Holiday Home Insurance Thailand
Holiday home and second home owners are turning their attention to Thailand as the government of the country endeavour to encourage foreign investments in any of the many new holiday resorts. Thailand has a booming tourism market and with a pro active government it is considered a great prospect for development, many property experts are referring to the country as the’ Spain of the East”. Thailand is a country of many contrasts, it’s islands and golden sand beaches make it popular with sun seekers who prefer a little more peace and quite than can be obtained in many of the popular European Resorts, while the beautiful mountains are perfect for hiking and really feeling like you have escaped the world. The Kingdom of Thailand is a country located in South East Asia. Certainly travel to the country has become easier in recent years with more direct flights and cheaper prices. To it’s east lies Laos & Cambodia, to the south the Gulf of Thailand and Malaysia and to the West, the Andaman Sea and Myanmar. It’s vibrant capital, id very popular with tourists from all over the world.
The Holiday Home Market in Thailand– Buying an investment property in Thailand is considered by many as a shrewd investment, growth figures are currently at up to 15% and this looks set to continue for the foreseeable future. Few people would believe that holiday or second home insurance in Thailand is available for purchase from The United Kingdom. Thailand does suffer from flooding & a host of other weather related claims, it’s was originally thought that the Tsunami of 2004 would destroy the property industry, but this has not been the case. Of course, the actual location of your property will have a direct bearing on the cost and acceptability of insurance, each case is considered on it’s merits. If you are buying a property in Thailand and are considering renting the property out, you will need to make sure that the policy wording is extended to include liability insurance for renting. The majority of overseas investors are looking for a holiday home, with the idyllic locations Koh Samui and Phuket the most popular. Statistics show that each year in excess of 800,000 Britons visit this part of the world and because the cost of property is very low, buying a holiday apartment is a viable option for many people. Such action is helping to establish a healthy buy to let market. Property prices are very cheap and the bulk of the activity relates to purchase of new or nearly apartments in resort areas. These apartments mostly come with excellent facilities and golf courses are very much in vogue at the present moment. As well as apartments, parcels of land are also very cheap and many investors are speculating with the purchase of land either to wait until prices increase or with the intention of building their own property or splitting the parcels in to smaller lots are selling on to developers.
Why Buy a Holiday Home in Thailand? – The purchase of property in Thailand is fairly straight forward but you will need good quality representation to help you with all the requirements. There are no major restrictions on overseas investors owing property or land in Thailand, in fact the authorities are keen to attract foreign investment. Buying land or a house will necessitate the setting up of a limited company, this is likely to cost in the region of £1000 and unlike most other countries, there will be ongoing costs of approximately £50.00 per month. If you do not wish to set up a limited company, plenty of property is available to purchase on a leasehold basis. Leases are normally set at 90 years and although freeholds are always preferable, there are no reported problems from Thailand with leasehold problems. Most property is purchased directly from a developer or via an agent and your solicitor will represent you in this dealings and complete all the legal requirements of the sale. Solicitors carry out the usual range of checks, mainly that the vendors have the correct title and are able to transfer it to you, also they will find out if any charges and liabilities are attached to the property and will advise you on all of your obligations and may even be able to help with the transfer of your funds. It is usual to sign an initial purchase agreement and at this time pay a deposit of around 10%. The deposit will only be returned to you, if the deal falls through and it is not your fault
The good news about buying a property in Thailand is that the whole process is fairly straight forward and the fees are on the low side, as a general rule, for residential sales you should allow for total fees can expect the total fees and taxes to work out to be approximately 2 to 3% of the property market value. There is a stamp fee of 0.5%, a transfer fee of 2%, a business tax of 3.3 % ( this is charged against the vendor of the property but only in respect of those that have not held the property registration in excess of 5 years). Income tax is chargeable at a variable rate and is really the only tax you will encounter, there is an annual land tax but it is so low that it is often several years before anyone can be bothered to collect it. The main holiday home areas are: Amnat Charoen, Ang Thong, Buriram, Chachoengsao, Chai Nat, Chaiyaphum, Chanthaburi, Chiang Mai, Chiang Rai, Chon Buri, Chumphon, Kalasin, Kamphaeng Phet, Kanchanaburi, Khon Kaen, Krabi, Krung Thep, Lampang, Lamphun, Loei, Lop Buri, Mae Hong Son, Maha Sarakham, Mukdahan, Nakhon Nayok, Nakhon Pathom, Nakhon Phanom, Nakhon Ratchasima, Nakhon Sawan, Nakhon Si Thammarat, Nan, Narathiwat, Nong Bua Lamphu, Nong Khai, Nonthaburi, Pathum Thani, Pattani, Phangnga, Phatthalung, Phayao, Phetchabun, Phetchaburi, Phichit and Phitsanulok.
So if you are seeking an holiday home insurance quote for a property in Thailand, why not see if we can help?