Thailand Expats

marky · #1 15-01-2007, 19:02

The only problem with these condos/apartments is the foreign ownership restriction and without a doubt the very expensive price!

Anyone bought into any of these kind of developments before? If so did you experience any problems?

Mövenpick Residence Karon Beach Phuket | Luxury Beachfront Apartments in Phuket, Thailand

ATMwalking · #2 18-01-2007, 11:04

You might be better at looking for condos where 49% of the units have been approved for foreign freehold. But still not cheap.

Crustasian · #3 19-01-2007, 04:06

When I first came here I did invest in one to use as a rental.All management was above board and I kept it for several years.I then sold it back to the developers at a profit so I cannot complain.

If you are interested in something along those lines PM me as a friend of mine is gathering up some investors to do a condo on the south of the island.

dirtys · #4 19-01-2007, 18:35

beautiful apartments, does anyone know if you bought one of these would you be able to rent it out over the whole year and how much could you roughly rent it out for

LivinLOS · #5 19-01-2007, 19:17

Nice high end aprtments are very variable.. Furnishings, location withing the project view, type of tennant etc all come into it.. High end stuff starts renting at 25 to 30.. IMO.. Can go to very high numbers for super slick places..

Those look a little small to me to be really high end.. Whats thier internal meters, didnt see it..

Personally I like the freedom of renting.. this isnt stable enough to be worth it for my feeling.

landofsmiles · #6 20-01-2007, 00:12

You would be very lucky to have it let all year. April to October there are always loads of apartments available

marc26 · #7 20-01-2007, 03:56

i think anyone buying a place in LOS should go in not needing the rent and just taking any rent you do generate from it as gravy

ATMwalking · #8 20-01-2007, 12:41

I agree with Marc26. Buy first if you love it here and you want to own no matter what. Look to income as second. I even had a property developer say that to me last night.

LivinLOS · #9 20-01-2007, 16:26

One of my buddies has been in property here for years all through boom years and done very well out of it all (fair play to him, not many come here with a backpack and nothing else and get on).. His opinion is you would be nuts to own here and he rents.. This is from a agent.

Published in the Phuket Post

Many people in Phuket are wishing they had never come. But a lot of people have invested so heavily that they can't afford to leave. ~ Larry Cunningham, Phuket One Real Estate.

Hows that for a comment from a real estate agent !!!!

ATMwalking · #10 20-01-2007, 16:39

With Larry you are bound to get..."interesting" comments.

If you are going to buy here, you shouldn't invest more than you can walk away from. At the same time the property market has far from imploded even with all that has and is going on.

LivinLOS · #11 20-01-2007, 17:06

The land property market has crunched to a standstill.. Prices havent gone down as you know how Thais attitudes to pricing things goes, but very very few sales are being made at all.

The guy I know used to specialise in undeveloped land.. couple of plots per week last year.. now they have sold a couple of plots since Oct / Nov..

ATMwalking · #12 20-01-2007, 17:06

Do you have the link to the full article Larry was quoted in? I think he may have been speaking from the perspective of a property developer. If you are a developer and have not gone through the BOI, I would be very concerned right now.

As for the agent, he is a hypocrite.

So far no freehold condos or leaseholds have been revoked. Even houses done with a company holding the title are currently OK (pending revisions to the FBA). As a home owner, nothing has happened to be too worried about. Developers...different story.

ATMwalking · #13 20-01-2007, 17:09

Quote:

Originally Posted by LivinLOS

The land property market has crunched to a standstill.. Prices havent gone down as you know how Thais attitudes to pricing things goes, but very very few sales are being made at all.

The guy I know used to specialise in undeveloped land.. couple of plots per week last year.. now they have sold a couple of plots since Oct / Nov..

For development, this makes sense as there were many that were operating in a Grey area at best.

Housing market is still moving along. Best to stick with a good thai developer or a large foreign company that has BOI approval. Top of the thread was for movenpick which should be fine. Best to check of course.

LivinLOS · #14 20-01-2007, 17:15

I dont have a link but scan round the post site it may be up..

I agree that condos and leases (for 30 only) are safe.. But its not only developers that are exposed to the higher risks IMO, if you want to sell a house you need a buyer.. Now companies cant have farang shareholders and buy land (they can but the Thai shareholders have to prove thier cash situation and that they are really putting money in and have a fairly hard audit.. Not gonna happen) so people who have invested now have an asset they cant sell to other farangs.. I dont see too many Thais buying up these 1m USD villas..

Thats without taking into account the issue of voting non voting shares that may happen which means you now dont even control the asset any more !!

Also I dont think you can be BOI and a property developer.. I think BOI doesnt cover property development but thats a hunch..

ATMwalking · #15 20-01-2007, 17:39

They haven't gone after existing companies holding land...yet. We have to wait on the FBA to see how this really shakes out.

For new properties coming on the market, it is a problem for sure. But this approach was an end run around the laws anyway.

I've read BOI does cover property and hotel developments. So with the special privileges the BOI can grant, the company could be 100% foreign control and then get a 30+30+30 lease or freehold on a condo. Or look for a good Thai housing company.

I agree with you absolutely that I would not want to be on the development side or left holding a 1m villa right now.

What I don't like is this approach will push foreigners to live in very farang communities because of ownership restrictions. I like living in a mixed area. That is the point of living here.

LivinLOS · #16 20-01-2007, 19:03

No not yet.. But the fear premium isnt built into the price yet IMO..

And if you cant sell.. That has to effect 'values'.. saying a place is 1m USD is all well and good but if theres no buyers it isnt.. I also agree with you about the farang ghetto aspect of the rules..

ATMwalking · #17 20-01-2007, 19:24

If you are new to the house market, the most cost effective and safest option is to find a good thai project developer with a solid track record and go the freehold convertible lease route.

If you want a holiday condo, buy seaview from the big boys that have board of investment privileges and get a freehold unit. 49% of units in an approved condo are up for foreign freehold. (I am sure thailand would grind to a halt of foreigners held 51% of the units in a building)

If you want security, don't go near thailand right now. If you are willing to take on some risk and believe in the near-term huge potential, bring some money you can loose. Odds are you will make a tidy profit once we are over the current xenophobic reaction to the possible looting of a former PM.