FINANCIAL
Most buyers of lots at our projects do so to fulfil their dream of owning a house in the beautiful settings of Thailand. Initially they do not think much about financial return. In our projects, however, the financial returns have been good. The first type of return is appreciation in the land value. As Pattya (Hua Yai) became an internationally known destination, prices continued to rise, and some original buyers sold their properties for 5 times their investment. Hua Yai is still a frontier destination, but tourism is moving our way (for better or worse), and this results in increasing land value.
Real estate if of course not a liquid investment. Typically there are periods of several years when the property market is quiet, followed by a spurt of activity and rising prices favorable to sellers. There is no obstacle to selling your property should you so desire. When a lease if transferred, the company registers a new 30-year lease for the new owner. When a lease is transferred, the company registers a new 30-year leae for the new owner. Taxes on leases and lease transfer are very low. The company will transfer the lease and pay all taxes and fees for about 2% of the new sale price
The second type of return is in the form of net positive cash flow from rental of houses.
There is a monthly maintenance fee to cover operation and maintenance of common services and facilities. (See Member fees.). As of October 2004, the monthly fee is 1,650 baht for a lot and 2,700 baht for a lot with house. See Member Fees.
Taxes, such as local land tax, are negligible. The Government charges a tax on the rental of your house. The management keeps a percent of rent income and pays this tax, among other expenses, out of this percent