A positive story about buying a house in Thailand

[Bundooman]

4 hours ago, Pravda said:

What's positive about this story?

 

You paid for house (probably overpaid) and they sold it to you.

 

You still don't own a house.

 

I went to McDonald's and bought a burger. Overall it was a positive experience.

Very simply, the positive side of this story is that he's happy. The deal worked for him and he has taken care of his wife and MIL. Brilliant. I am happy for him as well.

You, on the other hand appear to be the negative, pessimistic kind of guy who always has a half-empty glass and can't wait to criticise the pleasantries of success. Furthermore I like his take on his story of success, rather than your dismal prattle.

I bet you don't have many friends.

[WhatsNext]

6 minutes ago, Stevemercer said:

 But in Thailand the divorce laws are much easier to work around.

 

Good you pointed that out, that was also part of my reasoning. In Europe i would lose half my net worth with a divorce, here the maximum would be the value of the bribe i would need to pay her to sign if her ID card was out of date.  If I wanted to sell years after a potential breakup

 

[Tanomazu]

2 hours ago, Gecko123 said:

I think the OP may be kidding himself. From the land office's viewpoint (based on how things were left when you registered the property) the Thai lawyer, the OP's girlfriend, and (LOL) her mother owned the property.

No, the house was transferred to a Thai company. It is perfectly legal to transfer property to a corporate entity in Thailand.

 

The Thai land office would have recorded the transfer to the Thai company, thus the Thai company owns the house.

 

OP has 100% of the voting shares of the Thai company. This is a perfectly reasonable way to do it. Of course Khun Per's way of the company owning the land is also an interesting way to do it.

[Pravda]

6 minutes ago, Bundooman said:

Very simply, the positive side of this story is that he's happy. The deal worked for him and he has taken care of his wife and MIL. Brilliant. I am happy for him as well.

You, on the other hand appear to be the negative, pessimistic kind of guy who always has a half-empty glass and can't wait to criticise the pleasantries of success. Furthermore I like his take on his story of success, rather than your dismal prattle.

I bet you don't have many friends.

 

I was also happy with my transaction at McDonald's.

[MrJ2U]

Nice report.

 

I'll forward it to a friend, he's looking around also for a place in Hua Hin.

[itsari]

5 hours ago, LosLobo said:

Re: Economics thoughts.

 

In your cost benefit analysis did you think about offsets for maintenance and loss of return on capital.

 

Even with an RoR  with a suitable investment @ between 5 to 10 % on B6.1M, your savings on rent could be minimal.

 

Don't want to rain on your parade but just saying!

 

Maintanence is minimal if you do the work your self .

Invest in a black hole what happens then ?

[WhiteBuffaloATM]

further suggest OP holds all original house company share certicates, voting and

and non- voting, legal undated resignation letters from all directors, voting or not.

This avoids all house sale drama later, with missing thais, expired thai ID cards etc.

Permits simple easy company transfer to new owner or company disolution.

Assuming thai company (OP) here holds Freehold Land & House ?

[JBChiangRai]

Regarding owning houses in companies.

 

It is possible to do it, but to be 100% legal your shareholders should not be just nominees and you shouldn’t be doing it just to get round the property foreign ownership laws.  

[LosLobo]

18 minutes ago, itsari said:

Maintanence is minimal if you do the work your self .

Invest in a black hole what happens then ?

So your time is not valuable and doesn't have a cost?

 

Invest in a black hole?

 

What do you mean?

 

Investment in a thai company with nominee shareholders or a share certificate with a major bank in a first world country?

[WhiteBuffaloATM]

JB; what other reason is there ? 

[2 is 1]

40 minutes ago, WhatsNext said:

Good you pointed that out, that was also part of my reasoning. In Europe i would lose half my net worth with a divorce, here the maximum would be the value of the bribe i would need to pay her to sign if her ID card was out of date.  If I wanted to sell years after a potential breakup

 

In Europe has so called prenup! Work some way in LOS also!

[WhatsNext]

By the way , it's not an investment i live in it. Renting cost money too. Of course I'll be happy if somewhere down the line someone offers me double of what I paid but certainly not counting on that. 

 

Also it's not 100% of my life savings either

[Tanomazu]

6 hours ago, LosLobo said:

Re: Economics thoughts.

 

In your cost benefit analysis did you think about offsets for maintenance and loss of return on capital.

 

Even with an RoR  with a suitable investment @ between 5 to 10 % on B6.1M, your savings on rent could be minimal.

 

Don't want to rain on your parade but just saying!

 

With a purchase price of 5,100,000 the maintenance each year would be in the region of 51,000 Baht, so 1,125 GBP.

 

There are no complex heating systems in Thailand to maintain.

 

1,125 GBP is not really going to be much of a concern for most people who can pay 5,100,000 for a property.

 

 

[WhatsNext]

Yeah of course there are other costs, for information and I'm lazy so : 

 

swimming pool maintenance : 1500

garden maintenance : 1500

project service fee : 1200

electric , water : 3000

crazy fast internet : 1200

plus maintenance in the future of course like regular painting of the house. 

[LosLobo]

5 minutes ago, Tanomazu said:

With a purchase price of 5,100,000 the maintenance each year would be in the region of 51,000 Baht, so 1,125 GBP.

 

There are no complex heating systems in Thailand to maintain.

 

1,125 GBP is not really going to be much of a concern for most people who can pay 5,100,000 for a property.

 

 

Is your estimate a Net Present Value? Maybe refer back to your spreadsheet ????

[WhiteBuffaloATM]

he means perhaps that no investment return is guaranteed unless bank deposits or govt bonds at 1% 6-10 % “guaranteed” means high risk so far from guaranteed.

but yes, performing home maint. here yourself, means valuable time lost & injury risk & tools cost & lack of specialized skills ( AC) vs. 500 baht / local basic labour cost, 1000 for skilled like AC.

Never even changed a light bulb here…….

[LosLobo]

1 minute ago, WhiteBuffaloATM said:

he means perhaps that no investment return is guaranteed unless bank deposits or govt bonds at 1% 6-10 % “guaranteed” means high risk so far from guaranteed.

but yes, performing home maint. here yourself, means valuable time lost & injury risk & tools cost & lack of specialized skills ( AC) vs. 500 baht / local basic labour cost, 1000 for skilled like AC.

Never even changed a light bulb here…….

Reminds me of an acquaintance in Issan who fell through his asbestos tiled roof while doing some home maintenance and killed him self.

[sometime]

6 hours ago, LosLobo said:

Re: Economics thoughts.

 

In your cost benefit analysis did you think about offsets for maintenance and loss of return on capital.

 

Even with an RoR  with a suitable investment @ between 5 to 10 % on B6.1M, your savings on rent could be minimal.

 

Don't want to rain on your parade but just saying!

 

Investments in the present climate can also go down, nothing in this life is guaranteed, except death 

[it is what it is]

1 minute ago, sometime said:

Investments in the present climate can also go down, nothing in this life is guaranteed, except death 

 

investments in any climate can go up or down; make sure you know what you're doing, pick your level of risk and take your chances, most people i know are well up on their investments

[zzaa09]

7 hours ago, spidermike007 said:

Good post. Sounds like you did your homework. Who knows where the housing market will go here, but single family residences seem to appreciate more than condos, as a general rule here, and the demand seems to be higher. 

Especially if there is associated land involved. 

Much more valued. 

[jvs]

When i build my first house here i was also told a lot of negative views.

Build the second house 4 years later and have been living in it for 11 years now.

We have a lot of privacy,the area is quiet and we are close to all the places i find important.

Not even a little crack any where in both houses,builders were amazing.

Yes all in company name also,15 years running and so far no issues.

Land tripled in value around here so in case of any kind of forced sale i would be walking

away with more then i invested.

 

[Tanomazu]

39 minutes ago, LosLobo said:

Is your estimate a Net Present Value? Maybe refer back to your spreadsheet ????

Yes, you have to look at the value each year, but for newly built properties the maintenance is generally a lot lower than for older properties. So looking at the build cost is a good indicator.

 

1125 GBP, in the absence of complex heating systems, may even be too high.

[BTB1977]

40,000 baht a month rent. Wow. That makes my 10,000 baht a month in a brand new 2 bedroom houses in Hua Hin look like the deal of the century.  

[WhatsNext]

Just now, BTB1977 said:

40,000 baht a month rent. Wow. That makes my 10,000 baht a month in a brand new 2 bedroom houses in Hua Hin look like the deal of the century.  

3 bed 4 bath, new house, giant pool, double carport, 800m2 land in gated community, inclusive garden and pool maintenance, internet and fully furnished.

[tomazbodner]

OP is here to defend his position, which is perfectly OK. I am happy that he has achieved what he was looking for, and that it works for him. Legally it is shady, and Per has given some suggestions on how it could be done even better for anyone who might consider doing the same. My only advice is not to make house so flashy it triggers interest of any greedy official, as that could turn very costly very quickly. So keep a low profile and enjoy your new home. All the best.

[WhatsNext]

9 minutes ago, tomazbodner said:

OP is here to defend his position, which is perfectly OK. I am happy that he has achieved

 

My only advice is not to make house so flashy it triggers interest of any greedy official, as that could turn very costly very quickly. So keep a low profile and enjoy your new home. All the best.

Thanks I'm not really defending anything it's more just a report about what I've done. It fits me but I fully understand others don't want to. I'm not here to convince them. 

 

5.1 isn't even beginning to get flashy, considering my friend in hua hin with the 2x40m houses ????

 

O yeah the extra 1m was spend on inbuilt, furniture, electronics, extra room, curtains and so on. Inbuilt is surprisingly expensive

[Pravda]

1 hour ago, WhatsNext said:

3 bed 4 bath, new house, giant pool, double carport, 800m2 land in gated community, inclusive garden and pool maintenance, internet and fully furnished.

 

5.1 million house doesn't rent for 40,000 a month especially these days, so you need to be a bit realistic about that....unless you extremely overpaid.

 

 

 

 

[WhatsNext]

2 minutes ago, Pravda said:

 

5.1 million house doesn't rent for 40,000 a month especially these days, so you need to be a bit realistic about that....unless you extremely overpaid.

I was paying 40 before, that's what I compare it with. The house i have now inclusive all stuff will rent out for about 35 now, more when we don't have covid. No I'm not posting pictures, with all the crazies about (again with everything 6.1,) 

 

But you are free to believe it would be 9k a month ????

[3STTW]

To OP; thanks for posting this. I too had a really good experience buying a house here.

 

The trick is to find good people who actually know what they're talking about - NOT the bitten bar stooges who've tried to fudge the system and got burnt.

 

My only advice I have for you is learn how to service your pool yourself. Most of these 'maintenance' guys don't have a clue what they're doing and will end up costing you a fortune in broken or badly maintained equipment. I ended up spending about THB100k to renew everything - and I bought a robot. Now I spend about 10 mins a week adjusting the pH, adding salt and back-washing the filter, easy as it can be.

[Pravda]

1 minute ago, WhatsNext said:

I was paying 40 before, that's what I compare it with. The house i have now inclusive all stuff will rent out for about 35 now, more when we don't have covid. No I'm not posting pictures, with all the crazies about

 

Sorry, no way a 5.1 million house will rent for 35k, not now, not pre covid. Is this something a sales agent told you?