KOH SAMUI : A LITTLE ISLAND WITH GREAT POTENTIAL

It was the early 70’s when two foreigners docked on Koh Samui (Thailand) aboard a ship used for transporting coconuts. From that day the island became a legend for all travelers headed to Asia, to the extent that it was mentioned in a couple pages of Manuel Vázquez Montalbán’s book Uccelli di Bangkok.

I discovered Koh Samui twenty years later and found it still embodied the fascination of the orient, of tropical islands still unadulterated, wild but welcoming, completely covered with coconut trees in a magical, intriguing atmosphere. It seemed like time had stopped here. Life moves along slowly, following a natural rhythm, and the spontaneous smiles of the Thai people put you at ease like nowhere else; I immediately felt at home here.

From that time, owing to my profession and my family situation, I began spending long periods on the island (up to 6 month a year, spread over 2-3 trips) and I was able to participate in the island’s steady growth, sometimes disorderly and complex to the eyes of a westerner, but always eager to fulfill its role as a simple, economic tourist destination with all of the characteristics of the more sought-after locales. Even in the face of world economic problems, Koh Samui has remained outstanding in regards to tourism and investment goods seeing that, in spite of the effects of the financial crisis and other problems of internal politics, people continue to talk about Samui and, what is more, the real estate market, where I’ve been working for over a decade, continues to grow.

Finally, in the late 90’s I moved permanently to Koh Samui and started down the long path towards finding fulfillment in my work, my economic situation and my family life after marrying a Thai girl from the island, who had lived and studied in Italy and spoke Italian well. During that period we bought a number of properties, many of which were, at that time, located in areas that were difficult to reach and lacked infrastructure. My confidence and the certainty that Samui would soon become a very attractive market in all sectors, was rewarded, as this became an excellent springboard into the real estate sector.

SamuiVilla Living Project, a small company which I founded together with my wife and manage with the help of an Italian partner, is not simply a real estate agency; what we offer comes from a decade of experience in Samui’s real estate sector. The properties we offer are planned and carried out by us and are sold without an intermediary; directly from the builders to the clients, offering better quality and transparency. The choice of materials, the advanced technology of the construction and the competitive prices, as well before- and after-sales services are our best assurance.

Here on the island, there is a sizable community of foreign residents and the impact of the current world monetary crisis has only exponentially increased the number of people who decide to move to Samui each year from all parts of the world, either seasonally or permanently. Their reasons vary: the tropical climate, the opportunity to enjoy a higher quality of life, and the low prices are extremely attractive for someone longing to fulfill their dreams.

Living in Thailand, and Samui in particular, is an excellent choice for those who are tired of a Western lifestyle and the stressful pace which is geared solely towards production and performance, steadily eroding the quality of life that our fathers and grandfathers enjoyed; they worked hard but obtained the kind of gratification which,unfortunately, nowadays no longer exists. Being a cog in that system is truly miserable, and the fact that every year thousands of people, from all social classes and any number of industrialized countries, move here to Samui is tangible proof.

The world economic crisis can also be felt here but it hasn’t had the same devastating effects because in Thailand globalization has produced a number of positive changes, encouraging trade with other countries and improving the general economic situation with a notable reduction in poverty. Development of tourism means that the country is no longer marginalized. Thailand has wisely protected its strong national identity; it is a country with its own culture, language and strong traditions deeply rooted in the simplicity of the farmer’s life. This has made the Thais free people (thai, in their language means free man) simple and cordial, modest but with a great sense of dignity, honest, respectful and eager to help out, especially foreigners (unlike many people in South America!) and it is for this reason that Thailand has become the preferred destination of so-called industrialized nations, because it can offer a quality of life, at a tenable pace, which is no longer possible to find in other civilized countries in the world. Samui is often called a paradise and this is not an exaggeration. It is precisely the feeling you have when you first come here and discover the island. You live completely differently here than we are accustomed to in the West; after a short while you understand how much we have lost and how much we can lose returning to the “system” from where we come. The majority of visitors, even the vacationers who come for 2-3 weeks, fall so completely in love with the place that they want to return as soon as possible, and considering the low cost of living (the Euro- Baht exchange rate is around 1 to 5 and the VAT is 7%) it’s not difficult to plan a temporary or permanent move, to start a new life on a tropical island with unfathomably rare natural beauty.

Samui, like all of Thailand, is constantly evolving and still offers a good margin for buying land (in the past it was a privilege of rich Thai) and/or property.
The price, even if it is continually on the rise, is still competitive compared to most other countries. If you add the low cost of labor and construction materials, Samui becomes even more attractive to investors. It is an emerging market which is extremely flexible and growing rapidly, its economic system having risen from the ashes of the financial crisis of Asian markets in 1997. Through shrewd investments it is possible to enter this highly profitable and progressive sector. Real estate sales and the development of the territory have yielded profits that are by far greater than combined investments in the stock and bond market and precious metals. International experts consider Thailand to be in fourth position for foreign investments and among the top three in Asia. What is more, it is also the most popular destination outside of Europe for Europeans, and has the highest rating among pensioners worldwide who are looking to move abroad. Ultimately, why is it you prefer Samui? Because it is a dream destination for all, both men and women, young and old, an island of palm trees, a jewel, ideal for those who have decided to make a definitive move to paradise, being able to do so with even a small pension or by investing in small capital activities which will enable them to live decently.

If you are considering moving to the island of Saumi, however, there are some careful considerations to be made. These are the most important:

• Difficulty with the language: Thai is difficult for foreigners to understand and learn (for example: Hi, how are you? sounds like this in English: sa-wat-dee-khrap, sa-bay-di-mai-khrap) so a knowledge of English, which is the second language, will be very useful in day to day life. Many documents, such as property certificates, contracts with Thai citizens, administrative forms, etc. are written in Thai, so it is best to find a good translator and interpreter.

• Customs and culture: It is necessary to always demonstrate the utmost respect for the culture and religion of the host country, where rules and behavior are dictated by a lifestyle and religion very different from those of the West. It is important to remember that in Thailand 98% of the population is Buddhist and that they have had a constitutional monarchy since 1932. Thai Royalty have unlimited respect and any utterances, conduct or disregard for them carries severe penalties.

• Visas: The length of time one is permitted to stay in Thailand depends on the type of visa. Entry and permanence in Thailand requires one of the following visas: Transit Visa: no more than 30 days – Tourist Visa: not more than 60 days – Non immigrant Visa: not more than 90 days – Diplomatic, Official and Courtesy Visa: as long as necessary.

• The commercial sector: Opening or taking over a Thai-foreign company such as a limited company (Co. Ltd.) or limited partnership (Ltd. Part.) is fairly easy, quick and economical but it is necessary to seek the services of accountant who, at a reasonable cost, can help in any of the bureaucratic matters inherent in the start-up and running of a business, including obtaining a work permit.

• Property law in Thailand: It may seem quite restrictive but it is not much different than that of many other countries, even in Europe, where specific treaties don’t exist. Generally Thai law specifies that foreigners cannot own land in their name. Rather, they can only own the edifices on the land. This restriction applies to foreign individuals and to foreign owned entities (companies and associations). There are, however, absolutely legal worry free means for purchasing real estate.

1. Long Leasing (Leasehold): It is possible to set up a lease period of thirty years, which allows the option of buying and renewing at the expiration of the period. In this way you can have the property for a total of 30+30+30 years and register the home in the name of the lease holder.

2. Company (Freehold): It is possible to open or take over a Thai limited company, to which the land may be registered. By law the company must be divided in such a manner: 49% to the foreigner and 51% to Thai partners, who in this case would simply be nominal heads. With the signing of a disclaimer, the foreigner would have the right to manage and run the company 100% autonomously as the general director, without any chance of interference and corporate allocation of quotas. Also, in this case the property would be registered in the name of the foreigner.

• Real estate investment; If you are considering making a real estate investment, if only to buy land and build a house to live in, the do-it-yourself method is highly discouraged. The illusion of saving money quickly fades with out the help of an expert in the field who can help with the selection of land and edifices, and in obtaining construction permits which are necessary for both the project management and the workers. SamuiVilla Living Project was created to provide valuable pre- and post-sales assistance with difficulties arising from the points listed above. We understand what is involved in moving to a country with completely different customs, language and culture. For this reason we offer all of our experience and expertise to help with the move here to the island. This includes help regarding consular matters, through the aid of the Italian Consulate in Samui, with which we have an excellent relationship based on friendship and cooperation. We also offer interpretation and translation services in Thai, Italian and English.

Our service involves all aspects of the real estate and commercial sector, giving the utmost attention to the needs of our customers. Most of our services are covered by the price of the property.

Much of the information presented here warrants further clarification and I would be happy to do so upon request.

Stefano Vannucci

General Manager of: SamuiVilla Living Project
Taling Ngam - Koh Samui – Thailandia

E-mail: steve_samui@hotmail.com

Web: www.SamuiVilla.co.cc

Business phone: :+66 77 415 445 Mobile: +66 835 933 104 # +66 862 739 808 Skype: stevan58

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