It is November. It is the rainy season. It is wet. ‘Nuff said!
That is how I opened last months Newsletter and I have included some of the articles from the Newspapers about “what happened next!” (If you want a copy of the full Newsletter email me at hbonning@kosamuiproperties.com ) Well we did get a lot of rain for a couple of days and the problem was that the storm, instead of moving on, sat on top of us for those two days. Consequently the amount of rain that fell was so much and consistent that even with the new drainage that was installed after the previous floods a couple of years ago, it was falling faster than it could drain away. It is true that in some places there was some severe flooding, especially around the Laem Din Market, by the Chaweng Lake and along certain sections of the Beach Road, but once the rain stopped the water did actually drain away pretty quickly. In some areas the floods were worse than two years ago especially around the Reggae Street end of Chaweng Lake and the north end of the Beach Road but the big difference was that once it stopped raining the water went away very quickly. Now that did not make the situation any better for the people who had been affected as the damage had been done, but at least they were able to get back to business once the water had subsided. Clearly a lot more needs to be done to make the situation better when we get this level of flooding and hopefully the move towards Samui getting City Status can provide the additional funds to do this. In this respect a consultation document was issued in September (but only just reached my desk) explaining what the authorities were trying to do and asking for the views of the local population. There was no date by when submission had to be made but we will be making further enquiries to see how this progresses. In the meantime it has been warm and sunny and many locals believe the rainy season was short and sharp and is now over. Michael Fish – eat your heart out!
There are three kinds of lies: lies, damned lies, and statistics
This well-known saying is part of a phrase attributed to Benjamin Disraeli and popularized in the U.S. by Mark Twain. Doing research into an article I am writing I accessed the Tourist Authority of Thailand web site statistics page for Koh Samui. Whilst it is mostly in Thai, certain sections are in English and of particular interest to me were the figures representing the hotel occupancy rates for 2004 to 2006. Each year is on a separate page so in order to make a meaningful comparison I consolidated the figures into a single spreadsheet. It was only then that it became obvious there was a huge error. The figures quoted for the second half of 2005 in every category were exactly the same as the figures quoted for the second half of 2006. Statistically impossible – or am I being glib? The reality I suspect is someone cut and pasted the figures, no one updated them and no one checked them. I also looked at the figures quoted for hotel rooms in Koh Samui and tried to reconcile their figures with my own. Let us just say we differ significantly. So far they have not responded to my emails asking if we can resolve this. I am quite prepared to accept it if I have made a mistake but I somehow doubt I have missed several thousand hotel rooms. The problem therefore is having found two quite significant discrepancies in two separate tables, how accurate are the remainder, and if they are not accurate, how do they help in planning for the future? I have a strange feeling I will be running up a face saving issue here and rather than resolve the problem, it will just be ignored.
The General Election is due to take place on 23rd December and it is anyone’s guess as to how it will turn out. There is the usual bickering between the various factions with allegations and insults flying around. Par for the course I guess. Nevertheless it must be good for the country to return to civilian rule where legitimate actions and legislation can set the country back on course and not fall behind the rest of Asia where foreign business is being made more welcome every day. I am still surprised, although having lived here for so long I should not be, at the number of people who want to whisper in your ear that they know someone in Bangkok who has the inside track on how this is all going to turn out and the Ministries have already been allocated. The funny thing is of course, no one has the same story! All we can do is wait and see. Then perhaps we will discover who really did have “informed sources”!
Tuesday, 4 December 2007
Saturday, 3 November 2007
Who does an agent act for? Thoughts from Koh Samui.
It is November. It is the rainy season. It is wet. ‘Nuff said!
Donald Trump wrote a book entitled “The Art of the Deal”. As one of the most successful real estate developers in the world, he has had his ups and downs and proved the old adage that the more you owe the more you can borrow. When he was down on his last legs he owed various banks hundreds of millions of dollars. He arranged a meeting and said quite simply, you make me bankrupt and you will lose all the money you leant me or you can lend me more and I will get out of this mess – take your choice. They really had none, they gave him the money he needed and he climbed back to the top with some outrageously difficult but ultimately profitable schemes.
The main thrust of his book though was know your adversary, information is king, know the strengths and weaknesses of the other side and be prepared to walk away from a deal that is not right. “The Art of the Deal” was written from the perspective of the Principle, the decision maker, the man who controlled the money and who decided where and what was invested. An agent or broker still has to know how to make a deal but he is in a different position to the Principal in that he is the third party in a transaction and it is the job of the agent to bring two or more parties together to a conclusion acceptable to each side.
An Agent is “a person or business authorized to act on another's behalf”. The extent of that authorization is determined by agreement between the parties. As a Real Estate Agent we are authorised to offer properties for sale or to let on behalf of a Client. It is the Client who will pay our fee and it is the Client to whom we have the principal responsibility to negotiate the best deal on their behalf. This in no way diminishes our responsibility to the other party to provide accurate and honest information and not to provide misleading information. The extent of the authority an agent has can vary. Offering a property for sale is a basic and common relationship and usually evidenced by a simple contract or letter of appointment. At the other end, and I have been in this situation, bidding for a Client at an Auction requires far more.
A Sale at auction becomes legally binding on the fall of the Auctioneers Gavel. So if you have the winning bid, you need as an agent both a full Power of Attorney to sign on behalf of the Client and funds to pay the required deposit. Without this the agent would be legally bound to complete the sale himself. There is also an art to bidding at Auction for a Client. You will have specific instructions to bid up to a certain amount. You therefore must concentrate on the how the bidding is progressing and in what amounts. It is crucial that your last bid (if it gets that far) is the highest bid your Client has authorised, therefore you need to get into the bidding at a level that allows that last bid to be yours. For example, if the bids are increasing in £1,000 steps and your highest bid is say £50,000, then you need to be in the bidding no later than £48,000, preferably earlier but on the even numbers so when £49,000 is bid you can get your highest bid, £50,000, in next. Your Client would be very unhappy if you bid £49,000 and £50,000 bought it!
I was asked recently by a friend, who has been living part time on the island but who is now selling his house, to comment on an approach he had received from a “broker’ in respect of the sale of his house. The “broker” has a client who was interested in my friends house but the introduction to the house had been through two other people, one of whom he would have to share his commission with, the other would have to be taken care of by the seller, my friend. He did not disclose the name of the potential buyer, nor pass on any offer. His only concern was how much commission was the seller going to pay him and if it was not enough he would be unable to recommend the deal to his buyer. This is probably among the best cases of un-professionalism I have come across in over 35 years of working in international real estate. He forgot the first principle of this business – the Client comes first.
As an agent it is not our decision whether or not any offer is acceptable. Even if an offer is made that is derisory we have a duty to make that offer known to the Seller. We cannot know the personal circumstances of that person and however bad the offer is, it may just suit the seller to accept it at that time. Indeed a few years ago that precise situation happened to me. An offer was made on a property that was way below the asking price and below the real value. As a matter of course I informed my Client and to my surprise he told me to accept the offer and close the deal. His reasons were personal but the offer, as bad as it was, came at the right time for him and he has never regretted his decision. As an agent we still negotiate deals, but unlike “The Donald” we can only do so within the parameters set by our Clients, but must never forget that these parameters can change.
Donald Trump wrote a book entitled “The Art of the Deal”. As one of the most successful real estate developers in the world, he has had his ups and downs and proved the old adage that the more you owe the more you can borrow. When he was down on his last legs he owed various banks hundreds of millions of dollars. He arranged a meeting and said quite simply, you make me bankrupt and you will lose all the money you leant me or you can lend me more and I will get out of this mess – take your choice. They really had none, they gave him the money he needed and he climbed back to the top with some outrageously difficult but ultimately profitable schemes.
The main thrust of his book though was know your adversary, information is king, know the strengths and weaknesses of the other side and be prepared to walk away from a deal that is not right. “The Art of the Deal” was written from the perspective of the Principle, the decision maker, the man who controlled the money and who decided where and what was invested. An agent or broker still has to know how to make a deal but he is in a different position to the Principal in that he is the third party in a transaction and it is the job of the agent to bring two or more parties together to a conclusion acceptable to each side.
An Agent is “a person or business authorized to act on another's behalf”. The extent of that authorization is determined by agreement between the parties. As a Real Estate Agent we are authorised to offer properties for sale or to let on behalf of a Client. It is the Client who will pay our fee and it is the Client to whom we have the principal responsibility to negotiate the best deal on their behalf. This in no way diminishes our responsibility to the other party to provide accurate and honest information and not to provide misleading information. The extent of the authority an agent has can vary. Offering a property for sale is a basic and common relationship and usually evidenced by a simple contract or letter of appointment. At the other end, and I have been in this situation, bidding for a Client at an Auction requires far more.
A Sale at auction becomes legally binding on the fall of the Auctioneers Gavel. So if you have the winning bid, you need as an agent both a full Power of Attorney to sign on behalf of the Client and funds to pay the required deposit. Without this the agent would be legally bound to complete the sale himself. There is also an art to bidding at Auction for a Client. You will have specific instructions to bid up to a certain amount. You therefore must concentrate on the how the bidding is progressing and in what amounts. It is crucial that your last bid (if it gets that far) is the highest bid your Client has authorised, therefore you need to get into the bidding at a level that allows that last bid to be yours. For example, if the bids are increasing in £1,000 steps and your highest bid is say £50,000, then you need to be in the bidding no later than £48,000, preferably earlier but on the even numbers so when £49,000 is bid you can get your highest bid, £50,000, in next. Your Client would be very unhappy if you bid £49,000 and £50,000 bought it!
I was asked recently by a friend, who has been living part time on the island but who is now selling his house, to comment on an approach he had received from a “broker’ in respect of the sale of his house. The “broker” has a client who was interested in my friends house but the introduction to the house had been through two other people, one of whom he would have to share his commission with, the other would have to be taken care of by the seller, my friend. He did not disclose the name of the potential buyer, nor pass on any offer. His only concern was how much commission was the seller going to pay him and if it was not enough he would be unable to recommend the deal to his buyer. This is probably among the best cases of un-professionalism I have come across in over 35 years of working in international real estate. He forgot the first principle of this business – the Client comes first.
As an agent it is not our decision whether or not any offer is acceptable. Even if an offer is made that is derisory we have a duty to make that offer known to the Seller. We cannot know the personal circumstances of that person and however bad the offer is, it may just suit the seller to accept it at that time. Indeed a few years ago that precise situation happened to me. An offer was made on a property that was way below the asking price and below the real value. As a matter of course I informed my Client and to my surprise he told me to accept the offer and close the deal. His reasons were personal but the offer, as bad as it was, came at the right time for him and he has never regretted his decision. As an agent we still negotiate deals, but unlike “The Donald” we can only do so within the parameters set by our Clients, but must never forget that these parameters can change.
Monday, 1 October 2007
News from Koh Samui for October
Statistics issued by the Association of Thai Travel Agents indicate a sharp drop in foreign tourist arrivals through Bangkok’s Suvarnabhumi Airport for the first eight months of this year. This may not be indicative of tourist arrivals overall as the figures do not include international arrivals into Koh Samui, Phuket, Chiang Mai and Krabi. What is interesting about the figures is that the main fall in numbers is from Asian countries such as China, Japan and Korea, the suggestion being that tourists from these countries are saving for the Olympic Games in China in 2008 which is an interesting concept to consider in relation to what will happen to tourism in Thailand next year. Major sporting events around the world are now so popular and well attended that they do appear to have an effect on the tourism of other destinations – sometimes positively. If I think back to the Rugby World Cup in 2003 which was held in Australia, there was no doubt that Samui and probably Thailand benefited as people travelled through and stopped over on their way there and back. Some even stayed here for the whole tournament as the television timing was friendlier than in Europe and it was considerably cheaper than going on to Australia. The Soccer World Cup in 2006 had the opposite effect with many people taking their vacations in Germany, although there was one group who found the cost of tickets so expensive that for the same price they flew out to Koh Samui for four weeks and still watched all the games in various bars around the island! So will the Beijing Olympics be good for Thailand or not? The implication from the statistics is that it will not, at least as far as other Asian tourists are concerned. However, the statistics also showed that there was an increase in tourists from Europe, in particular France, the UK and Russia. People are still travelling despite the hassle of modern airline security procedures and perceived political problems here, so will we see the same phenomena as we saw in 2003 as people travel to and from China, or will the Games and China itself be too attractive for them to take side trips? We must wait and see.
This year has seen a number of high quality hotels open, or announce their intention to open, on Koh Samui. This includes The Four Seasons which opened earlier this year on the north west peninsular, Banyan Tree due to open in 2008, Conrad in the south west, W in the north, Club Med in an as yet undisclosed location, although thought to be on one of the small islands off the south west coast, Park Hyatt in Tong Krut Bay due to open in late 2009 and word on the grape vine is that there are two more world class operators also about to announce their intentions. We are also working closely with a major hotel group in the acquisition of a property here and expect an announcement to be made early in the New Year. Koh Samui is without doubt becoming a major destination island and the hotel brands coming here are all the top of the range within their groups. Koh Samui is definitely going up-market and the constant moan is that the island has lost its charm. Well I would suggest that this may be true for the ageing backpacker who first came here 20 years ago, but for anyone coming here for the first time it still has a great deal to offer. Has the infrastructure kept up with development – well obviously not but it is slowly and gradually improving and it is the pressure of development that has made this happen. If all the houses and hotels that have been built over the last few years had not been built, there would have been no need to increase the electricity supply, address the water issue and, whether you like it or not, attract the likes of Lotus Tesco, Makro, Big C and Home Pro. When I first came here six years ago power cuts were frequent even before development started, many places relied solely on shallow wells with water of dubious quality. Shopping was a hit and miss affair with limited choice and poor quality. Since then a second electrical supply cable has been laid from the mainland a desalination plant built and a water ring main installed round the island. Obviously this has been of benefit to the tourist industry and business generally but it has also improved the living standards of the local Samui population, something that probably would not have happened without the pressure of development. Complaints are heard that Tesco, Makro and Big C are harming small supermarkets. The same supermarkets I shopped at six years ago are still here and where do they buy their stock? Lotus, Makro and Big C and at wholesale prices. So there have been many positives to the development that has taken place, but probably the biggest negative has been the effect on the roads with so many concrete lorries and construction vehicles continually on the move. The main roads are the responsibility of the Surat Thani Highways Department and anyone taking the ferry to Don Sak must wonder how they manage to build such a quality road from the ferry port into Surat Thani but cannot do the same on Samui. No one at any level of government has been able to answer that yet. Is Samui overdeveloped? Possibly in the short term in relation to current demand, but once the political situation has clarified itself after the General Election in December I believe that there is a large pent up demand waiting to come here. Is Samui over developed as an island per se? Take a boat trip round the island and look inland. I did this a few weeks ago and was quite surprised at the vast areas of totally development free land there – a great deal of course high in the hills under the control of the Forestry Department and therefore safe from development. Almost all the development that has taken place and is planned, with the exception of the Choengmon peninsular, is within one to two kilometers of the sea. There are indeed some eyesores that have appeared and I am sure that some judicial use of colour and/or landscaping would lessen their visual impact. The Local Authority has taken some steps in this direction by only allowing earth tone colours for roof tiles. The real estate market has taken a breather but it has not collapsed as some people thought it would. Sales are still happening if at a slower pace, but we have not seen any significant drop in values. Samui is definitely emerging as a high value resort destination and for those with spare cash, the Thailand Elite Card, details of which I can send you if you contact me by email, offers freedom from the hassle of border runs and visa renewals. Certainly not for everyone due to the cost, but for those with a high net worth who play golf and use spas and who are seeking an easy life – well worth considering.
A quick reminder if you are planning a trip to Samui in November – Loh Kratong falls on the 24th November this year. If you have never seen this before it is well worth planning your visit around this Festival where hundreds if not thousands of candle lit Kratongs are set afloat in the sea, on lakes and rivers. More details on that in a future Newsletter.
This year has seen a number of high quality hotels open, or announce their intention to open, on Koh Samui. This includes The Four Seasons which opened earlier this year on the north west peninsular, Banyan Tree due to open in 2008, Conrad in the south west, W in the north, Club Med in an as yet undisclosed location, although thought to be on one of the small islands off the south west coast, Park Hyatt in Tong Krut Bay due to open in late 2009 and word on the grape vine is that there are two more world class operators also about to announce their intentions. We are also working closely with a major hotel group in the acquisition of a property here and expect an announcement to be made early in the New Year. Koh Samui is without doubt becoming a major destination island and the hotel brands coming here are all the top of the range within their groups. Koh Samui is definitely going up-market and the constant moan is that the island has lost its charm. Well I would suggest that this may be true for the ageing backpacker who first came here 20 years ago, but for anyone coming here for the first time it still has a great deal to offer. Has the infrastructure kept up with development – well obviously not but it is slowly and gradually improving and it is the pressure of development that has made this happen. If all the houses and hotels that have been built over the last few years had not been built, there would have been no need to increase the electricity supply, address the water issue and, whether you like it or not, attract the likes of Lotus Tesco, Makro, Big C and Home Pro. When I first came here six years ago power cuts were frequent even before development started, many places relied solely on shallow wells with water of dubious quality. Shopping was a hit and miss affair with limited choice and poor quality. Since then a second electrical supply cable has been laid from the mainland a desalination plant built and a water ring main installed round the island. Obviously this has been of benefit to the tourist industry and business generally but it has also improved the living standards of the local Samui population, something that probably would not have happened without the pressure of development. Complaints are heard that Tesco, Makro and Big C are harming small supermarkets. The same supermarkets I shopped at six years ago are still here and where do they buy their stock? Lotus, Makro and Big C and at wholesale prices. So there have been many positives to the development that has taken place, but probably the biggest negative has been the effect on the roads with so many concrete lorries and construction vehicles continually on the move. The main roads are the responsibility of the Surat Thani Highways Department and anyone taking the ferry to Don Sak must wonder how they manage to build such a quality road from the ferry port into Surat Thani but cannot do the same on Samui. No one at any level of government has been able to answer that yet. Is Samui overdeveloped? Possibly in the short term in relation to current demand, but once the political situation has clarified itself after the General Election in December I believe that there is a large pent up demand waiting to come here. Is Samui over developed as an island per se? Take a boat trip round the island and look inland. I did this a few weeks ago and was quite surprised at the vast areas of totally development free land there – a great deal of course high in the hills under the control of the Forestry Department and therefore safe from development. Almost all the development that has taken place and is planned, with the exception of the Choengmon peninsular, is within one to two kilometers of the sea. There are indeed some eyesores that have appeared and I am sure that some judicial use of colour and/or landscaping would lessen their visual impact. The Local Authority has taken some steps in this direction by only allowing earth tone colours for roof tiles. The real estate market has taken a breather but it has not collapsed as some people thought it would. Sales are still happening if at a slower pace, but we have not seen any significant drop in values. Samui is definitely emerging as a high value resort destination and for those with spare cash, the Thailand Elite Card, details of which I can send you if you contact me by email, offers freedom from the hassle of border runs and visa renewals. Certainly not for everyone due to the cost, but for those with a high net worth who play golf and use spas and who are seeking an easy life – well worth considering.
A quick reminder if you are planning a trip to Samui in November – Loh Kratong falls on the 24th November this year. If you have never seen this before it is well worth planning your visit around this Festival where hundreds if not thousands of candle lit Kratongs are set afloat in the sea, on lakes and rivers. More details on that in a future Newsletter.
Friday, 7 September 2007
It's September in Koh Samui!
The new Constitution was approved at the Referendum on 19th August and the General Election has been announced for December 23rd subject to formal confirmation. It is anticipated and indeed hoped that a new democratic government will have a more realistic and pragmatic approach to the issues that have been creating lack of confidence in foreign investors over the last twelve months. There are many people with whom we are in communication all over the world and, with a few exceptions, most are deferring investment decisions until early next year. The indications are, that with a sensible resolution to foreign investment, Thailand, and Samui in particular, will not only recover but continue to flourish.
I received a phone call the other day from a rather nice sounding young lady in the UK. She worked for “the largest non-bank” foreign exchange company in England and would like to introduce me to the wonderful deals she could offer my clients on currency exchange. Not only did they get such wonderful exchange rates but there were no transfer charges. Well this was really interesting so I let her carry on with her sales pitch which was probably unfair because I knew how much of a sticky wicket she was on, but she did not. Eventually I had to ask her if she was aware that the Thai Baht traded at different rates onshore and offshore. No she did not but she was sure they could get a better rate in England. I asked her if she was aware that there was currently a 5 Baht difference in the two rates and that made a difference of £1,275 on One Million Baht? I asked her if she was aware that by transferring funds into Thailand in Thai Baht meant that you could not get a Foreign Exchange Transaction Certificate and what were the consequences of that? Of course she had no answer to this and said she had to check back with the trading desk and would get back to me. Of course she did not. The problem is that I am seeing more of these companies trying to persuade people to use their services on the promise of better exchange rates and free transfers. The reality is that in all my time here in Thailand I have always obtained better rates onshore even when the difference was marginal rather than the large gap we have now. As shown above it will cost you £1,275 more to buy one million Baht offshore than on shore. But it does not end there. The Foreign Exchange Transaction Certificate will be needed if and when you want to transfer funds out of Thailand without incurring any tax liability. It is the evidence you need to say ‘I brought this money in, and I can take it out!” Without the FETC the Revenue Department will assume you earned the money here and it is therefore taxable. FETC’s are only issued on amounts in excess of $US20,000 and consequently sending funds out of Thailand in amounts less than $US20,000 is generally not a problem but the original “Inward Transfer Advice” from your bank showing when funds arrived and how much should be sufficient to avoid any Revenue Department demands.
Big C Supermarket opened on 6th September as welcome competition to Lotus Tesco. I recall when Lotus Tesco first opened here it was really quite exciting as suddenly we had access to a much wider range of product than had previously been available in the local supermarkets. Sometimes we forget what it was like before they came, going from one supermarket to another to find what you were looking for. Of course the novelty wore off and the shortcomings of Lotus Tesco became apparent – supply chain problems, uninterested staff etc. Will Big C be any better? Let us at least hope some competition makes both companies a little sharper. Big C is located just south of Bandon Hospital on the Ring Road.
One good thing about Lotus Tesco was that it incorporated a Cinema and, whilst we do not get every major film release, those we do get we get at the same time as they open internationally which is not bad for a small island in the south of Thailand. Last month we had both “Rush Hour 3” and “The Bourne Ultimatum”. The theatres are modern and comfortable and for the romantics the back row has the “Honeymoon” seats, two large seats joined together. The row in front, Row A, is my preference as they have given extra leg room to the next row which allows you to stretch out in comfort. At Baht 140 a seat, good value. Coke and Popcorn Baht 80 a cheap couple of hours of good entertainment.
A quick reminder if you are planning a trip to Samui in November – Loh Kratong falls on the 24th November this year. If you have never seen this before it is well worth planning your visit around this Festival where hundreds if not thousands of candle lit Kratongs are set afloat in the sea, on lakes and rivers. More details on that in a future Newsletter.
For other Festivals around Thailand visit the Tourist Authority of Thailand website.
I received a phone call the other day from a rather nice sounding young lady in the UK. She worked for “the largest non-bank” foreign exchange company in England and would like to introduce me to the wonderful deals she could offer my clients on currency exchange. Not only did they get such wonderful exchange rates but there were no transfer charges. Well this was really interesting so I let her carry on with her sales pitch which was probably unfair because I knew how much of a sticky wicket she was on, but she did not. Eventually I had to ask her if she was aware that the Thai Baht traded at different rates onshore and offshore. No she did not but she was sure they could get a better rate in England. I asked her if she was aware that there was currently a 5 Baht difference in the two rates and that made a difference of £1,275 on One Million Baht? I asked her if she was aware that by transferring funds into Thailand in Thai Baht meant that you could not get a Foreign Exchange Transaction Certificate and what were the consequences of that? Of course she had no answer to this and said she had to check back with the trading desk and would get back to me. Of course she did not. The problem is that I am seeing more of these companies trying to persuade people to use their services on the promise of better exchange rates and free transfers. The reality is that in all my time here in Thailand I have always obtained better rates onshore even when the difference was marginal rather than the large gap we have now. As shown above it will cost you £1,275 more to buy one million Baht offshore than on shore. But it does not end there. The Foreign Exchange Transaction Certificate will be needed if and when you want to transfer funds out of Thailand without incurring any tax liability. It is the evidence you need to say ‘I brought this money in, and I can take it out!” Without the FETC the Revenue Department will assume you earned the money here and it is therefore taxable. FETC’s are only issued on amounts in excess of $US20,000 and consequently sending funds out of Thailand in amounts less than $US20,000 is generally not a problem but the original “Inward Transfer Advice” from your bank showing when funds arrived and how much should be sufficient to avoid any Revenue Department demands.
Big C Supermarket opened on 6th September as welcome competition to Lotus Tesco. I recall when Lotus Tesco first opened here it was really quite exciting as suddenly we had access to a much wider range of product than had previously been available in the local supermarkets. Sometimes we forget what it was like before they came, going from one supermarket to another to find what you were looking for. Of course the novelty wore off and the shortcomings of Lotus Tesco became apparent – supply chain problems, uninterested staff etc. Will Big C be any better? Let us at least hope some competition makes both companies a little sharper. Big C is located just south of Bandon Hospital on the Ring Road.
One good thing about Lotus Tesco was that it incorporated a Cinema and, whilst we do not get every major film release, those we do get we get at the same time as they open internationally which is not bad for a small island in the south of Thailand. Last month we had both “Rush Hour 3” and “The Bourne Ultimatum”. The theatres are modern and comfortable and for the romantics the back row has the “Honeymoon” seats, two large seats joined together. The row in front, Row A, is my preference as they have given extra leg room to the next row which allows you to stretch out in comfort. At Baht 140 a seat, good value. Coke and Popcorn Baht 80 a cheap couple of hours of good entertainment.
A quick reminder if you are planning a trip to Samui in November – Loh Kratong falls on the 24th November this year. If you have never seen this before it is well worth planning your visit around this Festival where hundreds if not thousands of candle lit Kratongs are set afloat in the sea, on lakes and rivers. More details on that in a future Newsletter.
For other Festivals around Thailand visit the Tourist Authority of Thailand website.
Thursday, 2 August 2007
Koh Samui round up August 2007
I know we Brits tend to talk too much about the weather but the first half of July was really very pleasant in respect of temperatures and we did not get too much rain. Some evenings were extremely pleasant – for us Europeans anyway. My wife did not agree and found it cold so I told her to do the ironing and that would warm her up. Apparently my food is likely to be as cold as the weather for a while.
I am pleased to say that after the last two months I am more positive about the future of the real estate market here in Samui than I have been for some time. Since the beginning of June we have seen more activity and concluded more deals than for a long time. Another phenomena has been the increase in visitors to our web site which has trebled since August last year and doubled since March of this year. This indicates that interest in Koh Samui is coming back and that people are starting to look again and in consequence of that we are now receiving more serious enquiries, mostly by email from people anticipating visiting the island over the next few months.
There has been much discussion over the last couple of years about the prospect of Koh Samui receiving City Status and the present Mayor is pushing very hard for this. Whilst it is true that Koh Samui now has the requisite 50,000 registered population, it does not quite meet the second requirement of density which is 3,000 per square kilometer. Koh Samui is roughly 525 square kilometers so only has a density of 95/sq km. Now this being Thailand you can guarantee there will be a way round this and one suggestion I have heard is that Koh Samui, Koh Phangan and Koh Tao could be made a Special Economic Zone, as Bangkok and Pattaya, which would have much the same effect. Nothing is likely to happen before the Election but watch this space!
The Buddhist Holy Day of Asarnha Bucha fell this year on Sunday 29th July. Asarnha Bucha Day is the day considered to be the birth of Buddhism, as the Buddha departed the location where he obtained his enlightenment two months earlier and then, coming to a forest area in the city of Pharansi, where he showed favour to five ascetics who became his followers. So this is a very Holy day in the Buddhist religion which is why bars are shut for that day and the day following the start of Buddhist Lent (Asarnha Bucha Day) is another important Buddhist Holy day called Khao Pansaa where the Monks traditionally retreat to the Temple at which they were ordained for three months during the rainy season. I mention this after the event because the longer you live in Thailand and the longer you have a Thai wife the more you learn about Thai culture and the ceremonies. Now let us say my dear wife has reached “a certain age” and as a consequence our joint ages are near enough to 100 so that we had to enact a special ceremony involving eels. Now before you let your imagination run away with you this all occurred in public in broad daylight. First we had to buy ten live eels each from Laem Din market after which we proceeded to the Chaweng Lake, fired up the joss sticks, said a few prayers and set the eels free in the lake. Apparently this is to bring us good luck and good fortune for the coming year. After the year we have just been through I think I will go back and set some more free today!!
Talking of bars closing last Sunday, I called one bar owner and asked where she was. She said she was in the bar. I asked if they were open then. Her reply “Just a little bit!” Such is Thailand!
A quick reminder if you are planning a trip to Samui in November – Loh Kratong falls on the 24th November this year. If you have never seen this before it is well worth planning your visit around this Festival where hundreds if not thousands of candle lit Kratongs are set afloat in the sea, on lakes and rivers. More details on that in a future Newsletter.
________________________________________
Do you have a question?
Do you have a question you would like answering on real estate in Koh Samui? Please feel free to email me directly and I will give you the benefit of my experience over the last 35 years in the international real estate business and six years in Koh Samui. I can answer you privately or, if the question is of general interest, I can publish the reply in this Newsletter – without naming you of course!
E Mail me at hbonning@kosamuiproperties.com
I am pleased to say that after the last two months I am more positive about the future of the real estate market here in Samui than I have been for some time. Since the beginning of June we have seen more activity and concluded more deals than for a long time. Another phenomena has been the increase in visitors to our web site which has trebled since August last year and doubled since March of this year. This indicates that interest in Koh Samui is coming back and that people are starting to look again and in consequence of that we are now receiving more serious enquiries, mostly by email from people anticipating visiting the island over the next few months.
There has been much discussion over the last couple of years about the prospect of Koh Samui receiving City Status and the present Mayor is pushing very hard for this. Whilst it is true that Koh Samui now has the requisite 50,000 registered population, it does not quite meet the second requirement of density which is 3,000 per square kilometer. Koh Samui is roughly 525 square kilometers so only has a density of 95/sq km. Now this being Thailand you can guarantee there will be a way round this and one suggestion I have heard is that Koh Samui, Koh Phangan and Koh Tao could be made a Special Economic Zone, as Bangkok and Pattaya, which would have much the same effect. Nothing is likely to happen before the Election but watch this space!
The Buddhist Holy Day of Asarnha Bucha fell this year on Sunday 29th July. Asarnha Bucha Day is the day considered to be the birth of Buddhism, as the Buddha departed the location where he obtained his enlightenment two months earlier and then, coming to a forest area in the city of Pharansi, where he showed favour to five ascetics who became his followers. So this is a very Holy day in the Buddhist religion which is why bars are shut for that day and the day following the start of Buddhist Lent (Asarnha Bucha Day) is another important Buddhist Holy day called Khao Pansaa where the Monks traditionally retreat to the Temple at which they were ordained for three months during the rainy season. I mention this after the event because the longer you live in Thailand and the longer you have a Thai wife the more you learn about Thai culture and the ceremonies. Now let us say my dear wife has reached “a certain age” and as a consequence our joint ages are near enough to 100 so that we had to enact a special ceremony involving eels. Now before you let your imagination run away with you this all occurred in public in broad daylight. First we had to buy ten live eels each from Laem Din market after which we proceeded to the Chaweng Lake, fired up the joss sticks, said a few prayers and set the eels free in the lake. Apparently this is to bring us good luck and good fortune for the coming year. After the year we have just been through I think I will go back and set some more free today!!
Talking of bars closing last Sunday, I called one bar owner and asked where she was. She said she was in the bar. I asked if they were open then. Her reply “Just a little bit!” Such is Thailand!
A quick reminder if you are planning a trip to Samui in November – Loh Kratong falls on the 24th November this year. If you have never seen this before it is well worth planning your visit around this Festival where hundreds if not thousands of candle lit Kratongs are set afloat in the sea, on lakes and rivers. More details on that in a future Newsletter.
________________________________________
Do you have a question?
Do you have a question you would like answering on real estate in Koh Samui? Please feel free to email me directly and I will give you the benefit of my experience over the last 35 years in the international real estate business and six years in Koh Samui. I can answer you privately or, if the question is of general interest, I can publish the reply in this Newsletter – without naming you of course!
E Mail me at hbonning@kosamuiproperties.com
Tuesday, 3 July 2007
News Round up from Koh Samui June 2007
The news has been fairly disjointed this month with nothing substantial worth commenting on. Mainly a lot of political in fighting following the dissolution of the Thai Rak Thai Party and the on going campaign against Mr T. who may or may not come back to Thailand to defend himself and whose safety the government say is guaranteed but the military say is not! In the UK we call this the silly season where the newspapers concentrate on the bizarre and odd stories that sell papers. I am not sure it quite works like that in Thailand and you get the feeling that the heavy hand of censorship is at work playing down the growing unrest at the present government. Certainly the rumours that we hear, and they are only rumours, are that the present economic limbo that Thailand finds itself in is at last being understood by those in power even if they do not know how to deal with it. However, those that do know what needs to be done and know how to do it are preparing themselves for power after the elections in December although it is now being reported that they might bring the Elections forward to November. We also “hear” that the lack of confidence and uncertainty surrounding the interpretation of the Foreign Business Act is very high on the agenda. Thailand still has a way to go to get back to normal but the indications are that this will happen, it may be a few months yet, but for those willing and able to hang on the future should be pretty bright.
For all the bad news that has been generated over recent months with regard to the economy and the FBA, we have seen an upturn in activity and June was probably our busiest month this year. There is no doubt that there are a lot of people out there who see this as a good time to buy real estate – and there are deals to be had with out a doubt – provided you get the legal niceties right. If the Newspaper reports are correct we appear to have a red carpet full of celebrities queuing up to buy property on Koh Samui. Sven-Goran Eriksson has bought and so has the world's No-1 female tennis player, Justine Henin. Now David Beckham has joined the list of possible purchasers with Wayne Rooney’s name being mentioned as well although we have it on very good authority that this is just one of those rumours that circulate here now and again. The list of five-star hotels wanting to be represented here is growing with Club Med also joining the list along with another internationally known brand we cannot name for confidentiality reasons that we are representing.
We are often asked about medical facilities on Koh Samui and in particular Dentists. From my experience in Thailand, Dental treatment here is not only cheap in comparison to Europe, Australia and the USA, but is also very good. Prices will vary between Clinics but as a guide a simple filling can cost as little as Baht 1,000, a Root Canal Baht 4,000 and Crowns between Baht 7,500 and Baht 15,000. Over the last five years numerous Dental Clinics have appeared and of course the Hospitals have their own. The only thing I would suggest is that you need some idea of what you want doing as there is a tendency for some Clinics to try and sell Cosmetic Dentistry on top of routine maintenance.
For all the bad news that has been generated over recent months with regard to the economy and the FBA, we have seen an upturn in activity and June was probably our busiest month this year. There is no doubt that there are a lot of people out there who see this as a good time to buy real estate – and there are deals to be had with out a doubt – provided you get the legal niceties right. If the Newspaper reports are correct we appear to have a red carpet full of celebrities queuing up to buy property on Koh Samui. Sven-Goran Eriksson has bought and so has the world's No-1 female tennis player, Justine Henin. Now David Beckham has joined the list of possible purchasers with Wayne Rooney’s name being mentioned as well although we have it on very good authority that this is just one of those rumours that circulate here now and again. The list of five-star hotels wanting to be represented here is growing with Club Med also joining the list along with another internationally known brand we cannot name for confidentiality reasons that we are representing.
We are often asked about medical facilities on Koh Samui and in particular Dentists. From my experience in Thailand, Dental treatment here is not only cheap in comparison to Europe, Australia and the USA, but is also very good. Prices will vary between Clinics but as a guide a simple filling can cost as little as Baht 1,000, a Root Canal Baht 4,000 and Crowns between Baht 7,500 and Baht 15,000. Over the last five years numerous Dental Clinics have appeared and of course the Hospitals have their own. The only thing I would suggest is that you need some idea of what you want doing as there is a tendency for some Clinics to try and sell Cosmetic Dentistry on top of routine maintenance.
News Round up from Koh Samui June 2007
The news has been fairly disjointed this month with nothing substantial worth commenting on. Mainly a lot of political in fighting following the dissolution of the Thai Rak Thai Party and the on going campaign against Mr T. who may or may not come back to Thailand to defend himself and whose safety the government say is guaranteed but the military say is not! In the UK we call this the silly season where the newspapers concentrate on the bizarre and odd stories that sell papers. I am not sure it quite works like that in Thailand and you get the feeling that the heavy hand of censorship is at work playing down the growing unrest at the present government. Certainly the rumours that we hear, and they are only rumours, are that the present economic limbo that Thailand finds itself in is at last being understood by those in power even if they do not know how to deal with it. However, those that do know what needs to be done and know how to do it are preparing themselves for power after the elections in December although it is now being reported that they might bring the Elections forward to November. We also “hear” that the lack of confidence and uncertainty surrounding the interpretation of the Foreign Business Act is very high on the agenda. Thailand still has a way to go to get back to normal but the indications are that this will happen, it may be a few months yet, but for those willing and able to hang on the future should be pretty bright.
For all the bad news that has been generated over recent months with regard to the economy and the FBA, we have seen an upturn in activity and June was probably our busiest month this year. There is no doubt that there are a lot of people out there who see this as a good time to buy real estate – and there are deals to be had with out a doubt – provided you get the legal niceties right. If the Newspaper reports are correct we appear to have a red carpet full of celebrities queuing up to buy property on Koh Samui. Sven-Goran Eriksson has bought and so has the world's No-1 female tennis player, Justine Henin. Now David Beckham has joined the list of possible purchasers with Wayne Rooney’s name being mentioned as well although we have it on very good authority that this is just one of those rumours that circulate here now and again. The list of five-star hotels wanting to be represented here is growing with Club Med also joining the list along with another internationally known brand we cannot name for confidentiality reasons that we are representing.
We are often asked about medical facilities on Koh Samui and in particular Dentists. From my experience in Thailand, Dental treatment here is not only cheap in comparison to Europe, Australia and the USA, but is also very good. Prices will vary between Clinics but as a guide a simple filling can cost as little as Baht 1,000, a Root Canal Baht 4,000 and Crowns between Baht 7,500 and Baht 15,000. Over the last five years numerous Dental Clinics have appeared and of course the Hospitals have their own. The only thing I would suggest is that you need some idea of what you want doing as there is a tendency for some Clinics to try and sell Cosmetic Dentistry on top of routine maintenance.
For all the bad news that has been generated over recent months with regard to the economy and the FBA, we have seen an upturn in activity and June was probably our busiest month this year. There is no doubt that there are a lot of people out there who see this as a good time to buy real estate – and there are deals to be had with out a doubt – provided you get the legal niceties right. If the Newspaper reports are correct we appear to have a red carpet full of celebrities queuing up to buy property on Koh Samui. Sven-Goran Eriksson has bought and so has the world's No-1 female tennis player, Justine Henin. Now David Beckham has joined the list of possible purchasers with Wayne Rooney’s name being mentioned as well although we have it on very good authority that this is just one of those rumours that circulate here now and again. The list of five-star hotels wanting to be represented here is growing with Club Med also joining the list along with another internationally known brand we cannot name for confidentiality reasons that we are representing.
We are often asked about medical facilities on Koh Samui and in particular Dentists. From my experience in Thailand, Dental treatment here is not only cheap in comparison to Europe, Australia and the USA, but is also very good. Prices will vary between Clinics but as a guide a simple filling can cost as little as Baht 1,000, a Root Canal Baht 4,000 and Crowns between Baht 7,500 and Baht 15,000. Over the last five years numerous Dental Clinics have appeared and of course the Hospitals have their own. The only thing I would suggest is that you need some idea of what you want doing as there is a tendency for some Clinics to try and sell Cosmetic Dentistry on top of routine maintenance.
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