Rent House VS Buy Leasehold - You pay upfront for the rent and can be sure to stay there 30 years ?

[BuyHouseBowin]

hello,

 

I am trying to know more about some leasehold houses to "buy".

What is the reason for anyone to pay for lease upfront when they will never be the owner of the house ?

It seems that lease are cheaper, but for 1 million more you can often buy a house somewhere else.

 

Apart from staying in the property 30 years, is there any other advantage of leasehold ?

I found some villages where it is not possible to really buy a house, only leasehold is possible, can you explain me why ?

 

Leasehold means paying in advance the rent for the 30 next years, then we have to pay again after 30 years ? is it correct ?

 

I am new to this concept so maybe I did not understand well, please help me !

 

Thanks a lot.

 

 

 

[transam]

You cannot buy land a house is on if you are an alien..

The UK has freehold or leasehold properties, much the same thing..

Renting is money gone..

[JWRC]

You can rent for 30 years but it needs to have a title whereby the lease can be registered with the land department. you can get an option to extend, but even registered it is hard to enforce. I know of 2 people who lease, one is house and land. The other is just the land and he built his own modest house on it. In either case they did not pay the 30 years upfront, one pays an amount monthly and the other pays yearly. You would need to get the lease drawn up by a lawyer because this agreement needs to be binding for heirs and successors as well.

Not my business but in my opinion there are better ways of securing a home.

[Kwasaki]

Only thing I see for a single person is if you rent you can move around.

Don't see the point of leasehold unless you intend to stay. 

[SiSePuede419]

18 hours ago, transam said:

You cannot buy land a house is on if you are an alien..

The UK has freehold or leasehold properties, much the same thing..

Renting is money gone..

Wrong.

 

Renting offers you a place to live.  And it offers maximum flexibility, in case you want to move for any reason whatsoever.

 

Also, Thais prefer new property versus old, so if you try to sell your OLD USED HOUSE, you will have great difficulty finding a buyer.  Probably will have to offer a steep discount and possibly lose money on the deal.

[baansgr]

8 minutes ago, SiSePuede419 said:

Wrong.

 

Renting offers you a place to live.  And it offers maximum flexibility, in case you want to move for any reason whatsoever.

 

Also, Thais prefer new property versus old, so if you try to sell your OLD USED HOUSE, you will have great difficulty finding a buyer.  Probably will have to offer a steep discount and possibly lose money on the deal.

Thais buy plenty of 2nd hand property, providing it is priced correctly, bit of an old wives tale that one...everybody "prefers" new versus old  Thai or otherwise.

[transam]

5 minutes ago, SiSePuede419 said:

Wrong.

 

Renting offers you a place to live.  And it offers maximum flexibility, in case you want to move for any reason whatsoever.

 

Also, Thais prefer new property versus old, so if you try to sell your OLD USED HOUSE, you will have great difficulty finding a buyer.  Probably will have to offer a steep discount and possibly lose money on the deal.

Wrong.

Renting is money down the drain. If one is a drifter, then rent, I am not. I have been in my house for 12+ years, the land it is built on is now worth more than what I paid for the land AND the house. If I wanted to sell it, farangs would fight over it...????️...????

 

I am not Thai, I would have no problem buying a secondhand house if it met our criteria. My farang friend is an estate agent where I live, he sells secondhand houses...????

[vukovar77]

12 minutes ago, baansgr said:

Thais buy plenty of 2nd hand property, providing it is priced correctly, bit of an old wives tale that one...everybody "prefers" new versus old  Thai or otherwise.

In that case You need to discount price 40-50%.Thais need in 99% bank finance and now according a new law it is very difficult to get mortgage .Banks will not finance old property.

[fordguy61mi]

29 minutes ago, transam said:

Wrong.

Renting is money down the drain. If one is a drifter, then rent, I am not. I have been in my house for 12+ years, the land it is built on is now worth more than what I paid for the land AND the house. If I wanted to sell it, farangs would fight over it...????️...????

 

I am not Thai, I would have no problem buying a secondhand house if it met our criteria. My farang friend is an estate agent where I live, he sells secondhand houses...????

Differing opinions. I think it’s foolish to buy anything in Thailand since renting is so cheap and you can move in an instant. You never know how the government will change and you might have to get out fast. We don’t live here. We’re merely guests.

[Skallywag]

19 hours ago, transam said:

47 minutes ago, transam said:

I have been in my house for 12+ years, the land it is built on is now worth more than what I paid for the land AND the house. If I wanted to sell it, farangs would fight over it...????️...????

You cannot buy land a house is on if you are an alien..

So first you say you cannot buy land, then you say you paid for the land and the house where you live.

Which is it - 5555

Peace

[izod10]

25 minutes ago, fordguy61mi said:

Differing opinions. I think it’s foolish to buy anything in Thailand since renting is so cheap and you can move in an instant. You never know how the government will change and you might have to get out fast. We don’t live here. We’re merely guests.

Too true, whatever you buy now will undoutedly be 30% less in few years time...empty houses all over the place,farang seller will bite your hand off with lowest offer thats more of an insult

[whiteman]

It is a life style choice get over it and enjoy your life I have been in my house for over 6+ years and love it has a 30 year lease on my partners land registered with the government office. Most of the moaners saying rent is the way to go. Probably could not afford to buy a S==h==i== t    H   o   u    s    e     to live in any how.   Each to there own

[BritManToo]

3 minutes ago, whiteman said:

It is a life style choice get over it and enjoy your life I have been in my house for over 6+ years and love it has a 30 year lease on my partners land registered with the government office. Most of the moaners saying rent is the way to go. Probably could not afford to buy a S==h==i== t    H   o   u    s    e     to live in any how.   Each to there own

I've got quite a nice house.

Wish I'd rented, then I could have moved with the VISA changes.

 

From someone who bought .......... rent don't buy in Thailand.

[transam]

1 hour ago, Skallywag said:

So first you say you cannot buy land, then you say you paid for the land and the house where you live.

Which is it - 5555

Peace

I am married to someone who can, chummy....????

[izod10]

Knowing more than a few,all regret buying,but the absurdity of it, a buyer few years ago gave up on the selling front now rents,left the house to rot

Edited February 21, 2020 by izod10

[zaZa9]

21 minutes ago, whiteman said:

It is a life style choice get over it and enjoy your life I have been in my house for over 6+ years and love it has a 30 year lease on my partners land registered with the government office. Most of the moaners saying rent is the way to go. Probably could not afford to buy a S==h==i== t    H   o   u    s    e     to live in any how.   Each to there own

Interesting post ...

Its , "each to there ( their ?) own" , BUT ,  lets attempt an insult to those who choose not to do it YOUR way ? ( "Probably could not afford to buy a S==h==i== t    H   o   u    s    e     to live in any how. ")

If Im guessing , I would guess that those who haven't bought  here would probably have a shedload  more money in their pockets.

 

A very good reason to NOT buy here , is that the local government seems unwilling , or even incapable , of making neighbours comply to local ordinances.

So if you suddenly get a new tenant next door that loves to burn his rubbish daily , or a developer down the Soi who dams the local klong and causes flooding  , or a truck driver who constantly parks his truck so it blocks the Soi , or a builder who decides to dump cubic metres of gravel onto the actual road , or even an old lady with 5 barking dogs - you as a foreigner will have little recourse  , and your complaints to local government will rarely remain anonymous for very long.

Faced with local folks disdain , and possible years to sell now any buyer can see the smoke haze/gravel/dogs etc , your options to sell and move quickly are near zero.

Unlike being a tenant.

 

Here in Phuket , land value increases , not the buildings value.

Since owning land is against the spirit of Thai law , foreigners are precluded from the opportunity for capital gain.

And the locals are building at such a rate , rents in real terms are dropping .

Come and rent , and see for yourself before making any commitment...

 

[robertson468]

25 minutes ago, izod10 said:

Knowing more than a few,all regret buying,but the absurdity of it, a buyer few years ago gave up on the selling front now rents,left the house to rot

You clearly are living on a different planet.  I have lots of friends who have bought houses and have been living in them for many years.  Never quite understand why TV people need to write such absolute cr*p and clearly do not have a measure of what is going on..............oh sorry obviously another keyboard warrior who sadly does not get out very much.

[izod10]

30 minutes ago, robertson468 said:

You clearly are living on a different planet.  I have lots of friends who have bought houses and have been living in them for many years.  Never quite understand why TV people need to write such absolute cr*p and clearly do not have a measure of what is going on..............oh sorry obviously another keyboard warrior who sadly does not get out very much.

Put your head out of the window,  I can and do,  just wot do I see?   two expat style houses up for sale ..empty  for years,  look the other way  same -same but more so   ,four in a row ,Id say unsellable.  I rent (used to own tho)   rent was 40++ few yearsago,now 12xxx a month,next time for lease 9xxx

  Easy to answer " do not have a measure of what is going on"  lol   you surely do not,still as the saying goes  "a fool and his money are easily parted"

  For sure try selling,just go through the motions,not a hope in hell,and if an idiot did eventually turn up you would be selling at a thumping great loss      

   Good reply tho   lol

[newnative]

15 hours ago, baansgr said:

Thais buy plenty of 2nd hand property, providing it is priced correctly, bit of an old wives tale that one...everybody "prefers" new versus old  Thai or otherwise.

Correct.

[newnative]

14 hours ago, vukovar77 said:

In that case You need to discount price 40-50%.Thais need in 99% bank finance and now according a new law it is very difficult to get mortgage .Banks will not finance old property.

   I don't know about houses but I sold 3 used condos to Thais, I didn't have to discount, I made a profit, and they all paid cash.

[mitostone]

For me, I have purchased land during 2018 in Phuket under my wife's name in Phuket and built it. Sold it all to Thais (2 Paid full cash, 2 who took loans) within 3 months and make a profit. So I guess it is are you selling at the correct price. 

Many Thai is actually cash rich, of course there is poor Thais too. It is depending who you mix with. 

 

To be honest, many people are either buying an overpriced or wrong location house that is why it led them losing money over time. 

 

I bought 1 Rai in Rawai, Phuket for a relatively good price (Under 5 million baht). Divided the charnote into 4. Built each house less than 1million baht. Sold it for 2.99 million baht. Profit roughly every plot for million baht. 

 

So in my opinion, leasing is surely a waste of money. If Leasing vs Renting. I will take renting. Or like most of us, find a nice lady and settle down. Buy the land thru her name. Earn some profit in the meantime.  

 

And if you were to buy a house, buy land instead and built it at your own pace/design. Normally nowadays you can do some bargain since the Thai's government is going to collect empty land for taxes. And pretty sure they will start panicking and wish to sell their land quick.

Good luck.

Edited February 21, 2020 by mitostone

[mitostone]

16 hours ago, SiSePuede419 said:

Wrong.

 

Renting offers you a place to live.  And it offers maximum flexibility, in case you want to move for any reason whatsoever.

 

Also, Thais prefer new property versus old, so if you try to sell your OLD USED HOUSE, you will have great difficulty finding a buyer.  Probably will have to offer a steep discount and possibly lose money on the deal.
 

Probably because in the first place, they may have bought the house at an expensive rate or the wrong location, that is why when you sell back to the market steep discount has to be given. 

 

But If I were to have two choices (Renting vs Leasing) I will take renting anytime. Because leasing does not worth any single cent. 

[mitostone]

15 hours ago, vukovar77 said:

In that case You need to discount price 40-50%.Thais need in 99% bank finance and now according a new law it is very difficult to get mortgage .Banks will not finance old property.

FYI, the bank does finance old property even the house in bad shape. They judge based more on land deed, not the house structure itself. 

In certain places, the land actually worth a lot more than the house structure such as Phuket, Bangkok. This is why location is important when you are looking for a place to buy. 

[baansgr]

21 hours ago, vukovar77 said:

In that case You need to discount price 40-50%.Thais need in 99% bank finance and now according a new law it is very difficult to get mortgage .Banks will not finance old property.

We assisted in many mortgages for Thais to buy property. Land size/location is the predominant factor in being offered a mortgage.

[izod10]

Demographics now all wrong for farang buyers,those that bought 7/8/9  years ago high priced are on a limb,never get anywhere near if selling was possible,now forget it.  Condo market same-ame, blight is everywhere.

   Pointless raking this up,any idiot says Im happy,ok so be it, but try the acid test,go on, try and sell what you think its worth,soon down with a bump then depression sets in,not a hope in hell

[ThaiBunny]

What sort of ramshackle place would something built 30 years ago be in? Does the lease set out who will pay for the inevitable structural repairs and maintenance that occur over that time?

[saengd]

2 minutes ago, izod10 said:

Demographics now all wrong for farang buyers,those that bought 7/8/9  years ago high priced are on a limb,never get anywhere near if selling was possible,now forget it.  Condo market same-ame, blight is everywhere.

   Pointless raking this up,any idiot says Im happy,ok so be it, but try the acid test,go on, try and sell what you think its worth,soon down with a bump then depression sets in,not a hope in hell

Rubbish! Farangs buy and sell condo's and houses all the time, condo's in my old building are now 1 million more today than they were six years ago, if you can persuade some one to sell you one.

[izod10]

Why they wont sell is the same as houses,nobody wants to sell at a loss,but the property taxes loom,wait for the avalanche

[saengd]

1 minute ago, izod10 said:

Why they wont sell is the same as houses,nobody wants to sell at a loss,but the property taxes loom,wait for the avalanche

Anybody who buys an overpriced shack or farang mansion in nakon nowhere is going to have a problem, those who do their homework and buy sensibly in good locations will not, just like real estate anywhere else in the world.

[ivor bigun]

23 hours ago, BritManToo said:

I've got quite a nice house.

Wish I'd rented, then I could have moved with the VISA changes.

 

From someone who bought .......... rent don't buy in Thailand.

Why rent ? my wife bought our house ,its worth twice what we paid ,where we live every house that goes on the market sells(must be the right location) been happy here for years ,its where i will pop my clogs .