Registering Right of Access for Land

Many villas and houses in Thailand are on plots surrounded by other plots owned by somebody else. Guaranteeing access to a plot of land is essential to your chances of selling or leasing that plot of land. Much of the time roads between commercial plots become adopted by the government, and by this means the property owners in the area don’t need to worry about access rights or maintenance payments for such things as road repair.

However, in many cases ‘estate’ roads go through other people’s lands. This can lead to legal entanglement especially if neighbours become antagonistic.

Thai property law calls this situation servitude. Owners have a right not only to access their land but also to have facilities such as water pipes. The law stipulates:

Section 1387. An immovable property may be subjected to a servitude by virtue of which the owner of such property is bound, for the benefit of another immovable property, to suffer certain act affecting his property or to refrain from exercising certain rights inherent in his ownership.

In other words, your neighbour cannot close down your access road even if it does go through his or her property.

The time limit for exercising this right is 10 years. If you don’t claim your right of access via a land title within 10 years it may be forfeited.

For more information: www.samuiforsale.com/real-rights/servitudes-easements.html

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.  

Making Customers Happy by Giving Less Choice

One of the easiest ways to insure success in the villa rental business is to make your customers so happy that they return again and again. In this way one success echoes on and on and brings in a regular income.

It is a complex mix of things that make people like or dislike a villa in Thailand – the location, the beach, the nearby facilities and amenities, the weather, the prices are just a few of the variables that affect people’s perception of a holiday destination and a holiday rental.

The thing to remember as the owner of the Thai property for rent is that you know better than your prospective guests what will make their holiday a memorable one. You know better than them what is important and what is not.

It is for this reason that I entitled this piece ‘making customers happy by giving them less choice’. Often the temptation is to focus on giving value for money by offering a cheap price for a ‘bare bones’ rental. The thinking is that the renter can opt to pay for services that they value, and that will enhance their enjoyment of the holiday by making good choices.

This is frequently a mistaken modus operandi because often the renter is new to the area and to villa rental. They might not realize that it is going to be much more convenient to have maid service, wifi broadband, shopping service etc. They might shy away from car rental but if your villa is a hot walk from the beach then the answer is to include either vehicle hire in the rental package or a taxi service. You can build these expenses into the rental cost. The customer will never know this; indeed, they will be so busy having a good time that they will not question how the rental fee is broken down.

You don’t have to provide a ‘turn-key’ holiday experience necessarily to make customers happy, but you have to anticipate where they might make bad choices and take those choices away to give yourself the best chance of having a successful rental; a rental so successful that it repeats in the future and makes you good money.

That is what I mean by saying that less choice can be a better thing. People aren’t going to remember that the villa cost $30 more a night than other comparable places, but they will remember the wonderful home cooked Thai food that they experienced.