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Let us speak today about choosing an apartment or a villa in reality. We shall not give you any recommendations on what to check before the purchase, it is a subject for another article. Now, we shall speak about the expert’s role and how to get several options instead of just one to solve the same problem. Let us consider five real cases together with Aleksandra Chirkina, Head of Sales Department.
Hello. Today we shall speak about professional magic, about turning our clients’ ideas into real estate. It is worth noting that the way from a dream to its implementation is not straight-line in most cases. People think too long being in their own country before to come to the island, and then within few hours they decide to increase their purchase budget in several times. Some people cannot find acceptable option that 100% meets their requirements, and they buy a land plot for construction or a villa for reconstruction.
We would like to describe as many options in the article as possible, that is why it is a bit long. We hope that despite many letters, it will be useful and enjoyable to you.
CASE 1
AN APARTMENT WITH A REAL 6-7% ANNUAL INCOME OR HOW A CLIENT DECIDED TO INVEST 4 TIMES MORE THEN HE ORIGINALLY PLANNED
Aleksey was looking for an apartment for investment. The initial budget amounted to THB 5,000,000. Being already on Phuket, he found our office telephone number and asked to find a real estate to be easily leased in future.
We prepared an individual demonstration program for Aleksey for two days. These were studios within walking distance to the sea side and two-bedroom flats a bit far from the beach but near the tourist infrastructure. On the second day of demonstration we passed by Karon beach. Karon Hill complex attracted our attention, where the developer was preparing a new building for takeover.
The first two buildings proved to be very reliable in the rental market. They are located near the popular Karon beach. Aleksey interested in the successful project and decided to see it too despite the fact that the apartments cost twice more than he originally planned to pay. The difference was significant: sea view, quality of materials, high ceiling and the total area of 84 m2 instead of 45 m2. The apartments had obvious advantages as compared to other properties he had seen before.
We consulted the rental expert, calculated the average rental price for such apartments and concluded that the investment in this project will be returned in the quickest way. Aleksey purchased two one-bedroom flats of total area 84 m2 each and costing THB 10,500,000 each.
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Reservation |
Having returned to his country, the buyer transferred a USD deposit to the developer’s account. |
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Contract |
Individual freehold was registered for both apartments. |
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Documents |
The developer, Karon Hill, prepared all documents within one month after getting the deposit. |
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Main Payment |
Aleksey made payments to the developer via SWIFT from Kazakhstan. During the year, he paid in installments to 25%. The payment method played the key role when making a decision. |
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Result |
The client entrusted both apartment to a managing company involved in the apartment rental business. The apartments were successfully rented and bring 6-7% annual income to the owner. |
When buying a real estate for further beneficial leasing, first of all, it is necessary to rely on the rental expert opinion. The expert knows the reasons why the real estate will be profitable.
CASE 2
A DREAM FOR A JOLLY COMPANY: TWO VILLAS SIDE BY SIDE AND A LAND PLOT ON SAMUI
We received an inquiry via our website to purchase a real estate for investment purposes. We had a long email communication, but the buyer told that he will take a decision only after coming to the island. A month later we received a telephone call. ‘We have come, let us see villas’. We planned the meeting immediately. It turned out that there are three guys, and each of them has his own goal.
Sergey was looking for a villa for permanent residence. Vyacheslav was looking it for investment and vacations several times a year. The key task was that both villas are located nearby. Pavel was thinking to buy something for investment purposes. We showed the guests different variants on the western coast of Phuket. We went from the north to the south and then planned our demonstrations.
The men left for Samui for few days. Pavel found his option there. He paid a deposit for a land plot for construction of five-bedroom villa in Ban Tai Estate project. The developer completed the project and the owner gave a house-warming party on March 6, 2017.
Sergey and Vyacheslav returned to Phuket and paid a deposit for a villa in Laguna. They liked the district very much. In the morning the guys changed their mind. They had just one day to make a decision. Criteria: two villas side by side in the same complex near the sea side, the settlement is under protection, newly built real estate in a modern style, a swimming pool and three bedrooms. The planned budget was USD 300,000 per villa, but after the demonstration it was clear that the options they liked cost about USD 600,000. They chose new villas in Baan Bua project in the southern Phuket.
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Reservation |
A deposit of USD 5,000 was paid for each villa. Baan Bua staff works quickly and effectively even on Saturday. We spent about an hour in the office and received answers to all our questions about documents and terms, signed the contract and made payments. |
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Contract |
The land lot was registered for a company and the freehold was registered for individuals. |
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Documents |
All legal issues and preparation of documents was resolved by Baan Bua. All paper work was completed within a month, and it took few more days to send the original contracts and invoices to Russia. |
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Main Payment |
The USD payment was made via SWIFT from Russia. Baan Bua cooperates with Bank of Ayudhya (Krungsri), so they converted THB into USD according to the exchange rate of this bank. |
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Result |
There was no furniture at villas. Few months later these guys came back and bought everything they needed to live in comfort. Sergey lives with his family on a permanent basis. His son goes to a nursery school, and his daughter was born here not long ago. Their everyday issues were completely resolved. Vyacheslav lives the most part of the year alone and likes his home on Phuket so much that he decided not to lease it. Pavel gave a house-warming party in March. His villa was constructed in a quality manner and on time. In a couple of months after buying his real estate, Sergey recommended us to his friend who came to Phuket and bought another villa for leasing. Sergey became the owner of an apartment in the southern part of the island. Since the late summer 2016, its occupancy rate is 90%. Sergey and his family spend their passive income from leasing to live on the island. |
We work quickly even with multi-task issues. We know everything about new projects and developers.
CASE 3
VILLA ON PHUKET FOR USD 1,000,000 AND ITS RECONSTRUCTION
We would like to share the most labor-consuming case in our life. There were many complications: two international legal companies were considering documents that were collected during four months.
Let’s come to details.
The buyer telephones from Phuket and asks to show the most profitable options for investments. The budget is USD 3,000,000. Moreover, he has already seen all offers on Phuket.
The client chose a villa for USD 1,000,000 near Kata Noi beach. The villa required a reconstruction to total amount of USD 1,000,000 to offer it for leasing. The key advantage of the villa is its proximity to the sea side (300 meters). The land plot was also attractive for the client: 1,817 m2 in a popular tourist location.
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Contract |
The building totally belongs to the owner and the land is a property of a Thai company. The complex owners set up an offshore company registered in the country offshore center with special benefits. The offshore company possesses the controlling interest in the company being the owner of the land plot. Each owner has its own company which holds its share in the joint offshore company. The share depends on the site area. Each land plot is leased for 30 years with an option to extend the lease period for 30 and another 30 years. |
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Main Payment |
Wire transfer from Europe to a bank account of the previous owner. |
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Result |
The transaction is conducted and the villa is being reconstructed. Our experienced specialist is in charge of the project and performs functions of the customer service. We attracted an architect from Russia and adapted the project to meet requirements of the Thai legislation. We chose a project manager for the architectural supervision. The client was very demanding in terms of the quality, and we organized a bidding. Five construction companies from Phuket took part in the bidding. We awarded a contract to the best one that constructs expensive luxury properties. The client was satisfied with the quality of reconstruction. The project was completed. |
VillaCarte customer service selects the executors (an architect, designer and the contractor), monitors the project documents, controls the construction process, quality and the budget and resolves all legal issues. We are 100% involved in the process. Actually, we are the main representative of the owner at all construction stages, in the municipal and legal service, with construction contractors and the suppliers.
CASE 4
‘I want to buy just now’ or how our buyer withdraw THB 400,000 from the ATM !
Oleg called us on Saturday evening and said that he was coming to Phuket tomorrow for a couple of days. His goal was to buy a villa for his son with a budget of USD 600,000. His son wanted to move to Phuket to live with his girl-friend in her native country.
Next morning our manager who services VIP clients met Oleg in the airport. They began looking for a villa in the morning and by the end of day they saw all variants on the island.
The first villa represented a spacious house at Nai-Harn for USD 700,000. The client liked it at once. It was a quality villa constructed by a Russian developer for himself. But it was just the first option, and we continued our trip.
Our next target was L’Orchidee residence on Kalim beach and three-bedroom villa for USD 1,080,000. It was a love at first sight. Oleg was not going to buy a villa for himself, but this one seemed to be constructed exactly for him: the sea and the whole Patong view, a big open terrace and a comfortable location.
Open terrace and a breathtaking night panoramic view from villa Agnes in L’Orchidee residence
He bought a house in the southern part of the island to live on a permanent basis. Oleg also bought a wonderful country house on Phuket.
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Reservation |
The manager accepted cash payment. But the main difficulty was to withdraw it from the client’s payment card! The client made a decision at 9pm and was going to leave in the morning. We made 10 attempts to withdraw money from the ATM and succeeded! |
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Contract |
VillaCarte lawyer registered a freehold of the villa for his son and the land under it. He registered a Thai company for the buyer and prepared the sale contract as well as documents confirming the takeover of property rights to the land and the building. L’Orchidee transaction was registered by the developer’s lawyer. The land was registered as the leasehold and the house was registered as the freehold. The owner of both properties became BVI company. Out team controlled all communications and answered all buyer’s questions during the registration procedure. |
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Main Payment |
The payment for villa in L’Orchidee residence was made via purchase of BVI shares, a company possessing the house and the land plot. The wire transfer was made from the buyer’s private account. Payment for another villa was made via SWIFT to the seller’s account. |
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Result |
Oleg’s son moved to his villa, but in 2016 he decided to lease it. We became a managing company for this villa and promote it in the market. It is in great demand during the high season, about 95%. As for the villa in L’Orchidee residence, the previous owner entrusted us its management. We demonstrated 80% occupancy during the year. Taking into account the seasonal character of the rental market on Phuket, it is a successful result. Now, Oleg is thinking about entrusting us the management of this villa again. He often comes to Phuket for several days on vacations, and every time he is happy with his purchase. |
VillaCarte represents the client and resolves all his issues. The manager organizes everything in the most effective way and will show the best reliable options. Our time costs much money, and we save it!
CASE 5
VILLA TURNS INTO...
TURNS INTO 10 APARTMENTS!
Our business is organized in such a way that our guests often come back to us and recommend us to their friends. Vladimir applied to us in the same way. He wanted to buy a villa for investment purposes only. He was on holiday on Phuket. During two days we saw the most attractive villas from the investment point of view, the most reliable options for rent from our point of view.
Our expert prepared a detailed report with complete information about each property. We expected a decision based on the suggested figures. However, the client directed negotiations to another point: ‘What is the project under construction on Mai Khao?’ We knew the developer and organized their meeting. On the 15th minute of the meeting, the parties shook their hands, and Vladimir bought 10 apartments.
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Reservation |
The prepayment of USD 10,000 was made on the next day, on Sunday (this happens very often, as we have already noticed). The developer prepared the contract and accepted the cash payment. |
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Contract |
Leasehold of apartments was registered. Two contracts for five apartments each were concluded. |
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Main Payment |
The payment amount was divided into installments to be transferred from Russia via SWIFT to the developer’s account. |
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Result |
According to the plan, the construction began in autumn 2017. |
You purchase the real estate for a particular purpose: to come for vacation, to live or to invest. Sometimes there is more than one purpose. When you have a picture of your future purchase in your head, it is just one option of many other solutions. If you come to an expert, the number of solutions increases dramatically. You have better chances to find something reasonable and beneficial.
I wish you pleasant emotions, many sunny days and excellent mood! See you on vacations and in our new articles.
Head of VillaCarte Sales Department
Aleksandra Chirkina.