Irene

crewcut,

Good of you to let us know.

I like the questions but unfortunately I have no statistics. I love to see the answers to all the question because recently I have been buying/committing on those condos in a walking distance to sky train stations along Sukhumvit. The average price is Baht130,000 per sqm (two years ago, 80,000 baht range)

The bubble is when prices are lifted up by speculators to the level that eventually no true long term investors would buy at that high price range as happened in Hong Kong and Singapore many years ago but never in Thailand. For Thailand, it was the bubble created by the builders who could not even find a speculator in bad time in 1997 and having to leave many see-through buildings unfinished. Their debts formed part of many non-performing loans. It is odd that through Thai history so far, price range of a condo has never come down. The risk for a retail investor is in paying a deposit and instalments in total of 30% range with the developers and the developers run short of money to complete. There is not much legal protection for the buyers. Another risk is when completed and due for 70% payments for final transfer, there is a prevalent default of the buyers, then the price could drop substantially. From my experience todate, I have never been aware of any project falling under this category.

Thanks for the questions and am looking forward to other inputs.

Recently, the Director-General of the Revenue indicated that the VAT of 7% should be increased since it is one of the five countries in the world that has been using this lowest rate. However, the decision-maker is with the coming Finance Minister of the new government and also depends on the economic situation by the first half of next year.

The rise is possible but certainly not to the rate of 10% because of the Thai nature in not increasing anything by leap and bound. The idea could be just to get people to be used to the rise, perhaps by 0.5%.

For what it is worth from me, US subprime has nothing to do with Thailand except for those four Thai banks who have the direct investment in the subprime. But Thailand can be affected if there is a slowdown of a US economy which does look now certain. The part of the uncertainty is whether it will go to the extent of a recession. Leading personnel believes of less than 50% chance increased from the previous belief of 30% chance of happening of a recession. DJ is now suffering through event being ignited by subprime in the housing and financial sectors and certain to affect other sectors.

Fortunately for Thailand, Thailand has reduced its dependency on exports to US to less than 20% of all exports while has increased to 40% for export to Asian countries. In my humble view, I fear only for US recession which would have worldwide psychological effects to the stock prices.

Today's rise is overdue and strangely enough net buyers are from local institutions while net sellers are from retail investors. Foreign institutions are in an even position today but have been the net sellers in the past week. There have been many favourable reports on Thailand in the past few weeks e.g.Union Swiss. One speaker from Bear Stern on Bloomberg TV recommended Thailand with sensible reasons that stock prices of other emerging market in Asia have risen too high leaving Thailand right in the bottom despite its recent rise. So Thailand has come to a stage of a good pick to make up for the lost gap. P/e of Thai energy stocks still lag behind others in the region.

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awayfoe,

Please tell me whether you get good result by using it.

I used to live in a guest house in Kensington, London, where five units of rented rooms had to share one bathroom cum toilet. Give me Thai ratio anytime for the "luxury" of being private in a happiest spot where you can read and ponder in your quiet moment. I prefer to give up space for this "luxury".

As a frequent traveller to Pataya for the past ten years, I have yet to experience of one full day of cloudy weather in Pataya. Your chance of sunny day is more than even in Pataya than in Phuket during this time of the year.

The document is supposed to be retained as an evidence for the company's share registrar. Normally, he is the company's secretary, in the capacity of the company's lawyer. This company's employee can file a list of shareholders of the company with your changes with the Ministry of Commerce as a public statement stating you as a new shareholder.

I am a junkie on news media and with the purported news like that I should not have missed it especially when I am in a condominium business as well. So, my answer is negative and I have never heard of it. I am fascinated how news being passed on among expatriates. Mostly, they are frightening and untrue.

Hi Irene - the diagram you showed said 73 sq meters - my London flat is about 100 sq m its has two very, very, generous double bedrooms, kitchen that can take an extended 6 seater table (at a push) bathroom that has a tub etc and lonuge where the 42" disapears on the horizon.

I think some remeasuring is required? what are they including car parking space communal ares etc?

That was not my diagram.

I have one two-bedroom unit with two bathrooms. One bedroom has to share its bathroom with the living room. This is the only unit I have not been able to rent out for ages and yet the unit is beautifully situated facing the Lumpini park. The complain has always been that lack of bathroom for guests. So the idea of a separate bathroom for guests is not stupid after all.

for sane people, it is. your condo isnt even big enough to have people sleep over. where are they sleeping, the couch? so when guests come over they arent allowed to use the bathroom in your bedroom? seems pretty silly to me.

Yes, it is big enough for a married couple with no child to have people to sleep over. The guest can sleep in the second bedroom. The bathroom of the second bedroom is accessible from the living room and from the second bedroom. So, he does not need to use the bathroom of the master bedroom. That seems to be reasonable but still there is no taker. Marketability is the key and not idealism.

I have one two-bedroom unit with two bathrooms. One bedroom has to share its bathroom with the living room. This is the only unit I have not been able to rent out for ages and yet the unit is beautifully situated facing the Lumpini park. The complain has always been that lack of bathroom for guests. So the idea of a separate bathroom for guests is not stupid after all.

This is an idiosyncratic and bureaucratic rule of maintaining that the stated wordings in a passport of an expiry date is not an expiry date. It has to be the date of three-month or six-month before the printed expiry date. (I have never been caught by this rule.)

Yes, the solution is easy, just to get a new passport. But think of a person who just simply follows the simple language of the meaning of an “expiry date” and now precluded to leave the country. I bet that immigration officer must have a happy day that day and exclaimed that now I caught one irrespective of the suffering of another human being.

I now wonder whether we are the world full of sheep.

Your main aims are twofold, one, the usufruct is acceptable to the Land Department that it is legal and secondly not challengeable by your Thai wife, in the event of subsequent fallout, as not enforceable.

First, the Land Department has a standard form of a usufruct agreement that you could follow. If you cannot speak Thai, it would be for your own protection to bring along a Thai friend (not your wife) to the Department and ask all the necessary questions to assure you of good standing of that legal document and any other documents that are needed to support your requirements. The officials are usually helpful. On subsequent visits, take along some small gifts (like ties or sweets) as a gesture of thank you. Under this basis, sometimes you are better off than having lawyers' advices.

Second, once the Land Department representing the state accepts the registration and your

rights, you have got only one party left who can dispute your right. That is your wife. If she is not legalistically mind, like most Thais, she is likely to accept almost 100% of your right as stated under any Guruda headed documents. Naturally, during the registration, you can find out from the officials of nice documents or wordings that could preclude her from ever dreaming of taking a case against you in case of falling out.

I've decided to hire my wife as a consultant. She will now have to formally declare her income in this regard (paid by myself from an overseas bank account) and pay income tax. Is income tax paid monthly or yearly? Would she need to set up a 'business' to suit this arrangement? Any other helpful advice?

We need to be able to show proof of income (bank book) and proof of payment of tax for my immigration purposes.

Thanx...

To answer your questions, income is subject to withholding by a corporate payer whenever paid to an individual for service fees. But since you are the payer outside Thailand, no withholding on your part is necessary. It is the duty of the income recipient to declare her income half-yearly or yearly. If the fees are of professional nature, then half-year declaration is applicable. If not, at the end of the calendar year and by March 31, she has to declare her income and pay the tax. However, by choice, if she prefers to pay tax before due time, she can do so. Her expense allowance is restricted to 40% but not exceeding Baht 60,000 per year. (To be eligibble to other more liberal expense allowances, your wife's income would have to be in the nature of commercial services like hairdressing).

On your last paragraph, I do not understand why you need your wife's income and proof of tax payments

for your immigration purpose. I presume you and others understand this requirement.

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The ground belongs to all co-owners who own proportionately the land. The proportion is well-spelt out on the title deed.

<br />thai law does not allow foreigners to own land. period!<br />

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Who are these co-owners ? how can you find out more information on them ?

These co-owners are the titleholders of each unit within the condo which is in law viewed as privately owned by each unitholder. The registration of these holders are with the Land Department.

The land that the condo building is built on belongs to all co-owners proportionately stated on each title deed. The unitholders irrepective of their nationality own this land. For example, if a condo is destroyed or demolished and a new building has to be built, the resolution of the three-quarter of the votes of the unitholders has to be reached of the design and usage or alternatively to sell the land and the proceeds have to be apportioned in accordance with the ratios stated on the title deed of each unit. The benefits on that land go to all co-owners.

The ground belongs to all co-owners who own proportionately the land. The proportion is well-spelt out on the title deed.

thai law does not allow foreigners to own land. period!

The land that the condo is built on belongs to all co-owners, i.e. each unit holder, of the building irrespective of their nationality.

Just to say thank you for sharing your professional knowledge with us. I truly appreciate the input which shall be used for my future reference.

yeti,

I just give the doctor's name in case of need. His name is Dr. Sakdi Kunluan at Samitivej Hospital at Soi 39. He is there everyday except Saturday between 10 am to 4 pm.

I hope you don't need to see him but given as a comfort and a fall-back position. Good luck! Believe me, I know how painful it can be!

My comments in bold type:

Ive just been talking to a guy who's thinking of buying a

Condo, a couple of questions he asked, I had no answer to

So can some one please comment on them …..

If a farang can have a condo registered in his own name

who actually owns the ground the condo is built on ..?

The ground belongs to all co-owners who own proportionately the land. The proportion is well-spelt out on the title deed.

If the ground is owned by say the condo builder, could the

Owner of the ground sell it in some way, if so how would

This affect the condo owners if at all ..?

No, buyers of the condo units are the owner and not the builder or developer. Anything to do with the use or disposal of land requires three-quarter votes of the co-owners.

If when a farang firsts buy's a condo, and the yearly

Maintenance fee's are shown, what's to stop the condo

Management from increasing the maintenance fees

On the next year to a vastly higher rate than shown

When the condo was purchased the year before..?

The change of fees requires majority-approval of the co-owners at an annual general meeting.

If say there's 100 condo owners all paying equally

To the maintenance up keep fee's , what happens

When some of the condo units are empty awaiting to be sold

Would the selling owner still have to pay the full

Maintenance amount, even if the condo unit is not

Occupied..?

Yes, this is the painful part of buying a condo. If unoccupied or unused, you still have bear the monthly fees. You are unable to sell the condo, if you have not paid all the due maintenace fees.

Thanks.... TL

The problem with massage salons is that their staff usually have little anatomical knowledge so if you have a back injury they are likely to do more harm than good.

If the pain is really bad and doesn't go away I'd consult a physiotherapy doctor or an orthopedist before you have any more massages. The doc can give you more info about your back problem and tell you what kind of massage is safe and beneficial so you can direct the masseuse next time.

Swimming works the back muscles without putting much strain on the spine so it is a safe exercise and a good way to strengthen the back, which is beneficial if you spend a lot of time in a chair. It probably won't provide instant relief for an acute back problem but a good swim once a day will keep future back problems away.

If you don't want to see a doc then the best thing you can do is probably to lie on your back as much as possible, avoid sitting in a chair for too long and don't bend over and lift anything until you feel better. Applying heat to the sore area may provide some relief.

Good advice but I am not quite sure about swimming while in pain. Perhaps walking in the water while in pain.

From my same experiences as yours, I will never go to a massage parlour when in pain. I read somewhere that one wrong move could make the matter worse.

Lumbago happened to me three times in the past ten years. Twice, I saw an orthopaedic doctor and was advised of leg movements ten times every now and then. Strangely enough after a few days the pain disappeared. The only pills given for the first time was only paracetemal. The second time was two years ago and I saw the same doctor, instead I had to go through professional massages for a few days with heavy billings. This hospital was recently equipped with a full-fetched equipments and personnel which could be the reasons I had to go through this sophisticated process. After a while, the pain again disappeared. (My original intention was to find out from him of the required movement that I then forgot and not to go through those high-powered equipment and well-qualified medical masseurs who are more suitable for those serious cases of near-paralysed patients).

The third time was a few weeks ago, I then decided not to see the doctor since I got the hint from him the second time that professional massage is merely to ease the pain temporary but not a cure. He even hinted that it could disappear without doing anything if you can bear the pain but it could take longer to recover. (In short, his hint was if you can bear the pain, then save your money and you don't need me. He was really professional and got along with me famously when we talked about our experience in the States). However, he advised that so long as you bear in mind of the contortion of your back with the bone close to the nerve (which is due to aging) and conduct yourself properly in lifting up your weight in a certain situation, the pain could naturally disappear. His advices were the followings:

Change your position of seating by having the back well supported by the backing of your chair (i.e. you felt the painful part being backed by stiff backing). When you get up from a chair, use your hand to lift yourself up from the seating position, (it was excruciatingly painful at first and after a few times, it became quite bearable). When you wake up, don't rush and lift up your body without any support. You should use your hand to support the weight in moving up. When you brush your teeth, support the weight with one hand and not in a floating position. When you pick up things on a floor, don't bend your body but vertically lowering down your ankle to a low position.

My third time and without seeing a doctor, I recovered within one week.During that week, I used a waist pad in tightening the painful part to ease the pain during the working hours. The pad was God-sent during those hours. That pad cost me B5000 which I used it through the doc's recommendation. But it could be far less if you get it from pharmacy shops opposite the Chula hospital.

The above is only my personal experiences and may not be applicable to you. However, definitely, if in doubt and in unbearable pain, do see a specialist who has been seeing patients of our sorts everyday. His advice is more focused to our problem.

Thank you for the recommendation. Your last two points indicated to me that the writer has the knowledge of the insides. Not many westerners know that how closely knitted interaction among the Chinese of a few surnames. Among themselves, they truly follow the concept of "my word is my bond" but to the outsiders. I will get the book.

hi,

I have researched the topic and found this to be my best option. I spoke to the selling agents lawyer who says the new gov (m) have not agreed this route so he cannot do it Hmm, yet he will set up an illegal company.hhhhhhhhhhhhheeeeeeeeeellllllllllllllllllp

How can you rely on the seller's lawyer to advise you on the route. Conflict of interest! Other writers are correct-get your own lawyer.

Amendments to the Foreign Business Law are still with National Legislative Assembly and unlikely to be placed for consideration within the life of this NLA. The controversial part was some members of the NLA wanted to cover those Thai companies,that are truly majority-owned by Thais, to be considered as aliens if they are controlled by foreigners in term of management or policy making. However, the government does not go along with that concept and now foot-dragging in order to let it lapse by the election time and die of natural death. (The law has to be re-introduced by the next government, if it so wishes) I guess that is the likely result of the current scenario of a natural death.

As for the future, if the Democrat Party forms the government in January 08, the likelihood of the introduction of the Amendments is remote or even if introduced it is likely to be friendly to foreigners. Some of the key Party members have expressed this feeling.

As to the company route for homeownership, if you can prove that the shareownership on the Thai part comes from his or her own fund or not shown as receiving from non-Thais to buy the shares, then no action can be taken against the company or the individuals. Even if you are wrong, you may face the criminal penalty and its harshness is depending on judges, but your property would not be lost since you are forced to sell to Thais within a year or two (i can't remember the timeframe).