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Buying Real Estate on Koh Phangan Island
Real Estate on Koh Phangan
Many people come to Koh Phangan and fall in love with the island. Entrepeneurs and individuals looking for that perfect island lifestyle are now deciding to stay here. Thus Koh Phangan finds itself benefiting from a property boom. Facilities have been gradually improving and today contsruction can be seen everywhere. A concrete road network now covers most of the island and many bungalows have been upgraded into first class resorts. Ferry services have improved dramatically as have the port services that support them. And the new road recently completed between Haad Rin and Thongsala now provides an easy route connecting the island's two main towns. There is still some inexpensive land available for sale on Koh Phangan. While land prices are undoubtably increasing rapidly, think carefully before spending your money. Properties can be rented quite cheaply, and this is the sensible option while you are deciding whether or not to invest a large amount of time and money. Despite Koh Phangan's growth as an international property destination, remember also that it is a small island. The people of Koh Phangan are generally very welcoming, but they do have their own way of doing things. Don't rush into anything and be sure you understand exactly what you are buying. Will you have undisputed access to your land or property? Will utilities be a problem? Does the area flood or is it liable to landslide? Will you be allowed to build there? Don't sink your money into a venture without considering these essential points.
Foreign Ownership Rights
At the moment foreigners cannot buy land outright in Thailand. A foreigner can own a building distinct from the land, which coupled with a renewable 30 year leasehold (registered with the local land offiice) is considered by some as being as good as owning the freehold. Foreign nationals also cannot own more than 49% of a Thai company that owns freehold land. But there are ways to set up a company structure so that you as a foreigner can excercise sole control over your company. It is possible to create a share system so that although the foreigner owns only 49% of the company shares, his shares are preferrential giving him legal control over the company. As an extra precaution he could get the company to buy the freehold, and then lease the land from the company.
Different Land papers
True land title deeds issued by the Surat Thani Provincial Land Office are called 'Chanote'. Land held under Chanotes have been accurately surveyed and GPS (Ground Positioning Satelite) plotted in relation to a national survey grid, and are marked by numbered posts set in the ground.
Nor Sor Sam or Nor Sor Sam Gor are certificates of land utilisation. They are to all practical purposes the equivalent to land title deeds because they allow the land to be subdivided, sold, leased or mortgaged in the same way as land under a Chanote title. Nor Sor Sam is less accurately surveyed than the Chanote. Boundaries are recorded in relation to neighbouring plots, so there may be survey errors in length and land area. The newer Nor Sor Sam Gor is generally quite accurately surveyed.
Tor Bor Ha, Sor Kor and a whole host of other land papers are in essence a form of claim to possessory rights (generally used for farming) which have been filed with the district land office. Land held under these papers cannot legally be subdivided, sold, mortgaged or leased, and you cannot apply for planning permission to build on it. However, in reality a large number of homes and businesses are built on this kind of land with the full knowledge of the local planning office. And land papers do eventually get upgraded. You may wish to consider this kind of land if you are not in a hurry to make return on your investment, and just want a bit of land to build an inexpensive house. The use of land of this type can be obtained very cheaply.
Land Measuremnt
Land in Thailand is measured in Rai. 1 Rai = 40m x 40m. 1 acre = 2.5 Rai. 1 Hectare = 6.25 Rai.
Real Estate Agencies
There are a number of property consultants now operating on Koh Phangan. Do not assume foreign run contractors are neccessarily better or cheaper. Consider using local builders.
