Asia Property News - South East Asia Real Estate Developments - Property for sale - Market Conditions - Industry Articles

Submit News (It's Free!)
TopPropertyNews.com
Headlines:
 
Latest News Articles:

Latest Online News:

Thailand Signals Expectations of Better Real Estate Times


8 March 2010 - Holprop News

Real estate worldwide has suffered in the last three to four years, a cascading effect from mortgage and real estate woes in the U.S. While every country has experienced different levels of price softening and mortgage tightening, the general picture has been slow and even stagnant or depreciating markets. Thailand has not been an exception, and the situation was in part improved by tax incentives. The expiration of those incentives at the end of March, 2010 signals a belief that things are improving to the point that help is no longer necessary for real estate in Thailand.

With overall sales growth of 7% in 2009, there is ample reason to believe that the worst is over. One business resource predicts that there will also be a sustained 7%/year growth over the next five years in Thailand building and construction. It is estimated that 500 semi-completed building projects are coming back online. Thai laws relating to foreign ownership of real estate are complex, so a real estate experienced attorney should be consulted. Condominiums are the most popular purchases, but regular homes can be found, and some even work with construction companies to build a home. This allows taking advantage of bargain labor and material costs.

While bargain purchases can be found in Thailand, mortgage financing is likely to be problematic, with 50% financing a common number when a mortgage can be found. Some foreign buyers are getting funding in their home countries and transferring the funds to Thailand for their real estate purchase. Taxes and fees vary from 3% to 5% or more in a transaction. It's a beautiful country, and these challenges are not deterrents to foreign buyers. The expectation is for more foreign buyer activity in the future.

The expiration of the tax and fee incentives will result in price increases as builders and developers pass on their increased costs. The extra cost will be around 4% for builders and developers. How much is passed along will likely be influenced by competition in the market. There is a great deal of new activity, so analysts expect that some builders will absorb some or all of the cost increases in order to better compete in the marketplace. The Thailand real estate market is in a rebound, and it's not likely that tax changes of this magnitude will have an appreciable negative impact on the brighter future ahead.

By www.holprop.com (March 8, 2010)
Thailand property sales | Thailand Holiday Rentals | Thailand Monthly rentals

 

 

Syndicate:
RSS Feed

Holprop :
Holprop.com Other Articles »
Rating : by 0 users
Rate or leave comment

Comments:

Related Articles :
No Related Content Found


















  • Search News Articles :
    Disclaimer:
    The news articles on www.TopPropertyNews.com are provided for information purposes only and for redistribution to the public. www.TopPropertyNews.com does not accept any responsibility or liability for the content, all content is provided by the publisher or author.