| Real estate worldwide has suffered in the last | | | | bargain labor and material costs. |
| three to four years, a cascading effect from | | | | While bargain purchases can be found in Thailand, |
| mortgage and real estate woes in the U.S. While | | | | mortgage financing is likely to be problematic, with |
| every country has experienced different levels of | | | | 50% financing a common number when a |
| price softening and mortgage tightening, the | | | | mortgage can be found. Some foreign buyers are |
| general picture has been slow and even stagnant | | | | getting funding in their home countries and |
| or depreciating markets. Thailand has not been an | | | | transferring the funds to Thailand for their real |
| exception, and the situation was in part improved | | | | estate purchase. Taxes and fees vary from 3% |
| by tax incentives. The expiration of those | | | | to 5% or more in a transaction. It's a beautiful |
| incentives at the end of March, 2010 signals a | | | | country, and these challenges are not deterrents |
| belief that things are improving to the point that | | | | to foreign buyers. The expectation is for more |
| help is no longer necessary for real estate in | | | | foreign buyer activity in the future. |
| Thailand. | | | | The expiration of the tax and fee incentives will |
| With overall sales growth of 7% in 2009, there is | | | | result in price increases as builders and developers |
| ample reason to believe that the worst is over. | | | | pass on their increased costs. The extra cost will |
| One business resource predicts that there will also | | | | be around 4% for builders and developers. How |
| be a sustained 7%/year growth over the next | | | | much is passed along will likely be influenced by |
| five years in Thailand building and construction. It is | | | | competition in the market. There is a great deal |
| estimated that 500 semi-completed building | | | | of new activity, so analysts expect that some |
| projects are coming back online. Thai laws relating | | | | builders will absorb some or all of the cost |
| to foreign ownership of real estate are complex, | | | | increases in order to better compete in the |
| so a real estate experienced attorney should be | | | | marketplace. The Thailand real estate market is in |
| consulted. Condominiums are the most popular | | | | a rebound, and it's not likely that tax changes of |
| purchases, but regular homes can be found, and | | | | this magnitude will have an appreciable negative |
| some even work with construction companies to | | | | impact on the brighter future ahead. |
| build a home. This allows taking advantage of | | | | |