 Most
buyers of lots at our two beach projects do so to fulfil their dream
of owning a house on a beach. 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 Railei Beach became an internationally known beach destination,
prices continued to rise, and some original buyers sold their properties
for 20 times their investment. Golden Buddha 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. In 2002/03, Golden Buddha Beach paid 2.2 million
baht to its members out of rental income, and all hoiuse owners
had a positive cash flow after paying annual maintenance and ordinary
house repairs.
There
is a monthly maintenance fee to cover operation and maintenance
of common services and facilities. (See Member fees.). As of October
2003, 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 beach house. The management keeps a percent
of rent income and pays this tax, among other expenses, out of this
percent.
|
