Thai govt considers allowing foreigners to more easily buy/own property

[webfact]

File photo for reference only

 

Thai business media has said that their sources in the Thai government are suggesting that laws relating to the Condo Act of 2008 and rules about owning land and houses are about to change.

 

It would mean foreigners with at least 10 million baht could buy and own a house - and even the plot of land it sits on.

 

The amount of foreign owned condos in a building is also set to increase well above the 49% ceiling though they would not have voting rights.

 

In addition leases are set to increase from 30 to 50 years or more.

 

However, any changes in the law are likely to be temporary for the next 3-5 years as a post Covid stimulus package.

 

The Thai media said that at a recent seminar called "Thailand Moving Forward"  the energy minister Suphattanapong Panmechao had said that the country has the attributes - food and healthcare in particular - to attract foreigners. 

 

He said that new investment opportunities need to be created to encourage foreigners to buy second homes in Thailand and he also wanted to attract retirees.

 

These people have savings as well as their pensions, he noted, plus they usually have health insurance. 

 

He intimated that the government needs to change laws to encourage condo purchase and the buying of free standing houses. 

 

Sources at government house confirmed this tantalizing prospect.

 

Firstly the Condo Act of 2008 is set to be changed, they suggested.

 

At present 49% of condos in a block can be owned by foreigners according to law.

 

This is set to change to somewhere between 70% and 80% though those above 49% who are foreign would not have voting rights at Juristic Person meetings.

 

This is to protect Thai interests, said the sources.

 

House ownership has been a bugbear of foreign investors for years with only those prepared to invest 40 million baht up able to buy a house on land - and even then it comes with the need to seek ministerial approval. 

 

The plan now is to drop that threshold down to properties between 10 million and 15 million baht. 

 

This would only apply to property in housing estates and even then foreigners could only buy 49% of property in any one estate.

 

Also it is planned to increase those buying on lease from 30 years to 50 years plus 40 years.

 

The source indicated that changes to all these regulations would only be temporary for the next 3-5 years.

 

They are seen as necessary post pandemic to stimulate the economy and encourage foreign investment.

 

-- © Copyright Thai Visa News 2021-04-13

 

- Whatever you're going through, the Samaritans are here for you

- Follow Thaivisa on LINE for breaking COVID-19 updates

[Mr Meeseeks]

Interesting, would be good to own some land and houses here in my own name if allowed post-covid.

[ThailandRyan]

3 minutes ago, webfact said:

However, any changes in the law are likely to be temporary for the next 3-5 years as a post Covid stimulus package.

So after owning for 3 to 5 years if allowed it all goes pear shaped and you loose it? Brilliant plan.

 

5 minutes ago, webfact said:

Also it is planned to increase those buying on lease from 30 years to 50 years plus 40 years.

So for those who say there is no such thing as a land lease for 30/30/30 this would make it a 50/40 lease and will it stand the test of time or will one loose the whole enchilada as some have indicated in another thread.

[Forrests Father]

Getting desperate?
Golf bubble, elite visa, Chinese tourist bubble, Phuket HiSo holiday bubble, yacht bubble, hospital big spender bubble, retirees who are willing to spend 300k per month and now the 15 mio ‘own a house concept’? What’s next? 
spend 1000 mio and become an astronaut on the new Thai spaceship?

[Pattaya Spotter]

10 minutes ago, ThailandRyan said:

So after owning for 3 to 5 years if allowed it all goes pear shaped and you loose it? Brilliant plan.

 

So for those who say there is no such thing as a land lease for 30/30/30 this would make it a 50/40 lease and will it stand the test of time or will one loose the whole enchilada as some have indicated in another thread.

Of course anyone buying in during the 3-5 year period would be grandfathered in...why do some always assume the absurd? A more interesting question is what happens when it's time to sell...can a new foreign buyer retain ownership? And yes, leases are a maximum of 30 years at present (for thais and foreigners).

[kotsak]

It's evident they are scraping the bottom of the "stupid ideas" barrel.. 

[bluesofa]

4 minutes ago, Forrests Father said:

Getting desperate?
Golf bubble, elite visa, Chinese tourist bubble, Phuket HiSo holiday bubble, yacht bubble, hospital big spender bubble, retirees who are willing to spend 300k per month and now the 15 mio ‘own a house concept’? What’s next? 
spend 1000 mio and become an astronaut on the new Thai spaceship?

Very apt. So summing up government policy:
I'm forever blowing bubbles.

[ThailandRyan]

8 minutes ago, Pattaya Spotter said:

Of course anyone buying in during the 3-5 year period would be grandfathered in...why do some always assume the absurd? A more interesting question is what happens when it's time to sell...can a new foreign buyer retain ownership? And yes, leases are a maximum of 30 years at present (for thais and foreigners).

I don't believe its absurd, and yes I am sure if it is put in place those folks will be grandfathered in, much like the retiree's from a certain time frame back that only have to show so much in the bank yearly for their extensions.  The issue with the leases is the 30/30/30 framework where many have said it's good, and others have said it is not and they have lost their homes as well.  What I find absurd is this:

 

26 minutes ago, webfact said:

Also it is planned to increase those buying on lease from 30 years to 50 years plus 40 years.

If it has been ruled illegal before what stops folks who lost it all from filing law suits to recover what they lost when a new law is put in place that basically says that what they had before is ok now, and they can have what they could not before.  Confusing

Edited April 13, 2021 by ThailandRyan

[holy cow cm]

I would gather there will be fill areas inundated with Chinese living there after the purchase. They should put limitations on who can buy what and where and not leave it wide open to be desecrated by o ne race. And I am not talking about the token low number of 100 people available per year able to get PR.

[tjo o tjim]

How many farang would want to live in a Thai housing estate?  I mean it as an honest question— it would not be attractive to me, and I can’t quite figure out who the target market would bel\.

[Pattaya Spotter]

19 minutes ago, ThailandRyan said:

I don't believe its absurd, and yes I am sure if it is put in place those folks will be grandfathered in, much like the retiree's from a certain time frame back that only have to show so much in the bank yearly for their extensions.  The issue with the leases is the 30/30/30 framework where many have said it's good, and others have said it is not and they have lost their homes as well.  What I find absurd is this:

 

If it has been ruled illegal before what stops folks who lost it all from filing law suits to recover what they lost when a new law is put in place that basically says that what they had before is ok now, and they can have what they could not before.  Confusing

So if it's absurd...why even mention it...to get a rise out of people? As for the 30 year leases with extensions, Thai law doesn't recognize the extensions so they aren't worth the paper they're written on. Whoever the Thai owner of the land/property at the end of the 30 year period is under no obligation to honor such an extension. Legally valid leases are a maximum of 30 years (if registered with the Land Department). So the proposed 50 year period is almost double what's currently allowed. How long do people expect to live?

Edited April 13, 2021 by Pattaya Spotter

[Pattaya Spotter]

18 minutes ago, holy cow cm said:

I would gather there will be fill areas inundated with Chinese living there after the purchase. They should put limitations on who can buy what and where and not leave it wide open to be desecrated by o ne race. And I am not talking about the token low number of 100 people available per year able to get PR.

Nothing like a little racism to brighten the day.

[Pattaya Spotter]

32 minutes ago, Forrests Father said:

Getting desperate?
Golf bubble, elite visa, Chinese tourist bubble, Phuket HiSo holiday bubble, yacht bubble, hospital big spender bubble, retirees who are willing to spend 300k per month and now the 15 mio ‘own a house concept’? What’s next? 
spend 1000 mio and become an astronaut on the new Thai spaceship?

Many countries are taking steps to boost their economies post covid...retirement living is one of Thailand's strengths so making it easier to reside in The Kingdom makes sense; I mean you're already here right (many of you).

[Fromas]

36 minutes ago, Pattaya Spotter said:

Of course anyone buying in during the 3-5 year period would be grandfathered in...why do some always assume the absurd? A more interesting question is what happens when it's time to sell...can a new foreign buyer retain ownership? And yes, leases are a maximum of 30 years at present (for thais and foreigners).

"Of course they would be grandfathered in."  We cannot say for sure, can we?

[Anythingleft?]

37 minutes ago, Pattaya Spotter said:

Of course anyone buying in during the 3-5 year period would be grandfathered in...why do some always assume the absurd? A more interesting question is what happens when it's time to sell...can a new foreign buyer retain ownership? And yes, leases are a maximum of 30 years at present (for thais and foreigners).

Because the absurd is Thailand, people have a lot of experience dealing with the policies here....

[Lingba]

nothing is ever easy here...I don't believe any of this

[holy cow cm]

14 minutes ago, Pattaya Spotter said:

Nothing like a little racism to brighten the day.

Nope not at all. Should apply to all nationalities, but after seeing what happened in CM and in BKK it points to the same scenario. BTW, at one time or the other my daughter was a manager at a condo here in CM, and she would tell me stories. So what I am saying there should be reasonable limits applied to certain countries avoiding proliferation. 

[thequietman]

Little bit lazy today, so will just copy/paste from another post I did for the 90 day being fazed out - Not!

 

Blah, blah, blah, easier for farrang .... blah blah blah, inward investment ...... blah, blah, blah, buy and own a house .... blah, blah, blah.

 

Nothing will change. Mark my words. ????

[86Tiger]

 

 

So, admit the law is an impediment to investment to the targeted smart, wealthy, investor.  But do not eliminate the impediment, only give it a break for 3 - 5 years after which the same impediment will still be in place.

 

 

Great move for long term planning of that smart, wealthy investor.....

[ExpatOilWorker]

1 hour ago, webfact said:

However, any changes in the law are likely to be temporary for the next 3-5 years as a post Covid stimulus package.

 

Temporary,  just to muddy the water and make future transactions and ownership a bit more complicated. 

[johnnybgood]

Got  to agree with @the quietman.

Yeah,  tried and tested formula works every time.

 Excited posters follow these 'scoops' like seagulls behind a trawler.

[off road pat]

1 hour ago, Mr Meeseeks said:

Interesting, would be good to own some land and houses here in my own name if allowed post-covid.

However, any changes in the law are likely to be temporary for the next 3-5 years as a post Covid stimulus package. ....

[Pattaya Spotter]

42 minutes ago, Fromas said:

"Of course they would be grandfathered in."  We cannot say for sure, can we?

Every other "special" program to promote this or that has been grandfathered when it ended, e.g., 3M baht investors visa, original 1M baht "lifetime Elite Visa, 400k in bank "retirement visas" to name a few. So history say yes...nobody would buy land/house if ownership was revoked after 5 years would they. 

[ukrules]

1 hour ago, Pattaya Spotter said:

So the proposed 50 year period is almost double what's currently allowed. How long do people expect to live?

 

A 50 year lease would be a most welcome addition and encourage 'the young' to perhaps take out a 'long' lease.

 

Of course Thailand lags behind by several centuries when it comes to leases and the regulations around them.

 

They should be offering 99/100 year leases.

 

 

 

[Peterw42]

There was a similar temporary raising of the foreign quota just after the Tum Yum Kung Crisis (1997 Asian financial crisis). People could purchase above the 49% quota for a limited time, and they can still own today above the quota, but they cant be sold as foreign quota.

 

Allowing foreigners to buy in Moo Baans is a great idea but like all the schemes, they just make it unworkable buy putting a stupid 10m Baht minimum price on it. 99% of house in Moo Baans, all over Thailand, are 1-3m baht.

 

Another rearranging the deckchairs on the Titanic exercise, meanwhile, I know 6-8 guys that would come back tomorrow for their yearly 3-6 month stay, if they removed CoE, insurance and quarantine.

[Pattaya Spotter]

47 minutes ago, Anythingleft? said:

Because the absurd is Thailand, people have a lot of experience dealing with the policies here....

This is the government...not your wife or girlfriend. If they make an agreement, they stick with it ????????????

 

Can you name any incentive program the government instituted, wherein the special priviledge granted was revoked when it ended, without that being explicitly laid out in the program at the start?

[Pattaya Spotter]

3 minutes ago, ukrules said:

 

A 50 year lease would be a most welcome addition and encourage 'the young' to perhaps take out a 'long' lease.

 

Of course Thailand lags behind by several centuries when it comes to leases and the regulations around them.

 

They should be offering 99/100 year leases.

 

 

 

Just price the lease (purchase) price appropriately. 

[Pattaya Spotter]

5 minutes ago, ukrules said:

 

A 50 year lease would be a most welcome addition and encourage 'the young' to perhaps take out a 'long' lease.

 

Of course Thailand lags behind by several centuries when it comes to leases and the regulations around them.

 

They should be offering 99/100 year leases.

 

 

 

The stated goal of the changes is to attract retirees (who presumably don't anticipate living more than 50 years...not young people.

[Fromas]

4 minutes ago, Pattaya Spotter said:

 

 

Can you name any incentive program the government instituted, wherein the special priviledge granted was revoked when it ended, without that being explicitly laid out in the program at the start?

 

Revoke? No, but drive expats up the wall...........?

[Pattaya Spotter]

4 minutes ago, Fromas said:

 

Revoke? No, but drive expats up the wall...........?

That doesn't count ????????????