New Regime and Buying Property

[fopa 0]

Does anyone know yet if the new regime will be any easier about farlangs owning property in Thailand

[JohnnyK 28]

I think this stuff is very far down their list of priorities.

[papillon 695]

Does anyone know yet if the new regime will be any easier about farlangs owning property in Thailand

 

Why would they even want to consider it?

 

They are doing ok without us.

[Eneukman 1]

I wouldn't expect any major changes (if any) to be made until well after the election in October next year.

 

Alan

[whitespider 1]

Why would they even want to consider it?

 

They are doing ok without us.

 

Although I agree with the fact that its low priority this could actually become a possibility in the long term. One of the biggest reasons for it being difficult has always been the fact that the "wealth" (land and property) has always been held by a very small minority of people. Some say this is the Chinese clique but Im not sure about that.

 

However, one reason they have managed to control this for so long is that they have always used the argument that foreign ownership is bad for Thai people. Thais, in general, have accepted this argument but probably more due to the fact that they tend to "follow the leader" as opposed to it having any real substance. Rural people in particular have always been "scared" by politicians telling them their land is under threat if foreign ownership is allowed. For many years Thais have simply been told "foreign owenership is bad" but few have tried to explain to them the other side of the argument.

 

In reality it has always been a way to prevent competition for their monopoly.

 

IF (any) new administration involves the BKK Intellectual class (the ones most outspoken against Thaksin) then it is POSSIBLE that the rules may be relaxed, especially if they involve foreign investment in things other than just property. Thailand NEEDS investment and they know this - relaxation of the property situation is just one thing I am sure they may well consider to generate that investment. A lot depends on who get the power base - if it ends up with true reformers then we could see change of some sort.

 

Slightly bizarre that Thaksin currently in London spending time between his Kensington appartment and his Riverside house!!

[dotcom_OD 0]

I agree whitespider completely with your thoughts. If Thailand wants to be a major player in Asia such as Singapore, she is going to have to open her kingdom to investors to land, buildings, infrastructure, highways, multinational companies, processing of raw materials, Information technology, call centers, the list goes on and on...

 

Yes, the foreign currency brought in through tourism and sponsorship is helping the economy, but if they do look to the future and want to compete with their asian neighbors, the change is necessary. Jobs, careers, education, linking cities together, land/business/commercial/residential development will be needed whether it be for foreigners or locals eventually.

 

The country cannot continue in this slow pace without opening their doors to foreign investment and diplomatic negotiations with Europe, Asia and US. Thaksin, showed the first of this by selling a 51% stake in a telocom company. Whether we like him or not, other companies will eventually go into business deals to grow and expand especially if their are traded publicly.

[elef 0]

I agree about business in general, but not about land. The thais don't want foreigners to own land so any political party having such ideas will lose an election.

[whitespider 1]

I agree about business in general, but not about land. The thais don't want foreigners to own land so any political party having such ideas will lose an election.

 

Elef - this is true, but the land ownership issue is intrinsically linked to the foreign investment one. Foreign businesses are reluctant to invest in a country where there are restrictions -period. The land issue affects recruitment etc as well as investment in factories and is also tied into the overall "business" situation i.e. the 49% maximum ownership of business etc. To truly encourage investment and in particular entrepreneurs the requires a higher degeree of freedom of choice than currently exists.

 

Yes, the Thai people do not want foreigners to own land but as I said this is only because they have been TOLD for generations that it is a bad thing. If you talk to professional/educated people here, many will tell you that they disagree with the current rules. One thing Thailand is NOT short of is land.

 

If over time the masse populace are educated about the "benefits" that foreign investment could bring we MAY see a change. So far the "ruling" classes have supressed this information for their own personal benefit. It has been very much to their benefit to have a low income agricultural economy but to become a members of the "1st world" this has to change - even if very slowly.

 

Much of Europe evolved from feudal systems the same way if you can think back through history. Landowning classes have always been reluctant to give it up but poplular movement has changed that.

 

I have no doubt that it will take many years, if at all, but the recent changes may just be a catalyst that gets the ball rolling.

[dotcom_OD 0]

Let me add to Whitespider's post. If you have an opportunity to understand that Shanghai and Macau had similar philosophies as Thailand years ago. You will know that the growth in both cities, are on an enormous scale.

 

Shanghai is one of the richest cities with regards its business climate from manufacturing, processing, technology, electronics, etc.

Macau is touted to be the next Las Vegas of the East. With both Bellagio, Harrahs and Wynn casinos.

 

Now let us discuss Vietnam, specifically, Ho Chi Minh, formerly Saigon. If you look to understand that the Vietnamese government will lift the ban on multinationla companies and foreign ownership of land, by 2009, the growth expected is predicted to be in the scale of Shanghai.

Without the change in government policy to allow multinational companies to own land and bring in foreign investment, Vietnam will just be another emerging economy.

 

Thailand's rich and middle class see that this is inevitable to grow, build infrastructure, roads, bridges, highways, develop residential communities, condos, transform the vast land to be more world class and not Thai standards. This is global economics that the poor and lawmakers will have to accept. This is coming, in the very near future.

[wannabeexpat 0]

If they relaxed the land ownership laws, foreign investors would buy up most of the land and property leaving the Thais owning very little. I dont think that would be good for the Thai people. The uk has sold all its " family jewels" to foreign companies just to be one of the worlds leading economies. The uk people are at the mercy of foreign owned power companies etc , and normal working class people are being priced out of the housing market. At least the Thais own their own land.

[whitespider 1]

Wannabee

 

There is a degree of truth in what you say BUT unless they DO open up then Thailand will remain a 2nd world country. Beside which, this place is HUGE (compared to the UK) and there is absolutely no way foreigners could "buy up all the land". Even if foreigners WANTED to - they can only buy what is available for sale and that would always only be a tiny part of the vast tracts here.

 

In addition if it is easy to state that we can't buy ANY it would be equally easy to make a size limitation or allow leashold interest in houses/factories etc to be purchased.

 

It could also be tied in with "wealth creation" - for example after a company or individual has paid X baht tax or created X number of jobs.

 

I do take your point, and to a degree I agree with the sentiments of the people in thailand (though remember this is NOT the way of thinking of ALL Thais, mainly only the uneducated) but there are MANY ways in which the rules could be relaxed, if not removed completely.

 

I think it is inevitable, one day, especially when they start to see how far they are falling behind other developed or developing countries in Asia. When that dawns on them they will wish they had done it earlier.

 

Just to be a little flippant for a minute - how do you think Thais will feel if the Khmer economy overtakes them? That will REALLY hit home to them if that happens.

[wannabeexpat 0]

Wannabee

 

There is a degree of truth in what you say BUT unless they DO open up then Thailand will remain a 2nd world country. Beside which, this place is HUGE (compared to the UK) and there is absolutely no way foreigners could "buy up all the land". Even if foreigners WANTED to - they can only buy what is available for sale and that would always only be a tiny part of the vast tracts here.

 

In addition if it is easy to state that we can't buy ANY it would be equally easy to make a size limitation or allow leashold interest in houses/factories etc to be purchased.

 

It could also be tied in with "wealth creation" - for example after a company or individual has paid X baht tax or created X number of jobs.

 

I do take your point, and to a degree I agree with the sentiments of the people in thailand (though remember this is NOT the way of thinking of ALL Thais, mainly only the uneducated) but there are MANY ways in which the rules could be relaxed, if not removed completely.

 

I think it is inevitable, one day, especially when they start to see how far they are falling behind other developed or developing countries in Asia. When that dawns on them they will wish they had done it earlier.

 

Just to be a little flippant for a minute - how do you think Thais will feel if the Khmer economy overtakes them? That will REALLY hit home to them if that happens.

True. I am not a fan of globalization, but to opt out is probably not a viable option nowadays. You could be left too far behind other neighbouring economies. I look at Bkk and think they are doing ok, but forget that in some places they are dirt poor. They need inward investment but wont get it until they become a safer an more investor friendly country. I hope they start with "early retirement" visas.

[Blazer 0]

I've got to believe that if foreign land ownership were allowed in LOS half the country would belong to the Japanese.

[Braveheart 0]

I've got to believe that if foreign land ownership were allowed in LOS half the country would belong to the Japanese.

Land values would also go through the roof and most of us wouldn't be able to afford it anyway. Those that could afford it would definitely be expected to pay grossly inflated taxes.

[papillon 695]

Never mind.

Edited October 3, 2006 by papillon