What can you say about street travel agencies in Pattaya? Why Pattaya Grad Agency
Our reader Dmitry Kolomnikov talks about his experience of buying real estate in Thailand and gives tips on how to avoid some mistakes and additional costs.
Several years ago, my sister and I signed contracts to purchase housing in a new building. We agreed to pay 250 thousand baht every six months. At the old rate it was another 250 thousand rubles - that’s normal, we can do it!
Surirat and I met the challenges head-on and despite the difficulties, we moved into a new apartment!
The last amount - 700 thousand baht (50% of the cost of housing) - had to be paid upon receipt of the key. And when construction began to come to an end, the ruble began to fall sharply. That's why we didn't wait until the last minute, pushed ourselves hard and paid everything at once. But some neighbors did not have time, they hoped to pay the balance upon receiving the key and “sat in a puddle”: 700,000 baht by that time turned into 1.4 million rubles! Consider it another apartment... As a result, some people still live here without paying the rest of the money. Although the office assured me that they would give me the keys to the apartment only after paying the full amount.
But the fall in the ruble exchange rate is far from the only “surprise” that awaited us when buying a home. Here are some tips that I want to give to all property buyers in Thailand, especially new builds.
Don't forget about the annual fee
The first surprise for us was the condominium maintenance fee. It is calculated depending on the area of the apartment - for us it is 18,500 baht per year for 39 square meters. When signing the contract, we were told that it would only have to be paid once. But after moving in we were stunned by the news that we had to pay every year.
Moreover, this fee is different for each condominium; keep this in mind when buying an apartment in Thailand. A friend of mine bought an apartment in Jomtien, so his annual fee is 9,000 baht. I went to the condominium office: “Why is there such a difference?!” To which they answered: “This is divine, you have only 39 baht per square meter, in neighboring complexes - 41 and even 75 baht. So don’t be angry in vain, rejoice instead!”
Newer condominiums typically have higher maintenance fees than older homes. Our residential complex did not escape this rule either.
I bought an apartment under a foreign quota, and my sister – under a Thai one, so she paid 25% less. But this benefit is deceptive. I advise future condo owners to overpay when purchasing rather than spend a lot of money every year. When registering ownership of a condo under a Thai quota, a Thai company is opened in the name of the owner, and the apartment is registered in its name. Opening a company - 10,000 baht, paying tax with a zero balance - 15,000 baht, plus other payments (my sister paid about 75,000 baht), and in addition the annual fee is 19,000 baht. As a result, when my sister came to check out the apartment, she had to pay 75,000 + 10,000 + 19,000 + 15,000 baht = 119,000 baht - what a gift! She only counted on 75 thousand, as the agents had told her before. I had to borrow money - fortunately, they borrowed and got out.
So, the sister will have to pay 19,000 baht every year for the maintenance of the condo + 15,000 baht taxes for the Thai company = 34,000 baht. 68,000 rubles, not weak! And a neighbor on a foreign quota pays only 19,000 baht.
Feel free to ask for details!
When signing the purchase agreement, “free furnishings” were stipulated. And then we received a letter: “furniture package – 125,000 baht”. It turns out that some agents just want to push the contract down, and at least the grass won’t grow there... Therefore, be careful, ask for any little thing, don’t be shy. My sister still ordered some furniture (it came out to about 115,000 baht), but I didn’t and bought almost the same thing myself for about 70,000 baht.
“Free furniture” in words turned out to be an empty apartment in practice.
There is little hope for rent
There is another problem with renting out an apartment. Income comes only when there are clients. But the situation with tenants is complicated. In our new condo, apartments of 25 and 39 square meters cost only 10,000 baht per month, but there are no clients! And in advertising they attract as much as they can - watch any local Russian channel.
In general, now I’m settling into my new condo on Pratamnak, trying to balance it - how much money I need for living per month. The amount turns out to be ambiguous: I think 12-13 thousand baht can be met, taking into account food and utility bills.
Oh yes, and also the condo maintenance fee...
After returning from Pattaya, the first thing we did was rent an apartment, so first I’ll tell you how things work with finding and renting apartments in both cities.
In Thailand, the search for hotels, hostels, apartments and condominiums (aka condos) is generally great. Especially when compared with our realities. There are many offers, from several thousand for a rural hut to tens of thousands for huge villas. Thailand is a tourist country, so the number of apartments offered here is not surprising.
Pattaya is a resort city and accommodation here is not particularly difficult to find. It’s a different matter if we are talking about renting a good apartment for reasonable money. Besides, yes, I think this is already clear, anyone resort town which is in demand is gradually becoming more expensive. Food, entertainment, housing - all this comes to a certain denominator that tourists are willing to pay for.
The bottom line is that there are condos in Thailand.
Let me explain, you never know who doesn’t know. A condominium or abbreviated condo in Thailand is our forgotten apartment buildings in the Soviet era. When an apartment building belongs to one owner and apartments in it are rented (or sold).
In today's Russia, I have not seen such options; this business is apparently not interesting for a modern Russian with income. Doesn't bring you quick money, it takes time. We usually rent out individual apartments, because... maintaining an entire house is much more difficult.
So what's so great about renting an apartment in a Pattaya condo? In short, all maintenance lies on the shoulders of the owner or landlord.
The air conditioner, the refrigerator is broken, the shower is leaking, or the light bulb is burned out - you turn to your landlord. Breakdowns are eliminated by his forces and at his expense, unless, of course, you took an active part in them. In Russian conditions, the renter himself often deals with the problems, or at best, with a refund. Agree, the Thai version is much more convenient. However, I think it is clear that lazy people and bad owners are found everywhere.
So how to choose a condo in Pattaya.
There are usually 4 main options:
- search through an agency (in your country or local);
- search through booking networks (for example, Airbnb);
- search through friends who live or have lived in Pattaya;
- personal choice on the spot.
With the first and second points, everything is logical and understandable. Agency employees help you or you go through the options on the websites on your own, look at the photos, read the descriptions and ultimately make a list of several pleasant options. You contact the hosts and upon arrival, look at all the options and choose the one you need.
The third point, searching through friends, is usually the most convenient. There are acquaintances and friends whose experience you trust; you can contact them directly at the addresses they provide.
The latter option is ideal for adventure lovers. In Thailand, it is not customary to post advertisements for housing rentals at bus stops, and there aren’t really any stops. Therefore, the usual scheme is as follows: book a hotel room for a couple of days, select the areas of interest for your stay, during these days, go around all the interesting areas, select the condos you like and rent an apartment in one of them. Thais are quite understanding when you ask them about condos. So you can easily chat with locals about the nearest options.
Personally, we used points 2 and 3. When traveling around Asia, we selected options ourselves through booking networks, and found our main apartment in Pattaya on the advice of a blogger.
We personally did not use agencies, but everyone unanimously advises against using the services of Russian agencies for renting apartments in Pattaya, and indeed all over the world. If you want to make your life easier, use agencies, but preferably local ones. I recently studied a blog about Montenegro, and the same advice was voiced there. The reason is simple - inflated prices.
Our condo and apartment in Pattaya.
As I wrote above, we found our condo in Pattaya on the advice of one of the bloggers. Many thanks to him for this. The condo is really great, especially for my taste. Blogger - puma, his blog is about life in Pattaya. It tells more about this condo, how to get there, etc. I’ll add a few photos from our apartment and describe the nicest things.
Called Condo A.S. Garden View and is located at 56/231 Naklua Banglamung Chonburi 20150. Below is a photo of a business card from the puma website. Using a printout of this photo, we drove to the condo for the first time, showing it to the taxi driver. By the way, the condominium is marked on Google Maps, so you can use it to search.
Pleasant moments:
You can write a lot of advantages based on the little things. The main disadvantage is that the beaches are quite far away. Although we found one hotel beach within walking distance, where we could easily go. A little cloudy, but acceptable even with a shower after swimming.
Condo rental prices in spring 2014:
- 7,000 baht per month and 6,000 when renting for 3 months or more;
- water and electricity according to meters - 35 and 8 baht per unit, respectively;
- Internet 2 Mbit - 500 baht per month per account (1 device on the network at a time);
- complete cleaning of the apartment with a change of linen - 300 baht (you can clean and do the laundry yourself).
Overall, I recommend this condo in Pattaya. What we saw in the more Russian Jomtien raised the value of the area by new level.
- condo from 700 thousand rubles (secondary), from 1300 thousand (primary)
- houses from 900 thousand rubles (secondary)
Cost of owning real estate:
- Condo: in addition to monthly payments for water and electricity, you will pay a certain amount once a year for the maintenance of the condo infrastructure (20 - 40 thousand baht per year depending on the footage). In your absence, a certain amount is withdrawn from one counter to maintain the email. networks in working condition (in Pattaya 40 baht per month).
- At home: Since a farang (non-Thai) can only buy a house for a company, it will be necessary to submit accounting reports once a year. Lawyer services for preparing and submitting a zero annual report amount to about 12 thousand baht. There is no property tax unless the property is used for commercial purposes. If you operate in a company, then monthly maintenance for small turnover is 4-5 thousand baht/month.
Blacklist of real estate agencies in Pattaya (reviews):
“But the other day we wanted to rent a condo for a friend, we went to “Fair propetiys”, we stood there for 15 minutes waiting for attention, out of 12 offers selected on the site, not a single one was valid, and then the Thai woman spoke to us so rudely that my wife started crying. "An unpleasant aftertaste remained. This was the first time this was observed in Tai."
"Fair propetiys is actually an office, of which there are hundreds in Pattaya, they just have a good website. And on this website you can often see offers that do not exist in nature. You come to them, and they offer other options. The photographs show good furniture and beautiful "The decorations, you go to look, and there is some kind of wretchedness there. You just wasted your time."
"Fair propetiys, landlords are not paid money for rented properties, citing the crisis, tenants are not being returned their deposit (deposit)"
The process of buying real estate in Thailand:
1. Buy American Express checks
If you stupidly buy checks for $100,000 from one bank at a time, then the bank will most likely report you to the tax authorities. Buy in breakdowns, in amounts of 300,000 rubles. and no one needs you.
2. You must declare them at customs at the airport upon departure. You can take any amount out of Russia using traveler's checks (just don't forget to declare it in writing at customs).
You fill out two copies of the declaration - one goes to customs, the second is yours and pay attention - all seals, signatures and release permits must appear in the second copy.
You will need this when, if your transaction did not take place and you are bringing back the checks, then again upon arrival in the Russian Federation you fill out a declaration for the import of checks and attach to it the declaration with which you were released from the Russian Federation.
When transferring money by bank transfer from the Russian Federation from an account to there, some people have problems with the Russian tax authorities, so American Express is the best option.
Declarations will also be useful to you in the event of selling real estate in Thailand, in order to explain the origin of money when entering Russia.
3. At the Bangkok airport upon arrival, you receive a certificate that you legally brought checks into the country (you need to find this place where they issue certificates; they don’t immediately understand what you need, but with persistence everything is achievable). Your data is recorded in a book and a certificate is issued indicating the amount. After passing passport control, go down the escalator to the 1st floor and look for the customs department, you don’t have to go far - ask or look on the signs.
4. Before purchasing real estate in Thailand, you must obtain permission from the Land Office (as a foreigner) to purchase housing. And this takes 2 weeks.
5. Communicate with owners or real estate agents - there are many of them out there.
If you want to buy an apartment without ants and other insects, then look for an option without air conditioning.
6. Having chosen an option, you discuss everything and hope that they are telling you the truth! You stipulate in advance, pointing your finger at each item, what furniture and electrical appliances will be left for you.
7. Go to the bank to open an account; you may need a letter from the migration service.
8. Open an account at a local bank and deposit your checks there. The purpose of the account should be for the purchase of real estate, and not for the Deposit. What is this for. After exchanging money and crediting it to your account, you will be given a certificate, which will also be required if you take money out of Thailand.
9. Go to the bank with the owner of the condo and a friend (who speaks and reads Thai) or a lawyer - take a check from the bank for a certain amount (for example 600,000 or 1,000,000 baht - depending on this amount you will pay a transfer. From 600,000 baht you will need to pay 40,000 baht - usually in half). Transfer is taxes on the transaction amount.
It is important to understand the mentality of the Thais - they cannot say no, and if they change their minds about selling or want a higher price, they fool for a long time, reschedule meetings, etc. And they cannot do things quickly, many have their condos pledged to the bank - this is a normal practice, but it takes time and money to remove the bank pledge. If you are asked for a large deposit, it means that the condo is most likely mortgaged to the bank. Therefore, it is better to have several options to purchase at the same time.
The deposit amount (prepayment upon purchase) is up to 10%, usually they ask for as much as possible. The deposit contract must be drawn up with a copy of the owner’s ID, where a sample of his signature is visible and if there is a copy of the chanot. Otherwise, you will give a deposit to a person who has no or formally no relation to this apartment.
I highly recommend looking at the original chanot (certificate of ownership) - this is a large, slightly yellowish paper with the entire history of your property (who sold it, to whom and when, or to which bank it was mortgaged or remortgaged). Many condos still don't even have building permits. But they stand and sell real estate in them, and they manage to sell them without a chanot, but only with a house register.
It is best to have a Thai-English speaking, licensed lawyer when conducting a transaction.
10. At the Land office (local BTI) you will have to sign a purchase and sale agreement, pay the remaining amount by check and you will be given a large paper (such as a certificate of ownership) with the whole history of your home (who sold it, when and to whom). In addition, you will be given a house book - a blue book. The last transfer (sale) must be in your name (in Thai). Take the time to check and find out how your name is written in Thai.
11. It is better to transfer all utility payments to a non-cash basis - you enter into contracts with the electricity and water companies and they automatically withdraw money from your account based on meter readings.
- Koh Chang and all the islands are National parks and real estate transactions there are illegal. Everything is on temporary agreements, on a lease basis, etc.
Do you have property in Thailand and want to rent it out: how to do it right
During the “golden age of tourism” in Pattaya, there was active sales of not only tours and excursions, but also real estate. Indeed, having succumbed to the charm of Thai smiles, the pleasure of Thai massage, enjoying the taste of fresh exotic fruits and the thought of beautiful weather every day, only the lazy would think of creating their own piece of paradise in Thailand. Sales managers convinced that this was an extremely profitable investment: guaranteed housing without the cost of hotel accommodation and rental income at the same time. It was assumed that tenants would be easier to find, and the owner would be guaranteed a stable income.
The changes that followed soon and affected, for example, exchange rates, ruined all plans: holidays abroad hit hard on the pocket, and with the rise in airfare, the number of people willing to rent housing in Thailand has greatly decreased. In the meantime, everything is arriving to the regiment of happy owners of real estate in Pattaya: the owners receive the keys to apartments purchased while still under construction. Thus, the issue of renting out your own home in Pattaya is still of particular relevance.
The GrandisVillas company has been in this business for several years and is ready to offer owners a unique solution in this matter: not only receiving income from rentals, but also caring for the home, keeping it in the best possible condition - this is an important point for those who I still care about the fate of my own property. There are other advantages to working with the company, but let's look at them all possible options in order.
The most obvious ways to rent out your home vary:
by duration - short-term and long-term rental
and by the method of organization - independently or through an agency
Most owners dream of finding tenants directly and for the long term, and this desire on the part of the tenants is usually mutual, so this option continues to work, despite the tangible disadvantages.
Firstly, no one knows how long it will take to find a tenant: to find someone willing to stay for a year or more, and not just for high season and certainly not for a month, it’s much more difficult. Until a tenant is found, the property will operate at a loss, requiring monthly maintenance fees, without yet starting to make a profit.
Secondly, with long-term residence in the country, a visa issue arises. Currently, both when obtaining a visa at an embassy or consulate, and when extending a visa at the nearest immigration police station, documentary proof of the address of actual residence is required. Since the method of renting out housing by an owner who does not have permission for the relevant work activity in the Kingdom of Thailand is illegal, there can be no question of providing a package of documents.
Of course, you can always find ways to circumvent the law, but it must be remembered that the price of such a risk, for both the landlord and the tenant, is the possibility of being deprived of permission to stay in this wonderful warm country for many years.
Thirdly, long-term rent is also associated with the fact that after a long stay additional investments are required: even if the tenants were extremely neat and treated the apartment with the same respect as their own, after their stay you will still have to carry out mini-repairs . In most cases, residents are not so responsible, so repairs grow to such a scale that more than half of the money earned has to be spent on it.
The length of stay in an apartment is directly proportional to the size Money, which will have to be spent on restoring it to its original condition
To avoid excessive spending, you can use a different strategy and rent out housing by the day: this will ensure more frequent monitoring of its condition and more frequent cleaning of it at lower costs. There are sites on the Internet that allow you to find guests for a short period of time - for every taste and color, although the question of the illegality of such activities on the part of the owner still remains pressing.
The complexity of this method also lies in organizational moment: the direct presence of the “owner” is required for check-ins, check-outs, cleaning, repairing broken appliances and answering questions from guests, which is only possible when living in close proximity to the rental property.
If you agree to spend a small amount on the services of a hired worker, who will eliminate the need for presence and will play the role of owner for a modest fee, you need to be prepared for the fact that he will not bear any responsibility and, most likely, the condition of the housing will very quickly fall into disrepair .
Entrusting the care of your home to a responsible representative may be the best solution when it comes to renting out your property.
An agency that takes a more professional approach than a dedicated "manager" is a more reliable option and can provide more assurance to the owner. Of course, a company must be chosen responsibly: not every company actually provides the entire designated range of services and bears full responsibility to the client.
How to ensure the reliability of a company? Her choice begins with simple points: she must have an office where all official moments take place, such as signing a contract and handing over keys. An offer from a “company representative” to meet for a cup of coffee somewhere instead of the office should, at a minimum, put one on guard. The company registration number shown on the license can be confirmed by Companies House; information about whether a company with a similar number exists or not is not secret and is available upon request. Having more full information, which includes not only the number, but also the name of the company and its address, you can obtain information about the areas of activity in which the company has the right to engage.
Each company adheres to its own operating principles and offers its own conditions, and the owner’s expectations do not always coincide with reality
A little about the numbers. Having heard about the existence of certain “agent commissions,” owners are usually immediately interested in the size of the commission, which the company “puts in its pocket,” hoping to hear about the coveted 10 percent. Alas, the simple logic “the fewer markups, the better the apartment will be rented out” is not applicable here. VAT paid to the state in Thailand is 7%, and yes, it will be paid by the agency on the full rental amount, and not just on its net earnings. Let's calculate how much the agent will receive if the cost of the apartment is 15,000 baht per month, to which the agent will add his 10 percent, that is, 1,500 baht.
In general, 1,155 baht of taxes will be paid on the amount (7% of the total amount of 16,500 baht) and the agent’s earnings, or rather, the amount he will receive for placing the object on all sites, technical support, searching for a client, for booking and discussing the details of the trip , for organizing a trip, meeting, seeing off and resolving unforeseen situations, will be 445 baht. Would a company with a staff of employees agree to provide its services for a similar amount? Unlikely. At a minimum, you shouldn’t have your head in the clouds and rely on mythical numbers that have nothing to do with reality.
However, a lot really depends on the price. Pattaya has approximately 20,000 hotels, as well as 7,000,000 apartments and 300,000 private homes. Why should a guest choose this particular accommodation and this type of accommodation, and not any other - with such a wide choice? Nobody wants to overpay, so the correct price of housing, based on market analysis, which the company can always recommend, is the key to successful rental.
Signing an agreement is an integral part of mutually beneficial cooperation
It is necessary to clarify in advance all issues that may arise during further cooperation if they are not provided for in the text of the agreement. Let’s say the issue is the inadmissibility of things “disappearing” from the apartment (yes, such cases also happen when the owner, returning to his apartment, discovers that the TV is no longer in it) or clarity in providing information on booked days.
GrandisVillas, which has been on the market for six years, has established itself as a reliable agency that takes care of the property of the owners and does not allow situations that negatively affect the rentability of housing or its condition. Properties are posted not only on the company’s website grandisvillas.ru, but also on well-known international sites, which ensures high occupancy all year round(after all, holidays and vacation time in different countries occur at different times).
Owners who decide to rent out an apartment or villa in Pattaya and entrust the company with the care of their housing always have prompt access to information on the booked dates. Unlike the common misconception that long-term rentals are the best option, the company focuses on various periods, from three days or more. The owner can only make a profitable decision.
Yes, it is possible, but there are some peculiarities. Foreign citizens have the right to purchase real estate for themselves in condominiums, but only if it does not exceed 49% of the total area of the condominium itself. To purchase a house, you must register a Thai company in your name, because... According to Thai law, a foreign citizen cannot own a plot of land. The real estate itself is registered in the name of a Thai company. Thus, you become the owner of a company that owns real estate. More detailed information You can get it from our specialists, as well as our Thai colleagues, who can advise you via Skype, or by answering your questions in writing.
You can reserve the apartment you have chosen by signing a reservation agreement on the spot. When reserving an object, a deposit of approx. 50,000 baht. As a rule, within a month from the date of signing the above agreement, a purchase and sale agreement is signed. The remaining amount is paid in installments during the construction of the facility or partially after its completion. You can pay in cash on site or by bank transfer. When importing currency into Thailand, you must comply with all requirements for the legal import of currency or checks. Imported currency must be exchanged for local currency - baht. Bank transfer is carried out from a foreign account to a Thai account. In both cases, you must obtain a special certificate from the bank. After the buyer pays the transition taxes, he is issued a certificate - Chanot, certified by the Land Department of Thailand, on the basis of which the foreign citizen becomes the full owner of the apartment.
There are two legal options for purchasing a home:
- Long-term lease of land for thirty years with the right of subsequent two-fold extension for the same period, which must be specified in the land lease agreement. You rent the land from the Thai owner, which is registered with the land department.
- The most common way is to register a Thai company, in which 51% of the authorized capital must belong to a Thai citizen. Next, this company purchases a house. Thus, you are the owner of the company to which the house is registered.
The deposit is not refundable in case of unilateral termination of the reservation agreement.
In Thailand, a foreign citizen cannot fully own a plot of land, but he can acquire sole ownership of an apartment in a condominium, which he has the right to bequeath. In Thailand there is no special tax on inheritance, but when re-registering ownership of an apartment, a tax must be paid. A will should be drawn up in Thailand with a Thai lawyer. As for rented land: in the event of the death of the land tenant, the property located on this land does not pass to the heirs of the foreign citizen. In this case, it is only possible to assume the lease rights, but without the right to further extend its term.
There are no taxes on non-commercial property in Thailand. There are so-called “transition taxes”, which are paid at a time when purchasing an apartment.
When buying real estate in Thailand, the agency commission is always paid by the seller, not the buyer!
At the time of receipt of the Certificate of Title, the following transitional taxes are paid:
- 0.5% of the assessed purchase price - stamp duty,
- 2% tax on transfer of ownership,
- 3.3% business tax,
- 1% sales tax.
As a rule, these taxes are levied equally on the seller and buyer, or by mutual agreement - on one of the parties. This clause should be included in the apartment purchase and sale agreement in advance.
No, mortgage loans are not provided to foreign citizens. Developers can provide you with an installment plan with a down payment and subsequent monthly payments as agreed. When purchasing an apartment in a condominium, an installment plan is usually provided for a period of two years.
The cost of rent in Thailand averages from 0.8 to 1.2% per month of the cost of housing. For example, apartments in condominiums costing from 800,000 to 1,000,000 baht are available for short-term rent from 10,000 to 12,000 baht per month, and for long term from 7,000 to 9,000 baht per month.
The rental price may vary depending on the season (demand). Fully furnished properties are in greatest demand. Proximity to the sea also plays a big role.
Maybe. This question most often interests Russian citizens, because... in Russia, an agent commission implies additional costs for the services of realtors. When purchasing real estate in Thailand, the agency commission is paid by the developer or owner of the property, not the buyer. Even if you contact the developer directly, the price for you will be the same as what you would pay through the agency.
To independently purchase real estate, you need to understand Thai legislation and also own English language. You won’t save money, but you will spend more time and effort.
When choosing a real estate agency, ask to see the license, and also pay attention to the composition of the office staff. According to local law, the agency must employ not only foreign citizens, but also Thai employees.