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Прогресс строительства проекта Samui Waterworld от New Nordic - 18 Октября 2019. Краткий фото отчет прогресса строительства проекта Samui Waterworld от New Nordic - 18 Октября 2019.
18.10.2019
Photo report of construction progress of Samui Waterworld project by New Nordic - 18 October 2019.
Прогресс строительства проекта Lamai Resorts от New Nordic - 17 Октября 2019. Краткий фото отчет прогресса строительства проекта Lamai Resorts от New Nordic - 17 Октября 2019.
17.10.2019
Photo report of construction progress of Lamai Resorts project by New Nordic - 17 October 2019.
Прогресс строительства проекта Phuket Waterworld от New Nordic - 16 Октября 2019. Краткий фото отчет прогресса строительства проекта Phuket Waterworld от New Nordic - 16 Октября 2019.
16.10.2019
Photo report of construction progress of Phuket Waterworld project by New Nordic - 16 October 2019.

New Nordic sales procedure

The process of buying apartments in New Nordic is no different from buying apartments in any condominium in Thailand.

The regulations for property purchase by the foreigners in Thailand are single and must be followed by all developers.

The buyer's nationality doesn't matter.
The regulations for property purchase by the foreigners in Thailand are the same. There are slight differences in a purchase process between the Thai and foreign citizens, however, the whole process is similar, disregarding of the foreign buyer nationality.

The sales agreement is strictly regulated by the local law and the same for all the developers. 

New Noric sales conditions:


1. You buy freehold or leasehold property (exclusive ownership right for the 90 years term). In case of buying freehold property the title deed will state your name as the owner; in case of buying the leasehold property, the factual owner will be the developer, while you are holding the ownership rights for the 90 years term.
2. You are the sole owner of the property, which means you can sell, gift or bequeath your apartments (same conditions apply to the leasehold right).

New Nordic has applied its ability to work as the hotel to the existing system. And this is how it looks like:

  • You buy apartments in one of the New Nordic projects.
  • Then, if you wish, you give the management rights to New Nordic for 3, 5, 10, 15 or 20 years, getting guaranteed 9% annual returns.
  • New Nordic is renting out your apartments as the hotel accommodation.
  • 9% annual returns are paid to your bank account monthly or quarterly, depending on the project location, disregarding the tourist occupancy rate of the building.
  • Any expenses related to the technical maintenance of your property are covered by New Nordic. New Nordic furnishes your apartments, fixes all the appliances and interiors at its own cost.
  • Only the buyer has the sole right to terminate the management agreement.
  • There are no penalties or obligations towards the buyer in case of management agreement termination. You simply have to warn New Nordic that you wish to terminate the agreement 2-3 months in prior so all the further bookings on your apartments can be canceled.
  • When the management agreement term expires (in case you didn't cancel it previously) New Nordic obliges to renovate your apartments and hand it over to you.
  • Apartments can be purchased with financing during the whole construction period (usually 1,5 - 2 years).
  • Apartments can be purchased by two persons, which means that title deed will state two persons as the co-owners.

New Nordic offers united investment and purchase options both for the leasehold and freehold property. In total there are 10 options (5 Freehold, 5 Leasehold) similar for all projects and any country New Nordic is currently represented.
 
These options have something suitable for any investor. New Nordic has also implemented inflation adjustments on the rental guarantee and the Buy Back payments.
All investors with any budget can buy Leasehold property in USD or Euro through New Nordic HKK office.

Leasehold investment options (ownership type - 90 years leasehold):

  • Option 1 - Cashback 10% from the purchase price until project completion, rental guarantee with 9% net annual returns for 3 years, guaranteed buyback with 105% rate from the original purchase price after 3 years
  • Option 2 - Cashback 10% from the purchase price until project completion, rental guarantee with 9% net annual returns for 5 years, guaranteed buyback with 110% rate from the original purchase price after 5 years
  • Option 3 - Cashback 10% from the purchase price until project completion, rental guarantee with 9% net annual returns for 10 years, guaranteed buyback with 120% rate from the original purchase price after 10 years
  • Option 4 - Cashback 10% from the purchase price until project completion, rental guarantee with 9% net annual returns for 15 years, 3% inflation adjustment after the 10th year, guaranteed buyback with 130% rate from the original purchase price after 15 years
  • Option 5 - Cashback 10% from the purchase price until project completion, rental guarantee with 9% net annual returns for 20 years, 3% inflation adjustment after the 10th year, guaranteed buyback with 140% rate from the original purchase price after 20 years

Freehold investment options (full ownership):

  • Option 1 - Cashback 10% from the purchase price until project completion, rental guarantee with 9% net annual returns for 3 years
  • Option 2 - Cashback 10% from the purchase price until project completion, rental guarantee with 9% net annual returns for 5 years
  • Option 3 - Cashback 10% from the purchase price until project completion, rental guarantee with 9% net annual returns for 10 years
  • Option 4 - Cashback 10% from the purchase price until project completion, rental guarantee with 9% net annual returns for 15 years, 3% inflation adjustment after the 10th year
  • Option 5 - Cashback 10% from the purchase price until project completion, rental guarantee with 9% net annual returns for 20 years, 3% inflation adjustment after the 10th year

The standard New Nordic payment process:

  • Apartments reservation - 50,000 Baht (~ 1.500 USD)
  • Down payment - 35%
  • The further payment plan is at the discretion of the buyer.

Are there any bonuses for the early payment?

  • You start to receive the rental guarantee payments as soon as you cover the 100% of the purchase price, not when the project construction is completed. 

New Nordic believes that covering 100% of the purchase price is the complete fulfillment of the costumer's co-investment of the project.

Considering this, 85% of the apartments in most of the projects are sold out before the construction completion, while only 15% are purchased with financing.
First of all New Nordic is investment project (there are only 10-15% of residential buyers), and usually, there are no available units in completed projects, except very few resales, since the major part of the customers are looking for the fixed income during the long period of time.

When the building is in operation there are two expenses investors have to cover:

  1. Single time expenses: ownership transfer tax (ownership transfer from New Nordic to you) - 3,15% from the purchase price, 500 USD for the electricity and water meters installation, 500 Baht per sq.m. for the sinking fund.  
  2. Regular expenses: condominium common/management fees, which cover pool cleaning, gardening, security, trash disposal, etc. - 35 Baht per sq.m. per month, 350 Baht (~11 USD) cable TV charge.
    Maintenance of the standard apartments with living space of 30-40 sq.m. will cost around 50 USD every month. In fact, this amount will be deducted from your rental guarantee payments. 

All conditions are prescribed in the sales agreement.

Difference between freehold and leasehold purchase in New Nordic investment projects:

New Nordic Freehold property:

The apartments purchase in Thailand is regulated by the Act of Condominium.
All the living space in any condominium in Thailand is divided in foreign (49%) and Thai quotas (51%) respectively, except Samui island, where foreigners have only leasehold option.
It means that foreigners can buy freehold property in the condominium without any limitations until the living space owned by the foreigners in the condominium is not exceeding 49%.

In fact, the freehold property purchase looks like this:

  • You sign the sales agreement, in which freehold is prescribed as the ownership type.
  • The purchase price is paid until the building is in operation or paid within the certain period of time prescribed by the developer if the building is already in operation.

As soon as construction is completed and the building is in operation (or after the full payment if the building is already in operation) you receive title deed (chanot) which approves you as the sole owner of the property.

Advantages of buying New Nordic freehold property

This ownership type is still the most preferable if you are planning to use your property for residential purposes, for example after the 10 years rental guarantee term.

However, if you are looking for the specific investment options, than leasehold is the best way for you.

New Nordic Leasehold property (exclusive ownership right for the limited period of time):

Technically leasehold in Thailand means the exclusive long-term rent with the ownership rights.
Simply speaking leasehold implies handing over the ownership rights from one side to another for the limited period of time. The leasehold right can be bought and sold without any limitations.
Therefore the main difference between leasehold and freehold type of ownership is the period of the ownership rights.

The maximum leasehold term in Thailand is 90 years (3 extensions by 30 years).
The leasehold agreement has elements of ownership and rent, related to each other. 

In fact, there's no difference in a purchase process between leasehold and freehold property:

  • You sign the sales agreement, in which leasehold is prescribed as the ownership type.
  • The purchase price is paid until the building is in operation or paid within the certain period of time prescribed by the developer if the building is already in operation.

As soon as construction is completed and the building is in operation (or after the full payment if the building is already in operation) you receive title deed (chanot), in which the ownership type will be prescribed as leasehold.

Advantages of buying New Nordic leasehold property:

Purchasing the leasehold property allows you to avoid the foreign property ownership declaration.

Despite leasehold prescribes your ownership rights over the property within the certain period of time, legally the final owner is the developer. This means that purchasing leasehold property is not the fact of full ownership over the property, which means you don't have to declare it abroad.

Buyback option for the leasehold property

Buyback option is the great advantage for you if you are looking to multiply your investment returns.

You can find more information regarding the buyback option and conditions in THIS ARTICLE.