Thai Property Market Shows Growth for 2014

Business analysts such as CBRE and The Real Estate Information Center (REIC) claim the Thai property market is showing growth at the moment.  The REIC predict the property sector will grow 5% to 10% in 2014 (http://www.thailand-property.com/news/view/thai_property_market_to_see_up_to_10_growth_in_2014). Although analysts point to increased demand and a general upswing in the USA and UK economies, it is worth noting that the healthy property market portrayed is somewhat misleading.

The news of the 2 trillion Baht government investment plan for infrastructure in Thailand is central to the confidence displayed in the Thai property market. It looks like a lot of this money will go into the expansion of the BTR or Skytrain. As a consequence there is a high demand for property near the new proposed BTR stops. Buying to let in Bangkok has been a solid performer bringing in returns of 10%. For those with excess cash and an eye for an investment Bangkok remains an attractive proposition. Thai condominium laws mean that foreigners can buy a freehold. There are, of course, others legal structures to gain ownership of a property as a foreigner.

As with the UK housing market, figures for the industry are skewed by the capital effect. Because property prices rise in the capital the increases (in London over £1,000 a month) bring up the averages for the country as a whole. However, if you are selling a property in Udon Thani or Hull then you might not find you can make a good return on your initial investment.

The problem of reporting is systemic. The people who tend to comment on the building and property markets are those who live by these commercial sectors. It is in their interests to exaggerate and pick facts to create more confidence and more increases. Real estate traders get bigger commissions as they are on percentage payments. Moreover, high confidence means more building works and more employment. The property sector is important in Bangkok as it is in London for many reasons.

In Thailand the underlying problems in the Thai property market remain, although perhaps there is some light at the end of the tunnel.

These problems are:

1)The restrictive ownership laws and the obtuse and restrictive visa laws for non-Thais
2) The massive financial crash of 2008 and its continuing repercussions of spiralling out of control national debts
3)The on-going political violence and uncertainty in Thailand which has a strong impact on foreign investment and tourism

Just these 3 issues should make sellers and buyers of Thai property realise that value is key and that it is not the place to make a quick buck, unless that is unless you want to buy to let a flat near a Skytrain stop.  

Buying Furniture for a Thai Villa

Once you have built your Thai villa either for residential purposes or for rental then you have to find some furniture to put in the villa. This can be a difficult process because there are so many furniture suppliers to choose from.

Naturally your choice of furniture supplier will partly depend on what style of interior décor you wish for your house. You might prefer a minimal look, a Thai look or a more traditional western style. Some people go for a Moroccan theme in their Thai villa. While a Moroccan style is attractive in itself, it is in my opinion, somewhat gauche and inappropriate in a Thai setting.

If you are buying furniture for yourself because you intend to primarily use your Thai villa for your own use then you will want good quality furniture that is going to look good and last a long time. If you are furnishing your villa primarily for rental purposes then cost is a key factor. While the furnishings in a rental villa should be attractive they do not need to be top of the range. Renting out a villa to the public means the furniture is probably going to get more wear and tear then if the villa is just for your own use. Also if you are going to rent your Thai villa you should consider going for a neutral décor that has a generic and accessible feel.

It is important to remember a few things when looking for furniture in Thailand.

1)    When you order the furniture it does not get sent out immediately. Normally furniture suppliers make to order. So don’t forget to leave plenty of time between ordering furniture and making plans to rent out your villa. On average furniture will take 2 months to make.

2)    You cannot always dismiss a furniture supplier in Thailand because they have a clunky website. Although Thais are very adept in putting up websites they often make websites that are lacking in design values.

3)    The biggest areas for buying furniture in Thailand are Bangkok and Chiang Mai. Chiang Mai is famous for making heavy traditional pieces of furniture that emphasize the beauty of the wood. Chiang Mai is in the north of Thailand and has access to many rare and beautiful hardwoods. Furniture made in Chiang Mai is often cheaper than furniture made in other parts of Thailand. However, transportation costs can often negate any savings.

4)    Most furniture shops and suppliers will want a 50% deposit paid up front and the other 50% paid on delivery.

5)    If you are sending money to Thailand to pay for furniture then don’t send it in Thai Baht. 9 times out of 10 the Thai bank you are sending the money to will give you a better exchange rate than your local bank.

6)    It is very possible to negotiate with furniture shops. If your order is worth over $1,000 most furniture suppliers will be happy to offer a 10% discount and they sometimes throw in extras such as cushions and bed sheets to further sweeten the deal for you.

7)    Always get 2 or 3 quotes before committing. This will give you a much better idea of what represents good value.

8)    Good green options are furniture pieces made from renewable resources such as coconut, rattan and water hyacinth. Be careful, a lot of what is called ‘rattan’ is actually plastic in a rattan style weave.