I think the fact that this is not immediately obvious to someone working in the real estate industry says a lot about the current and relative resilience of the real estate market here compared to some of those other, more tourist reliant businesses. As I seem to have
been saying quite a lot recently, Pattaya and its environs are a great deal more than just a tourist area these days. Perhaps the fact that the traditional slow down in tourist business is not having such an effect on the real estate market reinforces this belief that the nature of Pattaya is a little different from what it perhaps was a few years ago.
Certainly a significant amount of our business is done with expats, people living and working here, investors who either live here or spend a significant amount of time here and far fewer tourists than many other local businesses. Perhaps that is one of the main reasons why things continue to tick over quite nicely at present.
We recently received some very interesting news from a partner in our associated financial advisory company, which is based in both Bangkok and Pattaya. A very large, very well known international bank with whom they maintain a strong relationship has recently advised them that they are now willing to offer mortgage finance to foreigners to buy foreign name condos here in Pattaya. In order
not to breach the local laws, while a charge is taken over the property by the bank at the Land Office and recorded on the chanote as with any mortgage, the finance is actually provided by an offshore branch of the bank, typically in Singapore. Thus, technically, the loan is being made by a foreign lender, who is then entitled to register the mortgage perfectly legally. It is a practice that has been used by a number of big banks over the years, although it has generally only really been readily available for Bangkok properties.
Now, however, subject to typical mortgage conditions related to earnings, etc this bank will offer mortgage finance for properties here in Pattaya. For many people this is likely to be very interesting news, bearing in mind how often we are asked about the availability of genuine mortgage finance for purchases here. It will be especially interesting for some given that there is no requirement for the borrower to live and work (nor of course have a work permit) in Thailand.
While there are obviously other requirements and terms, the basics are that qualified borrowers will be able to borrow between 2 million and 35 million Baht for between 3 and 20 years, with a maximum loan to value ratio of 60%. If you are genuinely interested to find out more, let me know and I will arrange a meeting
with a partner from our associated company.
We recently saw a very good example of how “dressing” a house attractively can provide a great deal of help in selling it. The house in question was previously on the market or sale for around 18 months, but it was not lived in at the time. While it had some nice furniture in it, it obviously didn’t have the same feel to it, nor that little bit extra that tends to be provided by someone with a talent for interior design. After being on the market, but unsold, the property was rented out for two years to a family. The wife of the family decorated and furnished the house extremely nicely and so when it was again placed on the market towards the end of their tenancy, the interest level in the house, amongst those who viewed it, was very much greater than it had been before and a sale was
completed within a couple of months. Moreover, every person who viewed it expressed strong interest in the place, quite unlike when it had previously been for sale.
This is something that I have often talked and written about; how spending some time and money making a property look nice can have a very significant effect on how easily, and for how much, it can be sold. Nevertheless, when one actually sees the effect in practice, it reinforces very strongly just how important this can be. Obviously we are talking about the very same house here, just with a limited amount of money spent on some furniture and decoration.
The transformation in the attitude of those viewing the property was quite remarkable. The wife of the family who previously rented the place received so many positive comments about the way the place looked that she is now setting up her own interior design business and I am sure she will do very well because it is relatively few people who have the “eye” to be able to do this effectively for themselves. If you have any questions or queries in relation to the above, or if you would like to discuss any other matters related to the local real estate market, please call me on 087 137 0392 or email me at email@example.com.