Family Money: Get real about real estate
Part 2
By Leslie
Wright,
Managing director of Westminster Portfolio Services (Thailand) Ltd.
For their own protection
Some local real estate firms trumpet in their
advertisements that foreigners can now own their own property. In reality
this is just a clever ploy to get you through their doors. The mechanism
which has been used for years to get around this protectionist law has not
in fact changed.
An expatriate can own a condominium in his own name
provided not more than 40% of the apartments in the complex are owned by
foreigners. That has been the case for several years.
But if you want to buy a house or land, you either have
to be legally married to a Thai (as I explained last week), or set up a
locally registered company, of which one foreigner cannot own more than
39% of the shares, and a group of foreigners collectively not more than
49%.
You also need at least six Thai partners to hold the
remaining shares (although you can be the sole authorised signatory and
ensure these local partners sign their undated resignations and share
transfer deeds at the time of setting up the company - although of course
this tactic is strictly illegal under Thai law, just as is driving a
motorcycle without a crash-helmet, and on the wrong side of the road).
An additional safeguard would be to have a reputable
professional specialist (i.e., law firm) draw up suitable paperwork to
show that your company borrowed the money from you to buy the land, which
is then mortgaged to you until the loan is repaid. This mortgage should
then be registered with the Land Office at City Hall to ensure the
paperwork is complete and your interests protected.
Don’t try doing it yourself to save a paltry few
thousand baht - get a professional to do it all for you, to protect your
investment of several million baht.
Of course, you could avoid the costs and hassle by
putting the house in your wife/girlfriend’s name. This will undoubtedly
make her very happy - even happier than the visits you made to her
favourite gold shop and motorcycle shop (which are the usual precursors to
visiting the real estate agency).
However, what happens a year or two down the road when
you have a major disagreement about something, or her Thai ‘husband’
shows up (since they all seem to have them squirreled away somewhere)?
You, like so many before you, may find yourself standing on Jomtien Beach
with only your passport in one hand and a bag of clothes in the other -
and your life savings gone, with no legal recourse.
Getting a mortgage
In developed countries, getting a mortgage on a
property is almost taken for granted. Few people are in a position to buy
a property for cash on the table - especially at current prices!
The relatively low price of property in Thailand has
tempted many expatriates to buy a residential property, townhouse, or a
shop house for their girl-friend to run a travel agency, beauty salon,
snooker hall or beer bar on the ground floor, while they love - I mean
live - upstairs.
There are always plenty of condos, houses, commercial
shop-houses, bars and restaurants for sale to lucky buyers with cash to
spend - just look at this week’s ‘Mail Market’ section!
Some of the more na๏ve buyers imagine that they
can just sail into a local bank and get a mortgage on the strength of the
property deed and their ‘personal’ guarantee on behalf of their
girlfriend.
Sorry, but that isn’t going to happen.
Unlike in the West, where the property title deed
guarantees the bank in the event of default, and an endowment or insurance
policy its money in the event the borrower dies, laws in Thailand to help
banks recoup bad debts were only passed in 1999, and the efficiency of the
court system here is such that it could take up to 10 years to recoup
defaulters’ bad debts - if they don’t declare bankruptcy first (as
they’re now able to under the revised laws).
Banks are not interested in holding real estate on
their books, since this is a non-performing ‘dead’ asset; they want to
recover the money they lent, to lend it to someone else and earn interest
on the loan.
Understandable, since they’re in the money business,
not the real estate business.
During the building boom of the mid 90s, it was fairly
straightforward to get a mortgage on a condominium - even if you were a
foreigner.
But after the financial crisis of ’97 many foreigners
defaulted and fled the scene. With high levels of non-performing loans
already on their books (still over 30% of total loans issued by local
banks!), coupled with the high percentage of mortgage defaulters, local
banks virtually stopped offering new mortgages on real estate, even to
Thais.
Only recently has this policy eased, and Thais are once
again able to obtain mortgages at reasonable rates.
But it has to be borne in mind that obtaining a
mortgage anywhere depends largely on the ability of the borrower to repay
the loan. This will be evaluated by a lending institution on the basis of
stability of employment income and past credit record.
So if you’re prepared to deposit the value of the
property in the bank - in your girlfriend’s account, of course - she
might be able to get a mortgage if she has a good employment record and
her regular salary is sufficient to repay the loan. And of course the
property then has to be in her rather than your name.
But to imagine that an expatriate boyfriend (who could
leave the country any time) will be accepted by any bank as guarantor of a
mortgage being applied for by a local lass whose employment record
consists of working in a go-go bar for a year or two, and whose average
bank balance has hovered around 400 baht, is na๏ve in the extreme.
(To be continued next week)
Personal Directions: Are you being served?
By Christina Dodd,
founder and managing director of Asia Training Associates
Recently I’ve been quietly observing a small but growing
business in Chiang Mai. Several months ago a young man and his family opened a
very modest restaurant - open-air style on a concrete foundation - and started
off by offering a simple but appealing, very affordable menu.
Every day I would pass by and notice the increasing number
of customers. It seemed that the place was doing very well and that soon
they’d have to expand the car park! So I decided to call in and have a meal.
Well, now I can’t count the number of times I’ve eaten there!
In just a few months it seems that the young owner has
found his secret for success in his restaurant business. Many of you might say
that because it’s cheap and simple, that that’s how he has become
successful. Some of you might also say that because there are low overheads
and it’s up-country, that these are the reasons why he is doing so well. All
these factors play a role and I agree that they are important, but I have also
noticed one ingredient that rises above all others, and that ingredient is
“good old-fashioned service.”
It’s a pleasure to see how he and his staff work. It’s
indeed a pleasure to be on the receiving end of attentive, sincere and
efficient service. Not one of the staff at this establishment has had the
benefit of tertiary education. They come from villages up in the North. Their
families are simple folk who have probably never ventured outside the village
gates. And all of them share the desire to work and to work well. On speaking
to them they all told me that they love their jobs. They enjoy the atmosphere,
they are very pleased to have a job that allows them to make others
(customers) happy, and most of all, they have a great boss!
It is so easy to see how everything comes together in the
restaurant. The owner has used his natural talent and skills to develop a
well-trained group of people. He has identified their weaknesses over the past
few months and put relentless effort into ensuring that they provide the best
possible service to the restaurant’s customers. Sure this is a small
business - but no matter the size of any business - the fact remains that
great customer service is paramount to success.
He has also recruited people who have a “service mind”
and a desire to deliver the best. This is part and parcel of his achievement.
He has the right kind of people with him and this is usually half the battle
in the service industry. It is amazing how much can be accomplished when
people have the will to perform. If there is an existing will, then it can be
nourished and developed with the right support, encouragement and training!
Of late I have had many enquiries about CRM and programs
concerning “the service mind”. This particular skills area is one that
requires dedicated attention and application. But it does not mean that you
have to have read every textbook under the sun. Sometimes, whilst having to
adhere to certain principles and basic theories concerning CRM, we lose sight
of the fundamentals to providing good service. The best and most effective
approach is to keep it as simple as possible and not to become overwhelmed by
the subject. The simpler and the more enjoyable this specific subject can be,
the greater the results of any training or instruction.
The young restaurant owner has kept it simple and it has
brought him results. Major businesses and organizations can too “keep it
simple” in a way that does not deflect from knowing and understanding the
job specifics. The main ingredient is to have people with a desire to perform.
Quite often we can see that people are working in the wrong
jobs. It is very evident in the service industry because it stands out like a
sore thumb! And in the reverse situation it is so easy to notice people who
are in the right job. Their attitude, body language and their whole approach
to their job and performance almost leap out at you too. That is why it is so
essential to ensure that individuals who are to work in the front line or
service line in any business, have to want to be there in the first place.
Once I had the opportunity to sit in on a few sessions of a
public Customer Service Program conducted here in Bangkok. Lots of information
was provided. Handouts and program notebooks were given. Lecturers seemed to
stream in without any effort to expound their theories. Many detailed notes
were taken and written down. But when I later had the chance to mingle with
the audience and to gauge their understanding and reaction to the program, I
found that a lot of them were really not interested in giving their “heart
and soul” to providing the best service. They had no sense of wanting to be
outstanding in this field. I immediately thought of the “square pegs in
round holes” syndrome which prevails in many businesses and companies,
despite their efforts to recruit the appropriate people for the job.
To be fair to anyone working in this field, they have to
want to be there! It is the same for any vocation or profession you wish to
pursue and perform well in. Wanting to be there in the first place will enable
you to do well and will get you further sooner. It is as simple as that!
No matter how small or large a company or organization,
those in authority and those in the position of providing customer service
have to decide one very important thing. How good do you want your service to
be? What is the level of service you want to provide for your customers? How
high are you going to aim? What are you going to do to ensure that you can
achieve this? What is your plan of action?
Are you being served? For more information on how we at
Asia Training Associates can best serve you in your efforts to provide
outstanding customer service (and improve other business skills), please
contact me at Christina. dodd@atasiam.com
Until next time have a wonderful week!
The Doctor's Consultation by Dr. Iain
Corness: The Internet - Is it a reliable source of correct medical advice?
by Dr. Iain Corness
The internet has become, for many people, of more
importance than any other information source. After all, where else can you go
and get information any anything from gnus to news? So why not go to the
internet for some timely medical advice?
Over the past few years, I have become accustomed to
patients coming in to see me with reams of printed paper under their arm. All
of it derived from the internet. I must admit that I groan inwardly when this
happens, but it is not because I think the patient is not entitled to correct
information about their own diseases. Quite the contrary.
Going back to the title of this week’s article, is the
internet a RELIABLE source of correct medical advice? Unfortunately, the
answer is like the curate’s egg - good in parts. Certainly there is some
excellent information out there, but there is also a whole pile of unmitigated
garbage, masquerading as medical ‘truths’.
Studies have certainly shown that patients who use the
internet as a resource medium for good health information can make better
informed decisions regarding their health, and take a more active role in
maintaining their own personal health levels. All this is good news for both
the general public and the health care professionals.
The internet is also a good place for people with chronic
ailments to meet others with the same problems. Instead of being, or feeling,
isolated, the sufferer can exchange experiences and information. This is of
immense psychological good. So where’s the downside to all this?
The downside comes with the fact that the internet is what
could be called an ‘uncontrolled’ medium. There is nobody to overview the
content of any medical information site, as there is in the accepted medical
media. For example, it takes several months to have an article printed in an
accredited journal. Your words are scrutinized by a panel of experts and after
the panel considers that you have highlighted some actual and factual concepts
or information, then it gets printed and can be regarded as ‘the gospel’
(at this point in time - things can change, however, from month to month, year
to year).
However, studies have been done by the medical experts on
the medical data available over the internet, and the results were that 70% of
the studies provided inaccurate data. This is really a trifle worrying. Add to
that, the fact that there have been deaths which have occurred by following
inappropriate medical advice which has been downloaded from cyberspace.
So can somebody sit down and review everything that is on
the ‘net and give it a thumbs up or a thumbs down? Quite frankly, this is
too great a task for anyone. Even if somebody were to pay me a thumping great
salary to do this, I would be dead before I even got to finish reading the
information that is available today, let alone what is uploaded tomorrow.
So what can you do, as a concerned patient? The best advice
is to stick to information providers who are reliable, such as government
organizations or institutions that are world renowned (Mayo Clinic, Great
Ormond Street Children’s Hospital and the like) and be careful. Here’s a
couple - www. healthfinder.com and www.cancer.gov/cancer_ information/
But always remember there are no miracle cures available on
the internet and don’t be suckered into buying expensive answers to your
chronic ailments!
Agony Column
Dear Hillary,
I am here in Thailand for a few weeks on a well
deserved holiday. Naturally in my travels about town I have encountered
many charming ladies, many of which I would like to get to know better. I
speak only a few words of Thai and have trouble communicating with ladies
who do not speak English. Last night I met a very nice lady and bought her
a couple of ‘lady drinks’. Her body language clearly indicated that
she liked me ... so, seeking some reassurance I asked her the associated
question, “Do you like me?” She responded by saying, “Up to you.”
I was a little confused by her reply. I understand that you are wise in
such matters, and would call on your experience to help interpret her
answer to my question.
Confused In Pattaya
Dear CIP,
You are reading far too much into this brief and
verbal only intercourse. You were there wanting to be liked, and she was
there performing her role as a person who makes her living by liking
people. Whether you think that the lady in question liked you, was then,
as she correctly said, “Up to you.” The more lady drinks you bought,
the more she would like you. The greater the degree of financial
involvement in the association, the greater degree of liking you will get
in return. It really is “Up to you!” As the American satirist Tom
Lehrer once said, “Life is like a sewer. The more you put into it, the
more you get out of it.” Understand now, Petal?
Hillary, my lovely,
My Thai ladyfriend (wee Nit, the adorable) is
experiencing a difficulty in pronouncing her Rs and Ls. For example,
‘Hillary’ sounds like ‘He Willy’! Not nice at all! What can I do?
Withdraw her Mars Bar before elocution lessons?
Mistersingha
P.S. A hazel choc bar could be on the way via an
impenetrable Volvo or a pickup. Should the choccy melt en route you will
still have some nuts to savour!
Dear Mistersingha,
I am not sure which is worse, being “He Willy”
or being your “lovely”? Neither would be my first choice for the day,
however, returning to your Mars Bar problem and elocution, this is easily
overcome. Firstly withhold all Mars Bars in the short term and secondly
use an electric pig prod every time Wee Nit gets hers Arrs and Ells mixed
up. The secret to good elocution is the threat of electrocution. Try
saying it aloud. The remaining Mars Bars can be sent over to my office,
but refrigerate first. That’s the way, Petal.
Dear Hillary,
You do get asked some silly things, don’t you? The
ones that get to me most are all these men who fall for the oldest trap of
all, the sweet smile and “buy me drink” routine. Despite everything
that you have written about the subject, they just keep on coming back
like bees to the honeypot. So tell me, why do YOU think they do it?
Honeypot
Dear Honeypot,
Firstly I must correct you a little. The oldest trap
of all was sprung by Eve, tempting Adam with a nice juicy red apple, long
before the invention of ‘lady drinks’. As to why these men keep
blundering along, is because they are men. It is part of their genetic
heritage and they should be given understanding, especially from one of
their own. Go easy on them, Honeypot. You might be next.
Dear Hillary,
I need to find a bar girl with long arms. I have
searched through most bars in Thailand and have found girls with long
legs. They are either attached to chrome dance poles or are of
questionable sexuality. Girls with long memories constantly remind me of
things I would rather forget, girls with long fingers seem to find their
way into my wallet and girls with long, sad stories irritate me with tales
of sick parents or dying water buffalos. I don’t need these types. The
illusive (sic) bar girl with long arms would have the ability to reach
that bottle of icy cold beer at the bottom of the ice chest. Why are these
girls so hard to find?
Mighty Mouse
Dear Mighty Mouse,
Hillary is so pleased to see you are back. I was
getting worried that the police in your country might have locked you up
for indecent exposure after your last letter describing your skin-tight
cut-off shorts. While you were away, I had an interesting verbal thrust
and parry with one correspondent over the words ‘illusive’ and
‘elusive’. The former refers to an illusion and the latter to
something that is hard to find, so I believe you are looking for an
‘elusive’ lady. Why is she so hard to find? Probably because she is
really an illusion, a figment of your fevered imagination, my Petal. With
your fever running so high, I can see why you need that cold beer at the
bottom of the ice chest. But Mighty Mouse, a little lateral thinking will
soon have this sorted for you. Buy an ice chest that is not so deep, then
even those girls with arms so short they cannot get to the bottom of your
long pockets, will be able to fish a nice cold one from the depths of your
ice chest.
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Camera Class: Expose yourself!
No, this is not a suggestion that you go streaking down the
road on a hot summer’s evening, but rather that you think about letting the
public have a look at some of your better prints. The stimulus for this thought
was Dacha Buranabunpot’s exhibition this month at the National Gallery,
Chaofah Road in Bangkok. These are some very colourful and sometimes haunting
images, and well worth a look.
However, I was thinking more about you and yours. Any serious
photographer will have some images that are worthwhile displaying. While it may
be nice for you to look at your work, why not let the rest of the world have a
look too?
By this stage, many of you have now become coy, and will say,
“But my photos aren’t good enough.” Good enough for what? Let me assure
you that any photographer with an SLR will have some photos in his or her
collection that some other people will enjoy. A few years ago there was an
amateur photo competition held in Pattaya and the response was overwhelming. And
on top of that, many of the entries were superb photographs. Photographs that
deserved to be displayed.
Now before you go rushing down to the National Gallery with a
bunch of photographs in your hand, there are a few chores to do first. The first
of these is to start sorting through those drawers of photographs and looking
critically at each one and deciding which ones might be worth blowing up -
because here is the first rule of exhibiting. Only show enlargements! At least
an 8x10, which is slightly smaller than a standard A4 piece of paper, (called an
8R print in most photo-processing shops) or even 14x11. While big is beautiful,
you have to be a little wary of going much bigger than 14x11, unless you have
extremely sharp lenses and use slow speed film, as you can find your apparently
good images, going ‘soft’.
The second rule of exhibiting is to sort your photographs
into some type of definable category or theme. Showing beautiful photographs of
a horse in a field, a girl on a beach and the queue at an airport, all of which
may be crackerjack individual shots, do not go together to make an exhibition.
To keep people’s interest, they have to see that there is some rhyme or reason
to this collection. It makes no difference if all you have is ten shots of trees
- this makes a far better exhibition than assorted shots, no matter how
brilliant they are on a stand alone basis.
The third rule of exhibiting is that you must mount the shots
for display and be able to hang them. The way you do that is up to you, but I
would recommend simplicity and inexpensiveness are the factors to keep in mind.
The photograph must not be overshadowed by the frame! So forget about the heavy
gilt carved numbers!
So let us now imagine that you have at least ten reasonable
shots, all relating to one theme. You have had them enlarged to 8R size and
mounted so that they can be hung - now how do you go about getting them hung
somewhere? Well, surprisingly this is not as difficult, or as embarrassing, as
you would imagine it to be. You will be amazed at the number of venues that will
be delighted to have something different to decorate the back wall. Coffee shops
and restaurants are obviously prime targets, but dress shops, dentist’s
waiting rooms or even a local hotel’s foyer can be pleased to host your
mini-exhibition.
Obviously approach people you know first, such as your favourite restaurant,
but don’t be shy. As I pointed out already, the proprietors are happy to have
anything that might bring a few more bodies through the door. Put a time limit
on your exhibition - two weeks is enough, and tell your friends and even the
local newspaper, like this one! The exercise is fun and will help you enjoy the
art of photography even more.
Recipes from Rattana: Kwiteo Rad-Na
There are numerous versions of this Thai standard, and you can use any type
of noodles from the ‘sen lek’ (thin) to the ‘sen yai’ (wide) or even
the ‘mama’ (curly) noodle. The meat is usually pork, but I believe the
taste with chicken is preferred by most western palates.
Ingredients Serves 4
Chicken breast fillet 200 gms
Noodles 300 gms
Cooking oil 100 mls
Garlic fresh chopped 2 tbspns
Kale or Broccoli chopped 400 gms
Soy sauce 2 tbspns
Sugar 2 tbspns
Chicken stock 1 litre
White pepper 1 tspn
Cooking Method
Boil the noodles in a saucepan for one minute, then strain
and drain.
In the wok heat 50 mls oil and quickly stir fry the noodles,
adding the soy sauce after one minute. Remove noodles and set aside.
Clean the wok, add another 50 mls of oil and stir fry the
garlic and chicken (cut into “bite size” pieces). Now add the chicken
stock, pepper and sugar, boiling for a couple of minutes, then add the broccoli
or kale (or other green vegetable) and continue boiling for one minute. If the
mixture is too thin then add a little cornflour pre-mixed with water.
Finally add the noodles and stir gently for 30 seconds and then serve.
Wine Column: Entertaining with wine
By Ranjith Chandrasiri
An evening of entertainment at your home should involve
good food, good wine, good people, good music and stimulating interaction
among your guests. You, the host, have a responsibility to ensure that all
of the requisite ingredients are present and that one ingredient does not
overshadow the others.
The key
to matching food and wine concerns the strength of flavour. The volumes of
flavour in the food should be matched by the volumes of flavour in the wine.
Some people are simply not “into” wine and have no
idea what to serve. Just as you decide to have the party catered if you are
a poor cook, you can get the wine selections “catered” if it is not
within your sphere of knowledge and ability. Even if you have a fair
knowledge of wine, you could be well served by seeking expert advice on what
wines to serve with a particular array of food and desserts.
Many non-wine drinkers face the intimidating challenge of
entertaining guests who do drink and enjoy wine. Questions of what wine to
serve with what food, how much wine is enough and whether you should offer
guests a choice of wine are some of the few challenges. Allow me to share
some basic thoughts and suggestions on entertaining with wine.
When entertaining guests for dinner, it is customary to
offer a pre-dinner wine - aperitif. Typically, this is a simple white wine
(can be inexpensive but tasty and pleasant), as you don’t want this wine
to be your best offering. Whether you serve hors d’oeuvres or not, you
should offer your guests a drink when they arrive and white wine is the
usual choice. This is not the wine with which you want to impress your
guests or dazzle them with the quality since you want them to mingle, talk
and focus on the people - not the wine.
Some prefer to serve Champagne at this time instead of
white wine. Opening a bottle of Champagne conveys a sense of celebration
that brings together everyone in the group. A glass of Champagne is
compelling enough and your guests will appreciate the extravagance. Besides,
champagne stands alone without food unlike many white wines.
How much wine should you buy? If you plan to serve
several different bottles with different courses, you will need to buy fewer
bottles of each type. However, a general rule of thumb is that you should
have one bottle of wine per guest. While it may sound too much, if you are
serving a lot of food spread over several hours, it won’t be too much. It
is far better to have too much than too little.
Be sure that you have different glasses for each
different type of wine. It is not good to expect your guests to drink
Chardonnay out of the same glass from which they drank Cabernet Sauvignon.
If nothing else is possible, at least rinse the glasses before you pour the
next wine.
Which wines should you serve? The most important
considerations here are firstly, whether the wine you serve is ready to
drink and secondly, whether the wine is compatible with the food. A safe
alternative is to offer two choices with your meals. This allows those who
have very strong likes and dislikes to avoid their dislikes.
The key to matching food and wine concerns the strength
of flavour. The volumes of flavour in the food should be matched by the
volumes of flavour in the wine. For example, a delicately flavoured dish
like calamari needs a delicate white without too much obvious fruit flavour.
A young Semillon would be ideal. At the other end of the spectrum, a dish
like roast saddle of venison with all its game flavours needs something
bold. To serve a timid wine would be meaningless because you wouldn’t
taste it.
You should begin to learn what you and your friends like
and expand upon your own personal experience. It’s a matter of experiment
and sometimes it pays off. Classic pairings are handy to have at your
disposal if you don’t want to reinvent the wheel. Here are few examples:
* Oysters and Chablis
* Lamb and red Bordeaux (or Chianti)
* Salmon with Pinot Noir
* Braised beef with Barolo (Italian red)
* Beef or steak with red Burgundy or Cabernet Sauvignon
* Lobster with Chardonnay
* Grilled chicken with Beaujolais
* Stilton cheese and walnuts with Port
* Gumbo or other spicy dishes with Zinfandel
Again, these are suggestions at best and represent what
others have found likeable.
Having established the ground rules, the exercise of
matching wine and food becomes interesting. Just like music, there is always
room for individual interpretation and style. Contrast and counterpoint can
be used to develop an interesting theme. There are many themes to be
explored and the most interesting themes are waiting to be discovered.
Ranjith Chandrasiri is the resident manager of Royal
Cliff Grand and president of the Royal Cliff Wine Club, Royal Cliff Beach
Resort, Pattaya, Thailand. Email: ranjith@royalcliff.com or wineclub@royalcliff.com
Website: http://www.royal cliff.com/rcwineclub.htm
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