I'm working on establishing a new business in the United States. Now that I've found my match, I need to transfer money from my account in Thailand to pay a deposit of around 3 million baht within this month. But I just found out that the bank of thailand doesn't allow us to do this. It limits us to only 500,000 baht per month even though I have received approval as meting all legal requirements in the us: escrow agent or bank or whatever will be needed. Could you please suggest what I can do to make sure I can pay the deposit? Otherwise I will lose opportunity and that matters a great deal to me.
ANSWERED BY... Teera Phutrakul, CFP, Chairman, TFPA The foreign-exchange guideline is a delicate rule with a list of factors to consider. In fact the Bank of Thailand allows for an outward transfer to purchase more than 10% of a company. But that will be subject to the supporting documents you provide.
The business you are referring to must also be properly registered _ with corporate documentation to prove the purchase of that 10% or more. Without them, it would be hard to provide definitive advice. I recommend that you prepare all the documents on the transaction, and go through them with your banker in detail.
I earn around 35,000 baht monthly. I have been renting a room for 10,000 baht a month for 12 years ever since I moved into the capital. Currently, I'm conflicted about whether to buy a condominium unit. Some people say it might cost me equal to what I'm paying in rent now. Others suggest I would have more costs, such as maintenance as it is my own property, monthly utilities and also property management by the juristic person, and so on. They say these costs add up to a lot and I might not be ready to have my own small unit.
If I want to buy a condo unit with my current income, how I can do personal budget planning? How much can I pay for my own condo unit per month? I have no debt, no burdens, and I also live modestly; I enjoy dining out a few times a month, that's all.
ANSWERED BY... Teera Phutrakul, CFP, Chairman, TFPA One way to tell whether it's better to rent or buy is by checking the price-to-rent ratio (P/R ratio). This number gives you a rough idea of whether condominiums in your area are fairly priced. Here's how it works: Find two similar condos, one for sale and one for rent. Divide the sale price of the one by the annual rent for the other. The resulting number is the P/R ratio. For example, let's say you find a 6-million-baht unit for sale in a nice neighbourhood. You find a similar condo in the same neighbourhood renting for 30,000 baht per month (which works out to 360,000 baht per year). Dividing 6 million by 360,000, you get a P/R ratio of 16.7. A rent ratio above 20 means that the monthly costs of ownership will exceed the cost of renting. In other words, the higher the P/R ratio, the more it makes sense to rent rather than buy.
The Thai Financial Planners Association is the Certified Financial Planner (CFP) trademark licensing authority in Thailand. It is a self-regulated, non-profit group of financial advisers and experts from various organisations set up to give advice to investors. Questions can be submitted through email@example.com or the TFPA webboard, www.tfpa.or.th