Tagged in: Thailand

The First Boutique Condominium

If you are looking for vacation hua hin rentals for a short term or long term rentals property hua hin then you should probably read this article.
Tira Tiraa, Thailand, the first boutique condominium project in the entire country. One of the most popular sights in Thailand for relaxing and recharging your energy, with the temptation of natural beauty and a convenient lifestyle. Fully furnished and fully kitchen equipped.
The building was unveiled earlier, yet it still continues to maintain the same style and modernity as its more recent counterparts. The best part about it is that it is just 15 minutes walk away to beach. If one has to talk in geographically accurate terms then yes the building being at hua hin beach road and not to far from the down town. It does not pose a problem as buses run at regular intervals to and fro thus making it only a couple of minutes away from central Bangkok.

The building, Tira Tiraa, still has the very best apartments for rent in Thailand. There are a variety of apartments availablethree bedrooms, two bedrooms and even some studio rooms. The average rent for a rental apartment in the metro is between 35,000 Baht/month.
The Tira Tiraa has a lot of facilitiesit is a luxury ocean liner on land! It has an amazing pool with nice adjoining shady areas to unwind and relax. A bar accompanies the pool, along with a restaurant that caters to both European and the indigenous Thai tastes. The Tira Tiraa also has a Fitness Room, Sauna Room, nearby International Golf courses etc.
The Tira Tiraa is both functional and great as either a holiday home or a vacation rentals hua hin. The building is well connected to most places by buses. You will find that the Hua Hin beach is especially near is also a couple of minutes away. If you plan to take a walk on the beach road, then you will find a variety of shops and restaurants.

Thai Real Estate Investment Soared On Back Of Property Fund Activity

KTAM Aims to Become Thailand’s Leading Property Fund,Increasing Assets Under Management to 11.3 Billion

The Bangkok Post reported on Thursday, 22 February that real estate investment in Thailand soared by 81.8 percent to $2 billion (1.3 billion)in 2012, nearly double the $1.1 billion (720 million) in 2011, as property funds markedly increased their investment activity.

According to property consultant DTZ, Thailand’s real estate market was boosted by the listing of major property funds and a high number of acquisitions, particularly in the office and hotel sectors. Some $1.1 billion (720 million), or 55 percent of total real estate investment, came from transactions by real estate funds or public funds for public offerings (PFPOs).

Investment activity received a major boost from the listing of Tesco Lotus Retail Growth Freehold and Leasehold (TLGF) in the beginning of January 2012, which proved to bethe largest property fund listing for the year. The $594-million (389 million) fund purchased 17 Tesco Lotus shopping malls in prime locations across Thailand in a deal which by itself exceeded half of the real estate investments in the country in 2011.

Other notable property fund investments in 2012 included the purchase during the first quarter of three serviced apartment complexesand residences for $106 million (69 million) by the listed Land and Houses Freehold and Leasehold Property Fund (LHPF). Additionally, the Quality Houses Hotel and Residence Freehold and Leasehold Property Fund (QHHR) bought three Centre Point serviced apartments in the third quarter, for some $107 million (70 million).

KTAM Eyes Real Estate Market

Krung Thai Asset Management (KTAM) has the ambition to lead the market in property funds and,more specifically, to increase its assets under management by 20 percent in 2013 to 516 billion baht (11.3 billion), said chief executive officer Somchai Boonnamsiri, citing the positive overall investment climate.

The Bangkok Post reports that Thai billionaire Charoen Sirivadhanabhakdi plans to raise funds through the funds managed by KTAM, with the subsequent capital increase being dedicated to turning KTAM into the global leader of this type of fund.

KTAM is considering entering new markets including Mexico, Brazil and some European countries. Annualised return for short-term investments in these regions is forecast at 3.5 percent or about one percent higher than returns in the Thai domestic market.

The Thai fund intends to boost the capital of property funds under the direction Sirivadhanabhakdi’s TCC group to as high as 50 billion baht (1.1 billion) this year. The fund also plans to launch ETFs on the Stock Exchange of Thailand in sectors such as food, energy, ICT and the commercial sector.

2013 will be the last year in which Thailand’s Securities and Exchange Commission will allow investments in what has been known as property type 1, with introduction a new type of property fund, the internationally recognised real estate investment trust, set to replace the old structure.

Condominium Purchase In Thailand

Condominium Purchase in Thailand

Purchasing a condominium in a tropical paradise is a dream for many foreigners who wish to escape the cold winters and the high cost of living in their home country. Thailand offers the foreigner many benefits including beautiful beaches, tasty food, friendly people, world class health care and inexpensive property. Many foreigners come to Thailand to purchase a condo for various reasons: for their retirement, as a second residence or for investment purposes. For those who desire to stay longer in Thailand, the ability to acquire property is an important issue. Many foreigners prefer to reside in a condominium since there is less maintenance involved for the owner. You can simply close and lock the door until your next stay. Projects in Thailand offer 24 hour security so you can feel safe that everything will be as it was when you left. From the perspective of a Legal Advisor, I would like to share with you the process so you’ll feel secure of your purchase of a condominium in Thailand.

Legal Structure

In Thailand, a foreigner may own a condominium 100 percent in his/her own name. Freehold title for the condominium purchase is the most secure method of ownership for the foreigner. If the project is over the 49 percent quota for foreigners, you may need to draft a lease contract for your transaction. In Hua Hin we do not find this problem since Thai owners are the majority in most condominium projects.

Legal & Financial Planning

Before you sign any deposit agreement or contract, you should sit down with a lawyer or solicitor to discuss the legal process. You need to know the correct legal process in Thailand for the foreigner to purchase a condominium. Remember that you are spending part of your life savings to acquire this property and you must carefully plan your steps in the process. Some banks will offer up to 70 percent financing to foreigners for purchasing a condominium. The repayment term can be as high as 20 years. Siam Legal offers free legal consultation to potential property buyers. You should get the legal facts of the property and contract laws in Thailand before you deposit any money.

Title Investigation

A comprehensive examination of title deed recorded at the Land Department should be done. You need to verify that the Seller has clear and legal title of the land before you enter into a contractual agreement. The title search will trace the land to its first possession. Don’t take the word of anyone who tells you it has been checked before. The lawyer conducting the title investigation will provide you a full report and a copy of the title deed in English language.

Due Diligence

Every financial transaction requires some sort of due diligence on behalf of the purchaser to verify that it is a sound investment. When you purchase shares of a company listed in stock market or a mutual fund you will generally research the profile and performance of the company or fund. The same is true when you purchase a property from a developer. You should check with the previous buyers to see if they are satisfied with the quality and time frame of construction. If you don’t have the time to spend on checking the history of the developer, a local lawyer near the development will know or can check the project, its directors and their reputation.

Deposit

When you feel satisfied with the property and it meets your expectations, you will be asked to make a deposit to show your good faith to continue the process. In return, the Seller will reserve the unit for you and start the process by drafting the contracts for purchase. Unless you write specifically a “get-out” clause in the deposit agreement, for example “subject to clear title” or “subject to agreement on the contract terms,” the money deposited is non-refundable.

Construction Contract

There are some fundamental elements which should be included in every contract. These are, among others:

1.Time frame

An agreement should have a time frame which stipulates clearly the starting date for construction as well as its completion date. Check for any extension clauses which normally give the developer a few extra months to complete without incurring any penalties.

2.Payment Penalties

Check that the penalties for default of payment are not too burdensome on you. Terms such as immediate rescission of contract and retaining the money you have already paid are not uncommon but there should be a period given to you to remedy this default.

3.Developer’s Default

Ensure that you have some recourse to a full refund in the event that the developer does not complete the construction due to insolvency or for any other reason.

4.Late Completion

Penalties should be given to you if the completion is late. This is normally deducted from the final payment due upon completion. Penalty rates vary greatly in Thailand although for condominiums there is a daily minimum penalty of 0.01 of the property’s value was made available to foreigners who did not qualify for a local loan. This gave many foreigners access to finance for their dream homes even if they did not reside in Thailand. Up until this time, there were only a handful of private offshore firms offering lines of credit of this kind and often at rather stringent and unattractive terms.

Bangkok Bank in Singapore still offers such loans to foreigners and the demand for this is increasing. They are able to tender loans in several currencies including US and Singapore Dollars (SGD). Currently, the interest rate for SGD loan stands at 6.00 for USD and 6.00% for SGD. However, it appears their processing fee may be slightly higher but offers the advantage of applying for the loan locally in Thailand without having to set foot in Singapore. UOB’s entrance into this niche market is a welcoming sign to the area of financing to foreigners in Thailand.

“Flipping”

Many investors target a condo project when the development first launches. They are keen to purchase the plum units in the project as an investment. Later, the investor will resale or “flip” the unit typically before the legal interest is registered at the Land Department. The value of the unit increases prior to the completion or title transfer. These investors will capture their profits without their names ever appearing on the title deeds. Care and caution should be exercised if you are “flipping” the unit since some developers will not allow assignment of the unit to another person. Some developers will allow this option but they will charge a very high administrative fee or even a percentage penalty.

Summary

Living in Thailand should be an enjoyable and relaxing experience. If you plan and prepare in advance for the acquisition of your property, you will be rewarded for your efforts. Those who take short cuts in the recommended process above will save some money but in the end it will not be worth it if something goes wrong. Property is a solid investment in Thailand as well as a great place to live while enjoying life in paradise.
Thailand Property & Real Estate Legal Services – Attorneys – Solicitors