by kevinyeo | Jan 31, 2019 | Questions and Answers
Question: What Insurance Do I Have To Get For My Bangkok Condo?
Answer:
- If you have an outstanding housing loan for your Bangkok condominium, the bank would require you to obtain mortgage insurance. In the unfortunate event of the demise of the property owner, the property will be paid up in full by the insurance. Of course, if the property is fully paid in cash, this insurance is not required.
- Another consideration is to get a fire and theft insurance for your Bangkok condominium. This is usually offered to you when opening a bank account in Bangkok. You can also choose to get it from independent third-party providers but for ease of the procedure, we would recommend you just get it from the banks. The fire and theft insurance is relatively cheap and you can opt to have the insurance premium deducted via GIRO from your bank account.
These insurances mentioned are only required when your property is completed.
Got a question? Reach us at [email protected]
by kevinyeo | Jan 30, 2019 | Questions and Answers
Question: What Are The Roles Of A Juristic Person In Bangkok Condo?
Answer:
Who is a juristic person?
A Juristic Person is someone who sits in the condo management office a.k.a the juristic office. While their primary purpose is to take care of all things related to the upkeep of the condominium, they can also provide value-added services to the individual property owners.
For example, if you are a foreigner owning 1 of the units in the condo, you can get the juristic person to assist with the paying of the utility bills.
They are also in charge of informing all property owners of any impending general meeting and to facilitate the meeting.
If you are keeping the property as a holiday home, you may also choose to leave 1 set of keys with the juristic person. When you plan to stay over in Bangkok, you can then get them to arrange for 1 round of general cleaning before you arrive. (subject to cleaning fees)
In summary, besides fulfilling their primary role of upkeeping the auxiliary facilities of the condominium, they also double up as a concierge.
Got a question? Reach us at [email protected]
by Daryl Lum | Jan 28, 2019 | Questions and Answers
There are many hidden hassles when it comes to overseas property investments. In Bangkok, many developers tend to offer units that are fully furnished and fully fitted. These packages are usually catered to the overseas market to reduce the hassle of furnishing the condominium. However, there may be some developments that may not have such options and thus foreign buyers will have to buy the units bare. They will then have to furnish the units on their own. Some real estate companies in Bangkok, like TRC Property, do provide furniture packages and electrical goods packages to clients. TRC Property will furnish and fit your property with the necessary furniture and appliances. The furniture and electrical goods packages may differ between condominiums as condominium layouts and tenant profiles differ. After furnishing the condominium, TRC Property will assist in looking for a tenant for the property. Please note that such service is only offered as an after sales service to clients of Invest Bangkok Property under Bkk Gongyu Co., Ltd and TRC Property Co., Ltd.
Here is a sample of the furniture package that is on offer for a standard one bedroom.
Here is an example of a property furnished by Agnes from TRC Property
Ideo Mobi Asoke before furnishing
Ideo Mobi Asoke after furnishing
It is much easier to rent out a unit if it is fully furnished. If you are keen to learn more about TRC Property’s furniture and electrical appliances package, you may contact Agnes at +66 92 552 1933 (Call, SMS or WhatsApp). This is just one of the many after sales service that TRC Property offers to clients of Bkk Gongyu Co. Ltd (InvestBangkokProperty.com)
Yours Sincerely,
The editorial team at InvestBangkokProperty.com
Bkk Gongyu Co., Ltd.
by kevinyeo | Dec 19, 2018 | Questions and Answers
Question: How To ‘Flip’ Property In Bangkok?
Answer:
So you would like to ‘flip’ your Bangkok property. (flipping means to sell the contract of the property you purchased before the condominium completes)
Firstly, we would suggest that you should not be buying a property with ‘flipping’ as the main motivation. Go back to the fundamentals and look for good properties that are in good location and will be easy to rent in the future.
Truth be told, we do have a number of clients who managed to ‘flip’ their Bangkok properties but we never recommend a purchase to clients with ‘flipping’ as the end goal.
A lot of it will depend on the market conditions also, which is something beyond our control.
As a guide, we will suggest that you go for developments that are not too large or mass market. This is because, in order for you to be able to ‘flip’ your property, the foreign quota will have to first be sold out.
The second thing to note also is for good developments, developers tend to sell their units in phases, increasing the price with each later phase. This will, in turn, give clients an extra boost if they are the earlier buyers and are looking to sell the property subsequently.
Thirdly, we will suggest that you stick with the reputable, public listed developers. These developers, such as Sansiri, Ananda, Noble Development, etc have a wide global outreach. As such, it is more likely potential buyers will only look at developments on offer from these developers. And if the particular development they are interested in is already fully sold out, the only way for them to purchase a unit will be to get one from the secondary market. Then the chance for you to ‘flip’ the property for a profit will come.
In conclusion, we do not advocate clients to purchase Bangkok property with only a short-term horizon in mind. Focus on the fundamentals and when the right time comes along, you will get the opportunity to sell the property quickly for a good return on investment.
The cost to ‘flipping’ a property in Bangkok is relatively low. All you have to incur is the agent’s commission and the administrative fees for the change of contract. Taxes are not applicable before the completion of the property.
Have a question for us? Reach us at [email protected] or [email protected].
by kevinyeo | Dec 12, 2018 | Questions and Answers
Question: Can foreigners buy landed property in Thailand?
Answer:
Strictly speaking, foreigners can only own condominium units in Thailand. Landed properties are reserved for the Thai locals.
However, some foreigners have worked around this by buying landed property under a nominee structure. They create a Thai company with a nominee Thai director and with this company, they proceed to purchase landed property with it.
However, we strongly discourage anyone from taking this route. The intent of the Thai government is clearly to allow only the Thais to purchase a landed property. By taking advantage of this loophole, you run the risk of running afoul with the Thai government.
Foreigners, however, are allowed to get landed property on long-term leases.
In conclusion, foreigners are NOT ALLOWED to buy landed property in Thailand. As a foreigner, you should stick to buying condominium where you can legally own the property without encumbrances.
Got a question for us? Reach us at [email protected] or [email protected]
by kevinyeo | Dec 5, 2018 | Questions and Answers
Question: Am I Required To Be In Bangkok For My Property Purchase?
Answer:
The answer is no. There is no need for the purchaser to be in Bangkok for the buying process.
The payment to the developer can be done via bank transfer in your residing country. As for the paperwork, the sales and purchase contract can be couriered to wherever you are. You can then sign the documents before sending them back to Bangkok.
The is neither the need to engage a lawyer as a witness nor the need for a notary public.
The only time you are required to be in Bangkok will be the day you are taking over the completed property from the developer.
For myself and Daryl, we do shuttle between Singapore, China, and Hong Kong rather often as we have a fair share of clientele from these countries. So it is often that we will meet up personally with our clients to deliver the sales and purchase contract to them.
Have a question for us? Reach us at [email protected] or [email protected]
by kevinyeo | Nov 28, 2018 | Questions and Answers
Question: How do we do deductibles for income tax in Thailand?
Answer:
In Thailand, rental income is treated as personal income and will be subject to tax.
It is important to note that in Thailand, there are legitimate items that can be treated as deductibles so that it will lower your chargeable personal income.
Some examples of such deductibles would be agent’s commission and cost of furnishing the property. These can be offset against the total rent collected by you.
For more clarity on what are the eligible items for deductibles or how to go about doing it, it is a good idea to engage a competent local agent to assist in this matter.
Over at BKK Gonyu, we have a team specializing in property management. Please do feel free to check with us if your Bangkok property requires property management services.
Got a question for us? Reach us at [email protected] or [email protected]
by kevinyeo | Nov 21, 2018 | Questions and Answers
Question: Can I Secure A Loan Today When Buying Uncompleted Properties?
Answer:
For foreigners, we are often offered a deferred payment scheme by developers when purchasing an uncompleted condominium. Deferred payment scheme refers to the buyer first being required to make a downpayment (often 20% to 30%) and the remaining amount (70% to 80%) to be payable nearer to completion of the condominium.
In Bangkok, subject to credit assessment, foreigners are able to get a mortgage loan from some of the financial institutions in Bangkok.
Read also: Can A Foreigner Take A Property Loan In Thailand?
We are often asked by buyers if they can first confirm their eligibility to take up property loan before committing to the purchase.
The straight answer is no. Let me explain why.
The loan can only be applied at the point when you are required to pay the remaining amount of the property value. Timeline wise, for a brand new condo, this will only happen 2 to 3 years down the road.
In other words, banks will only entertain your application for the mortgage loan nearer to completion of the property or when this final payment is due.
You are required to pay the upfront downpayment via cash only.
As for the applicable interest rates and terms, it will be as per the bank’s conditions 2 to 3 years down the road. Whatever are the terms of mortgage and interest rate today will not apply to you. Not unless you are purchasing a completed condominium today.
Got a question for us? Reach us at [email protected] or [email protected]
by kevinyeo | Nov 14, 2018 | Questions and Answers
Question: What is the difference between mass market and investment grade condo?
Answer:
There are 4 aspects to this question.
Location
There are very specific locations where good quality tenants will want to stay. It is imperative that you know where these locations are. Buying into wrong locations without proper tenant catchment area will cause you much headache. Naturally, to be considered an investment grade condo, the property has to be in the right locations. For example, Thonglor, Ekkamai, Chidlom, Sathorn, etc.
Density Of The Development
Most of the time, the better grades of condos typically have a lower density. This is also because of the greater exclusivity and larger sized units that are synonymous with high-end living. On the other hand, the mass market condo can be found having a high number of units squeezed into a small plot of land.
Quality Of Finishing
The quality of finishing between investment grade and mass market condo can be very distinct. From flooring to kitchen cabinets, the material used for investment grade condos is likely to be far superior. And it is rather common for investment grade condo to come fully furnished as it appeals to international buyers.
Condo Facilities
A lot of investment grade condos now come with fantastic facilities. This is important as the facilities are sometimes a deciding factor in your ability to attract good tenants or perhaps command a slightly higher asking rent. The mass-market condo is mostly sold to locals and the most important thing is affordability. Facilities may not be as comprehensive.
Not getting an investment grade condo may result in a lot of difficulties in renting or selling in the future.
Got a question? Reach us at [email protected]
by kevinyeo | Nov 7, 2018 | Questions and Answers
Question: Should I Invest In Bangkok Property With Personal Name or Company?
Answer:
This is another question we get asked often. Other than under special circumstances, we would always advise that clients do so under the personal name. The process is a lot more streamlined and of less hassle.
In fact, if you understand how the Thai tax structure works, it can be less costly to sell the property under a personal name rather than a company.
The selling taxes and withholding taxes as a personal name is lower.
There is no significant advantage of holding property under a company unless there are specific reasons to do so.
Got a question for us? You can reach us at the following:
[email protected]
[email protected]
by kevinyeo | Oct 31, 2018 | Questions and Answers
Question: Is there an oversupply of condominiums in Bangkok?
We get this question very often and this is a topic that can get investors concerned. Every weekend, you can flip the newspapers and you will see several new launches in Bangkok happening.
So is there really an oncoming glut of condos in Bangkok?
Answer:
It depends on what you buy.
It will be wrong put all the condominiums in Bangkok together and see them as one. There are the mass market ones, and then you have the investment grade condos.
We are always advocating that you should only be looking at the investment grade condos. These are condos located in the core central region of Bangkok.
In downtown Bangkok, the land is limited. It is difficult for you to spot an empty land. For developers such as Sansiri and Ananda to launch a brand new condo, they will first have to buy over existing land or old buildings.
This increasing land price and relatively short supply of prime properties have to lead to price growth over the years. These will also be the exact same properties which the expatriates favor due to the superior location and quality.
A lot of investors are attracted to the lower priced condos on offer in the outskirts of the city but those condos are many in supply. There is no public housing scheme in Bangkok. Thus, the developers are the one coming up with affordable housing for the local Thais. It will be rather difficult for such properties to attract expatriate tenants.
Got a question for us? Reach us at [email protected] or [email protected]
by kevinyeo | Oct 28, 2018 | Questions and Answers
Question: How To Select A Good Unit In A Development?
Answer:
One of the things we share with our clients will always be to buy the highest floor possible. This is because when you decide to resell and you wish to ask for a higher price, it will be easier to justify. For a lower floor unit asking for a selling price higher than that of a higher floor unit, you will very likely be deemed overpriced.
Moreover, all thing being equal, a higher floor unit will also more likely to be able to secure a tenant easier than the lower floor units.
You might also want to be aware of certain floor levels or unit numbers. Some buyers are rather superstitious and would want to avoid certain numbers. So if you wish to appeal to the largest possible pool of buyers, especially the Chinese, then do be aware of the unit selection.
13 is considered an unlucky number in Thailand.
Units at the corner or near the corner are more desirable because of the privacy it offers. Similarly, try to avoid units directly facing the lift lobby.
Last but not least, look out for unique features that may give you an edge because of the differentiating factors. Some example would be a balcony, lofts, etc.
You should also make an effort to doll up your unit so it can stand out from the rest. The cost of doing so is minimal but doing so can help give your property a wow factor.
We do get clients contacting us, asking us about how to go about selecting a good unit. We are happy to assist you in this aspect so do feel free to get in touch with us.
You can reach us at [email protected] and [email protected]
