not ask us for advice once you decide where you want to live?
How do I get around the Island?
If you are going to live on Phuket - the only viable option is to own your own car, truck, or motorcycle. People who plan to stay on the island for a long time will probably choose to buy a car or truck.
Phuket has an organized transportation system consisting of converted buses know as "songthaews" that operate around the island. The service usually operates in the daylight hours and you are reliant on "tuk tuks'", motorcycle taxis and metered taxis - thereafter.
If you want to buy a car in Phuket, you can do so if you have a "non-immigrant" visa and a work permit, a retirement visa, or a Thai guarantor.
Renting is the best option - if you are only for one or two months. A long term car rent will start from about Bt. 20,000 for a comprehensively insured Toyota Vios or a Honda Jazz.
Is flooding a problem?
That's really a Bangkok question. However, for all intents and purposes Phuket is not prone to flooding as the roads and drainage systems in place have been upgraded and are well maintained, so that there is not a hugh drain on the infrastructure resources like you have in big cities.
What is the minimum rental contract, and what are the terms and conditions?
Most long term rental contracts are for one year, although some shorter terms are available such as four or even six months. In most cases you will need to pay a two month deposit, and one month in advance - when you sign.
The deposit is refundable when you move out, although the landlord may deduct expenses for any damages to the property during your tenancy. |
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