Invest In Pattaya Blog

Developing property markets in Asia favoured by real estate investors, survey shows

Property investors are likely to be more interested in developing Asian real estate markets next year than traditional countries like the UK and the US, according to a new survey.
Some 85% of the 150 strong audience at the annual Thomson Reuters Global Property Outlook said they expected developing Asian markets to deliver total returns in excess of 10% in 2010 as economic growth feeds demand for homes, shops and offices.

In contrast, just 13% of those delegates surveyed said that property returns in the UK or the US would match those seen in developing Asia, even though both markets looked to be nearing the twilight of their real estate corrections.

Some 61% said they expected UK total returns between zero and 10% next year, broadly in line with Eurozone total property returns for the same period.
While around half of respondents expected to see the same zero to 10% total returns range in developed Asian markets like Korea and Tokyo as government measures to thwart real estate bubbles bear fruit.

The survey also found that 42% estimated US total property returns between minus 10% and zero, while 39% expected returns between zero and 10%.

Congested credit markets and a reluctance among some banks to lend to real estate have encouraged bargain hunters to delay investment sprees and 61% said they expected a flat property market next year.

They are not particularly keen on investing in Dubai with a general fear that the worst global real estate slump for generations was not over yet.
Around 50% said they believed Dubai’s debt crisis was a sign of further troubles to come for highly leveraged property markets, while 37% said the problems were too small to spark a calamity outside the Gulf region.

Until valuations stabilise further and banks resolve massive exposures to distressed property loans, real estate will have to compete strongly to maintain its weighting in a diversified portfolio, the survey results indicated.

Stocks are the preferred asset class with 33% expecting shares to perform best in 2010, with 28% picking property and 26% selecting commodities.

JOMTIEN CONSIDERED #1 DESTINATION FOR FOREIGN HOLIDAY HOME INVESTORS

Printed in Pattaya Daily News

Sale and rental transactions have continued to increase in the Jomtien and Pattaya region, due to the value for money that is available to foreign investors. Long haul flights from Europe and America are becoming increasingly affordable with many choosing Pattaya as a holiday location due to its close proximity to Bangkok.

Pattaya, the 8th of December 2009 [PDN]: It’s not surprising that the number of holiday home investors has increased, given that the exchange rate for most foreign currencies has become increasingly favorable. Due to an increase in construction in the luxury condominium and house market, especially in the Jomtien Beach area, the availability of affordable luxury accommodation is higher than ever before.

Thousands of visitors discover Pattaya as a viable holiday location every year, in part down to the new Bangkok airport and the upgraded transport route from the capital, which has cut the travel time down to under 2 hours. Foreigners fall in love with Pattaya’s beautiful beaches, lively nightlife and friendly residents, with many deciding to invest in a holiday home or stay long term in a rental condo.

Jomtien is the smaller of the two Pattaya City beaches and is largely a residential area. As a result this is the area where a lot is being done in the building and development of luxury holiday home market. Both foreign and Thai construction companies have seen the opportunities of the area and have completed or begun construction of multiple developments, with many more planned for construction in the near future.

The Luxury market has become a real focal point in the development of Jomtien Beach and the surrounding area. The roaring success is attributed in part to the affordability that Thailand offers in comparison to other beach holiday destinations around the world. Families and groups are booking Villas way in advance as an alternative to the more common package holiday and hotel booking. Tourists have discovered that not only can they save money by staying in a luxury villa but they also have the holiday of a lifetime, in their own private residence.

As a lot of the world still struggles to attract tourism, Pattaya and Jomtien clearly are proving to be a winner with foreign investors, even with the current global financial climate the way it is.

Wealthy investors regain appetite for property

Confidence in the real estate sector is returning among high-net-worth individuals according to new survey from Barclays Wealth.

Over the next two years, 35% of the survey’s respondents said they plan to increase the proportion of their portfolios dedicated to real estate, excluding their primary residences.

The average allocation to real estate among respondents was 28% internationally and 23% in the US. Investors in nine out of ten countries expect to increase their allocation to real estate by 1% to 4% over the next two years, raising the global average allocation to 30%.

Investors who plan to increase their real estate stakes believe that the asset class holds better long-term prospects than other more complex financial instruments, which many blame for igniting the financial crisis. Additionally, thanks to the recent turmoil in nearly all real estate markets around the world, investors believe there are many bargains to be had in the property sector.

Condo Boom In Pattaya – An Excellent Long Term Investment

Condo Boom In Pattaya – An Excellent Long Term Investment

Thailand is one of the most popular destinations to live in. It is even better when you prefer to live in Pattaya, an incredible island destination, situated in the northern Gulf Coast of Thailand. The city of Pattaya is dotted with an amazing range of attractions covering superb beaches, picturesque landscapes, interesting museums and art galleries, beautiful parks and gardens, sumptuous as well as authentic seafood cuisines, and exciting nightlife.

The cost of living in Pattaya is exceptionally cheap when compared to other popular cities of the country, such as, Bangkok. Further, its great culture, salubrious climate, and presence of amicable Thai people all have made Pattaya truly a unique destination. Perhaps for these reasons, many people, especially westerns, choose Pattaya as their retirement destination, apart from a holiday destination. Many organizations function here exclusively for the welfare of expatriates, including, Expats Club of Pattaya, UK Club of Pattaya, and Pattaya Sports Club. Hence, it is no wonder why property market is booming in Pattaya.

A spectrum of properties is available in Pattaya. From affordable and stunning bungalows and villas to apartments and gated communities like flats, accommodation choices in Pattaya are vivid and colorful. However, with the flow of westerners as well as the increased demand for western style of accommodation, the demand for condos is greater than ever before. Many foreigners even prefer to acquire land and build houses as per their tastes and requirements.

However, expenses in connection with the building of single detached houses are quite high. Additionally, in order to own a land and build a house by a foreigner, certain legal tangles are associated with it. For instance, if you are a foreigner, you must require either a Thai spouse or a legitimate company to acquire a land in the region.

But, when comes to owning a condominium unit in Pattaya, the Thai government does not enforce any kind of precincts, except for some requirements to be complied with under the Condominium Act of 1979, including bringing in 100% of cash for the purchase of condominium unit in foreign currency and recording of it through a local Thai bank on a Foreign Exchange Transaction Form (FETF), which is regarded as an evidence to present it to the Land Department office.

Probably for this reason, nowadays both foreigners and natives prefer to own and stay in condominium units. Many of the upscale condo units in Pattaya are centered around such areas as Bang Saray and Tawanron beach, Jomtien beach, and Wong Amat beach.

On the basis of your lifestyle, budget, and preferences, different types of condo units are now available in Pattaya, from low cost condos to high end luxury condos. Condo units are also available depending upon the number of members in your family. You can choose from a range of condominiums in Pattaya, such as, apartment model, townhouse, and sometimes even in the form of a single detached structure.

No matter it is of any model, a condo unit in Pattaya comes complete with amenities such as superb bedrooms attached with relaxed beds, expansive living rooms, sophisticated kitchen, and bathing area with uninterrupted water supply. Some luxury condominium properties are replete with most modern facilities such as game rooms, laundry facilities, whirlpool spas and saunas, pools, meeting rooms, and parking areas.

A plethora of benefits can be derived from owning a condominium in Pattaya. Foremost is that condo living in Pattaya enables you to live in a well-controlled community. Another key benefit of living in condo is security, since many of the condo units are coupled with most sophisticated monitoring system. Low interior and exterior maintenance costs and access to superb facilities such as elevators and swimming pools are the other benefits of living in a condo unit.

In addition, buying a condominium in Pattaya is regarded as an excellent long term investment, guaranteeing good returns. But, the price of condominium units is exceptionally high in contrast to other accommodations options such as apartments and single houses.

With the introduction of the internet, purchasing or renting a condominium in Pattaya is no longer a tiresome process. Scores of realtors as well as real estate firms, property builders, and consultants, are now in the scenario to help in fetching your dream condo unit in Pattaya. Majority of them have their own websites, with details including expected price, amenities available and pictures of the condominium, it allows for convenient purchasing of a condominium. Further, many of them customize condo units according to your specifications.

Written by : Wantanee K. is an independent author evaluating and commenting on leading International Property Consultants in Thailand, especially CB Richard Ellis.

Iguana – the only AIPP appoved developer in Thailand

88% OF BUYERS FEEL MORE REASSURED IF A COMPANY IS A MEMBER OF AIPP (independent research by A Place in the Sun Live, Oct 09

Lack of completed supply still provides strong yields in central Pattaya

The eastern seaboard is the second largest contributor to
Thailandûs GDP and its economic growth has boosted property
over the last two to three years, with the areaûs major city,
Pattaya, at the centre of activity. However, property demand in
the city still depends largely on a successful tourism market,
making it more susceptible than Bangkok to a slower global
economy and internal political unrest. In fact, out of Pattayaûs
top five tourism contributors, Germany and Russia were the only
countryûs that put in a positive performance, while Thailand,
China and South Korea turned in double-digit drops in arrivals.

Much like tourist arrivals, condominium launches cooled in 2009
after a record H2/08, while the take-up rate sank to 35.2%, a
low not seen in four years. With the gap between supply and
demand widening, the average unit price began slipping from its
H1/08 peak to below the THB100,000/sq.m mark in 2009.

It is fair to say we see more glossy sales brochures and
property billboards than actual cranes in Pattaya, and the lack of
finished supply continues to guarantee strong annual returns in
the range of 5-7%. Mean while, resale prices in finished
properties are escalating to be more in line with current off-plan
prices.

Condominium market recovered ?

The condominium market appears to be recovering, as all
major developers reported stronger Q1/09 presales after a
dismal Q4/08.
Developers are also enjoying lower construction and material
costs alongside a selection of reasonably priced, quality land
plots in 2009, but banks remain cautious in releasing new loans
for condominium projects.
Condominium development indicators for Q1/09 reveal:
ë Presales more than doubled those in Q4/08, signalling the
market has already bottomed out
ë Construction costs by gross floor area (GFA) have fallen
more than 10% since Q3/08
ë The construction material price index (CMPI) dropped 24%
from its July 2008 peak
ë However, the drawdown on new loans tumbled 36.5% to
THB1.8 billion from last yearûs THB2.9 billion
Stock Exchange of Thailand-listed condominium developers ›
Raimon Land, Noble Group, Preuksa, Major Development, Asian
Property, Supalai, LPN and Sansiri › reported THB8.52 billion in
condominium presales during Q1/09, a marked improvement
over Q4/08, but still 36.5% off the THB13.42 billion achieved in
Q1/08.
A drastic reduction in condominium launches is taking much of
the blame for slumping presales, and cancellations and returns
led to negative presales in Q4/08. However, most projects
launched in early 2009 are reporting good presales.

Written by Raimond Land

Airport traffic resumes gradually

Passenger traffic and aircraft movements through Suvarnabhumi Airport look set to resume a normal growth pattern over the next five months, thanks largely to the end of recession and improvements in Thailand’s political scene.

Airlines have booked 125,000 flights through the country’s main airport between the end of October and March next year – the aviation industry’s winter season – representing a year-on-year increase of 8.52%.

Passengers passing through the three-year-old airport in the period are expected to surge by 11.04% to 19.78 million, according to Airports of Thailand Plc (AoT).

The rise in domestic flights and passenger numbers is projected to significantly outpace the increase in international traffic, although domestic figures are lower than international ones.

International takeoffs and landings are forecast to rise by 3.35% to 90,000, while domestic flights look set to leap 24.56% to 35,000.

A total of 14.91 million international passengers – an increase of 6% – are expected to go through Suvarnabhumi during the winter season, while domestic passenger traffic is expected to grow by 30% to 4.86 million.

Most international passengers will be from East Asia, accounting for 53.33% of the total.

Five more carriers are starting to operate through Suvarnabhumi this winter, raising the number of airlines to 94 from 89 in the summer season.The airport bookings indicate a return to normal for air traffic, which was hit by the seizure of Bangkok’s two airports – Suvarnabhumi and Don Mueang – toward the end of 2008, as well as by political unrest, the global downturn and the H1N1 flu scare.

International travellers seem to be getting over their nightmarish memory of being stranded between Nov 25 and Dec 4 last year to come back to Thailand during the holiday season, said an industry observer.

In fact, signs of recovery in air traffic through Suvarnabhumi became clear in September with a robust 22.41% rise in passenger numbers to 3.17 million, while combined flight movements rose by 9.74% to 20,636.

September brought the second consecutive monthly recovery in flight traffic figures and volumes began recovering from the contractions of the first seven months of this year.

But the first nine months of this year saw passengers, at 29.09 million, still down 5.08% year-on-year, while aircraft movements slipped by 1.97% to 187,073.

Analysts said the speed of the global recovery and Thailand’s ability to improve its image, especially in the eyes of tourists, would determine whether traffic through Suvarnabhumi in 2009 would match 2008’s 38.6 million passengers and 245,719 flight movements.

Bangkok Post November 19th

Real Estate Investment in Pattaya, Thailand

Investing your money in real estate may seem like a bad idea today. With the current global economic crisis, investing in real estate is the last thing in people’s minds today. A lot of people would rather save money in the bank in order to have something to use on emergencies. However, if you dig a little deeper, you will find plenty of opportunities in real estate that will definitely be worth your time and money.

If you are looking for a sound real estate investment, then you should try investing in real estate in Pattaya, Thailand. Why? Well for starters, Pattaya, Thailand is a well-known tourist destination. This is where a lot of people go to in order to have a relaxing vacation.

Considered to be the jewel in the crown of Thailand, you will see that Pattaya has a lot of potential in the real estate market. With new developments booming in the area as well as a new international airport, you can safely say that Pattaya is the next boom in the real estate market.

Thais and foreigners alike are now investing in as much real estate as they can in Pattaya. They know that soon enough, this part of Thailand will develop in to one of the finest and most popular tourist destinations in the world. From condos, to apartments, to beach houses, to villas, you will find almost everything here to invest on.

You have to consider the fact that even in today’s global economic situation lots of people are still traveling to exotic vacation destinations, such as Pattaya, Thailand. It may be because that they want to escape the stress that the real world is offering today, or it may be because they simply want to relax and have fun. If you have a property here, you can be sure that it will be rented all year round. So, expect to get your return of investment in a very short time.

You also need to understand that the price of the properties in Pattaya, Thailand is not yet that high. Even with the on going developments, you can still get properties here at a very cheap price. But, with the expected boom in tourism and development in Pattaya, you can’t expect that the cheap prices will last long. This is why you may want to invest in real estate in Pattaya as soon as possible.

The sooner you invest in real estate in Pattaya, Thailand, the better the chances of getting properties at a bargain price. And, because Pattaya is expected to become very popular in the near future, you can simply sell your property here at a very high price in the future. Not only that you will get a chance of getting your investment back through rentals, but you will also make a huge profit by selling the property you own when the market value skyrockets.

There is a very large demand for property or real estate in Pattaya, Thailand. If you have the money, then don’t hesitate to invest in real estate here. Whether you are looking for apartments, condo units, lots, duplexes or houses, or new homes, you can be sure that you will be able to find it in Pattaya, Thailand.

By investing in real estate in this particular place, you can be sure that you are making the right decision. It is better than letting your money sit in the bank, and it is definitely something that you will make extra cash on especially in today’s economic situation.

Ashley Tiernan

The Six Risks of Risk Free Real Estate Investing Techniques

There seems to be a lot of talk lately about “no-risk” real estate investing techniques. I’ve heard this talk before but it seems much more abundant as of late. Maybe it’s the economy and all the fear the downturn has generated, or just the new flavor for the real estate guru’s. Regardless of its origins, I believe it is misleading and more importantly it is a very inhibiting mindset.
Real estate investors are in the business of risk.

The Six Risks of Risk Free Real Estate Investing Techniques

Don’t be afraid of it. Don’t delude yourself otherwise. Embrace the pervasive presence of risk and set yourself free. Those who make the most money in this business take risks. Those who struggle often seek unreasonable assurances of a good deal. This notion of guarantees has our society paralyzed and shoveling out money for dubious warranties. I see it with home buyers all of the time. They want every assurance in the world that they will not loose their earnest money deposit if they don’t go through with a home purchase.

There are no guarantees in life, though so many of us struggle to secure assurances. How many people do you know that are miserable and making no money working in a government office but they do it for the “job security” and the retirement? Job security? I say it’s a job prison. The U.S. Government is no guarantee either, particularly the way we’re printing, spending, and borrowing money right now. A major reason why we bailed out AIG was because so many retirees had taken their life savings and set up annuities through that goliath insurance company that would never fall. How many people said you’re crazy for investing in real estate and instead pumped their hard earned money into “blue chip” stocks? Well, now, CITI and GM are no longer blue chip stocks.

Now, about those risk free investments. In most cases I’ve seen they’re talking about real estate wholesaling or some similar variation. Wholesaling in a nutshell is were you find a property that is just an amazing deal and you take it to another investor or end buyer who actually buys the house and pays you some version of a finders fee. It’s risk free because you never actually buy the property. So, using wholesaling as a general example . . .

Here are the 5 major things you’ll risk with so called risk free investing:

1. Precious Time:
Many of these gurus say real estate is a numbers game. They might tell you that you need to look at 100 houses. Of those 100 houses you might put offers in on five of them. Of those five offers you’ll hopefully get one contract. That takes a lot of time. You risk unrecoverable time with your friends and family. You risking time you could be relaxing and/or enjoying life. You risk looking at 100 houses and not making a deal.

2. Opportunity:
You risk missing out on other opportunities to make money doing something else. If you’re looking at all those houses and don’t find one or don’t find an end buyer you’ve lost the opportunity to work at a job that would have made you money. If it takes you 20 minutes to look at each house and you look at 100 houses that’s about 33 hours. Or, if you find a house with $50,000 in equity and you find a buyer who pays you a $5,000 finders fee you’re missing out on the opportunity to make an additional $45,000 if you were willing to take the risk and buy the home yourself.

3. Enthusiasm and Motivation:
You risk loosing interest and enthusiasm in one of the greatest industries ever. Once you start wholesaling it takes a massive commitment to get to the point where you can make a living. You have to spend a great deal of time finding legitimate buyers for your homes (a buyers list) and a great deal of time finding sources of homes. Its much easier and exciting, in my opinion, to take the risk and buy a home that’s a good deal. You’ll take more risk, but I believe you’ll generate much more enthusiasm and learn a great deal in the process. I’m not telling you not to wholesale. I’m just saying, be willing to actually put your name on the line and take some “risk” when the right deal comes along. In real estate you should be flexible, willing to do a range of different things when an opportunity presents itself. If you’re too risk averse you’ll be too inflexible to be successful in this business.

4. Reputation:
The local real estate scene is a small world. You might end up building a reputation as being too timid to pull the trigger on a good investment. In wholesaling if your buyer doesn’t come through then in the sellers mind you didn’t come through. You need to build a reputation as a go to person. Real estate professionals want to deal with people who are flexible, creative, willing to pounce on good deals, and able to pull deals together despite obstacles.

5. Money:
Yes, I said money. In most any case you’ll be putting some sort of money on the line. For example, our wholesaler will likely run newspaper ads, send out flyer’s and post signs. In many cases when you do find a home you may be asked to put a deposit on the property. If your end buyer doesn’t come through you could loose thousands of dollars.

6. The Unknown:
Anything can happen in real estate. I’ve had deals where things have come up, good and bad, that I never could have expected. There might be laws in your state that make it at least murky for you to receive a finder’s fee in real estate without being a licensed real estate broker. You might get a ticket for posting your “I buy houses” signs on the street corner. There are always liability issues in everything you do and if you’re not working for a company then you’re fully exposed; the buck starts and stops at you.

My point here is not to beat up on wholesalers. I have great respect for good wholesalers. Just make sure you know what you’re getting into. It is not an easy job. I’m merely using them as an example to illustrate my point.

The above list is applicable to other forms of investing as well. I also recommend wholesaling as a way to get going in real estate; however, you should keep clearly in mind the realities of real estate and life in general. No matter how you choose to invest you do have to be a little bit daring. There is risk with everything and the greater the risk the greater the reward. The worst thing you can do is to get complacent by telling yourself you’re not taking any risk.

Instead embrace risk and go into your real estate investing career with your eyes wide open. Do your due diligence, cover your bets as much as possible but eventually take the plunge. Move forward with the assurance that as long as you keep working hard and maintain your precious enthusiasm you’ll learn from every mistake and misfortune and then be confident your education will lead to greater fortune.