Selling house in Thailand and renting in back

[CNX69]

Would you please share your personal experience?

ThankYou

[SCOTT FITZGERSLD]

WELL first you have to find a buyer. than you can ask the buyer if he agrees to rent it back.

[natway09]

It is legal !.

If both buyer & seller agree to a lease agreement after sale can make one for up to 30 years.

NOTE. You will need a lawyer for more than a 3 year lease as needed to be registered

[ronaldo0]

I was thinking of this to sell my house quicker. I was going to reduced the price by just under a million and then in the sale inform any potential buyer I would be renting it for 3 years and would look after it and pay all bills etc but no rent . It means they get the house at a lower price in a round about way and I was going to give them the option to pay for it on a yearly basis for the 3 years with it being fully transferred to them upon me receiving the last payment.

[GreasyFingers]

1 hour ago, ronaldo0 said:

I was thinking of this to sell my house quicker. I was going to reduced the price by just under a million and then in the sale inform any potential buyer I would be renting it for 3 years and would look after it and pay all bills etc but no rent . It means they get the house at a lower price in a round about way and I was going to give them the option to pay for it on a yearly basis for the 3 years with it being fully transferred to them upon me receiving the last payment.

Sounds like a good deal for you and not the buyer. They pay 1/3, another 1/3 and no income. You are a magician if you can price a property in Thailand to within a million of the real value.

[ronaldo0]

30 minutes ago, GreasyFingers said:

Sounds like a good deal for you and not the buyer. They pay 1/3, another 1/3 and no income. You are a magician if you can price a property in Thailand to within a million of the real value.

Maybe they don’t want it for an income at this time in a flooded property market and see it as a time to buy cheaper to prepare when people return in numbers in a few years . As for pricing it to within the real value I didn’t say I was looking for its value . I have already reduced it by over a million bht from what it cost to build as I built it and want rid of it at a loss .????

[GreasyFingers]

17 minutes ago, ronaldo0 said:

Maybe they don’t want it for an income at this time in a flooded property market and see it as a time to buy cheaper to prepare when people return in numbers in a few years . As for pricing it to within the real value I didn’t say I was looking for its value . I have already reduced it by over a million bht from what it cost to build as I built it and want rid of it at a loss .????

Why would anyone pay for a property with no income and no use of it. Ask yourself one question: would YOU buy the property on those terms? If the answer is yes you have a chance of finding a buyer, if no .....

[ronaldo0]

25 minutes ago, GreasyFingers said:

Why would anyone pay for a property with no income and no use of it. Ask yourself one question: would YOU buy the property on those terms? If the answer is yes you have a chance of finding a buyer, if no .....

If it was worth it compared to the usual market value price yes . Plus the fact I wouldn’t need to shell out for it all at once would be a help .

Same principal of people going around snapping up businesses, resorts ,cars etc at this time below market value  . They aren’t looking to buy it for the purpose of now , they are looking ahead .

Maybe they will be wrong in this but you can bet several will clean up with this strategy over time .

Edited January 6, 2021 by ronaldo0

[GreasyFingers]

13 minutes ago, ronaldo0 said:

If it was worth it compared to the usual market value price yes . Plus the fact I wouldn’t need to shell out for it all at once would be a help .

Same principal of people going around snapping up businesses, resorts ,cars etc at this time below market value  . They aren’t looking to buy it for the purpose of now , they are looking ahead .

Maybe they will be wrong in this but you can bet several will clean up with this strategy over time .

Good luck.

[scorecard]

3 hours ago, GreasyFingers said:

Why would anyone pay for a property with no income and no use of it. Ask yourself one question: would YOU buy the property on those terms? If the answer is yes you have a chance of finding a buyer, if no .....

 Everybody has different circumstances, some folks might go for this just for the future longer-term ownership of the land or land & house. 

[khunPer]

19 hours ago, CNX69 said:

Would you please share your personal experience?

ThankYou

Sounds like a lease-back deal, which gives you instant cash in the hand, in return for a higher rent in the future compared to ownership.

 

Rent will typically be calculated from about 6 percent a year and up, in some countries between 8 percent and 12 percent a year; however depending of interest level. In 10-15 years you have again paid for you ex-house, but now owns nothing.

 

Lease back normally makes sense in business terms, where instant cash is needed for whatever purpose, and leasing expenses can be tax-deducted; especially when the company has a high income level, compared to a relative low investor-capital.

[GreasyFingers]

10 hours ago, scorecard said:

 Everybody has different circumstances, some folks might go for this just for the future longer-term ownership of the land or land & house. 

The same question I asked the poster who did not give a yes/no reply; would you buy a property under those conditions? You are assuming that there are "some" stupid buyers out there.

[scorecard]

29 minutes ago, GreasyFingers said:

The same question I asked the poster who did not give a yes/no reply; would you buy a property under those conditions? You are assuming that there are "some" stupid buyers out there.

Your making your own assessment/values etc., very obvious, which is your right. 

 

But you fail to accept that other folks have different circumstances/values/assessment/decisions re the situation and that's their  right. 

 

Buyers who might well find the deal outlined may well have good reasons for their assessment of the proposed deal and that doesn't under any circumstances mean they are fools and I find your use of the word fool to be obnoxious.

[GreasyFingers]

7 hours ago, scorecard said:

Your making your own assessment/values etc., very obvious, which is your right. 

 

But you fail to accept that other folks have different circumstances/values/assessment/decisions re the situation and that's their  right. 

 

Buyers who might well find the deal outlined may well have good reasons for their assessment of the proposed deal and that doesn't under any circumstances mean they are fools and I find your use of the word fool to be obnoxious.

After 40 years in the property business my guess is that you are dreaming.

As for fools, they are everywhere but not too many buy property.

Edited January 7, 2021 by GreasyFingers
addition

[scorecard]

2 minutes ago, GreasyFingers said:

After 40 years in the property business my guess is that you are dreaming.

As for fools, they are everywhere but not too many buy property.

Yawn...

[GreasyFingers]

29 minutes ago, scorecard said:

Yawn...

So says a teacher.

[Yellowtail]

Would this not be like buying a rental property that came with a tenant?

[Airalee]

6 hours ago, Yellowtail said:

Would this not be like buying a rental property that came with a tenant?

Reading the OPs terms (pay no rent) it’s more like buying a property that comes with a squatter.

[Yellowtail]

1 hour ago, Airalee said:

Reading the OPs terms (pay no rent) it’s more like buying a property that comes with a squatter.

 

Assuming it's a fixed term, the rent is just rolled into (or out of) the sale price. If it a good price on a good property, negotiating the cost of rent for a few years is not that difficult. 

[CNX69]

The house owner is 76yo and would like to say in the house for 5 more years. The buyer wants 5 years pre paid rent.  

[Don Chance]

Just sell the house and rent somewhere else. It will be easier.

[Airalee]

2 hours ago, Yellowtail said:

 

Assuming it's a fixed term, the rent is just rolled into (or out of) the sale price. If it a good price on a good property, negotiating the cost of rent for a few years is not that difficult. 

All depends on the price.  In these days, most offers are coming in quite low I assume.  You think the owner will go as low as necessary for this kind of deal?  He can try, and the market will let him know the price.  If a sale with terms such as these doesnt materialize, it will be because...for the risk taken by the purchaser...the price isn’t low enough.

[Yellowtail]

35 minutes ago, Airalee said:

All depends on the price.  In these days, most offers are coming in quite low I assume.  You think the owner will go as low as necessary for this kind of deal?  He can try, and the market will let him know the price.  If a sale with terms such as these doesnt materialize, it will be because...for the risk taken by the purchaser...the price isn’t low enough.

 

Exactly, if it's cheap enough, someone will buy it. If he's 76, one could buy it an let him stay in it until until he dies, again, if it's cheap enough. 

 

 

[Airalee]

7 hours ago, Yellowtail said:

 

Exactly, if it's cheap enough, someone will buy it. If he's 76, one could buy it an let him stay in it until until he dies, again, if it's cheap enough. 

 

 

Hopefully it works out for him, but I think that it’ll be a tough sell especially in today’s market with the added contingency.  
 

I think that Don Chance (above) offers the best advice to just sell and rent somewhere else.

[alacrity]

On 1/6/2021 at 6:52 PM, GreasyFingers said:

Why would anyone pay for a property with no income and no use of it. Ask yourself one question: would YOU buy the property on those terms? If the answer is yes you have a chance of finding a buyer, if no .....

Unless some information in previous posts has been omitted, the seller would be renting the property from the buyer, after the sale. So, the rental of that property would be income and the buyer would be using such property to generate income, within negotiable terms.

 

The terms would be dependent upon; the sellers need to sell  and the buyer's long-term plans.

 

A strategy which could work for some and a better option to selling at bankrupt prices. Trick would be to make it happen.

[Salerno]

  

1 minute ago, alacrity said:

Unless some information in previous posts has been omitted, the seller would be renting the property from the buyer, after the sale.

 

On 1/6/2021 at 8:47 PM, ronaldo0 said:

I was going to reduced the price by just under a million and then in the sale inform any potential buyer I would be renting it for 3 years and would look after it and pay all bills etc but no rent .

 

[smutcakes]

Would be a nightmare for the buyer if the seller croaked it in the lease term. If i was the buyer i would insist on transfer immediately, even if it meant paying the whole amount up front. . Sod giving a 1/3rd a 1/3rd etc with no security whatsover.

 

Where is it out of interest?

Edited January 10, 2021 by smutcakes

[mahjongguy]

"... I was going to give them the option to pay for it on a yearly basis for the 3 years with it being fully transferred to them upon me receiving the last payment. "

 

If it's actually a house and you are not a citizen, then you could not sell the house and take a mortgage lien on the chanote for payment over time. Foreigners cannot use property as collateral.

 

So you would need to sell it and get paid up front in full, then take out a 30-year lease from the buyer.