PROPERTY BANGKOK REPORT
The housing situation in Thailand is looking bleak for homeowners who are paying mortgages off. More jobs are going and unemployment is starting to increase. The government has helped the workers by their 200baht per each social welfare worker fund but this is only a temporary measure. The Red shirts of Thaksin are mobilizing to upset the Country even more so the country could find themselves in more of a mess. Is it a good time to buy---only if you have adequate funds and buy a condo but do your homework first.
IS PROPERTY STILL A GOOD INVESTMENT IN BANGKOK AND THAILAND?
Home purchases lead to most consumer complaints
The Nation March 17, 2009
The Office of the Consumer Protection Board's Niroth Charoenprakob. All cases allege companies' failure to honour contracts. Thailand's property sector ranks No 1 in terms of complaints received by the Office of the Consumer Protection Board.
In the fourth quarter of last year - which coincided with the first quarter of the current fiscal year - 396 complaints were filed against property firms, or 39 per cent of a total of 1,004 complaints.
The office's secretary-general, Niroth Charoenprakob, said all complaints against property firms concerned the alleged failure of companies to honour contracts.
In second place were consumer product and service firms, which faced 376 complaints filed by customers claiming low quality standards for both products and services. Following this group were 137 complaints filed against various firms for alleged misleading advertising. The final group comprised direct-sales businesses, with 95 complaints for alleged low quality of products.
Niroth said that in the last fiscal year, which ended on September 30, 2008, the property sector also ranked No 1 for consumer complaints. It generated 43.44 per cent of complaints, or 2,190 out of a total of 5,041 cases. The property segments that faced most complaints were detached housing, condominiums, residences for sale and home-builder firms. Most complaints about failure to honour contracts in detached housing projects had to do with delays to construction, misleading advertising and low-quality workmanship. Coinciding with the economic downturn, the office has seen signs of higher rates of alleged failure by property firms to meet their contractual obligations. The 396 complaints against property developers in the first quarter of the fiscal year was higher than in the corresponding period of 2007-2008, he said. Niroth said his office had tried to help home-buyers whose contracts had not been observed by trying to negotiate compromise settlements between the parties. As a last resort, it filed cases with the Civil Court. More than half of the complaints were settled out of court.
"The office tries to help home-buyers and consumers, but our law doesn't give us authority to force the firms to do anything quickly. We have to help the parties reach a settlement, and if they cannot conclude a deal, we will file the case with the Civil Court to enforce the law," he said. However, Cabinet has recently approved draft legislation to set up an independent organisation to protect consumers' rights. The draft is being considered by the Council of State. According to the draft law, the new independent organisation will have the authority to investigate businesses and protect the rights of consumers of both goods and services. It will also have authority to file cases against businesses on behalf of individual consumers.
"This law may come into effect in the next year, and it will to protect customers' rights," Niroth said.
.LAND AREAS: 1 rai = 4 ngarn = 400 wah2 = 1600 m2; 1 talang wah = wah2 = 4 m2; 1 acre = 2.53 rai & 1 ha = 6.25 rai
To date foreigners may own
- a unit in a registered Condominium
- a building (as distinct from its land)
- a registered leasehold of up to 30 years for all types of titled land (and/or buildings).
- a company can purchase land and buildings only.
- more than 49% of a condominium unless in Company form.If BOI status different
- foreigners can own land being not over 49% in a proper Business orientated company but cannot secure a mortgage. Under BOI can buy.
- if you invest 40m baht you can buy 1 Rai of land in Thailand outright
A 30-year lease can be a good idea with right to renewal to a freehold purchase, or a Thai company (7 PARTNERS) can be established with Thai majority shareholders. Foreigners only own 49% shares in a company but there are restrictions and rules to this as you must have a business running and audited. The other way is to lease for 30 years with R of R or to use an Usufract or superficies to assist you. We can assist you to make sure your company is safeguarded. Remember if you need advice ask us.
Beware as its not the first time when foreign Business partners have been cheated by Thai partners. It has happened a lot. Never have a limited Partnership in Thailand and make sure the Lawyer you use is straight and unbiased towards you? Go to www.chiangmailaw.com for any help or www.thaiexpatlaw.com
We have English speaking Lawyers all over Thailand
Just click on the banner below:
WHEN TO PAY FOR YOUR PROPERTY
1/. Never pay deposit or booking fee over the Internet. See what you buy first
2/. Look at progress payment reports when, & how much
3/. Check the builder before you sign
4/. Talk to neighbours & others about the Moo Baan or buildings.
5/. Have a person on site to inspect interim work for you
6/. Do not be bullied into progress payments before work completed. If so then some middle man is getting his cut.
7/. When in doubt ask. Seek advice
Send your questions to us as we would like to help you?
- We work for you (Both Thai & foreign consultants )
- No hidden charges-everything is up front.
- Guaranteed conveyancy help & Company, work permit & land setup for foreigners
- We will sell your Commercial property, houses, businesses, bars and Guest Houses
- Because you have the benefit of foreign help with our Thai lawyers and expat consultants
If you have a property to rent, sell or lease in Thailand then WRITE TO US as we can advertise for you in our hardcopy news in Chiangmai . BANGKOK REAL ESTATE Please go to : www.bangkokrealty.biz