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Real Estate

Jun, 24 || No Comments | Tags: , ,

guide-to-real-estate

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 blue-houseOverview:

Over the last 20 years the infrastructure has improved ten fold, Koh Samui is now recognized as a fully fledged tourist destination, this tiny island has international hotels, hospitals, schools lots of pubs & restaurants. As this paradise island grows up from being a tropical resort to a fully serviced community, it is now feasible to become a long term foreign resident.

There are various routes to becoming a resident in Thailand, the requirements change all the time but normally involve, work permit & visa, bank investments or business ownership.

Retirement visas are an option but these are of course based on age and the individual will need to demonstrate a deposit of pension income being brought into Thailand on a regular basis.

 

 blue-houseFrequently Asked Questions:
Q: Can I Own a Condominium in Thailand?

A: Buying a condominium, is perhaps the simplest and easiest option available to foreigners. The only restrictions on purchasing a condominium, are that the percentage of units sold to foreigners cannot exceed forty nine percent (49%) of the total number of units in the condominium block; and that the funds used to buy the condominium have been remitted from abroad and correctly recorded as such by a Thai Bank on a Tor Tor Sam. Purchases of condominiums by foreign individuals come under the jurisdiction of the Condominium Act B.E. 2535 (1992).

The owner of each condominium is issued with a certificate of unit ownership. The certificate also has a statement saying exactly what percentage of rights over the common areas of the building each owner has.

Q: What is a Tor Tor Sam?
A: A Tor Tor Sam (3) is an official bank document issued by the receiving bank upon the receipt of foreign currency into your bank account in Thailand. You must request a Tor Tor Sam from your bank when you are remitting funds to Thailand for the purpose of purchasing a condominium, and the Tor Tor Sam must specify that the remittance is solely for the purpose of purchasing a property – Code 5.22.

Q: Do they have Title Deeds in Thailand?
A: A Title Deed is the purest form of evidence that an individual owns a piece of land. Title Deeds are given only for areas of Thailand which are surveyed. For areas which are not surveyed, there are other documents for land possession such as evidence of the possession of the right to utilise the land or other interests in the land. These documents are called “Nor Sor Sam (3) and Nor Sor Sam (3) Kor”. Unlike the Title Deeds, these Nor Sor documents are issued to show the possessors’ exploitation of the land. Though these documents do not provide ownership rights, as do Title deeds, they can still be registered for transfer of the lands for which they are issued.

Q: Can I Get a Mortgage Loan?
A: Foreigners generally cannot mortgage properties in Thailand, however, most of the financial institutions in Thailand provide loans for real estate purchasing to Thais and Thai companies. It is common for a real estate developer to arrange for his customers to have a financing package from a financial institution. In most real estate development projects, a down payment can be made in installments from 10 to 24 months. After the down payment has been paid, the sale contract will be made and the balance amount is paid through the loan which is financed from a financial institution. The financial institution requires you to mortgage the property with it as collateral against the loan.

Q: Land Appraisals and Valuations
A: Finding the exact appraisal price for land is difficult, since there are generally three different appraisal rates; the government rate, the appraisal company’s rate and the rate which is considered to be fair market value of the land. Over the last few years all of these rates have begun to come closer together. With the East Coast team’s wealth of experience in Thailand, they are well placed to assist you in valuing various properties proposals.

Q: What Should I Look for in a Property?
A: Whether you are considering renting, leasing or purchasing property there are several infrastructure and other considerations which must be taken into account:

  • Location – Roads, proximity and access to business, shops, hospitals and etc.

  • Telephones – Access to direct lines and IDD facilities

  • Water – Mains water and supplementary storage facilities.

  • Electricity – Mains connection, and backup generators for condominium blocks

  • Security – 24 hour security service, door and window locks

  • Cable or Satellite TV connection

  • Pest Control – localised spraying and flywire screens on windows

  • Hot water facilities – nearly all in Thailand are instant and not storage

  • Air Conditioning – a necessity in Thailand

  • White Goods – Refrigerators and Washing Machines


Q: My Wife is a Thai National, Can She Own Land?
A: Prior to 1998, any Thai woman who married a foreigner would lose her right to purchase land in Thailand. She could, however, still retain land that she owned prior to marrying the foreigner. However, the recent (1999) Ministerial regulation now allows Thai national’s married to foreigners the right to purchase land, but the Thai spouse must prove that the money used in the purchase of freehold land is legally solely theirs with no foreign claim to it. This is usually achieved by the foreign spouse signing a declaration stating that the funds used for the purchase of property belonged to the Thai spouse prior to the marriage and are beyond his claim.

Q: Are There Property Taxes in Thailand?
A: There are no property taxes as such in Thailand that are exactly equivalent to the property taxes in the west, however, the most comparable taxes on properties in Thailand are the Land Tax and the Structures Usage Tax. The Land Tax levied on land is so miniscule, that in practice the body charged to collect it, rarely bothers to do so, and if they do, they usually wait several years until the amount accumulates. The second tax, the Structures Usage Tax, relates to buildings, is collected by the municipal office or district office, and is only applied to properties used for commercial purpose.

Q: What Taxes and Costs are Applicable to Purchasing a Property?
A: On all purchase/sale of property in Thailand there is a stamp Duty of 0.5%, a transfer fee of 0.01%, a business tax of 0.11% levied against an owner who has been in registered possession of the property less than 5 years, and Income Tax. There is no Capital Gains Tax in Thailand, unlike many countries, and Income Tax (usually between 1.0 – 3.0%) on property is the comparable replacement. There are no set rules on who pays the income tax, and it is just another part of the bargaining process, as with all the other costs of the transfer of ownership.

We hope you have found this guide helpful? We recommend that any foreigner seriously wanting to purchase land should only consider land that is held under a Chanote or Nor Sor 3 Gor.
Remember the golden rule, if in doubt, please consult a professional..

blue-house Land Facts:

How do I Measure land In Thailand?
Land in Thailand is measured in Rai, Ngan and Wah.

1 Rai = 1600 Square Metres
1 Ngan = 400 Square Metres
1 Wah = 4 Square Metress

In order to relate this to Europe sizes

1 Acre = 2.5 Rai approx.
1 Hectare = 6.25 Rai approx.

Measurements follow the metric system. Land prices are quoted in Baht per Rai or for smaller plots of land the prices will be quoted in, Baht per Wah or Square Metre

How is the price of a certain plot of land determined?

Prime beach land in areas like, Maenam, Bophut, Chaweng and Lamai can cost up to forty times that of a plot that’s situated inland. Another factor that you should take into consideration is if there is any infrastructure in place or due to be installed soon. Plots that come with full infrastructure i.e. Water, Electricity and a Road will generate a higher price than those that don’t have the infrastructure in place. A public owned road is by far sought after most.

 

blue-house Legal Q&A:


Ownership Rights for Foreigners

Q. Can a Foreigner own land?

A. No

A foreigner can set up a Thai company but will only be allowed to have a 49% stake in that said company. A Foreigner can however, own a building that is separate from the land, which when coupled with a renewable and registered 30 year leasehold is regarded by many as being as good as owning the freehold.

With any of the information supplied here it is meant as a guide, you should ALWAYS seek legal advice.

Freehold vs. Leasehold 

Since a foreigner cannot own the land outright, registered leaseholds with appropriate extensions are the same equivalent to freehold. Registered Leaseholds are very safe, not complicated and very easy and simple to set up.

Control of Freehold

The land code of Thailand and the Foreign Business Act does not prohibit foreign control of a Thai majority owned company that owns any land in Thailand.

It is very important that there is a proper legal structure taken on-board to retain effective control over a Thai majority company. Seek professional help.

You could set up a Thai company in order to control the freehold land which you as an individual then in turn lease from the company you own.

You should be fully aware that there are legal responsibilities and tax liabilities when you own and run a Thai company.

Property Taxation

There are 2 types of Tax levied on property in Thailand:

Land Tax  Land Tax is a very small tax levied on land ownership it amounts to just a few Baht per Rai per year.
Structures Usage Tax Structures Usage tax is set at the rate of 12.5% on the actual gross value of the property.

Land Title Deeds

Land title deeds are called Nor Sor 4 Jor or you may here the word Chanote these are issued by the Surat Thani Provincial Land Office.

When looking around expect to find many land documents in the form of Nor Sor 3 or Nor Sor 3 Gor these are certificates of land utilization.

All of these are equivalent to land title deeds because in effect they allow the land to be sold, leased or even mortgaged in the same way as land held under a Chanote Title.

A Nor Sor 3 certificate is less accurately surveyed than a Chanote.

The newer Nor Sor 3 Gor is a much more accurately surveyed plot as it is crossed referenced to a master survey of the area and referenced to a corresponding aerial photograph.

We recommend that any foreigner seriously wanting to purchase land should only consider land that is held under a Chanote or Nor Sor 3 Gor. Remember the golden rule, if in doubt, please consult a professional.

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blue-houseProperty & Real Estate Companies:
absoluteAbsolute Samui Properties : We make your dreams a reality
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advantagepropertiesAdvantage Properties:Advantage Property, real estate & contractor
baanlaemnoiBaan Laem Noi: Affordable Beach Front Homes For Sale
cdpCD&P : offers 3 breathtaking projects on idyllic locations with stunning views!
chantarakChantarak Constructions: Construction, Design-Guarantee in Quality
cocointernationalCoco International Properties Co Ltd : Real Estate in Paradise
coconutislandCoconut Island Real Estate: Property in paradise
demattDematt Development:
elitepropertiesElite Properties – Yupa Real Estate Ltd:
emeraldresidenceEmerald Resdidence: Panoramic beach villas in Kao Leam Noi
firstchoiceFirst Choice Properties Co Ltd : Your First Choice In Properties
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frangipanibayFrangipani Bay Company: Koh Samui’s Builder of Quality Homes
globallookGlobal Look Ltd: Luxury Villas at Chaweng Point over looking Chaweng
globalviewGlobal View Ltd: House, Land and property management in Koh Samui
happysamuiHappy Samui Land & Properties Co. LTD
immosamuiImmosamui Co Ltd: Real estate agency and contractor
independentIndependent Project Management: “Assistance with Residential Developments for Foreigners in Koh Samui”
infinityInfinity Financial Solutions: “For international mortgages, asset backed loans and insurance contact Infinity Financial Solutions”
islandstyleIsland Style Properties: “We are the buyer’s representative in Koh Samui”
justtec_logoJust’Tec :”Buy or Build your tropical dream house…Just’Tec Property Group specialised in superior quality Thai/Western designed homes…”
kalaraKalara :”Finding your perfect property in paradise takes a very special real estate professional”
kosamuipropertiesKo Samui Properties:
kohsamuilandhomeKoh Samui Land & Homes – Estate Agents: Land and Property Sales
kohsamuivillasKoh Samui Villa’s: Premier Villa Rental
kp_propertyKP Property: Koh Phangan Real Estate, Land Sales and Project Management – the most established agent on the island.
leelavadeeLeelavadee: Luxury Spa & Villas For Sale
mapleleafMaple Leaf :
martelloMartello : “Leading International Real Estate Agent with 10 offices in Thailand”
palmssamuiPalms Luxury Homes
Absolutely Exclusive, Unprecedented Luxury
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perl_propertiesPearl Properties
Quality Built Homes
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phanganvisionPhangan Vision: Koh Phangan Real Estate Solutions
plantationPlantation Project Co Ltd. : Plantation Project Luxury Sea view Properties.
plumeriaPlumeria Place Residence: The Tropical Serenity
projectpacificProject Pacific :
projectsamuiProject Samui Hill Village :
samuiholidaySamui Holiday Homes: luxury villa rentals and sales
realestateinsiderReal Estate Insider, The:
royalsamuibeachRoyal Samui Beach
“Luxury private villas for sale”
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sabaipropertiesSabai Properties Ltd: Samui’s Leading Property Developer
samronglagoonSamrong Lagoon Resort: Two Beaches in One!
samsaraSamsara: Unique Seaview Villas
samuibeachvillageSamui Beach Village: luxury villa beach side development all with sea views, 14 Villas for sale.
scdSamui Concept Design, SCD: “Luxury villa and development”
samuiestateSamui Estate Corporation Co Ltd: Member Of National Association Of Realtor
samuiescapesSamui Escapes: Property rental and management specialists.
samuithaniSamui Thai: Property Management & Corporation
samuivillasSamui Villas: Holiday Villas Rental in Koh Samui
samuivillaandhomeSamui Villas And Homes: Luxury Real Estate Professionals
samuipropertiesSamuiproperties.com:
samuihillsideSamui Hillside Village: The heart of Koh Samui
samuiparadisebayfrontSamui Paradise Bayfront Complex: Homes for sale
phanganpropertiesSamui Phangan Properties Co LTD: Local estate and consultant in Koh Samui & Koh Pha Ngan
samuiultimateSamui Ultimate Shape: Imagining tropical designs and implementing cool construction
santithaniSanti Thani – Main Sales office: Living in Style
santithanigardensSanti Thani Gardens – Head Sales Office: Living in Comfort
siaminterSiam Inter Properties Development Co Ltd :
societySociety Building Properties: House, land and building
sunbeltSunbelt Asia Properties: Thailand Real Estate Specialists
tamarinddotcomTamarindLand.com: “South Thailand Real Estate”
tamarindretreatTamarind Retreat: Beautiful properties for lease/sale
thailandretreatThailand Retreats Limited: “Property Sales and Rentals”
tongsonbayTong Son Bay Villas: “Luxury Ocean View Homes at Tong Son Beach”
togsaivillaTongsai Villa Residence: Stylish Spacious Affordable
tropicalislandTropical Island:
tllTropical Luxury Living Co.,Ltd: Minimalist Designs
yamproperties_logoVipassana Co Ltd: Living in Style
vipassanaYam Properties: Our company specializes in real estate, and our aim is to give you the very best service available, to assist you find whatever property you are looking for in Koh Samui, Thailand…”
zenpropertiesZen Properties: Land, House, Resorts and Businesses

 

 

blue-house Construction Listing:
fccFCC: First Choice Construction.
blue-house Interior Design Companies:
beutifulworldBeautiful World Thailand: Samui’s biggest and most unusual furniture and decor showroom.
blue-house Legal & Financial Companies:
infinityInfinity Financial Solutions: “For international mortgages, asset backed loans and insurance contact Infinity Financial Solutions”
blue-house Security Companies:
kuniniKunini Security: Integrated Security Solutions
blue-house Contact Details:

If you have any questions about Real Estate on Koh Samui, please send us an email to:property@kohsamui.com

If you have a Villa, House or Land for Sale or Rent and want to advertise it on our real estate section then please send us an email to: property@kohsamui.com

 

 

 

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