Botan Village

What rental yield can I expect from my villa at Botan Village?

This will depend on the targeted market.

There is obviously a market for long term rental because of the proximity of main infrastructures such as International schools (BCIS and QSI, shopping malls, International Hospitals, Golf Courses (the Loch Palm, the Red Mountain and the Country Club), entertainment venues (Patong).
We are receiving several requests from people looking for villas for rent in Botan Village.

Our market can also be extended to include the particular requirements of our Golfing clientele. This market may be particularly strong at certain times of the year.

Here are some exampes of rental properties in the immediate vicinity of Botan Village:

1. Botan Village
2. Two-bedroom houses with small private swimming pool, bordering the golf course. 
   Rental rate suplied by the developer sales office: 
   
Low Season = 80 000 Baht/month (± 1 720 €/month).
   
High Season = 120 000 Baht/ Month (± 2 580 €/month).

3. Two-bedroom houses, 150 m² communal courtyard and swimming for 4 houses.
   Price list: THB 45 to 50 000 per month (960 to 1 070 €/month).
4. Five-bedroom houses, one communal swimming pool for 2 houses, view on the golf course. 
   Price list: THB 70 to 80 000 Baht / month (1 500 to 1 690 €/month).
5. From the same developer than "B". Two and three-bedroom houses with small private swimming pool and tiny garden.
   We haven't receive the price list yet, but since the project is from the same developer than "B", we can assume that they are similar.

What Taxes and Costs are Applicable to Purchasing a Property in Thailand?

On all purchase/sale of property in Thailand there is a stamp Duty of 0.5%of the assessed value of the property, a transfer fee of 0.01%, a business tax of 0.11% levied against an owner who has been in registered possession of the property less than 5 years, and Income Tax.
There is no Capital Gains Tax in Thailand, unlike many countries, and Income Tax (usually between 1.0 - 3.0%) on property is the comparable replacement.
There are no set rules on who pays the income tax, and it is just another part of the bargaining process, as with all the other costs of the transfer of ownership.

Are There Property Taxes in Thailand?

There are no property taxes as such in Thailand that are exactly equivalent to the property taxes in the west.
However, the most comparable taxes on properties in Thailand are the Land Tax and the Structures Usage Tax.

• The Land Tax levied on land is so minuscule, that in practice the body charged to collect it, rarely bothers to do so, and if they do, they usually wait several years until the amount accumulates.
• The second tax, the Structures Usage Tax, relates to buildings, is collected by the municipal office or district office, and is only applied to properties used for commercial purpose.

Maintenance fees will be around ฿4,000 per month (US$ 115) for the villas and ฿2,000 per month ($59) for the cottages. These fees can be brought up to date each year.
These fees cover:

• Garbage collection,
• Maintenance of the private roads and of the power and water distribution system.
• Street lighting.

Extra costs:

• Water will be charged ฿20 per m³
• Electricity will be charged at the rate of the Electricity Generating Authority of Thailand +1%.
• Botan Village can provide garden and swimming pool maintenanace if the owner wishes it.