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Top Adding - Should You Buy a Property in Thailand?
South East Asia has always had a special appeal for me. I first began spending time there about 5 years ago. I love the organised chaos of the roads in Bangkok, the food that is cooked right in front of you, and the haggling at the markets. Amazing. Altogether I have spent over 3 months in Thailand and I have so many fond memories, add to that the fac According to USFDA, a combination product is one composed of any combination of a drug and device; biological product and device; drug and biological product t that it is halfway to Australia and QANTAS offers a stopover of only 45 minutes which gets you to Oz quicker. It's a great destination. I usually spend a week stopover on the way back to the UK. It gives me a break after 2 gruelling weeks with the family and friends and the 2 hour massages for around ?7. What more could you want? :) So naturally l ; or drug, device, and biological product and fixed dose combination would include two or more combinations of drug. Examples of combination products may in thought if I'm spending so much time here l might as well buy a property. Then naturally if I am prepared to buy and have done extensive research why wouldn't my investors also buy as well? Having looked into Phuket property before the tsunami, I thought I would check out Pattaya (pronounced “Pat-e-ya”) which is only around 1 hour 20 minutes drive fro lude drug-coated devices, drugs packaged with delivery devices in medical kits, and drugs and devices packaged separately but intended to be used together. m the new international airport in Bangkok (the capital). Pattaya is a seaside town (tick-These ticks and crosses are my due diligence) with a new highway which will mean it will only take around 45 minutes to get to and from the airport. (tick). Pattaya has 3 distinct property markets. The first is the local market. The properties are priced betwee here is enormous increase in the number of combination products entering the market in the recent years. Combination products have proven advantages but fixe 1 and 3 million Baht (70 Baht to ?1) So ?15,000 - ?45,000. Sounds good right. Well maybe not. Unless you are a local it's unlikely you would buy at this level. You could only rent to locals and the investment returns I don't feel would be great enough. (Cross) The second and most interesting market is the 20 to 30 million Baht. ?285,000 - ?430,000. d dose combinations are still in the process of convincing regulatory authority on their advantages over the single ingredient formulations. Combination pro Incredible you say? Well thats what I thought too. In fact forget incredible — l was downright shocked. But this is the market of the off plan speculators. In my books, another word for 'speculator' is 'gambler' and hopefully you know by now what I think of gamblers. I do believe you can make money on these, but only by 'flipping' before completion bu ucts have become life saving products for the pharmaceutical companies who doesn’t have many innovative molecules in their product pipeline and have been inc t obviously there are no guarantees with prices already so high. Incidentally, this market has seen an incredible amount of growth so that waterfront apartments are as expensive as central London, Sydney or New York. (Cross) I feel that this market has been driven by paper gains rather than underlying fundamentals. I see this happen quite often, and i easingly used in the product life cycle management. Even the companies having product patents are trying to extend their product life cycle through the combi 's one of the reasons I deal in properties 99% of people would rent. The final level is the 5 to 9 million Baht. So ?70,000 - ?130,000. This is the retirees' and expats' market. You would be more than happy with these houses. 3-4 Bedrooms, large open spaces, ensuites, parking and best of all - air conditioning. These I feel would be ideal for investm nation products and maximize the revenues. But the companies involved in this practice are overlooking that they are burdening the patients both economically ent and present your best opportunities. (Tick) Rentals are great as a lot of major multinationals have offices in Bangkok and the expats are happy to commute up daily or it's cheap enough to rent a place in Bangkok during the week while spending the weekend home in Pattaya. (Tick) As an investor in Thailand the first thing you have to realise is tha and physically. They need to rightly judge the benefits of the combination products and they have to even look at the risks involved when combining the produ t you cannot own land (Cross) so at present you have two choices: either buy in the name of a Thai company and have Thai nationals who own it (but you have a signed deed saying you can replace the Thai nationals at any time). It's a reasonably secure way of buying. The other way and the way that is becoming more accepted is a freehold/leasehold simila ts. Some of the combination products were well accepted by physicians while others suffered. Companies involved in development of combination products are fi to what we are use to in the UK. A lot of new builders are structuring ownership this way. BUT… The Thai government has an unfortunate habit of changing laws so you may find yourself at the wrong end of a change. They made a decision early in 2006 that effectively stopped or severely curtailed foreign ownership (Cross) and the stock market began to s ding difficulty in defining their combination products and facing various challenges from selecting a combination to marketing it. Following aspects would a piral downwards so rapidly that they changed the law back by day's end. This sort of government backpeddling is a potential warning sign. (Cross) The country has had 18 coups since 1932, although the past 15 years have seen none until 2006. Whilst they have all been peaceful coups, they still create political instability. (Cross) On the other hand a c dd to the challenges in developing combination products: Which markets to tap where the combination products can do fairly well? Which combination prod oup to a Thai person is probably like on of our Labour politicians voting with the Lib-Dems so it's not that big a deal in reality. Most coups have been backed by the King. Thai people have an amazing allegiance to their king, wherever you go in Thailand you will see him, and as long as the King has backed the coup everything is alright. (Tick) The K cts are meaningful and rational? Which therapeutic categories to select? Which Combinations can address unmet needs of the patients? Do combin ing is the real power in Thailand, he has been an active participant and a representative of the people, and is a stable force in a thriving country. (Tick) The problem Thailand faces is that the King is getting old and may one day pass the throne onto his young son who is renowned for irresponsible antics. So no one really knows just how he will take tions increase the patient compliance? What would be the developing cost? How to tackle the risks encountered during combination product developmen to the position of King or whether the people will take to him. This could cause an instability in the investment market. (Cross) One of the biggest things overlooked when inexperienced investors seek out exotic new investment regions is how to get your money back. Oftentimes the capital growth is fantastic, so your ?20,000 investment doubles and doub t? As combination products don't fit into the traditional categories of drugs, medical devices, or biological products, the USFDA is in the process of devel les again (so you now have ?80,000). This is a paper profit until you actually sell it or remortgage it. So the essential question is not often will I make money? but how will I get paid? or who will sell it for me?, who will buy it from me?, how much tax will l pay?, how much will I have leftover? Or if you don't want to sell it how will l make the e ping new procedures for reviewing their safety, efficacy and quality. Professional from academic institutions, pharmaceutical industries, health care indust quity work for me?. Often the answer is you won't. You won't remortgage it and you won't sell it, or if you do you'll need to accept considerably less than you want for it. In Thailand mortgages are very tight. The Asian economic crisis hit Thailand particularly hard, and in fact they've only just now started continuing a number of concrete highways y and representatives from various regulatory agencies are working out to design the regulatory requirements for manufacture and sale of combination products hich stood unfinished and vacant above the ground level. These massive highways stretch for miles with no entrance and no exits and are amazing to see. The bottom line is Thai banks don't trust farang (foreigners) so you might be made to jump through hoops just to get a 50% mortgage. And if you thought getting a mortgage was hard, try remortgaging. So . As there is an increasing trend of the combination products companies manufacturing such products should be able to tackle the problems involved in the de that kind of leaves selling as the option which kind of goes against our entire philosophy. All in all, I decided that it would be better to rent out a 5 star hotel or villa on the beach for 2 weeks a year than to own a property which has so many variables. If you are interested in buying in Thailand, you can definitely make some money but as always elopment. They need to be wiser in analyzing the market trends and the regulatory requirements. Companies that provide selfless information through particip 'Do your due diligence?' I am happy to give you the research that we undertook before I went if you are interested. Live with passion, Brett :-) PS. I love Thailand and if you get to go make sure you hire a bike and get out into the real Thailand rather than just around the cities and tourist places. The people are lovely and the food is soooo good tion in industry events and feedback to regulatory authorities would be able to face the challenges and will be successful in developing combination products
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