Buying a house and leasing the land in Thailand?
In general (with a few exceptions) foreigners cannot buy land in Thailand as the law is today. But the law has the opportunity for foreigners to lease the land on which a house is built. The house itself can be legally owned by foreigners.
There are no special rules regarding foreigners who purchase a new house. A normal contract will be signed and the buyer will be the owner of the house. Regarding the land plot on which the house is built, the law has the opportunity to create a 30 years lease agreement, which can be extended with another 30 years. The lease contract is being registered in the Land Office so the owner can be sure that during the agreed lease period nothing can happen to his house and that he alone has the land at his disposal.
It is, however, possible to create some special agreements between seller and buyer.
Such a contract agrees that the buyer at any time during the lease period can:
– Present another person as a leaser, who gets a new contract of 30+30 years. The agreed payment from the new leaser goes to the previous leaser less a one-time fee of 100,000 THB.
– Present a buyer, who according to Thai law can own the land. The agreed payment from the new owner goes to the leaser less a one-time fee of 100,000 THB.
The person who leases the land therefore has the same advantages as an owner when it comes to the added value of the land over the years. At the same time he has some further advantages that he wouldn’t have as an owner, for example that the land is protected against creditors if the contract has been agreed with one person, and the land is protected in case of a divorce. Furthermore, the leaser has the right to at anytime present a person who will take over the contract in case of the leaser’s death.
But in this area there are different agreements with different consequences for the leaser, so it is important that the leaser gets advice from professionals and also is careful with the details in the lease contract and the person who he leases from.
The overhead expenses when registering a lease contract are 1% of the agreed lease amount. When buying a house on a leased land plot there are no rules about a statement from the bank that the money has been transferred from another country into Thailand. The Land Office will register the house in the owner’s name and he only needs to present a valid passport and a valid entry stamp or a valid visa.
A lease agreement will be registered on the property document (in Thai called the Chanot). There are also ways to ensure that the person who owns the land plot and leases it to the leaser cannot sell the land to others.
The above is for information purposes only and we don’t guarantee its accuracy in any specific case. This information can therefore only be used as a general guideline.
Investment with high returns
This article focuses on buying property for the purpose of making a good investment with a guaranteed or flexible high return.
VIP Real Estate Co., Ltd. offers an attractive, flexible and complete investment package for selective real estate projects. You can choose different investment models based on your choice of safety and return of investment.
By investing just over 1 million Thai Baht, you can purchase a beautiful apartment located at one of the finest beaches in Thailand.
VIP Real Estate has a broad selection of condominiums and houses, fully furnished and equipped, all with very high standards and ready for rental. Furthermore we have several projects under construction. All of our properties are sold at competitive prices with a high potential for increase in value and with good opportunities for rental with a superb location close the beach. These properties are also easily re-sold.
Regardless whether you buy an apartment or a house as a pure investment or as a combination of a holiday house and a good investment, our investment concept offers you a good solution.
We offer you several possibilities. You can get a rental contract with or without a fixed guaranteed rental return, and you also can get a re-sell contract with a guaranteed increase in value and a guaranteed maximum market time.
With these contracts you are able to calculate your guaranteed return of investment, which typically varies from 10.5 % to 20% per year depending on your type of investment and agreement.
I) We offer three different rental agreements
1. A rental guarantee of 7% per year of your total investment (property price plus optional furnishing package), and you can use your property yourself for a total of 14 days a year. This contract is valid for two years and is then re-negotiable.
2. A rental guarantee of 6% per year. This contract is valid for five years and is then re-negotiable. You can use your property yourself for a total of 14 days a year.
3. A rental agreement that is fully flexible. You can use your property yourself without any time limit and let us rent it out when you want. In this case there is no guaranteed rental income. It’s up to you to decide.
The guaranteed rental return agreement
You can of course use your property for more than 14 days per year if you want, even with a guaranteed rental contract, but then the rental return will be reduced accordingly.
In general, you can use your property yourself for a total of 14 days during the period from May 1 to September 30 every year. If your property has already been booked in the period you want it, then we will try to assign another property for you.
If you want to use your property during the other months (high season in Thailand), it is still possible, but with a reduction in the rental return. Contact us in good time please.
The flexible rental return agreement
With this agreement you can use your property any time you want, provided it is free (not booked by someone else according to the rental agreement). This type of agreement may get you a higher rental income than the 6% or 7% fixed agreements. The rentals are paid based on the actual rental periods (daily, weekly or monthly). In the table below you can see the net amount of rentals after deductions for commission and service charges. As you can see, the rentals are higher for a period of 160 days per year than the guaranteed rental agreement.
A flexible rental agreement is based on 1, 2 or 5 years. During the agreed period, we will inspect the property and take care of all interior maintenance and cleaning without additional costs. The only expense for you is the yearly admission fee to the tenant association. We can pay this on behalf of you and deduct from the rental payments.
As the owner you will receive quarterly statements specifying rentals, possible expenses plus a settlement for due balance. For owners with more than three properties we will provide monthly statements.
Advantages of the flexible rental agreement
1. You may expect a higher return of your investment than you can get from bank deposits or pension funds.
2. You have a professional partner, who supervises your property.
3. When you choose to use your property yourself, everything is clean and ready. Just move in and relax and enjoy your holiday.
4. During your stay, you can enjoy the same service and care as in corresponding luxury holiday resorts.
5. We will take care of your property. No worries.
6. We will maintain all inventories free of charge.
Flexible contract rental prices
|Size in square meters (m2)||Daily income||Weekly income||Monthly income|
|Up to 50 m2||600||3,500||12,000|
|50 to 55 m2||800||5,000||17,000|
|65 to 80 m2||1,100||6,000||20,000|
|81 to 110 m2||1,400||7,500||25,000|
|Over 110 m2||1,700||9,000||30,000|
|House 95 m2||2,500||12,000||40,000|
|House 158 m2||3,800||16,000||55,000|
|Extra per each guest room||800||4,500||15,000|
The figures are in Thai Baht (THB) and based on investment on the properties. The rentals may vary depending on the property location and service facilities.The final amounts will be entered in the contract. The rentals are adjusted every two or three years.
The agreement may be terminated with a 30 days notice, but already reserved rentals must be respected.
II) Guaranteed Value Increase and Guaranteed Resell agreement
Besides the rental income agreements, we also have another attractive offer for investors, who want to ensure a guaranteed return of their investment.
We can offer you a guaranteed yearly increase in value from 3% to 7%. In the table below you can see the related costs. As an investor you decide the periods and the guaranteed increase in value when you sell your property. We also guarantee that the property will be sold within 6 months on the market at.
You must have owned your property for a period of three years in order to take advantage of this guarantee.
The related costs for the guarantee are paid by 25% on the day of signing the contract and the balance of 75% on the day when the property is transferred to a new owner.
|Guaranteed value increase||Guaranteed maximum market time||Contract costs per year||Minimum ownership period|
|0%||6 months||0,5 %||3 years|
|3%||6 months||1,0 %||3 years|
|4%||6 months||1,5 %||3 years|
|5%||6 months||2,0 %||3 years|
|6%||6 months||2,5 %||3 years|
|7%||6 months||3,0 %||3 years|
There is no obligation to take advantage of the guarantee. If you wish to claim the guarantee, then the property must have been for sale by our own real estate agent, D2 Real Estate, for a period of minimum 6 months.
The sales commission is from 3% to 5% of the sales price. The agreement is made between the investor and VIP Real Estate Co., Ltd., established in 1988 with a registered capital of 200 million THB.
How do I check in when I arrive at the property?
How and when do I pay my rental cost for the accommodation I have booked?
How do I get to the resort?
The address of your stay and further check-in info will be provided by the owner soon after your booking is confirmed.
Easiest way to get to Rayong from the airport is by taxi. There is a booking form on the website where you enter your arrival at the airport and flight number. It is important that you inform how many bags you have, and how many persons you are. A regular car costs 2500 thb and a mini-car costs 3500 thb. When you arrive at the baggage belt, it simplifies the driver if you text an sms to the number you received at the confirmation, saying that you are there, since it makes it easier for them to know when you are expected to arrive at meeting point 3. When you get out of customs you go to the right and there you will meet your driver with a sign with your name at meeting point 3.
How do I get to the Swedish school in Ban Phe?
The Swedish school has organized a school bus from Mae Ramphung Beach to the school in Ban Phe. We have had several families who have chosen to stay for a long time and have their children in Swedish school. We have used the school for many years. The school also opens up for Swedish / Finnish children with Finnish speaking help once a week.
Does it include electricity in the rental price?
Are there linen included in the rent?
What happens if something is wrong with my accommodation?
Where can I find a pharmacy?
How is the Internet, is it included?
One option might be to buy an internet dongle with associated prepaid card, or buy your own SIM card and share from your phone (this option is almost always up and running), at the moment (spring 2017) such an option would cost around 800 THB for 25 GB, valid for one month.
There are many restaurants that have free wi-fi. On both of our resorts it is possible to buy the Internet and connect to our hot-spot, or use free internet in the public areas near the pool and restaurant.
How do I get cheap telephone and internet in Thailand?
Are there any opticians?
Is there a hairdresser?
What hospital do you recommend?
Where can I find a dentist?
Are there restaurants with European food?
One of the classic German restaurants here in the area is the Weena restaurant that serves huge portions in a nice garden setting that is amazing. A short distance from this restaurant lies Pom’s corner, which serves German and Thai food and is a new favorite with high quality food.
There are more and more French-owned restaurants serving both meat dishes and pizza. Please see our map of Rayong with several exposed restaurant favorites.
Are there restaurants with Scandinavian food?
We Swedes are a big tourist group here in Thailand and this also applies here in Rayong / Ban phe. There are several Swedish restaurants in the area serving meatballs, meat with mushroom sauce etc.
Some examples include Oleary’s S.B D, Yellow Wagon, Nois Cafe and Thai-Nordic Restaurant located on Mae Ramphung Beach Rd, near our resort Sea Sand Sun.
Please see our map of Rayong, with several exposed restaurant favorites.
Which Thai restaurants do you recommend?
It is easy to find good, nice restaurants and chill in seafood as the Thai themselves do. They order in many dishes set in the middle of the table, then enjoy the food together. Shrimp, crab, grilled fish …. Keep in mind that the food may be well-spiced, so if you are sensitive ask Pet noi for safety, which means a little strong, or may be pet (not strong).
Along the beach between the aquarium and the fish market there are several really good fish restaurants, where Ban Talay (home to the sea) is a favorite. In the evening, Ban Phe changes and the food carts roll out, the chairs are set up and Spartan restaurants open. Genuine Thai food.
Outside the entrance to VIP Chain Resort, Pama’s serves good Thai food and some European dishes, good food and free beach chairs at the beach. Going a few minutes to the right from the resort you will find Thanom kitchen which is one of the most famous and popular restaurants on Mae Ramphung beach. European food and Thai food are served at the beach or restaurant.
Within the shopping malls you will find most often a so-called Food court where many Thai eaters eat when they shop cheap. Here you do not usually pay with cash, but pay with a card that you re-pick with any amount.
You will find more restaurants in our popular map of Rayong and Ban phe.
Is there Japanese food in Rayong?
Some examples are Fuji, and Ya-yoi that have slightly lower prices. Inside Ban Phe there are several Korean Barbeques where you can eat how much you want for a cheap money.
The most popular is open evening and is not far from Big C (Ban Phe). You will find more restaurants in our popular map of Rayong and Ban phe.
What restaurant do you recommend if we celebrate an important event?
Tamnanpar or Classic Forest as many call the restaurant is a must when in Ban phe. The environment is amazing and the food is good. Do not forget to check out the toilets, which have won the world toilet champion chip on several occasions.
Are there Supermarkets near?
Yes there are a number of shops. Big C, Makro in Ban Phe and Tesco supermarket (not huge, but has all essential needs).
Inside Rayong is the big Tesco, a few minutes away from the bus station and market, also you have tops in Central Plaza, and Big C in Laemthong, and also next to Central Plaza.
Ban Phe has a new Makro store (here is almost everything that might be needed) before Tesco Lotus inside the village, where Suan Son Beach begins, Big C is on the other end of Ban Phe (closer to Mae Raemphung beach). A small mini Tesco only a short distance from Condochain VIP and VIP Chain Resort.
Big C is a major retailer that is in Rayong and Ban Phe. They have slightly lower prices than Tesco, there is food, clothing, housewares, appliances and technology gadgets (two stores in Rayong). Do you have your own car or order a taxi there is the big Makro worth a visit, located at Road nr 3, outside of Rayong. This Makro is where restaurant owners buy food to their restaurants. Lower prices and very good quality meat.
Can I go shopping somewhere?
If you are really serious about shopping, we recommend to go to Pattaya or perhaps spend your last days in Bangkok.
Take a look at our map over Ban Phe and Rayong to see what kind of shopping that you can do. A recommendation is the Friday night market near Tesco Lotus in Rayong, here you can find a lot of stuff!
Is there a tailor in the area?
Where to buy furniture for your home?
There are also furniture stores inside Rayong, such as SB Furniture, Index etc. After the big road into Rayong, there are also Thai shops with wooden furniture.
In Bangkok there is Ikea.
How do I book a taxi from the airport?
There are plenty of taxi cars at the airport. Unfortunately, usually they have trouble finding Rayong. The easiest way is to have a pre-booked taxi, where the chauffaeur stands with a sign at the airport and meet up. It is a venue that is to the right when you leave the customs. (Meeting Point 3). It takes about 2.5 hours to Rayong and the car stops 1 time (if you want) so you can shop a little and stretch your legs. Price for regular car THB 2500 and 3500 for the mini-van when booked directly from Chamms taxi, it is cheaper to take a taxi directly and negotiate (around 2000 THB), but we assume no responsibility. This booking is strictly between you and Chamm, we take no responsibility, all payments go directly without intermediaries to Chamm and his driver. When booking via Chamm however, we have the knowledge when you arrive, and can help when things go wrong …
We have made a form for booking taxis, push the button to get there, or book directly with Chamm (phone +66 (0) 87-741 22 46).
Can I rent a scooter / motorbike?
For your own safety’s sake and to avoid being stopped by the police (cost 200 bath if you get caught without a helmet). According to Thai law a valid driving license has to be used, you may use an international driving license (otherwise you might be fined 200 THB).
It is the law that the driver wears a helmet, of course, we recommend everyone to wear a helmet.
Most of our customers choose to rent from Chamm since he holds a high service level to you as a customer and will help if there is any problems, he can also help you with taxis. You can reach him at telephone number 087-741 22 46
How do I get a songtaew or minivan?
You pass Ban Phe, Suan son beach and the rest of the beaches to the east, these have a certain color.
If you are going from Mae raemphung to Ban Phe you need to change bus, drive to the stop (not far), then change.
It is easier to get to Rayong from Mae Raemphung with the blue buses, sometimes they come every half hour, sometimes every hour, sometimes not at all (costs 25 bath) To stop a songtaew, just wave, they stop.
There is also a minibus from Ban phe and the ferry camp which goes through Mae Rampung Beach to Rayong’s bus station and on to Pattaya (White bus no. 363).
Are there taxis on Mae raemphung beach?
If you want a taxi from Mae Rampung Beach, it is recommended that you call and order before. Inside Ban Phe there are taxis at the large Seven-Eleven in front of the pier where boats go to Koh Samed. Inside Rayong there is taxis outside Laemthong and at the bus station. It is also possible to negotiate with the Song taow’s outside Laemthong for a private drive home. Cost is about 300-350 THB to Mae raemphueng beach.
How much tip should you give to the taxi driver?
Where are the beaches?
After Suan son beach it will be no other beaches until you arrive at Mae Phim, only private beaches near the hotels and resorts. Mae Rampung Beach is becoming more and more popular because of the wide long beach, and also the central location. Easy to get to the provincial town of Rayong and the village of Ban Phe.
Important phone numbers
– Police High way 1193
– Police Hotline 191
– Tourist Police 0 3865 5420, 1155
– Police station Rayong City 0 3861 1200, 0 3861 1111
– Banphe Police Station 0 3865 1803
– Tourist office 0 3865 5420, 038 664 585
– Bangkok Hospital 0 3892 1999
– Rayong Hospital (public hospital) 0 3861 1147, 0 3861 7453 alt 60
– Thai hitta.se 1113
– Immigration Office 0 3868 4544
How can I issue a visa?
How should I behave in Thailand to show people respect and understanding of their culture?
It is not in the nature of Thai to tell others what is right and wrong, but they assume that you have the respect to behave like you behave in your own country and that you respect their customs. This also applies to how to dress.
You take off the shoes before entering a temple. The feet are considered unclean and must not be turned against people, Buddha figures or temples. The foot should be on the ground. You should not touch Buddha statues or historical monuments. It is also not allowed to photograph everywhere. Therefore, it is important that you pay attention to where this is allowed. You should also not touch or pose in front of Buddha figures.
In Thailand, it is considered unworthy not to be able to master your feelings. That is, you as a tourist should not show anger or be upset. With a smile you will come a long way, here in Thailand!
You should not touch a Thai head because the hair is considered holy.
In addition, you should wear appropriate clothes that do not show too much skin in public areas. In temples, both men and women should wear clothes that also cover the shoulders and knees. Please put on something instead of bikini or swimwear when you go and eat lunch at a restaurant
Do I need any vaccinations?
To get the latest recommendations regarding vaccinations, contact your doctor or vaccination center for current information regarding necessary vaccinations, or other disease prevention. You can also read more at vaccin.se
How is the weather in the summer in Ban Phe, Rayong?
The rainy season usually begins in June and ends in October. Rain showers may occur, usually at night. However, the rain showers do not last for too long to re-break and let the sun come back. It’s also an experience to experience a really hot monsoon rain and when it’s raining it’s raining hot water.