Company,negative equity ..consequences? Own condo

[lapamita]

hello

just a question:

 

a company holding a condo .

The company owns it, has negative equity in 2018 and more negative equity in 2019 ( if balance finished)

over 10 year inactive  ( balance sheets are up to date but no revenues ), and only agressive writedowns on costs , so that now  negative equity is registerd

 

any consequences??

 

what risk asosicated with a company like that  under current conditions

 

screenshoot dbd chonburi

 

traslated : capital 1.0000000  actual loss - 149.000 next cant  and last shareholder equity - 70.000 ( and for 2019 -220.000)

 

 

[ThomasThBKK]

Depends where it has the liabilities?

 

Its not illegal to have debt - happens all the time u loan money to a company etc....

 

I wouldn't touch any company tho that was setup to own a condo, too easy to hide stuff, too many liabilities.

Only if it's a proper business i am willing to buy a company but that includes tons of due diligence over all book keeping.

 

would never buy a company that owns a condo, it's just too damn easy to own in your own name. If theres no foreign quota then setup your own construct with a porper lawyer if  you HAVE to and i mean it there's no simliar condo anywhere else... and make the current owner pay his taxes and tx fees.

[PatOngo]

11 minutes ago, ThomasThBKK said:

Its not illegal to have debt

80% of households would be in deep $#!t if it was!

[lapamita]

No/negative euqity means:

 

Assets minus libalities = equity " this is negative"

 

you can have depts , thats no problem, but if depts higher than equity IS NEGATIVE EQUITY, in europe a ltd,sl,sa,gmbh,ag, are required for file for bancruptys or take new equity or other measures

 

ok again LTD Thaicompany negative equity ..what happen ( and 10yr losses cons. reported )

[Henryford]

Madness to buy a condo in company name.

[Caine]

On 1/5/2020 at 1:15 PM, Henryford said:

Madness to buy a condo in company name.

To be more precise it’s just madness to by a condo full stop. ????????????????

[Traubert]

Negative equity is harmless unless the debts get called in. I doubt that will happen after two years, it's probably a shell company. i.e. owes debts to itself.

 

BUT that's under western rules. Don't take my word under Thai rules because I don't know.

[tomazbodner]

12 hours ago, Caine said:

To be more precise it’s just madness to by a condo full stop. ????????????????

You have to live somewhere. If nobody bought any properties at all, where would we all live? Yes, it's a renter's market, but someone has to buy or build it first for the rest to be able to rent. That said, Thailand has oversupply of condos and with looming taxes starting less than a year from now, the market is going to get severely affected or crash soon.

 

For myself I like to be on 30+ floor for the view and being above the mosquitos, like large pool, and like to have neighbours. I don't know of 30+ storey private houses, nor any with olympic sized pools, and most house owners hate their neighbours, on top of being in the middle of nowhere and requiring a car to go grocery shopping.

 

Each to their own, I guess.