Is this a good time to buy a Condo?

[how241]

13 hours ago, Destiny1990 said:

In case you haven’t noticed its a ghost town at the moment indeed most have left.

Really ??   Even if that were true,  that doesn't hurt me. Actually it makes things better with less traffic and more baht hungry friendly ladies. 

[Leaver]

12 hours ago, jacko45k said:

Well you chopped up what I wrote to suit your post but I can assure you there are many such 'companies'..... , land ownership may well not be it's sole purpose else there would be fewer McDonalds!

Well, you distorted my words, so, I will make it simple.

 

Question:  Is it illegal to set up a Thai Company for the purpose of owning land / property?

 

I will leave you to answer a "yes" or a "no." 

[Leaver]

12 hours ago, Henryford said:

Not sure if this is the case. The "Thai Company" condos are owned by the company with 51% shares under Thai name. The foreigners involved own nothing. If Thailand wanted to clamp down on this scam then they would lose everything (which is why i would never touch a scheme like this).

They use the loop hole of Thai nominees, who resign from the Thai Company, and are never replaced. 

 

Yes, a ticking time bomb, for whenever the Thai's want to pull the pin on the bomb.

 

Whilst one may have a condo in their name, not a Thai Company name, and feel secure in that, an issue can arise where authorities, at a convenient time for themselves, decide to investigate all condo ownership in blocks that they know are jammed with foreigners.  

 

Then, it's possible a foreigner who has done the right thing, and most likely paid more for a condo that is part of the 49%, can be caught up in a messy legal issue involving the whole block.

 

My point being, a member posted that they put faith in the Land Office to ensure the 51% / 49% law, but such faith is misguided. 

 

Of course, the "everyone else does it" and "it will never happen to me" and that old chestnut that I chuckle when hearing it, "the Thai's would never do that because they would lose too much money"  are nothing to be relied upon. 

 

Edited March 2, 2020 by Leaver

[SCOTT FITZGERSLD]

i am trying to understand something here.

say i buy a condo in a building that is owned by foreigners, with

more the than legal 49%, and i don't know about it nor about

the law that says that a condo building must have at least 51% thai

ownership.

does this mean that i am not the legal owner of the condo, and i might have

legal problems proving that i am the owner?

 

i did inquire about buying a house or a condo in thailand, with one of those

sales booths in the malls. i told them how can they sell house to a foreigner, when 

the foreigner can't legally own the land. they told me i can open a company that will

be the owner of the land. so i told them that even this company must have

thai majority ownership..and so it went on and on until they figure out

there is no legal way for a foreigner to own a house in thailand...so why do they sell it?

[SCOTT FITZGERSLD]

1 minute ago, Leaver said:

 

Whilst one may have a condo in their name, not a Thai Company name, and feel secure in that, an issue can arise where authorities, at a convenient time for themselves, decide to investigate all condo ownership in blocks that they know are jammed with foreigners.  

 

Then, it's possible a foreigner who has done the right thing, and most likely paid more for a condo that is part of the 49%, can be caught up in a messy legal issue involving the whole block.

 

My point being, a member posted that they put faith in the Land Office to ensure the 51% / 49% law, but such faith is misguided. 

good advice.

that is indeed the situation, that many are not aware of.

i wil add that i identified an attitude in asia, which might be called "let

the farang buyer worry"...which means, not being so clear about

the laws and regulations, let the hard currency flow in, and than, if

there is a problem or times are hard - pull from the sleeve the applicable

unclear law / regulation, and let the foreign buyer lose his shirt.

dangerous thing is, that this attitude is being practiced by big businesses too,

banks (everywhere in the world), governments, ext.

 

that is why it is allways reccomended to buy real estate with mortgage / loan.

if the government or the firm try to screw you after few years with this or that

not so clear law, you can allways escape from the country, leaving them with

their condo and default loan.

problem is, thai banks don't give mortgage loans to foreigners...hardly

ever to the average thai people 

[Leaver]

5 minutes ago, SCOTT FITZGERSLD said:

until they figure out

there is no legal way for a foreigner to own a house in thailand...so why do they sell it?

Ownership is put in a former Thai prostitute's name, because, "my girl is different." 

 

Later down the track, the foreigner is "depressed" and jumps of a balcony.  Case closed. Early retirement for the Thai prostitute.  ????

 

Next victim. 

[Leaver]

13 minutes ago, SCOTT FITZGERSLD said:

that is why it is allways reccomended to buy real estate with mortgage / loan.

You are trying to buy something you can never own.

 

I recommend leaving your lump sum in your home country, working hard for you, and rent in Thailand.  The worse you can lose is one  month's rent, and the deposit.  Hardly bank breaking.  You have the freedom to move locations, even countries, should visa laws change. 

 

The old saying, "rent is dead money" is not true in Thailand.  Renting is the smart money.

[jacko45k]

9 hours ago, Leaver said:

Well, you distorted my words, so, I will make it simple.

 

Question:  Is it illegal to set up a Thai Company for the purpose of owning land / property?

 

I will leave you to answer a "yes" or a "no." 

No... ask the Dusit Company. 

Edited March 2, 2020 by jacko45k

[Leaver]

On 3/3/2020 at 10:32 AM, jacko45k said:

No... ask the Dusit Company. 

The Dusit Company directors are all Thai.

 

http://dtc.listedcompany.com/directors.html

 

[jacko45k]

On 3/3/2020 at 6:32 AM, jacko45k said:

Leaver's Question:  Is it illegal to set up a Thai Company for the purpose of owning land / property?

 

25 minutes ago, Leaver said:

The Dusit Company directors are all Thai.

 

http://dtc.listedcompany.com/directors.html

 

So it is not illegal!

Edited March 4, 2020 by jacko45k

[Leaver]

18 minutes ago, jacko45k said:

 

So it is not illegal!

Correct.

 

Next question:  Is it illegal for a foreigner to set up a Thai Company for the purpose of owning land / property?  ????

 

And your answer is.................?

[jacko45k]

Just now, Leaver said:

Correct.

 

Next question:  Is it illegal for a foreigner to set up a Thai Company for the purpose of owning land / property?  ????

 

And your answer is.................?

Mine was set up by a Thai lawyer. Doubt a foreigner could do it. 

[bkk6060]

Wow!

 

Just read an article in the Bangkok Post.  Colliers International is requesting a freeze on any new housing construction in Pattaya.

 

The number of unsold units has increased to 25,000 from around 12,000!

 

Unbelievable, sure glad I own nothing a big depreciating waste I am afraid.

[Leaver]

6 hours ago, jacko45k said:

Mine was set up by a Thai lawyer. Doubt a foreigner could do it. 

Let me guess, the 51% Thai shareholders have resigned from the company, and have not been replaced.  A very old loop hole.  It would make for interesting times should they close this loop hole and start to enforce it.

[Leaver]

2 minutes ago, bkk6060 said:

sure glad I own nothing a big depreciating waste I am afraid.

But, but, but, rent is dead money.   ????????

[jacko45k]

15 hours ago, Leaver said:

Let me guess, the 51% Thai shareholders have resigned from the company, and have not been replaced.  A very old loop hole.  It would make for interesting times should they close this loop hole and start to enforce it.

There was a bit of a rumour about 5 or so years ago that this was being quashed or looked at, but it seemed to be very much focused on larger outfits who were in reality trying to own land and make profit. It might have stemmed from some outfit down Phuket way. 

You know how it goes here, it isn't illegal until someone decides it is... but if company ownership was to become prosecuted, it also means the condo market would take a big hit, along with housing. It is already in the doldrums

 

I personally do not regard the alternatives as rock solid either, the 30 year lease, the Usufruct, heck even owning a condo you don't own the ground it stands over! The laws on land ownership in this country are xenophobic and racist, and will remain so, isn't it in the their constitution?

[Langsuan Man]

1 hour ago, jacko45k said:

isn't it in the their constitution

If it is, really makes no difference, a Constitution in this country changes more often than the bar girls on Soi 6

[bkk6060]

They could change the 51% rule.  In fact after this virus is gone would not be surprised if they temporarily did that.

 

But, they could turn the entire market around here by allowing foreigners to own land, and get mortgages from banks with a 20% down plan.

I bet the market would take off maybe double the prices in just a couple of years.

Of course, there would be some fear of foreclosures but if they made the rules very strict regarding this, I bet the loses would be pretty limited.

 

Doesn't matter I guess because they would never allow foreigners to get mortgages here.

Just sayin, I bet it would turn the thing around fairly quickly if they did.

 

[newnative]

3 hours ago, jacko45k said:

There was a bit of a rumour about 5 or so years ago that this was being quashed or looked at, but it seemed to be very much focused on larger outfits who were in reality trying to own land and make profit. It might have stemmed from some outfit down Phuket way. 

You know how it goes here, it isn't illegal until someone decides it is... but if company ownership was to become prosecuted, it also means the condo market would take a big hit, along with housing. It is already in the doldrums

 

I personally do not regard the alternatives as rock solid either, the 30 year lease, the Usufruct, heck even owning a condo you don't own the ground it stands over! The laws on land ownership in this country are xenophobic and racist, and will remain so, isn't it in the their constitution?

    As a condo owner, if the condo project itself was sold--perhaps a developer wants to tear down an 8 story condo and put up a highrise--you, as an owner, would receive the same profit of the condo sale as a Thai owner.  You may not technically own the land (neither does your Thai neighbor) but you are a stakeholder the same as he is. 

[Eindhoven]

Have just posted a timely article. Director of a large estate agency in Pattaya has apparently absconded with up to 300,000,000 baht.

[jacko45k]

2 hours ago, newnative said:

    As a condo owner, if the condo project itself was sold--perhaps a developer wants to tear down an 8 story condo and put up a highrise--you, as an owner, would receive the same profit of the condo sale as a Thai owner.  You may not technically own the land (neither does your Thai neighbor) but you are a stakeholder the same as he is. 

So he can tear it down while you are still living in it?

How much did the owners on Washington Square receive each?

 

[bkk6060]

6 minutes ago, jacko45k said:

Washington Square

Some good times there.

What is it now, condos?

[newnative]

4 hours ago, jacko45k said:

So he can tear it down while you are still living in it?

How much did the owners on Washington Square receive each?

 

     No.  There would first be a vote by the condo owners as to whether or not to sell the project. 

[scubascuba3]

4 hours ago, Eindhoven said:

Have just posted a timely article. Director of a large estate agency in Pattaya has apparently absconded with up to 300,000,000 baht.

Rule no.1, don't buy off plan

[newnative]

2 hours ago, scubascuba3 said:

Rule no.1, don't buy off plan

Rule no. 2, if you do buy off plan, buy from a large, well-financed public company builder with an excellent track record of completed projects.  My partner and I have bought off-plan from Sansiri, Lumpini, and SC Asset with no problems.  One project was completed right on time and the other two were completed early.  (Buying off-plan, we made a profit on all 3.)

[scubascuba3]

11 minutes ago, newnative said:

Rule no. 2, if you do buy off plan, buy from a large, well-financed public company builder with an excellent track record of completed projects.  My partner and I have bought off-plan from Sansiri, Lumpini, and SC Asset with no problems.  One project was completed right on time and the other two were completed early.  (Buying off-plan, we made a profit on all 3.)

yeah that's the exception to the rule

[Susco]

11 hours ago, bkk6060 said:

They could change the 51% rule.  In fact after this virus is gone would not be surprised if they temporarily did that.

Another dreamer who think 1997 will return every decade.

 

The 51% rule was revoked 1 time in history and only for a limited time and for restricted projects.

Edited March 5, 2020 by Susco

[jacko45k]

13 hours ago, newnative said:

     No.  There would first be a vote by the condo owners as to whether or not to sell the project. 

Does a 51% vote take it so that only 49% have their home knocked from under them or must it be 100%?

[newnative]

1 hour ago, jacko45k said:

Does a 51% vote take it so that only 49% have their home knocked from under them or must it be 100%?

   If I am remembering correctly, under Thai condo law there are 3 events that could result in a condo project being liquidated and your condo 'knocked from under' you.  First, a natural event such as a fire or earthquake could destroy the building.  Second, a government entity could seize the condo project for some reason--maybe a highway is being built--and your condo project is in the way.  Third, the owners freely agree to sell the condo project--maybe a developer has offered them a large pot of money.  I wish it was something reasonable and sane like two-thirds of the owners having to be in favor but I think it is 100%--hope I am wrong on that.  Anybody's condo project been sold?

[Henryford]

20 hours ago, Eindhoven said:

Have just posted a timely article. Director of a large estate agency in Pattaya has apparently absconded with up to 300,000,000 baht.

What money would that be? Payments on a yet to be built condo would go i assume to the developer not the RE agent.