Finance available from UOB United Overseas Bank. Up to 70% finance, over 20 years and maximum 600,000 $US now available for Singapore Nationals, Residents of Singapore and foreigners over 21 years old on Condominiums in Thailand.
Thai Islands ‘proving their worth’ Friday, March 14, 2008
Thailand is currently one of the best countries in the world to make a property investment profit…
According to David Stanley Redfern, people who bought in Bangkok a few years ago have watched prices of their property double, even triple and quadruple in some cases. But now the biggest gains to be made are on resort properties as tourism to Thailand grows 20% year on year.
Especially profitable are resort properties on Thailand's islands like Koh Samui, and Koh Phangan and even the mature market of Phuket still has fight left in it. In fact people who bought a property on Samui and Phuket two years ago have sold recently for a 100% profit.
Phuket was popular before Koh Samui and as a result you won't get a resort villa there for very much under £500,000. With its world class white sandy beaches, tropical climate and in-land jungle, Phuket has become the place where the rich and famous buy their holiday homes.
Koh Samui – the safest investment?
Koh Samui is very similar to Phuket, and has all the same qualities to offer, great beaches and lush forest landscapes, and of course the same tropical climate. As Phuket grew out of most people's price range, Koh Samui became an affordable alternative. There are now more five star holiday resorts and hotels on Koh Samui than any other South East Asian island, and you can still buy a resort villa for £100,000 upwards.
Koh Samui is perhaps the safest of the Thai islands on which to make a property investment, because it has proven its worth with consistently strong capital growth since it began emerging; the aforementioned 25% average yearly capital appreciation in the last two years, but it also has the success of Phuket as a guide to how property prices will continue to grow in the coming years.
As does Koh Phangan: Koh Phangan is the least mature of the emerging Thai islands, so it doesn't have the proven track record of Koh Samui, but like I said it can still be compared to Phuket in that it has all the same qualities in the beaches and climate, is similarly attractive to tourists and increasingly attractive to overseas property investors.
For those willing to take that little risk of not having a proven track record, Koh Phangan offers the chance of making the biggest profit from your Thailand property investment. courtesy- themoviechannel.com
Restricted Businesses to be made more open to Foreign Investors Relaxation of FBA Laws
In a move that is in keeping with the Government’s pledge to open up the Kingdom to more foreign investment, four more restricted business categories were relaxed under the FBA during the first week of April 2008.
Operations leasing, rental, financial leasing and factoring are all listed in Annex III of the Foreign Business Act, an addendum detailing businesses, mainly in the services sector, which are considered to be ones in which Thai nationals are not yet ready to compete with foreigners.
The relaxation of the rules will make it easier for foreigners to hold more than 50 per cent of equity and will provide for quicker and more transparent application procedures. In particular, it will no longer be necessary to gain express permission from the Foreign Business Act Committee. The Business Development Department has already communicated clearer conditions to all of the appropriate parties including regional offices, government related agencies and foreign investor consultation groups.
Other businesses will soon enjoy a relaxation of the rules including internal trade involving agricultural goods, advertising agencies, contract manufacturing, hotel operating, entertainment businesses, computer services, and brokerage businesses.
Indeed, the Foreign Business Act Committee had already approved 29 requests under previous procedures for foreigners to hold more than 50 per cent of various companies. The industries included agency offices, logistics management services and subsidiaries of foreign companies.
In light of these moves, The Deputy Commerce Minister Banyin Tangpakorn has made moves towards amending the Foreign Business Act by next month. However, the Ministry of Commerce must still finely balance its approach, since whilst extra foreign investment is very welcome, it must also safeguard the interests of local businesses Courtesy Property report
Developers Return to Koh Samui as Market Bullish April 4th 08
The Koh Samui property market is poised to stage a recovery this year, following the government's decision to relax the Foreign Business Act (FBA), says property expert Pisarn Tangkasombat.
He said demand for residential projects on Koh Samui doubled in 2006 from the year before but that most developers suspended projects after the previous government tightened the FBA and announced stricter norms on land holding and construction licences for developing residential projects.
Pisarn, also president of the Arayaburi Group, which owns five hotels and resorts on Koh Samui, said most developers - foreign investors and local developers who were partnering foreign investors - had suspended the launch of new projects and work on existing ones. This was because of uncertainty surrounding the Act, as they were not sure whether their projects would be considered illegal.
However, Pisarn said after the new government outlined a clear policy regarding the FBA, developers who had planned projects on Koh Samui would restart work soon.
Some foreign investors will now begin work on their projects in collaboration with local partners, while others have decided to sell their projects to local developers, he said.
"We believe the property market, especially the residential segment, will stage a recovery this year, as the government has announced a clear policy regarding the Foreign Business Act," Pisarn said.
Research by CB Richard Ellis has shown that Koh Samui, Asia's emerging "boutique" resort island, is seeing significant growth.
Last year, the island had 1.5 million visitors, up from 600,000 in 2000.
The research also indicates that the number of tourists heading to the island may rise once Thai Airways increases the number of flights on the Bangkok-Samui-Bangkok route to two a day.
The number of airport arrivals this year is expected to surpass 2 million after this.
"The improved connectivity will be a key factor in supporting growth in the area's property market. CB Richard Ellis expects increased demand for homes," said CB Richard Ellis Samui manager Prakaipeth Meechoosarn.
CB Richard Ellis remains confident of the long-term prospects of the Thai resort market.
Last year, the company opened two offices - on Koh Samui and in Pattaya - as part of its plan to expand its network in Thailand. The research said land prices in Koh Samui continued to rise last year even though the number of individual transactions dropped, due mainly to the uncertainty surrounding the FBA.
Last year, the value of property transactions in Samui was estimated at an average of Bt413 million a month, down from an average of Bt450 million in 2006.
Since last December's general election, reports of viewing's and bookings have risen. The type of residential projects most popular on Koh Samui is luxury villas.
Seventy per cent of the villas are priced at below US$1 million (Bt31.65 million).
CB Richard Ellis is now witnessing more developments within a price range of $2 million to $3 million. And as the luxury-villa sector on Koh Samui grows, chances are prices may move to a level that is on a par with Phuket, at least for the top end of the market. The Nation
Tax breaks for property buyers will become effective today ' March 28,2008' with the official publication in the Royal Gazette, according to Suparut Kawatkul, the Finance Ministry's permanent secretary. Three laws would become effective, with the first reducing specific business taxes for property operators to 0.1% from 3% for transactions occurring over the next year.
The second law will increase waivers for individual taxpayers to the first 150,000 baht in income from 100,000 baht now, effective for the 2008 tax year. The increase will effectively reduce withholding taxes for individuals immediately.
The third law affects tax calculations for small companies with paid-up capital of less than five million baht, with the first 150,000 baht in income waived from corporate taxes. Profits after the first 150,000 will be charged under the normal ladder scale at rates from 15% to 30%.
The Interior Ministry has also announced that land transfer and registration fees will be cut to 0.01%, effective today.
The measures are part of a 40-billion-baht economic stimulus programme announced earlier this month by the government. Bangkok Post
The Thai Government´s tax package, aimed at reducing the burden placed on developers and buyers by increasing construction costs, will offset outlays by as much as five per cent, a property insider has claimed.
Developers have hard been hit by increases in the price raw materials – triggered largely by transport costs rises that have come about as a result of the climbing cost of oil – and by the tough implementation of EIA rules requiring developers to allocate a certain amount of development area to green space.
Thailand's Democracy Returns - Market set to grow Feb 08
Thailand´s property market is expected to grow by 3-5 per cent in 2008, up from a decline of approximately 8 per in 2007, analysts believe. The recovery is expected to come in the wake of the largely smooth return to democracy.
The Nation reported that sales are estimated to have reached 72,000 units last year, down from 78,000 in 2006. Prasong Aowlarn, chairman of the construction and property business committee of the Board of Trade of Thailand, said the sector would begin its recovery in the second quarter, “Property sales should be back to a normal rate of growth if the new government starts domestic investment as soon as possible,” he said.
Prasong added that housing valued at less than Bt2.3m accounted for 70 per cent of the value of the property segment or about Bt200 billion a year. House prices are also set to rise alongside sales, due largely to increases in construction costs, with price increases projected to settle at around 6 per cent nationwide by the end of 2008.
Despite a slow start to 2007 Samui´s property market is still attracting investors, developers and now big name interest that will inject renewed pace into the market. In the coming months, well known firms such as CB Richard Ellis, Savills and Raimon Land will all begin to exert their influence on Samui, either representing or developing projects that will eventually transform the island’s residential landscape. The advent of “Brand Samui” may mark the beginning of a new phase in the island’s evolution and could stimulate the recovery that many feel is now desperately needed.
KOH Samui is attracting the big-league sports figures. Here now comes the report that football superstar David Beckham has chosen to buy a luxury beach house currently being built on the island, whose tag price is a whooping Bt200 million. However Government sources revealed from the Forest Prevention and Control Department in Suratthani also stated that the family planned to build a home on the island. The rumors about the visit started when Beckham’s security coordinator, who remains unnamed, reportedly received a thank-you letter from the Tourism Association of Koh Samui. The authenticity of the letter, which was later sent to the football star, was confirmed by the association.
Mr. Sompon Thongphet-khiang, director of the Suratthani forestry office, said they were checking a parcel of land where Beckham may build a house to ensure it wasn’t part of a forest reservation.The land, he said, is located on Laem Hoi hill in Ban Tai Moo 5, Maenam.The seven-rai property reportedly cost Beckham Bt200 million.
Earlier it was reported that No.1– ranked World Tennis Association female player Justine Henin, 24, had bought an apartment on Koh Samui to be her holiday home in Thailand. The Belgian had picked up a unit of Infinity Samui, a new gated low- rise luxury development with ocean views located at Maenam.
In September last year, renowned international football manager and former England national team coach Sven-Goran Eriksson came to Thailand to buy a luxury condominium on Koh Samui.
It was also reported that Beckham invited his friend, Wayne Rooney, to be his neighbour on Samui.
It was reported that Beckham could have been influenced in his decision by the growing number of individuals in sports and entertainment who have made Samui their second home.
Beckham, 32, plays in the England national football team. He was named as a member of Pelé’s FIFA 100. He has also been recognized by Time magazine as one of 2004’s Time 100 (Heroes & Icons).
There was a rumour circulating that Beckham was coming to Samui last 13th and was to stay at the Santiburi Resort. Another unconfirmed report is that the house he has chosen to buy was in the same development as Eriksson’s. Eriksson’s developer is Peregrina Bay in Laem Set, Maret. It is a low-rise residential development with two beachfront villas, four garden and ocean-view villas and six duplex condominiums, located in a secluded beach on the south eastern part of the island.
Tennis star buys Infinity Samui property April 30th 2007
World Tennis Association number one ranked Female player Justine Henin has selected an apartment on Koh Samui to be her holiday home in Thailand.
Infinity Samui - The Belgian Justine Henin 'Tennis Ace recently picked up a unit in Infinity Samui, a new gated low rise luxury development on a prominent hillside position with panoramic ocean views located in the Mae Nam area of Koh Samui.
The development was recently launched by Savills in Dubai with high levels of interest received.
Commenting on her purchase, Henin said:
“I am delighted to have selected Infinity Samui for my holiday home in Thailand as the design and stunning ocean views provide for a truly tropical modern environment.”
Developed by Infinity Properties, the 65-unit development is due for completion in mid-2009. ”Robert Collins, managing director of Savills (Thailand) Limited, the sole marketing agents for Infinity Samui, commented: “Justine’s interest in Koh Samui underscores the high level of demand for holiday homes in Thailand and is a positive endorsement for the development and the island.”
