Frequently asked questions

Am I allowed to buy land?
What ownership structure am I receiving?
What happens at lease renewal stage?
Can I sell my lease?
What property title am I receiving?
My plot is around half a rai, what does that equate to?
Could someone build and block my view?
Tell me about the infrastructure?
What are the on-site services?
What can I do with the land?
How do I Build on my land?
Can I rent my villa out?
What about the property market on Koh Phangan?

Am I allowed to buy land?
This is usually the first question asked by foreigners. Under current Thai law, foreigners are not allowed to purchase land freehold. We therefore provide a guaranteed extendable leasehold contract which provides the option to convert to freehold at any time, either should the law change, or should you wish to set up a company to buy the freehold title for some reason. This is the most common method that land is purchased in Thailand and a method fully endorsed by the Thai authorities. A couple of developments are now even offering a share of freehold model, offering shares in the land owning company itself in addition to the lease.

Ownership structure detail
A registered lease is easy to setup and there is no restriction on foreign participation. Foreigners are permitted to lease land in Thailand for a maximum of 30 years with an option to renew for a further two periods of 30 years each. A 30 year lease with two renewal options each of 30 years is therefore written. In certain developments the land owning company additionally covenants to provide further lease extensions ad infinitum beyond the 90 year term.

Future Thai law
There has been a noticeable change in foreign ownership laws in some other South Asian countries such as Malaysia to allow ownership by foreigners. For Malaysia this resulted in significant financial inflows and benefits. It makes economic sense for Thailand to improve the rules to allow foreigners direct ownership of small residential amounts of land in some areas. Thailand has already allowed investors investing THB$40m to own up to 1 rai of land in certain areas. Further, the recent credit rating upgrade, prevailing political stability, and the tourist office drive to nurture a more sophisticated type of tourist all point to a maturing economy.  

What happens at lease renewal stage?
After 30 years a new lease is prepared and filed at the Land Office. As part of the sale and purchase agreement the land owning company is contracted to do this. Alternatively, you may convert the title to freehold. When you renew the lease there are no further payments to be made aside from a minimal local tax. The tax equates to approximately 1.5% of the value of the lease.

Can I sell my lease?
You are free to sell your lease or sublet your land to another party. If you build a house you will also be able to rent it out without it being considered a commercial venture.

What property title am I receiving?
The title of the land is Chanote. This title deed has been issued by the Government using GPS to set the area and boundaries of the land, which is a very accurate method. The word Chanote literally translates as ‘land title’. Although there are many types of land title certificates in Thailand, the Chanote title is the best. This title equates to ownership with specific land demarcations, where boundary and size is confirmed and recorded by the Government. Chanote can be developed and leases can be registered.

My plot is around half a rai, what does that equate to?
Land area in Thailand is commonly referred to by number of rai, in the way that we use number of acres.
A ½ rai is 800 m2 or 1/5th of an acre. A full rai is 2/5th or 40% of an acre. A ½ rai site is a good size for a residential building with a pool.

Could someone build and block my view?
No. The entire site layout has been designed by surveyors to prevent this. Plots are staggered to ensure that unobstructed views are available, also depending on the shape and gradient of the land there are restrictive covenants in place on building height. This ensures that you will always have plenty of space to build your dream home without compromise.

Tell me about the infrastructure?
All the land available will come with concrete road access, a system for providing water and 3 phase electricity. A management company is in place to ensure that the infrastructure is routinely maintained and repaired if necessary. A small annual fee will be payable for this valuable service.    

What are the on-site services?
We offer as part of our service refuse collection of each villa. There will be an onsite security office, convenience store, laundry service.

What can I do with the land?
The simplest option is to buy and hold a plot of land solely for the capital appreciation. This will provide a strong return on investment (ROI), although will generate no income or ‘personal use value’.

Property price rises are driven by 2 factors a) scarcity of quality land itself b) scarcity of desirable constructed dwelling. The land component tends to rise faster than the dwelling component. The latter is not far behind, especially where there is a shortage of supply of quality (eg beach-side, ocean and sunset view).

The plots are sold with build-ready infrastructure and can be either held or resold at any time or can built on from the date of purchase or as and when desired.

How do I Build on my land?
This is easier than you might imagine when you have access to the right designers/contractors and advise.
There are 3 choices.

a) The “Turn-key system”, where you choose one of the in-house development designs.
b) We work with our designers and contractors to create your own “bespoke design”.
c) You “Self-build” working with your designated designers and contractors. (this option, we can also work as project manager and advise on behalf of you, the client).

Choices in more detail

a) Turn-key system

This is probably the easiest and simplest option for most clients. Every stage of the procurement of a villa is pre-determined with a specification at the pre-contract stage. This would include the size, design and layout to construction, handover and payment schedule. Each point specified, would form part of the sales and purchase contract. There is however, still some room for clients to add some individuality to a villa’s design if required and we are more than happy to allow the clients to make changes to the design of their villa at the pre-contract stage.

b) Bespoke design
This option allows the client to still have that “turn-key” service, but tailored to allow the client to have a greater say in the overall design and create that bespoke dream villa. As in the “turn-key” method all aspects of the specification and design are determined at pre-contract, but the client will have a much more hands on say in the overall design. We will work with the best Architects that we feel will fulfil your design, specification requirements to create a cost effective, value for money villa.

c) Self-build

In this option the client will take on the whole design, construction and delivery responsibility of their own. This is obviously the most time consuming method and not the most idea method for building a villa while absent during the construction process. This method is most suitable for clients that able to spend good periods of time during the construction process onsite, especially around a payment schedule time. The client will be required to make various choices of materials and be responsible for any design change requirements during the constriction process.

However, this can be done and has been done as long as you employ the right professionals along the way. There is a trade-off, using the “self-build” method. A cost saving could initially be made, but to get the same level of finish as both the “turn-key” and “bespoke” options, you would employ the best project managers and Architects, who will work solely for you the client. The Net cost saving will be minimal, but you will spending more of your valuable time to get that dream villa.

Can I rent my villa out?
This is a very good way to quickly get back your initial investment and the most common and economical method owning villa in holiday destination. The expected yield is around 20% for short term holiday lets.

We offer a full letting and management service to our clients, which will include marketing and letting the villa, pickup, cleaning and check in and out services. We charge 25% of the rental cost for the full management and letting service. We can also arrange car and/or bike hire and chief service if requested.

What about the property market on Koh Phangan?
Koh Samui’s property market has boomed in recent years with developers, ex-pats and investors providing a strong and diverse demand base. The desire to re-focus on real island living has ignited development opportunities on neighbouring Koh Phangan, which has retained its original island charm and natural attractions - a key factor in the early stages of what is becoming a boutique development boom, drawing a more well-heeled crowd. Significantly, there is a strong commitment amongst realtors, local Thais, tourists and investors alike that Koh Phangan will follow a greener path than its neighbour, which is further reinforcing its natural appeal.

Koh Phangan is right at the beginning of the cycle, so from an investment perspective it is a great time to enter the market. It is the micro situation driving this, and fortunately the macro global issues remain a somewhat distant factor on the island. One can clearly see that this is very much the beginning, and we recommend that clients hold for a number of years if they want to realize the ultimate potential. The finite supply of land will combine with the increasing demand as the island steadily grows a name for itself, as factors to drive the market steadily upwards.

However, if prices increase to comparative levels of its neighbour, this will not be because of development, but because it offers something genuinely unique and natural.

Koh Samui international airport is to become the 2nd regional hub for Bangkok air. New international flight routes are to be introduced direct from Shanghai, Bali, Dubai, Kuala Lumpur in addition to the existing direct flight Hong Kong & Singapore.

Koh Samui international airport is to become the 2nd regional hub for Bangkok air. New international flight routes are to be introduced direct from Shanghai, Bali, Dubai, Kuala Lumpur in addition to the existing direct flight Hong Kong & Singapore. Work has recently begun on an airport in Koh Phangan itself, expected to open in 2014.

We are also seeing a vast improvements to the transport services between Koh Phangan and Koh Samui airport, with the introduction of a new hourly taxi speed boat service that runs between Baan Rak Pier (Koh Samui) and Baan Tai pier ( Koh Phangan), which whisks you to the island in under 15 minutes. It is now possible to get from Koh Samui airport to Koh Phangan in under 25 minutes, which less time than it takes to get to many parts of Koh Samui.