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Phuket, Pattaya Property Slugged by Media Reports of Problems

Thursday, November 10, 2011
PHUKET: Property sales to expats in Pattaya and Phuket suffered a beating this week at the hands of a Swedish television show and a British investigative journalist.

While the Swedish property person named in 'Mission Review' in Sweden on Wednesday has defended himself online, the Britons named on andrew-drummond.com have yet to do so.

According to the Swedish television show, Swedes have allegedly been duped in purchasing properties on Phuket, as well as in Pattaya.

Andrew Drummond's site, outlining the case against three men he says are being investigated by the Department of Special Investigations, reports: ''The victims are mainly Britons, but there are also Australians, Russians, and Canadians, and Fins.''

The catalogue of unhappy buyers on Phuket grows longer, too.

Phuketwan is awaiting permission to publish the history of a group of buyers of condominiums in Patong who have yet to be given the keys to their properties, although that was supposed to happen in April, 2008.

''Our condominium is still unlivable,'' wrote the Australian woman who alerted us to the problem. ''Also guns have been brandished and threats have been made to condominium owners.

''Our first solicitor took our money and did nothing, telling us he was dropping the case for fear of his life. Our second solicitors have got the civil case through court in our favor but this is now on appeal by the new buyer.

''Our criminal case papers still sit with someone in the police station for nearly six months now with no move to the public prosecutor hands so it can go to court. We have lost faith in the court and police system and fear we will never recover our money.''

The difficulty is that ''going public'' in Thailand can complicate matters. This is why many expats with grievances over properties in Thailand prefer to air their disputes in their home countries - as the unhappy Swedes did on television this week.

According to a report in expressen, a popular Swedish afternoon newspaper, about 10,000 Swedes have chosen to buy a house in Thailand ''despite the State Department warning against buying because Thai law prohibits foreigners from owning land in the country.''

Naming property developments in Pattaya and Phuket, the television show alleged the Swedes had paid for their villas without any hope of ever owning them.

The Swedish real estate agent named in the program told another publication: "I have never knowingly misled any customers, but I have always been open and honest about the circumstances that have arisen.

''When I'm down in Thailand I live in one of the houses in the midst of all the customers without any problem, since a majority of homeowners are of a different opinion than those who are in the program.''

The British men named on andrew-drummond.com have yet to respond.

While Phuket and Pattaya also have plenty of trustworthy property dealers, the advice from experts on buying a condominium or villa ''off the plan'' in Thailand is to settle for a letter of intent to purchase and to hand over the money in exchange for the key once the property is complete.

Comments

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And it's soooooo easy to rent! No hassles and no rip off's. Buyer beware in foreign lands because at the end of the you are just a foreigner!

Posted by Anonymous on November 15, 2011 05:19

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How to Buy Property in Thailand if You Are a Foreigner.

1. Don't
2. Don't Do It - RENT ONLY
3. NEVER buy property you cannot legally own

Seriously why would any foreigner buy property here? You have to be crazy. Buying property in Phuket is hugely expensive.

Yes, I know, you can supposedly set up a Thai company but it's illegal to do so for the sole intent of buying and owning land. Even if you do 51% of your asset is owned by Thais.

Ask yourself this... If you have US$100,000 (for example) would you give 51% of it to a bunch of complete strangers? If the answer is yes, feel free to contact me... I'd be happy to take your money.

Condos - yes you can own a Condo in your own name but remember that these are under management contracts and 51% are owned and controlled by Thai, so if something goes wrong or there's something you don't like that just tough luck.

Another last thing to consider. If you buy that wonderful Condo or Villa today there's no guarantee the view you have will remain. Chances are a bunch of other Condos will be built blocking your view and light or in the case of a villa a wonderful row of shophouses will go up.

Only sensible thing to do if you are a foreign national and want to live it... RENT IT. When you've had enough you simply pack up and go.

Posted by Graham on November 17, 2011 17:30

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Apart from the legalities of owning/not owning land or a condo in Thailand, simple maths just don't add up for me. Purchase prices in Thailand are high, yet rental prices are low. If you have a stash of money burning a hole in your pocket, buy a house in your own country. You know the laws back home, you can read and understand the language, and frankly there is very very little chance that a lawyer will run off with your money. Rent that house out. Rent a home here. If the visa laws change or you just feel like moving on, you can do so with a couple of months notice. Selling a second hand house here is nearly impossible without taking a huge hit on your investment. Buying in Thailand has very little going for it, I'm sorry to say.

Posted by Mr Man on November 17, 2011 18:14

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I saw the documentary in Sweden and it was very interesting. The risks of buying in Thailand are still unknown to a lot of foreigners and so this program is highlighting the problem. I hope that the government will start clamping down on foreigners in Thailand selling property on false pretences. I also hope that the authorities come down heavy on any foreigner found to be working in Thailand without a work permit which is another issue (this includes the bars as well) It is fair to say that foreigners are never-the-less duty bound to find out the law themselves regardless of which country they are in. Ignorance is not an excuse.

Posted by reader on November 17, 2011 18:59

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Thank you for this article and it should be highlighted at your website I may recommend!
Andrew Drummond is a very brave person and his Blog is most properly the only news source in Thailand I truly trust. As Phuketwan is now also starting to write about those "sensitive" issues things will get better!

Thank you and well done Phuketwan!

Posted by Mr. K on November 22, 2011 13:55


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