Bangkok Real Estate investment offers several advantages over the Hong Kong Investment Market. Thailand is relatively a low cost region, comparatively prices in China and Hong Kong increase; Bangkok’s market remains constant and thus more affordable. If you’re a small investor this can provide great opportunity; for larger investors it’s an excellent opportunity to diversify.More than 200 high-end property projects launched in Hong Kong in early 2016; down less than a percentage point compared to late 2015. There is speculation of future high end declines; though short term is expected to be strong until rental rates catch up with the market. Continue reading →
The stability that Thailand’s economy has been experiencing recently has mirrored the success that its real estate market has been going through overall. This has been especially true for Thailand’s larger cities, particularly Bangkok, so much so that 2010 up until 2011 have been described as “good years” by those in the real estate business suprising stability when the rest of the world is going bad.
Thailand has long enjoyed being one of the world’s top tourist destinations and one of Asia’s leading economic pillars. The country has an amazing heritage it still proudly displays, but has also seen an industrial, technological and financial boom, especially in Bangkok. Now, Thailand is known not just as a country with beautiful, traditional sights and diverse sounds and smells, but as a country with skyscrapers, trains, huge billboards and massive shopping malls as well.
Despite political unrest years past, there is usually steady public faith in the city’s real estate market. Even despite politics in 2015, Bangkok’s condo index rose 14%. This has a direct affect on investor confidence at many levels. Obviously, a calm political atmosphere is a major factor in any city’s real estate market; the more stable the situation is in Bangkok, the more likely locals, and mind foreign investors are going to stay. In an area of high-rise condo units and single-family dwellings for sale, Bangkok now breathes easier as its building progress continues unhampered by political difficulties. Continue reading →
Decided with the country that you want to invest or live in? Great! Bangkok? Fantastic! Welcome to the vibrant city I must add! Buying a property in a foreign land is itself a very daunting task especially when one is still unsure and confused of the different areas and neighborhood of the foreign land. Throw in the law of the land which you know practically of nothing at all makes it even more daunting a task ever. Hence, the below is a brief but hopefully clear explanation which would help tremendously in understanding the local law when it comes to real estate market in Bangkok.
Foreign Purchasers of Condominiums in Thailand
Information for foreigner purchasers of condominiums in Bangkok or any part of Thailand for that matter. By foreigner purchasers, it refers to those whom are not Thai permanent residents.
Under the Condominium Act
Under the Condominium Act 2008 (amended) regarding non-residents of Thailand, foreigners who purchase condominium units in Thailand must remit in funds to pay for the unit from overseas. That means that the entire payment must be transferred into the country to buy the Thai condominium or Bangkok condominium as ‘foreign currency’ and not Thai Baht. The beneficiary bank will issue a ‘Foreign Exchange Transaction’ certificate which should be presented to the Thai Land Department in Bangkok when registering the ownership of the Thai condominium.
Foreign Exchange Transaction
For each transfer, banks will only provide a ‘Foreign Exchange Transaction’ certificate for amounts over US$ 20,000. For amounts of less than this, the bank will issue a credit note, which may be presented, with the confirmation letter from your Thai bank, to the Land Office in Bangkok order to register the condominium in Thailand.
In case that you do not have a bank account in Thailand, you can remit the finds directly to the owner of the condominium you are buying or to a third party account, such as a Thai Lawyer or Legal Representative in Thailand.
For the case in question, we thoroughly suggest you transfer the funds to your own bank account here in Thailand and obtain the Foreign Exchange Transaction certificate from the Head Office of the Thai Bank, the Bank’s Head Office is often located in Bangkok. Condominium related certificates and/or credit notes and receipts should all be kept safely, with the letter from the bank in Thailand until the date on which the ownership of the condominium units is transferred.
1. To obtain a Foreign Exchange Transaction certificate in Thailand from a Thai Bank, you will have to ensure that all the following instructions are adhered to:
a. The name of the remitter must be the same as the purchaser of the Bangkok condo (as indicated in the S & P agreement). Please fill in full name and address of remitter and the beneficiary.
b. The money transferred as foreign currency. Please do not convert in Thai Baht before making a transfer. The conversion will be done by the beneficiary bank in Thailand.
c. Please indicate in the transfer instructions that the purpose of the transfer is ‘To purchase a Bangkok condominium unit No:…….. at the (name of the Thai condominium building)
Please use the exact wording in order to avoid any misinterpretation by the Land Department of Thailand. For example, the word apartment, a term which is frequently used in other countries, has a different meaning from condominium in Thailand.
d. Please indicate overseas and beneficiary charges for each payment.
Transfer of ownership
Prior to the transfer of ownership, you should be informed of the total amount due, including any minor amenities or utility deposits.
a. If the final payment is NOT financed by a bank, then this amount needs to be remitted into Thailand exactly like the previous payments.
b. If the final payment is financed by a bank, then this amount needs to be paid by a cashier’s cheque which will be exchanged with the Thai condominium’s title deed on the date of transfer of ownership.
With all these information in hand, I hoped it will be less daunting a task and more of a fun job. To relieve more of your headache, please do check out more of the articles on the different areas of Bangkok. Cheers to property hunting in Bangkok!