Pattaya in top 20 of places to buy a second home

Pattaya on World List of 20 Cities/Countries for a Second Home. Daily Telegraph; 29 July 2011.

Pattaya was ranked to be the one of twenty places where foreigners should purchase their second home. Mr. Christopher Middleton, the real estate and tourism senior journalist of The Telegraph in the UK ranked the 20 cities/countries around the world which foreigners deemed as suitable for their second home.

The twenty cities/countries that were selected to be a second home are as follows:

Pattaya, Thailand; Albania; Puglia, Italy; St Petersburg, Russia; Krakow, Poland; Leipzig, Germany; Zell An See, Austria; Nova Scotia, Canada; Tallinn, Estonia; Alentejo, Portugal; Shetland Islands, Scotland, Kotor Bay, Montenegro; Kolymbari, Crete; Kenya; Slovenia; Vietnam; Ibiza, Spain; Newport Rhode Island, USA; Istanbul, Turkey; Bali, Indonesia.

1. Nicaragua -- Nicaragua is more attractive than ever for one important reason: It's a super cheap place to live. I've been a fan of this misunderstood country since my first visit nearly 20 years ago. Property values, especially for beachfront property along the Pacific, reached bubble status last decade. Today prices are more realistic and more negotiable. In the meantime, the cost-of-living has remained seriously low. And last year Nicaragua inaugurated a new and improved foreign retiree residency program. For all these reasons, 2011 is the time to put this country at the top of your super-cheap overseas retirement list.

2. Ecuador -- Ecuador is well established as an affordable retirement choice. A friend calls it, "the cheapest place in the world where you'd want to live". This expat-friendly country also has a pleasant climate.

3. Colombia -- This moderately priced country is cultured and sophisticated. To live an expat-standard lifestyle in Colombia, I think you would need to spend more than you would in Nicaragua or Ecuador. Real estate, on the other hand, especially in certain areas of this country, can be a screaming bargain.

4. Thailand -- This exotic and adventure-filled country can be, in parts, extraordinarily affordable and even peaceful.

1. Panama -- Panama City has the best infrastructure in all of Central America, but it no longer qualifies as super-cheap. Other places in the country can be affordable. But the cost-of-living and of real estate in the capital and other more developed parts of the country has risen to the point where I wouldn't include Panama on our list of bargain havens.

3. Argentina -- This is another country that used to qualify as super-cheap but has grown steadily more expensive. Still, Argentina has much to offer in the way of lifestyle.

4. Belize --. Ambergris Caye has white sand and the best diving in the Caribbean. This area isn't absolutely cheap, but it can be relatively affordable compared with the cost-of-living and of owning beachfront real estate on other Caribbean islands. Elsewhere in Belize can be far more affordable than Ambergris. The Cayo, for example, is a beautiful frontier where you can escape from the real world and create your own future. It's also an English-speaking country.

Which Asia country is likely to earn the highest returns? Global Property Guide; 06 January 2010

There’s good value for property investors in Asia. But investors need to watch out for high round-trip costs, taxes, registry fees, realtor costs. High round-trip transaction costs mean that the most obvious markets on a yield basis (Indonesia, the Philippines) are not really so attractive.

We rule out Hong Kong, Singapore as destinations for rational buy-to-let investors because of their very low yields. We rule out China because non-resident foreigners are shut out. We rule out Vietnam despite good yields, because individual foreign buyers cannot sub-let (they can buy both through a lease and through an offshore company). However for domestically-resident buyers, Vietnam is likely to be attractive, once the credit crunch is over. Yields are high, long-term economic growth is strong, and taxes are reasonable.

The region’s most attractive market for yield is Mongolia, which still also has low costs, and low taxes (but you’d never want to live there).

For those who like to buy where they’d spend time, Thailand and Malaysia are reasonably attractive, with high yields and low round-trip costs.

Cambodia is worth considering. It has long-term growth, but low yields, and you must add costs for company formation and administration

UK investors to get Thailand tax boost. Property Report Asia; 28 October 2008

A treaty to eliminate British investors in Thailand incurring double taxation of income and capital gains arising in one country and paid to residents of another has been signed. HM Revenues & Customs announced the new Double Taxation Treaty (DTT) between the United Kingdom and Thailand will commence on March 31 2009.The new taxation treaty will aid investors with more stability in their tax affairs. The news is particularly good for international second home property developers and their clients - once these new agreements are in place investors will be able to sell their property in one country and repatriate the profits to their home nation, whilst not having to pay any more than the maximum amount of capital gains tax in any one of the countries. The Netherlands, Libya and Ethiopia will join Thailand in becoming the latest countries to sign up to bilateral taxation conventions.

Plans to build a 680 Million Baht Marina near the Bali Hai Port. Pattaya One News; 09 October 2008

On Tuesday Morning at Pattaya City Hall, Khun Itipon, the Mayor of Pattaya chaired a meeting in Conference Room 401 to discuss plans for the construction of a Marina close to the Bali Hai Port at the south end of Pattaya Beach. The Marine Department from Bangkok in cooperation with private sector investors have formulated a plan to construct 4 Marinas in key areas around Thailand to facilitate Luxury Yachts and larger Ocean Liners. Two will be located in the Andaman Sea area and two will be located in the Gulf of Thailand at Sura Thani Province and here in Pattaya. Khun Itipon and other delegates were presented with the plans for the Marina which will be located on the new road constructed South of the existing Bali Hai Port. The project will cost around 680 Million Baht and was given a comprehensive thumbs-up from the Pattaya Administration. Construction is expected to begin in 2009.

Is now a good time to be investing in property in Thailand? Ask a real estate agent when the best time to buy a property is and the humorous response is likely to be, anytime, but preferably in the next 20 minutes. With the global financial markets in such disarray (October 2008), lending seizing up between banks and institutions and general fear and greed permeating the market, there seems little reason to be optimistic. So, when is the best time to buy real estate? now. Funny you should mention it. Naturally as property agents we are biased but at this time we have even more of a reason to say now. Furthermore, this is being reinforced by what some of our customers have said to us as well. There may be some method in this time of financial madness. The safe haven for those with cash is clearly not in the equity markets, just yet. No one wants to catch a falling knife. Remarkably there is even some degree of caution being voiced about leaving large amounts of cash with a single bank and under low interest rates. Not many understand the complexity of other investment vehicles and most want to invest and leave it over time and not have to watch it every five minutes. More than a few people have come to us and commented that they may be better off at this time by investing in property. Look a bit deeper and you will find that property in Thailand, principally in the resort market such as Pattaya are mostly not financed through mortgages or secured loans. Given the nature of the market, it is a cash purchase. No loans means no bubble and far less defaults on any property that is financed. There are superb investment properties available with guaranteed yields of up to 8% for periods of up to 3 years. If you are not looking at the yield, then look at the effective discount this brings to the purchase price of the property. With some Asian markets off of their peaks by 40%, a drop in the Dow of 7% in a single day and interest rates at less than 2%, a property investment with a guaranteed return of up to 8% begins to sound attractive. And you can use it for your family holidays as well.

The amended Condominium Act will improve the overall condo market and screen out non-professional developers that take advantage of buyers, says Opas Sripayak, managing director of the condo developer L.P.N. Development Plc. 'The amendments will benefit condominium buyers as most of them will focus on consumer protection. Condominium developers should pay more attention to what the sellers promise,' he said yesterday. The amended Condo Act would require developers to keep all copies and versions of sale brochures or pictures advertised or sales letters publicized in any way at the juristic person office of the condominium for future reference, he added. 'Advertisements are part of a purchasing and selling contract. If there are many versions, all must be kept,' he said. 'The Land Department will hold a public hearing about the amended Condominium Act next Friday before it becomes effective on July 4.

The government will continue offering more stimulus measures to support the growth of both the real estate and construction industries, which are considered key internal sectors driving economic growth. Surapong Suebwonglee, the deputy prime minister and finance minister, said the government appreciated the significance of the two industries. Last year, they accounted for 6.3% of GDP, or 264 billion baht. The sectors also involve various linked businesses and may account for more than 20% of GDP in total. Therefore, the government needs to focus on stimulating these industries with measures like the tax incentives approved by the cabinet earlier this month, Dr Surapong said yesterday. The government expects the measures to be implemented next month. It confirmed that the reduction in mortgage fees and transfer fees would be available to all housing units and land plots developed under real estate projects, commercial buildings and office buildings, both old and new.

Finance minister upbeat about property sector growth. Thailand Ministry of Finance; 14 March 2008.

Finance and Deputy Prime Minister Surapong Suebwonglee on Thursday voiced confidence that business in the property sector would grow markedly in the second half of this year after measures issued to stimulate the sector take effect. Speaking after presiding over the opening of the 18th House and Condo Fair exhibition, he said the property sector is considered a key area of focus for jump starting the economy. Whenever the economy experienced a slowdown, every government would give top priority to assisting the property sector first, he said. He said the current governments measure to reduce the ownership transfer fee and specific business tax for homebuyers would help boost house purchase activities. Consequently, he believed the property sector will enjoy marked growth in the second half of this year. He conceded that consumers are hesitant to buy homes because they are uncertain about their future income. But with the implementation of the stimulus measures, he believed that public confidence will increase.Dr. Surapong revealed he had already discussed with the Secretariat of the Council of State a process to put the measures into effect. He said the ministerial announcement of the measures would be scrutinized to ensure accuracy within this week. Then, it would be proposed for the royal approval and published in the Royal Gazette. It is expected the measures would take effect soon. Athip Prechanont, president of Supalai Plc, said the public would take a few months to decide on house purchases once the economic stimulus package is issued, he believed total sales of houses would increase satisfactorily after mid-year, and that the sales would help boost supporting industries. It is expected the property business would expand by up to 10 per cent this year, he said.

The Finance Ministry will introduce economic stimulus package, which should allow economic growth to accelerate to 6 per cent this year, Finance Minister Surapong Suebwonglee said at Post Forum 2008.
The ministry will propose the package to the cabinet for consideration next week, he said. The package comprises of 10 measures including tax changes, and those boosting consumption and investment in the country.

With an optimistic view of the stability of the countries economy and politics, the Carrefour hypermarket chain plans to triple its investment budget to three billion baht this year to open six or seven new branches, double the number it had planned originally.
When the country has a government that comes from an election, it helps increase foreign confidence and attracts more investors to Thailand. So, we are confident that the countries economy will be better than last year, said Segsarn Trai-Ukos, the business development manager of CenCar Co, the local Carrefour operator.
The government has forecast that private investment this year will increase by 5-6%, compared to 0.5% last year.

Deutsche Bank forecasts 4% GDP growth in the Thai economy. Bangkok Post; 08 January 2008

The Thai economy is expected to benefit from stronger fiscal spending which will help spur private investment in 2008, according to Michael Spencer, Deutsche Banks managing director for global markets research. Mr. Spencer said the new government was likely to promote fiscal stimulus through a mid-year supplementary budget to help spur private investment.