July 17, 2008

Luxury Phuket Resorts | Chava Resort

When you think of luxury Phuket resorts, you can’t get much better than the newly opened Chava Resort in Surin, less than 200 meters from the famous beach on Phuket’s ‘Millionaires Mile’.

Having just opened in June 2008, The Chava Resort is the creation of Mr. Larry Cunningham who also happens to be the Australian Consulate for Phuket. He is also a very extremely experienced property developer having been involved in resort developments from the South Pacific to South East Asia, including Australia.

Chava Resort consists of 45 luxury apartments built around a central courtyard featuring a 35 meter pool and stunning waterfall. Lush tropical vegetation covers much of this luxury Phuket resort.

There is incredibly spacious underground parking with 47 spaces, storage areas, backup power generators, and private pools. Most of the materials used were brought from locations al over Thailand.

All fittings are of the highest quality. Daybeds are actually in the pool itself. All units have a sense of seclusion and privacy with the ground floor apartments having their own private plunge pools.

Penthouse units have views over Surin Beach and the palms and mountains in all other directions.

High speed telecommunications and wireless data networks have been fitted to all units.

Luxury Phuket resorts now have a higher standard to aim for with the completion of Chava Resort… make it part of your next Phuket vacation.

 

 

Filed under Phuket Resorts by admin

July 16, 2008

Phuket Condominium Act Amended

A new law released by the Thailand Lands Office which amends the 1999 Condominium Act, clarifies the rules for disputes between developers and buyers.

Fines of 50,000 to 100,000 baht have been set to address developers who don’t fulfill their advertising claims. Phuket developers will also be required to submit brochures to to the managers of the condominiums to make sure that the finished condos closely match the  sales pitch.

These amendments contain contract standards and also made developers responsible for monthly fees for unsold units. Failure to pay these fees could cost up to 20% for fees over 6 months overdue.

Other changes to the law will affect voting rights, condominium managers, and Phuket condominium projects under construction.

 

 

Filed under Bangkok Condos For Sale by admin

June 25, 2008

Phuket Condominium Law

There have been recent changes to Thai law which will affect people who have an interest in Phuket property.

For example, if you’ve invested in Phuket condominiums you should be aware of the ammendments to the Condominiums Act effective as of the 4th July 2008. The good news is that the buyer has increased rights.

Developers, under the new regulations, will be accountable for what they’ve promised in their advertisements.

Upon completion of the condominium project, advertising materials such as brochures, plans etc, must be submitted to the Condominium Juristic Person (CJP), and the legal body which manages the condominium will have to confirm that the delivered product meets the advertised specification.

This is further strengthened by imposing fines of up tp 100,000 baht against developers found to be in breach.

With regard to common area fees and costs, the developer will further be responsible for paying these fees for unsold units, which constitutes an obligation on the developer beyond completing construction and registration of the Phuket condos.

The new regulations will further require developers to provide a specified access way from the project site to the the public road and to create different entrances for any shops in a condominium building to protect residents from disturbance and nuisance.

 

 

Filed under Condominiums by admin

June 8, 2008

Buying Phuket Property Privately

Many purchasers of Phuket property don’t always buy off the plan directly from the developer but may purchase from a private seller, who either owns the property in their own name, or, by owning all the shares in a private company (often an offshore company registered in the British Virgin Islands BVI) which owns the property in question.

In the second option, ie involving shares in a company, the buyer enters into a share sale and purchase agreement with the seller. The buyer agrees to buy the whole issued share capital of the company owning the property in question upon payment of the share purchase price. The transfer of ownership occurs in the BVI and not in the ownership of the property which continues to be owned by the BVI company both before and after the transfer of the shares to the buyer.

The buyer must consider the risk of not carrying out due diligence on the BVI company. This risk can be handled by ensuring that the share sale and purchase agreement contain comprehensive warranties relating to the total issued capital of the BVI company. If found not to be the case, you should be entitled to terminate the agreement and claim a refund of fund paid plus damages.

Obviously the services of a competent Thai legal firm should always be considered when purchasing any Phuket property.

Filed under Foreign Ownership by admin

June 6, 2008

Phuket Property And The Sub Prime Crisis

So has Phuket been affected by the recent sub-prime crisis in the US and Europe?

Apparently many regions around Britain and Europe that were popular with property buyers have since cooled off significantly, resulting in falling prices and increased numbers of foreclosures. So is the same effect being noticed in Phuket? Seems the Phuket real estate market is unaffected overall according to several leading real estate professionals.

Although there is a slowing down in the under 20 million baht end of the market, this seems to be balanced by the upper end of the market. So how is this possible in the face of world events?

Well it seems that most Phuket property is not financed to the same degree as those markets affected the most. Foreign property owners can’t borrow from Thai banks unless married to a Thai. Obviously there must be some effect because some Phuket property owners borrow on assets they own offshore to finance their investment here. The remainder are usually reasonably cash rich and are not affected to the same degree.

There are also reports of more buyers coming from the Middle East, Russia and India. This had also dampened any potential effect that may have been caused by the sub prime crisis as compared to other areas of the world such as Spain.

Another factor is that most of the Thai banks are backed up locally by strong assets and generally don’t hedge to the degree that US and European financial institutions have done. They are not as exposed to mortgage debt to the same extent and tend to be more risk averse than their international counterparts.

Filed under Phuket Property News by admin