Subdividing and Building

There are a few different ways you can go about dividing land that you would like to own in Thailand. You may find a plot of land with a land owner willing to sell you a smaller plot to build a house. Many people purchase a large plot and later decide to subdivide the land and sell it off in smaller parcels.

The first step in the land dividing process is to make sure there are no outstanding loans or liens on the land. Usually, but not always, any lien or loan on the land title will be listed on the back of the land title. This should be checked at the local land office. Make sure you have the latest copy of the land title. It is always wise to double check the land at the subdistrict office, too.

Once you have determined that the land is free and clear and there are no liens of any kind on the land, you can start the land splitting process. This can takes from a few weeks in some smaller rural areas to several months here in Phuket.

If the owner is selling you a smaller plot, they will usually be looking for a deposit while this process is taking place. It’s a wise practice to put this money in some kind of escrow account with your lawyer. Ten to fifty thousand baht should be more than enough to show your interest in purchasing the plot when the split is complete.

It’s always best when you are purchasing a piece of land to go ahead and split the land into small pieces from the start. In Phuket, typical subdivisions are usually 5m wide by 2-30m long. This makes them easy to sell further down the road.

A survey will be required to divide the land into smaller plots. You can get the local land surveyor who works for the government to come out at night or on a weekend to do the survey, and that will save many months in time waiting for the government office to do the survey.

When doing a land split, the original land title will be held by the local land office, often for several months. You will not get this back until the land split is 100 percent complete. Keep this in mind if you have a buyer in hand for one of your plots because you will not be able to show a land title until the land split is complete.

Once you have the new titles for subdivided plots, then it’s time to get busy working on your dream villas.

Divide and Build

Buying building materials in Bangkok and shipping them to Phuket can be a real cost saver. You want to do your homework first on local prices and quality. Bangkok has a much bigger selection of tile than found on Phuket. There are huge areas that sell tiles in Bangkok, and a much bigger and cheaper selection, too. There are also huge outlets in Bangkok that sell tile imports from China and Vietnam. Shopping at these outlets can save you big money over local outlets.

Wood doors and frames can also be acquired in area of Bangkok around Bang Po. It’s great fun to shop these wood shops and look at the many different selections available. Wood comes in several grades, so it’s important to see what you’re buying. Spending a day looking at the different wood items, like wood trim and windows, will also give you a few ideas. There are a few wood shops inside the infamous weekend market near Bang Su.

Power tools and things like sandpaper and drill bits, electrical wire, bulbs and lights can be bought in an area called Klong Tom. This can be found in Bangkok’s Chinatown area, centered around Yaowarad Road. Sundays is used goods day, so there are many extra vendors on the streets during the weekend. Collecting business cards from the different vendors will come in handy later if you need to buy something they don’t sell at Home Pro when building your Phuket villas.

Shipping to Phuket is a very easy thing to arrange with your vendors. If you have a lot of stock, you can arrange for a 13-tonne truck to bring down your truckload of goods. You can really save if you have something heavy to ship, like granite, sandstone or tile. For medium-size shipments, you can use freight shipping companies, which also use buses and some big lorries to ship the goods overnight to Phuket. You can even pack the goods in the bus yourself and ride down with them if you have time.

Scott Riefler writes about Phuket real estate and finance. Subscribe to his newsletter at www.patongharborview.com.