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Submitted by Drew Noyes, Managing Director, P.A.P.P.A. Co., Ltd.

Is now the time to buy in Thailand?

This is the most frequently asked question for the last two years at our offices of P.A.P.P.A. Co., Ltd. in Pattaya, Chonburi Thailand, where we have served the needs of Expats since 1998 as Thailand’s leading American-owned and managed property development, legal services and publishing company.

Is now the time to buy in Thailand?

It is asked first by real estate developers who use our procurement and licensing programs for housing estates, condominium developments and commercial buildings.They want to be assured that buyers will buy and the Thai government won't move the goal post further back through added regulations making foreign ownership difficult if not almost impossible. 

The liquidity in any market - the ability of motivated sellers to sell to anctious buyers - is the most important aspect of property investment anywhere.Liquidity in Thailand is most important because of the transient nature of many investors and the aging retirement community.  The liquidity will be increased when visa regulations allow younger, under 50s to stay in Thailand. 

The financial mess world-wide has increased airfares, reduced capital liquidity and disposable income of potential buyers and those who would travel to scout out possible relocation destinations. This has caused a glut of property ready to be sold with few buyers in sight.

For now.

Is now the time to buy in Thailand?

This question is asked next by investors, retirees, contractors working in Asia and those of us who have fallen in love with a Thai (or a few!) after multiple visits and want a place here.

Hundreds of our clients in the last two years who are afraid to buy in Thailand have asked us about when is the best time to buy, if at all.  Many of these are savvy investors and businessmen for whom we have handled property transactions, concluded pre-marital or pre-nuptial agreements with their soon-to-be new Thai brides, cleaned up their Thai company limited so they don't lose the Thai property they already bought, provided one-year renewable visas to them as well as work permits and any required entertainment licenses, travel agency licenses, liquor licenses, business licenses, etc. they may need.

Is now the time to buy in Thailand?

This question is also asked by the guy or couple coming here for a bit of fun and holiday-making.

So what’s the answer?

The answer is:

Yes, now IS the time to buy in Thailand using caution and due diligence on your property selection and making sure the LOCATION is in an area with liquidity, not out in an isolated area with no hope of growth.

However, if you want to live up-country or is a rural area, that’s different.  Anytime is the time to buy there if you are paying the local market (Thai) price for land and construction.  But be sure to visit us so we can protect your rights of ownership and secure the money you spend with legal documents.The best time to buy is when everyone else is afraid and sellers are so motivated some prices are below the cost of construction. 

Also, the high end of the Thailand market is booming as the low end and mid-market take pause.  Why? The answer is simple.  People with money take calculated risks.  If the risk is depreciation of property values, then how much more risk is there here in Thailand than where you come from? Not more risk!  Look at the devaluation of properties in the US, UK, Europe and elsewhere.

But if you buy in Thailand, you get to live in Thailand! Ahhhh! Now you see!  It’s about lifestyle choices. 

As long as Thais are uniquely different from any other race, as long as Thai culture continues to allure the pallet, imagination and discovery of foreigners like us there will always be more of us who want to live here.

Our website, www.officialthailandinfo.com, has the information you need to make an informed decision.  Look at the latest revision of the Condominium Act of 1999 amended this year, 2008. A complete English translation is available at the website.

Also, the Foreign Business Act is explained at  www.officialthailandinfo.com. New amendments include the prohibition of having Thai nominees as stock or share holders.  This means whomever is listed as a shareholder has to have paid for the stock with traceable funds.

On September 18, 2006, Thailand's government was overthrown by the military in an effort to halt corruption.  The next month the new government initiated strict adherence to the Condominium Act and the Foreign Business Act (FBA).  They announced that foreigners owning property in a Thai Company Limited name must clear up irregularities by October 2008. 

Many new requirements are now necessary before selling property or changing  the Managing Director and shareholders of a Thai company.  If you own property in the name of a Thai company I urge you to contact us or any reputable law firm who understands the effect on Expats of the new changes.  It really may be better to speak with a foreigner working in this field.  We are available.

Please post any questions here and we will answer them in general.  Specific cases require a direct communication. For specific counseling/advise or legal service my office telephone is 66.38.301.050 or 038.301.050 if you are in Thailand. My office is located near Sukhumvit Road in Pattaya on Thepprasit Road, Soi 3.