Phuket is one of Them

P'Sam house chalongEveryone has a deep-seated desire to own a dream home. Home buying is something that needs many things into consideration, and this is one of the reasons why home buyers always strike deal in something with prospective lucrative benefits. Just as money matters a lot, location is similarly one of the key considerations when it comes to buying a home. However, buying a home is one of the most exorbitant investments for anyone in the world. Phuket is one of them. It has been famous worldwide because of many things. Phuket has many things to offer to tourists or those who come here for buying a home. This largest island is one of the most beautiful places of the country. The very cheap priced houses have contributed significant growth of incoming home buyers to the land. However, that doesn’t mean that you should chuck the dream of owning a home here. In fact, you can purchase a condo or any house in this land. If you are a foreigner and want to purchase a piece of property in this land, then you can’t do this as the law doesn’t permit this. This you can do very easily as the law permits home buyers in this context.

Mountain climber looking over his shoulder at view belowThis is especially important if you have borrowed money from a financial institution, or have an overseas mortgage on the property because you will need to send the money abroad to settle the loan amount upon selling the property. For any purchase of a property that is not a freehold condominium, you must still keep all the bank transfer documents so that it is easy and trouble free taking monies out of the country again when you decide to sell. You must keep all these documents as they are extremely important. Furthermore, it is essential that the beneficiary name you put on the bank instruction is identical to the name on the sale and purchase agreement. It must state that the funds are for a condominium purchase. Name the condominium/ development that you are buying. It is extremely important that this name be on the instruction, but equally important are the details of what the transfer is for. The need for opening a bank account really depends on the type of property that you wish to purchase and individual circumstances.

In many cases, it may not be necessary. Some lawyers may also be able to offer this service. However, if you decide to use a lawyer for the transfer, they will usually charge you for this. This is because you will require the original sale and purchase agreement and the reservation fee payment receipt. Please also bear in mind that it is highly unlikely that you will find a bank to open an account for you unless you have already made a property purchase. The sale cannot go ahead without this confirmation. If you are also putting the property in a spouse’s name, a marriage certificate is required. Normally, your lawyer will handle all the arrangements at the land department and it is usually a painless experience. You will be required to have a bankers draft prepared for the balance owing on the unit purchased. That’s when you will have to pay all the taxes and fees due. These are usually paid in cash so you must make sure you have sufficient cash with you on the day. Your copy of the title deed will then be given to you with your name on it, rather than the sellers’ name. Once everything has been done, you can hand over the bankers draft you have brought with you. As mentioned above, this whole exercise should be relatively painless. Only on exceptionally busy days will there likely be any major delays.

Your ownership is permanent and in perpetuity until you decide to sell it to someone else. Unlike a freehold condominium where you have ownership of the unit in perpetuity, a leasehold apartment only allows ownership for 30 years, with the option to extend the leasehold for further 30 year periods. If you die, you are able to pass the condominium to your heirs. Some leasehold apartment developments may seem attractive, especially if they are well maintained, but your length of ownership is limited, and leasehold apartments are usually the same price as those available as freehold. In addition, a lease contract is typically terminated upon the death of the lessee, and without a provision for a succession clause cannot be passed on to your heirs. It is our opinion that you are best served looking for a freehold condominium, rather than a leasehold. The land may be purchased on a 30-year leasehold basis, but with a well drafted contract, buyers can also expect extensions to this lease.

Withholding taxes may be claimed back later when paying income tax. For companies, withholding tax is 1% of the official appraised value.3% (0.3% of this goes to the local authority) of the higher of either the appraised value or the registered sale value of the property. Stamp duty is 0.5% of the registered value of the property. If it is your primary residence and you occupy it yourself or the property remains vacant for much of the year the tax does not need to be paid.5% of the assessed rental income per year. If you are exempt from this tax, then you’ll have to pay stamp duty. You may also need to consider paying a progressive scale income tax on rental income. The rates are variable depending on the appraised value of the land area by local authorities. These taxes are, in many cases, also negligible. Its purpose is to have funds to fall back on in case of emergencies and other unforeseen circumstances.

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