Q. Can I, as a non-Thai national own the land upon which my home is built?
A. It depends, as there are several scenarios! Firstly a foreigner cannot own land in their own name. The common practice is to lease and have it registered in their own names at the Land Registry Office. These leases are usually for 90 years (3 x 30 years).

A condominium may be registered freehold for foreigners as long as 51% of the development is registered in individual or company Thai names.

Several leasehold developments (particularly the 'high-end' ones) offer the company which owns land on which the properties sit to the buyers in the development as a collective, at no extra charge. In these cases whilst your land is still leasehold it is being leased from a company which yourself, and your fellow buyer's own! Therefore you are both the 'Lessor' and the 'Lessee' and it is therefore virtually freehold and extremely secure.

If you are married to a Thai then you can form a Thai Company and have the company purchase the land. The foreigner can own 49% of the Thai company and the Thai National 51%. If you are not Thai nationals you can still form a Thai company however you will have to find Thai nationals to own the 51% that has to remain Thai. This is relatively simple and secure and your lawyer will explain the process.

Q. If I buy on a development who will manage the development once it is completed?
A. The developers will set up all the maintenance contracts i.e. gardening, pool cleaning, security, engineering etc. and usually manage them for the first six months. Once everything is running smoothly the running of the development will be handed over the owners. The owners will form a committee and the committee will manage the development and the facilities through the full time Estate Manager and his/her team. All development homes come with a monthly maintenance charge which covers the provision of all services and utilities on the development.

Q. How do you expect property prices to perform in Phuket in the future?
A. Obviously one can never absolutely predict any sort of property capital value increase. However it is a fact that property values in many areas of Phuket and particularly in the Surin / Layan / Laguna areas have increased in value by 80% - 100% over the last five years. As properties in Phuket are still good value for money when compared to many other destinations in the world we expect to see capital value increases of between 10% - 20% per annum for the foreseeable future dependent on property type and location.

Q. What extra 'on costs' would be associated with my purchase?
A. Only the cost of lease registration which is 3% (split equally with the seller) of which you only pay 1.5% of the 'lease' cost which is generally only 20 - 30% of the total purchase price. Consequently your costs on a 20 million Baht (US$500,000) home would only be approximately 75,000 Baht (US$1,850). The only other cost would be any legal fees you incurred but we would minimize or totally remove these by undertaking most of the required work for you.

Q. Is there a financing solution available for potential purchaser's to take advantage of?
A. Yes there is. If you buy an already completed home then at the point of Lease Registration it is possible to borrow up to 50% of the assessed value over a 5 - 7 year repayment period. If the home is 'off plan' and therefore paid for over the course of the construction on a 'stage payment' scheme then you will have to pay for it all yourself through the building stage and then arrange a loan once completed and the lease or freehold registered.

Q. If, at some point in the future, I should desire to sell my property how easy is it to do so?
A. Quite easy! There is a growing demand for quality, completed, re-sale properties. Consequently well built and well designed properties in the right location usually sell very quickly and at good premiums, dependent of course on how long it has been owned and condition.

Q. Are regular and good rental returns available should I wish to let my home whilst not in residence?
A. The rental market in Phuket for holiday, mid-term and long term lets is booming! All established property management and letting companies will tell you that they never have enough properties in any category. Excellent returns are being achieved and we do not expect these to diminish as Phuket gains popularity and more and more families are opting for Villa and Apartment lets rather than staying in hotels.