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 luxury 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]
