Koh Tao – Real Estate Investment in Paradise
The appeal of Thailand – for travelers and tourists as well as for retirees, and therefor for property investors – can not be denied. Thailand is under priced, it is the “Land of the Smile” it is incredibly beautiful and it has a vastly increasing numbers of annual visitors. Thailand is slowly but steadily building up it’s infrastructure and it’s reputation for foreign investment. Now if you are thinking of investing in property in Thailand, there are certain things you should take in consideration.
Real Estate demand in Thailand
The demand for property in Thailand affects many sectors and this demand is slowly but steadily increasing. There is massive tourism demand for accommodation across Thailand and the demand is increasing annually and will be further be further on increasing potentially over the next decade. One can foresee that the huge commercial demand for property will be increasing accordingly.Now because in recent history and vast political changes, the level of investment in Thailand has been relatively low. Fact is, there is actually a massive under supply in many sectors representing instant investment appeal.
Longterm Investment
Now add to this the fact that the real estate industry in Thailand is now actively taking it upon itself to promote the delights and opportunities available in Thailand, so you could quite possibly have reached the perfect time to enter and invest in the property market in Thailand if you make very carefully researched purchases that you are willing to hold for the long term.
Investors should be aware that this is not a market for short term investment. The Thai government is not keen on short term speculation in any of its investment markets, this includes the real estate market. As a direct result of these politics, there are very strict restrictions in place, preventing a real estate investor from owning land in Thailand in general or from owning more than 49% of any property development. (Except condominiums – A condominium can be owned by a foreigner to 100% according to the condominium Law ) There are of course ways around these restriction such as the use of a well structured Thailand Special Purpose Company. And of course there is property leasing, where you can lease property for up to 90 years in Thailand.
Conclusion
Sure there are definable and definite risks and rewards for a real estate investor in Thailand, but where not?. It is just up to the every individual to decide which outweighs the other and make a decision accordingly. Ultimately there is much to gain from real estate in Thailand on the long run.
We recommend in any case, if you want to invest in realty or buy or lease real estate or property for your own private purpose in Thailand, to have a real estate agent in the country who speaks and writes the Thai language and is familiar with the property laws in Thailand.
For any questions about real estate investment, buying or leasing property on Koh Tao, please contact Supisha Ltd. Koh Tao Thailand.
Koh Tao, Thailand
How to learn Thai fast and easy
The real estate company Supisha Ltd. Koh Tao, together with Suksamran Villas Sairee and the Primary School Koh Tao in Mae Haad, have set up a, for Thailand unique, program to teach Thai Language Lessons (TLL) to foreigners who stay longterm on Koh Tao and dare to take the challange.
The Thai language classes will be held by the local teachers at regular school time, and the local school children will be the assistant teachers! The participants will basically attend to the regular classes that have "Thai Language" as subject. As a student of the TLL classes you will not only learn to understand Thai, but also to speak, read and write the Thai language.Besides the fact that you will learn much about Thai Culture in these language classes, there is always a good chance that you might find a ‘lesson buddy’, who can help you understand things better and make your Thai Language Lesson an even greater success.
The Thai Language Classes
Class BE :
Start your lesson by practicing ‘kinder tongue’ with 3-6 years old The 1st-3rd primary class
Class duration: 1-2 5 hours per week or more from Monday — Friday
Price:
- 100 B. / 2 hours class/person
- 400 B. / 8 hours class/person
- 250 B / 5 hours /week./person
- 1,000 B / 20 hours/month/person
Class PT:
After you have passed truth class BE, in class PT you will accompany the 1st primary class the 4th-6th primary class
at a Thai School and you will be learning like them. Here is where your writing skills will be trained.
Class duration: 1-35 hours per week or more from Monday — Friday
- 100 B. / 2 hours class/person
- 400 B. / 8 hours class/person
- 250 B / 5 hours /week./person
- 1,000 B / 20 hours/month/person
Class PRO: This class is for anyone who has attended the above classes and/or knows all the basics and is already able to communicate with Thai school children.
You can now choose to join the next classes from 2nd -6th grade.
Additionally you can ‘hire’ children from the 5th or 6th grade to teach you in private classes on Saturdays or Sundays.
Choose a day and pay directly to the children. This will not only benefit foreigners but also will the kids improve there English skills.
Teachers at the Koh Tao primary school will make sure the teaching kids will teach Thai the way they have learned in school.
- 100 B. / 2 hours class/person
- 400 B. / 8 hours class/person
- 250 B / 5 hours /week./person
- 1,000 B / 20 hours/month/person
Please Contact Us For More Information
First term period 4 months booking : 80 hours/term/3,000 B./person (in all level primary class)
After 40-60 hours most foreigners can already read and write
For more information and details on the TLL classes on Koh Tao, Thailand please also refer to the Koh Tao Community Website
Enjoy Your Retirement in Thailand
A quite life on a white sandy beach in Thailand, a beach chair, a cocktail glass a good book and a cigar. This is the dream of so many Westerners who plan to escape the cold winter and the tremendous cost of living in their home country. Foreigners come to Thailand for many different reasons. Be it to finally retire from a stressful working life or just to relax for a couple of month per year to regain strength and energy. Thailand offers foreigners a vast amount of benefits such as world class health care, beautiful beaches, tasty food, friendly people, and most of all; inexpensive properties and real estate. Living and retiring in Thailand is supposed to be an enjoyable and relaxing experience and if you prepare and plan thoroughly in advance, you will be rewarded for your efforts with your dream coming true.
Choose the Right Partner or Real Estate Agent
Once you have made the decision to stay longer in Thailand or even retire in the country of the smile, the ability to acquire property becomes a major issue. You don’t want anything to go wrong here. And since you will be looking to acquire real estate in a foreign country you are in need of trustworthy local assistance. Your partner in Thailand should be able to communicate in Thai, in speaking and writing, and must be familiar with the geographical area where you desire to buy or lease your property.
Your partner or agent will save you valuable time in pre-selecting properties and showing you only the property that fits your price ideal and meets your desires. We recommend though, that before you pay any money or sign any deposit agreement or contract to or with anybody, you should sit down with a solicitor or lawyer and discuss the legal process of purchasing real estate or property in Thailand. You must understand the exact rules for foreigners to acquire realty in Thailand including as well all the possibilities you have to finance your purchase. Some banks in Thailand will offer you up to 70 % financing and the re-payment terms can be up to 20 years. Read more about property financing and investment in Thailand.
The Legal Structure to Purchase Property in Thailand
Property – We feel that the best way to purchase land and build your own dream villa in Thailand is to lease the property for 90 years. The leasing contract can be renewed after it’s termination for another 90 years to follow. The cost of the renewal after the first 90 years is only 15% of the original purchase price and honestly, who cares what will be in 180 years?
Condominium – A foreigner may own up to 100% of a condominium in his/her own name in Thailand. If though the project is over the 49% quota in the foreigner’s name, one needs to draft a lease contract for a transaction to be recognized as the legal owner.
Investigate the Land Titles before You buy
A thorough examination of the title deed recorded at the Land Department must be done for your safety. You need to have a verification of the Seller’s clear and legal title of the land that you are about to purchase before you enter any contractual agreement. The title search will trace the ownership of the land back to its first owner which is in almost any case the King of Thailand. Do Not take the word of anybody, telling you that the title deed has been checked somewhat before. You need to possess a full report and a printed copy of the title deed in English and Thai language.
Deposit and Payments
Once you have the title deed and feel satisfied with the real, you will be asked to make a deposit on your property purchase to show your good faith and continue the process. In return, the land owner will reserve the property for you and start the process by drafting the contracts for purchase. Please note that unless you specifically add a “get-out” clause into the deposit agreement, e.g. “subject to clear title” or “subject to agreement on the contract terms,” the deposited money is non-refundable.
90 years Leasing Contract
Here at Supisha Limited we usually make the following agreement that has satisfied many customers since it is fair and reasonable to all parties:
- Deposit 15% of lease value
- Two weeks after construction start 20% of lease value
- Two month into construction 20% of lease value
- Three month into construction 20% of lease value
- Four month into construction 15% of lease value
- After Inspection and Handover 10% rest payment of lease value
- Estimated construction time 3 – 6 month depending on building size and weather conditions
- Re-selling of the property within the 90 years, Fee: 15% of the purchase price
- Contract renewal fee after the first 90 years 15% of the purchase price for another 90 years
Please contact our office in Koh Tao if you need any further information or assistance to purchase real estate or property in Thailand. If you happen to be on Koh Tao, please visit our office in Sairee and we will be happy to assist you and show you around. Our new project at Lighthouse, in the north east of Koh Tao offers beautiful spots to build a Villa with a stunning view over the Gulf of Thailand. Have a look at the pictures of each plot, you are gonna love it.