Phuket Investment Property Business Opportunity in Phuket Thailand (Page2)

Buyers Concerns
When buying into a development you are buying into a complete project and as such you should concern yourself with the developer's solvency.
The best protection against developer insolvency/bankruptcy is to pay for what you get and to minimize any advances or deposits, with the critical component in all cases being the land.
Once you have paid a deposit to buy the land it is not advisable to make further substantial payments until such time that the transfer of ownership of the land is registered at the land office. It would also be prudent not to commence major building work until you have legally acquired or leased the land.

Property Taxation
There are two different types of tax levied on property in Thailand they are called:
  • Land Tax and Structure Usage Tax
Land tax is a very small tax levied on land ownership equivalent to just a few Baht per Rai per Year.
This amount is so small that the land office rarely bothers to collect it and if they do, they may wait a few years before the amount is worth the effort of collecting. In any commercial sense this tax can be largely discounted.
Structures Usage Tax is applicable at the rate of 12.5% on the actual (or assessed) gross rental value of the property.
Lessees are not subject to this tax but may be required by the developer to pay an annual ground rent instead.

How to Pay
If you are purchasing property in Thailand & you want to pay in Thai baht ensure that your funds are transferred into Thailand in foreign currency & converted in Thai baht here.
The reason for this is that the receiving bank will issue a Foreign Exchange Transaction Form confirming the transaction.
The relevance of the Foreign Exchange Transaction Form is that it is one of the documents you will need in the future if you wish to repatriate funds without incurring tax penalties.
Also, please be aware that Banks will only issue Foreign Exchange Transaction Form for individual inward transfers exceeding USD$20,000.
Repatriation of investment funds & repayment of overseas borrowing in foreign currency can be remitted freely upon submission of supporting evidence.
One of these documents would be the Foreign Exchange Transaction Form mentioned above, or in respect of a foreign currency loan, the loan contact.
Remittance of funds without proper documentation could be regarded as income & become liable for tax.

Estate Management
When buying into a managed development expect to pay monthly maintenance fees. These fees are used in the preservation & upkeep of the common property, facilities, utilities & security. Maintenance fees will vary between developments so be sure to compare the projects.
There are a number of property management options available. In many estate developments, the developments will either be providing the ongoing property management themselves, or have contracted the services of a reputable property management company.
Using the services of an independent contractor has the advantage of providing owners with services in line with the collective needs of the estate.
If you do not intend to occupy your new home on a full time basis, property management companies on the island are able to provide services to ensure that your investment is taken care of.
Services such as bill payment, cleaning, pool, garden or general maintenance can be tailored to your needs. This enables you to rest easy with the knowledge that your home is being properly cared for. Even if your home is not on a managed estate, using the services of a property manager will provide much needed piece of mind.