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Guide offers foreigners handy tips on buying a Thai home
Maneeya Dhammataree
In 2008, 400,000 Scandinavians, or 3.1% of the countries' total population, traveled to Thailand.
Since Thailand is a pleasant country boasting a warm climate and with a reasonably low cost of living compared with northern European countries, the majority of Swedish tourists who visit tend to want to make a return visit and then become repeat visitors.
Ultimately, 10,000 Swedes have decided to purchase a second home in Thailand, according to John Svengren, executive director of the Thai-Swedish Chamber of Commerce.
In an effort to provide a source of guidance, featuring best practices and good business conduct in the area of property and real estate, the Thai-Swedish Chamber of Commerce in December launched a publication called Best Practices Guidelines Within the Thailand Property Market.
Svengren recently shared further information about this useful publication for prospective foreign homebuyers with Maneeya Dhammataree. Maneeya Dhammataree (MD): Could you tell us a bit more about the profile of Swedish buyers of property in Thailand?
John Svengren (JS): Sure. Buyers mainly tend to be aged 50 or up. They are usually semi-retired, have a good education, and good jobs (in a strong economy).
These Swedish tend to visit about three times a year, spending about two weeks at a time here. Visiting periods may be as long as six months among retirees.
Interestingly, these people are interested in homes that have a small garden and are less interested in condominiums.
The cost of the homes they consider buying tend to be between five and seven million baht (US$141,700-198,500) on average.
The three most popular areas among these folks are along the eastern seaboard (anywhere from Bang Saen to Koh Chang), around Hua Hin in Prachuap Khiri Khan province, or even further south, including Phuket.
In terms of the highest value among Thai-Nordic joint venture (JV) projects, this would go to Rayong province, in which JV property projects are valued at 4.8 billion baht ($136.1 million), representing 29% of the total sales value from Thai-Nordic JV projects.
Rayong attracts Scandinavian developers due to its secure location, which is not too far from Bangkok, light traffic, low pollution levels, as well as the expectation that property prices will rise there.
MD:As a chamber of commerce, what kind of support can you provide prospective buyers?
JS: We are like a link between the Thai government, Thai or Swedish companies, and every individual in every aspect, whether the issues relate to business, legal aspects, or lifestyle.
MD:What made you decide to produce the guidelines?
JS: Just eight years ago, thousands of Swedish consumers decided to purchase a second home in the kingdom based solely on the information provided through exhibitions or sales brochures. To reduce the risk potential, we provided fundamental and complex information on all aspects of property purchase and ownership in Thailand to allow the prospective buyer to take a more cautious approach.
The guidelines also provide a complete network, which involves all the different groups involved, such as prospective buyers, developers, and service providers, in the form of a guide of best practices, allowing each group to understand better the roles and responsibilities of the others.
MD:Could you provide some of the more specific guidelines contained in the manual?
JS:
We provide ideas regarding geographical characteristics of the more
popular towns among foreigners, for example, together with information
regarding legal aspects in the purchase of land or property in
Thailand.
There is also an explanation about finance and
taxation, such as the legal requirements for a foreigner when
purchasing a house or a condominium, as well as rules on transferring
foreign currency from overseas.
Building and construction is
covered within the guidelines, too, in order to explain some of the
differences between European and Thai construction standards and
procedures.
We provide details regarding real estate and
personal insurance, and cover environmental aspects based on the
Environmental Impact Assessment (EIA) process. In the final chapter, we
provide a checklist for prospective buyers of a condo unit, a house, or
those looking to lease land.
MD:It sounds like the publication can also benefit other groups?
JS:
Yes, it certainly can, such as brokers, developers, investors, service
providers and stakeholders from any nation. They can make comparisons
by using the same measurements and carrying out basic research within
the guidelines.
MD:Could you tell our readers how the second edition you plan to launch soon differs from the first?
JS:
In the second edition, we are going to provide a fact box on each
developer listed. This will provide prospective buyers with a good
initial source of information as well as some pictures and other
information about the ones they are interested in pursuing further.
MD:Since you list a number of relevant companies, such as investors and
service providers, does this imply that you guarantee the quality of
these entities?
JS: No, and we're not like the police. What
we are doing is looking at developers who have become our members, and
then we can examine their certification, or carry out some other simple
steps that can assess their quality. We will probably ask developers if
they are open to due diligence. It doesn’t mean they have to show due
diligence, but they must be willing to undergo one.
In certain
workshops, we have had the opportunity to talk to developers. We can
see these companies 'inside and out'. Some companies go bankrupt, and
we would then remove such businesses since they will have disappeared
from the market.
MD:What should readers do if they are interested in picking up a copy of the guide?
JS:
Just come along and pick one up from our offices (5th Floor, Phayathai
Building [BTS: Phaya Thai]). If you require further information, you
can always call us on Tel: +66 (0)2 354 5229.
MD:Thanks very much for sharing your time with us.
Biz Spotlight 
Biz Spotlight
Thailand offers plenty of business and investment opportunities. Whether you’re an entrepreneurial individual, a growing small- and medium enterprise, or a cash-rich corporation looking to establish or expand your presence in the kingdom, Biz Spotlight provides up-to-date insights into the country’s business and financial sectors.
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