How do one pay for Property

[Taltos 7]

I was talking with my brother last night over a beer or two. We started talking about buying property in Pattaya and that again got me wondering how the market works.

 

How do you pay. Do you have to pay 10% ( or what ever %) of the total price when you make the downpayment, can you get a discount of the orginal price for some reasonand so on and on.

 

I realise I could go to some Property sites but I feel that by asking the members I would get more true to live stories. This is something I dont remember seeing any thing about.

 

Note that I have no intrest in actual prices, just the procedure. and maybe if you got a discount for some reason.

 

p.s I feel that this is more at home here than in The Members Bar as you most likely live here permanatly or big part of the year.

[JohnnyK 28]

www.thaivisa.com

lots of info there

if you buy from falang you can negotiate like in the west

Thais like to set their price and not negotiate, often happy to see it empty

[Taltos 7]

Ok, thanks Johnny. Did not think about that site as I never go there even thoug I know there is lot of information there.

[Owen` 2]

I've looked into this, but I am not an expert. The Expats club have experts, if you can reach them.

 

1) A foreigner can not overtly own "property" in Thailand beyond 49%.

 

2) A foreigner can own a condo, just not "property", but apparently a condo complex must be 51% Thai or even this doesn't work.

 

3) There are ways around this 49% rule that involve setting up a corporation. It is complex, but apparently doable and many have done it. It requires a lawyer who is skilled in the matter.

 

4) Owning "property" will change your Pattaya budget. You will live a significant distance from things. It probably will mean owning a car and learning all the associated car regulations and paying the associated car taxes. It also changes security considerations. There is no condo complex security to provide even the thinnest of deterrents to robbers. When stuff breaks, you have to learn all the local tricks of dealing with repair people and you must do this without the language.

 

5) You can, indeed, extract money from Thailand if you own property and sell it later.

 

Repeat, I am not expert at this stuff and there are many details in each of those five items that require lots of study. Others probably have more info. Those are the items that have caught my attention as I have gathered info for myself. If anyone sees errors in those 5, please yell.

[wacmedia 277]

Hi,

 

If I was buying would like to buy 100 per cent up front, while not spending more than I could afford to lose.

[Taltos 7]

Owen. It does not follow that you have to own a car. I was mainly thinking about a condo in Jomtiem or Pattaya. I am perfectly happy on those little scoterers like the Nuevo.

 

I agrea with the other things though.

[Owen` 2]

  Owen. It does not follow that you have to own a car. I was mainly thinking about a condo in Jomtiem or Pattaya. I am perfectly happy on those little scoterers like the Nuevo.

 

I agrea with the other things though.

 

English language usage confusion. "Property" usually denotes some land under the house. That's what you can't do beyond 49%.

 

A condo is an easier goal.

[Gary 4,119]

You can't own property in Thailand unless you set up a bogus company. A bogus company is one that is set up to enable you to own property. If you go this route, and many have, you will be required to pay an accountant and to pay taxes. You still risk an irate Thai politician getting a hard on for farangs and pulling the rug out from under you.

 

You CAN own a condo freehold and in your name. The purchase money must come from outside Thailand and must be verified by your Thai bank. Not all condo complexes qualify so check that first. As far as a down payment all I put down was 10,000 baht to assure the owner that I was serious. That money was called earnest money and I got a reciept saying that it was a deposit on the condo I was buying.

[Taltos 7]

Garry, without wanting to pry I would guess that your condo is over 1 mill.

 

So you paid 10.000 and then what? Agreed amount pr. month or pr. year?

 

200.000baths (I am just putting somthing down) and the same as above?

 

p.s Did you buy from a Thai or foreigner?

Edited January 30, 2006 by Taltos

[Soi7 1]

You will need to have the funds wired in from your home country as well.

[redwood13 56]

Mortgages are not usually available to foreigners who do not have a work permit.

 

From what I've read on thaivisa.com in order to register the title deed with the land registry department you have to have an FETF (foreign exchance transaction form) which used to be called Tor Tor 3. You obtain this by making a SINGLE transfer of the equivalent of no less than US$20,000 in foreign currency from outside Thailand into your Thai bank account with the notation that it is for purchase of a condominium. And if you should sell the condo you need the FETF to be able to legally send money from the sale outside Thailand.

 

I'd say lawyer is mandatory.

 

-redwood

[bangkapiboy 5]

I would say it is very rare for a farrang to buy property in Thailand without paying the whole price upfront. Cash purchase is the norm.

[Gary 4,119]

Garry, without wanting to pry I would guess that your condo is over 1 mill.

 

So you paid 10.000 and then what? Agreed amount pr. month or pr. year?

 

200.000baths (I am just putting somthing down) and the same as above?

 

p.s Did you buy from a Thai or foreigner?

Yes, it was over one million baht. I bought it from a Thai after verifying from the condo association that I was able to legally buy it. My receipt was hand written and it stated the purchase price. The terms were that the money in full would change hands at the land office after I received the ownership documents. Payment was in full. You will not be able to get a loan in Thailand.

[Taltos 7]

Thanks Garry. I am now looking at those matters at Thai Visa.