Condo purchase and 49/51% rule

[4niceight 32]

I have just spoken on the phone to a friend of mine who has recently moved to Pattaya. He tells me that everyone is scared to buy property because of the authorities checking up on the directors of Thai companies. I already understand the problem and I was thinking that I would buy only a farang owned condo. However, he has scared me a little and has suggested I sit back for a year. That is something I don't want to do. I am ready to buy now. Has anybody got an insight into problems I might face if I buy a farang owned property?

[Gary 4,118]

Just make sure you get the chanote (title) in your name. The condo association must give the land office the ownership percentages and be TOTALLY assured that if there is a problem with the 49/51 percent figures they WON'T put the chanote in your name. You will pay by bank check and you don't hand over the check until the chanote with you name on it is in your hand. If there is a mortgage on the property the bank must be there to sign off before the land office makes the transfer.

[LordFlash 45]

Agree with the above. You should have no difficulties purchasing somewhere from a respected developer. Your lawyer will ensure that everything is above board.

If you need anything else just drop me a mail at adam@siamrealestate.com

 

LF

[Michelangelo 0]

So many contradictory information floating around ... what is the best (most secure) way to buy a house these days?

[Gary 4,118]

So many contradictory information floating around ... what is the best (most secure) way to buy a house these days?

 

It's really quite simple. You can't own property other than a condo, PERIOD.

[BigDUSA 71]

So many contradictory information floating around ... what is the best (most secure) way to buy a house these days?

 

You could try putting the deed in your latest & greatest Thai girl friends name. I've heard that works out real well.

[Michelangelo 0]

Thanks for the very constructive answers BigDUSA and Gary. Really very helpful!

[elef 0]

You can own a house but not the land (with one exception but you must invest 40,000,000 baht via BoI), you can also lease a house for 30 years with an option the renew the 30 year period, but if the lease contract isn't registered with the land office it's just valid to for 3 years.

 

49/51 - there were a 10 year exception for that rule in some places so in those condos farangs can own 100 % - ask your lawyer.

[phw10 0]

I think the best choice is a condo. It has secuity, pools, some have small shops, tetc. Look for a good one. Whatever that means. I think it must meet your lifestyle, your ideas and cost. I would also work with a good realtor. You might check on those condos that are not quite at their farlang limit. As I understand it, once that limit is met, the laws of supply and demand kick in as any buyer must wait for a farlang seller. If I knew which way prices would go, I would have a lot of $$$. You want to buy, you have investigated the process, go for it.

 

Just one word of caution. You may not want to bring an unknown BG into your brand new condo so she call see all your worldly possesiions. If you do, make sure you have a great security system in your condo in addition to the condo security.

[winner 0]

I think the best choice is a condo. It has secuity, pools, some have small shops, tetc. Look for a good one. Whatever that means. I think it must meet your lifestyle, your ideas and cost. I would also work with a good realtor. You might check on those condos that are not quite at their farlang limit. As I understand it, once that limit is met, the laws of supply and demand kick in as any buyer must wait for a farlang seller. If I knew which way prices would go, I would have a lot of $$$. You want to buy, you have investigated the process, go for it.

 

Just one word of caution. You may not want to bring an unknown BG into your brand new condo so she call see all your worldly possesiions. If you do, make sure you have a great security system in your condo in addition to the condo security.

 

If you just have to buy avoid the developers and the Real Estate Agents. They have inflated the prices feeling that they can get Falang suckers to buy. Everything that comes through these people is overpriced. Also avoid Falangs who are reselling. They paid too much to start with and are passing along that pricing plus a profit to you. Only buy directly from a Thai owner who is reselling and moving. In my condos there is a 45% difference in pricing depending on who is involved in the transaction. A word to the wise........

[4niceight 32]

Winner...Buy a Thai owned condo?...OK might be cheaper but have to buy with limited company? With all the shit that there is just now with investigations into Thai directors? Surely not. Even if the condo were cheaper, what about resale value, not that I would be going that way. I'm looking for a place to keep and live in. Am I missing something here?

[dacah 0]

There are quite a few BM s that have bought condos in their own name...however not many (without a thai wife ) have bought houses in their own name.

 

My advice would be to find an independant solictor..lawyer...then look at the options

 

Just make sure the lawyer is independant...you can source that from your own lawyer back home.

 

I will not recommend any estate agents in Pattaya cos I have never had any experience with buying in Thailand.....nearly bought a hotel in Sumui (Lamai) about 7 years ago

 

Lord Flash is probebly a good starting point...he speaks English!!....however remember :

 

FIND A GOOD LAWYER FIRST they will save you in the long run

 

Good luck in your quest and will check up with you at a later date to see how you get on.

Edited February 1, 2007 by dacah

[winner 0]

Winner...Buy a Thai owned condo?...OK might be cheaper but have to buy with limited company? With all the shit that there is just now with investigations into Thai directors? Surely not. Even if the condo were cheaper, what about resale value, not that I would be going that way. I'm looking for a place to keep and live in. Am I missing something here?

 

 

You can own directly as long as the 49% rule is not exceeded. In my condos a RE agent (CBRE) has an 80Sq Meter condo for sale at 3.7 Mill. A falang owner is trying to sell his at 3.5 and I was just offered the same unit at 2.6 by a Thai owner who lives in it and is moving. I have seen it before!!!! Only about 15% of the condos are foreign owned so no problem there.

[VE_Marco 0]

I have just spoken on the phone to a friend of mine who has recently moved to Pattaya. He tells me that everyone is scared to buy property because of the authorities checking up on the directors of Thai companies. I already understand the problem and I was thinking that I would buy only a farang owned condo. However, he has scared me a little and has suggested I sit back for a year. That is something I don't want to do. I am ready to buy now. Has anybody got an insight into problems I might face if I buy a farang owned property?

You can legally own a condo as long the building is within the 49% limit to farang ownership.

Anyway I strongly advice you NOT TO BUY ANYTHING IN THAILAND.

This country has turned into a military dictatorship and there is no more rule of law.

Personally I am trying to swift my money out of the country (money that had previously swifted in and invested in Thai stock market, where I lost money also)and dealing with a lot of difficulties.

Be aware that if you buy a condo you might never be able to swift out of the country the money you cash when you sell it back. Same same if you "invest" in stocks, bonds, fixed deposits...whatever. Once you wire money into Thailand, that money is yours only to spend it here, you can never take it out of Thailand back to your country or wherever else.

Edited February 2, 2007 by VE_Marco

[phw10 0]

"If you just have to buy avoid the developers and the Real Estate Agents. They have inflated the prices feeling that they can get Falang suckers to buy. Everything that comes through these people is overpriced. Also avoid Falangs who are reselling. They paid too much to start with and are passing along that pricing plus a profit to you. Only buy directly from a Thai owner who is reselling and moving. In my condos there is a 45% difference in pricing depending on who is involved in the transaction. A word to the wise........"

 

 

I agree with winner about avoiding the new developments or those that are not finished. I also agree it is better to buy directly from a Thai, but you have to be in country to do that and know people who can steer you to a Thai seller. It is possible and perferable, but may not work if you want to buy right away

 

The other issue you should be aware of is whether or not the condo is in the shape you want or will you spend more in renoviating it. The latter can be both expensive and time consuming--I know I am renovating my condo right now and it will probably cost more than I planned on

 

But when it is done, it will be to my tastes

[ruskiehat 0]

Not sure if phw10 is actually talking of experience or from some shite he heard from a drunk sitting beside him in a bar, pattaya is full of experts.

 

When i was looking for a place to buy in pattaya, there was very little difference infact none, in price for decent condo's, if they were Thai or foreign owned. So not sure what phw10 is banging his drum about.

 

I bought my place along with another Board member about 4 years ago and am bery happy with it. It was a purchase from a foreigner owned property, hence why were were allowed to own it 100%. A certain percentage of all condo units in a block has to be thai owned, the rest can be 100% owned by foreigners

Edited February 2, 2007 by ruskiehat

[El Colorado 0]

I've heard that Americans can hold all forms of real estate without setting up a Thai company because of the treaty between the US and Thailand. Is this true?

Edited February 6, 2007 by El Colorado

[redwood13 56]

I've heard that Americans can hold all forms of real estate without setting up a Thai company because of the treaty between the US and Thailand. Is this true?

 

".........Foreigners may not generally own land in Thailand....................The right to own land is not included in the Treaty. Thus Americans are in the same position as others foreigners in relation to land ownership."

 

http://www.bia.co.th/006.html

 

-redwood

[winner 0]

Not sure if phw10 is actually talking of experience or from some shite he heard from a drunk sitting beside him in a bar, pattaya is full of experts.

 

When i was looking for a place to buy in pattaya, there was very little difference infact none, in price for decent condo's, if they were Thai or foreign owned. So not sure what phw10 is banging his drum about.

 

I bought my place along with another Board member about 4 years ago and am bery happy with it. It was a purchase from a foreigner owned property, hence why were were allowed to own it 100%. A certain percentage of all condo units in a block has to be thai owned, the rest can be 100% owned by foreigners

 

If what you are saying is that you would have paid the same price in your condo to buy from a Thai as you paid from a falang then both could have been jacked up since in both cases you are a falang. The foreigner had to charge a high price to get his money out of it and the thai jumped on board to get a bigger profit. The key question on all of these transactions is if you had to move, would a Thai who is looking to buy for personal use pay you what you paid for it? In the overwhelming number of cases the answer is no. If the law ever changes and forces foreigners to move a lot of people will wish they had paid rent.

[chantrycat 0]

You could try putting the deed in your latest & greatest Thai girl friends name. I've heard that works out real well.

 

 

a straight and serious question......if you purchased in the name of your TG and took a simultaneous lease-back for 30 years is that still such a risky course of action?

Edited March 24, 2007 by chantrycat

[Gary 4,118]

It does appear that a 30 year lease is the safest way for a farang to control property. The land office recognizes a 30 year lease but does NOT recognize anything beyond that. There are always catches. You must pay a lawyer for the contract and the other costs. Then there are the taxes. The government levies a 12 1/2 percent monthly tax on the monthly value of the lease. There are ways to get around the 12 1/2 percent tax. You can marry the owner but then the whole thing becomes community property subject to a 50/50 split if it all turns to shit. Save yourself a lot of grief and buy a condo in your own name BEFORE you get married.

[elef 0]

If you divorce even that condo will be split 50/50 if you don't have a legal pre-nuptial agreement.

 

I own land and houses and everything in the names of my children who of course are thai citizens.

 

30 year lease and an option for 30 more, the option is not legal today but not illegal either, it will be the situation after 30 years which determines if the option is legal but it may very well be. So better than nothing.

[Gary 4,118]

If you divorce even that condo will be split 50/50 if you don't have a legal pre-nuptial agreement.

 

I own land and houses and everything in the names of my children who of course are thai citizens.

 

30 year lease and an option for 30 more, the option is not legal today but not illegal either, it will be the situation after 30 years which determines if the option is legal but it may very well be. So better than nothing.

 

No, that's not correct. Anything you have in your own name before getting married belongs to you if you get divorced. In fact if I don't have a will and die, my legal wife STILL has no claim on my condo. Recently a farang passed away and his legal wife was forced by his children to move out of his condo.

[elef 0]

Yes, you're correct if you keep that condo, but it's normal to move and suddenly the new condo has become common property.

[fi33er 1]

If you divorce even that condo will be split 50/50 if you don't have a legal pre-nuptial agreement.

 

I own land and houses and everything in the names of my children who of course are thai citizens.

 

30 year lease and an option for 30 more, the option is not legal today but not illegal either, it will be the situation after 30 years which determines if the option is legal but it may very well be. So better than nothing.

elef how old does a child have to be (thai citizen) before he/she can own property in thailand, are there restrictions your help would be appreciated

 

fi33er