Land Purchace Questions

[Beardog]

Hi,

I got a great deal in Bang Sare after looking for 6 months. The average price was 750,000 per Rai- 1.5 mil. Per Rai or 20,000,000 per Rai on the ocean (DREAMERS).

I recently found 4 .55 Rai @ 380,000 baht per Rai. I understand the family owned it for quite a while. I plan on holding it for 5-6 years as I will have to go back to the U.S. To keep my business interest alive, so it will sit for 5-6 years. I want to at the point of building sell off 2 Rai when the price increases to pay for the cost of the land & house I build on it. It will be in my Thai girls name, we been together over 3 years so I am not worried about her burning me for the property. We plan to wed next year in the U.S. but the land will already be purchased in her name.

I heard she has to have the funds in the bank 3 months prior – is this correct? I plan on putting 10 % down & July 13th I will pay the balance of funds owed( I leave for 3 weeks to the U.S. & will do a bank wire to get the funds here.) at that point I am going to put the funds in her acct after I wire it to my acct. from the U.S. It will be her house so I am not worried about her ditching out.

I plan on going out to the property within 2 days with the owner to have her show me the exact property line as I am used to the precise posted property stakes & GPS the land & Thailand seems to give you the point & you hope it’s correct. After the walkthrough with the owner I plan a trip to the local planning office(chinotes ) & see if she is the true owner & no liens are one the property & the dimensions are correct. Does anyone know if land purchased as 1 unit of 4.55 Rai is sub dividable in Bang Sare? After the land dept if all looks good will have a lawyer go thru copy of chinote the owners family ID .to make sure she is the owner & not a duplicate chinote scenario.

I guess at this time I am asking the advice from the people on this site as a lot of you have experience in buying real estate.

The questions I have are:

(1)How long does my girl have to have funds in her acct. to avoid any legal repercussions in case the Gov. thinks I am buying it for myself?

(2) Can land be subdivided if I wait 5-6 years in Bang Sare or do I have to have it written up as 4 different 1 Rai+ parcels to subdivide?

(3) Are the stages of events survey they land with owner- check with the planning commission-have the lawyer go thru the paperwork the proper order of events ….have I left anything out?

(4) I am going to try to get her to kick the 2.55 Rai extra in for the asking price of 4 Rai instead of her paying full for the transfer I will pay half & she will pay half.

(I believe she has had the property for at least 10 years& has not sold any of the other properties she owns this year.)

What roughly on 1,752,500 baht can I expect to pay for land transfer at the local land office?

I know the lawyers end is 10,000-15,000 to do the paperwork & investigation of the land.

What are the other hidden costs I may have overlooked in purchasing land?

(5) I read about ways of purchase unfruct & other ways what would you guys or gals suggest?

I am used to U.S. land deals & they are absolutely nothing like home!!!!

Once again Thank you for the Help as I am lowly educated to the ways of real estate in Thailand(except I realize there are many ways of getting burned including by the girl your with…that always seems to get everything in the end anyway)

Humbly………Beardog

[AZZZEY68]

Hi,

I got a great deal in Bang Sare after looking for 6 months. The average price was 750,000 per Rai- 1.5 mil. Per Rai or 20,000,000 per Rai on the ocean (DREAMERS).

I recently found 4 .55 Rai @ 380,000 baht per Rai. I understand the family owned it for quite a while. I plan on holding it for 5-6 years as I will have to go back to the U.S. To keep my business interest alive, so it will sit for 5-6 years. I want to at the point of building sell off 2 Rai when the price increases to pay for the cost of the land & house I build on it. It will be in my Thai girls name, we been together over 3 years so I am not worried about her burning me for the property. We plan to wed next year in the U.S. but the land will already be purchased in her name.

I heard she has to have the funds in the bank 3 months prior – is this correct? I plan on putting 10 % down & July 13th I will pay the balance of funds owed( I leave for 3 weeks to the U.S. & will do a bank wire to get the funds here.) at that point I am going to put the funds in her acct after I wire it to my acct. from the U.S. It will be her house so I am not worried about her ditching out.

I plan on going out to the property within 2 days with the owner to have her show me the exact property line as I am used to the precise posted property stakes & GPS the land & Thailand seems to give you the point & you hope it's correct. After the walkthrough with the owner I plan a trip to the local planning office(chinotes ) & see if she is the true owner & no liens are one the property & the dimensions are correct. Does anyone know if land purchased as 1 unit of 4.55 Rai is sub dividable in Bang Sare? After the land dept if all looks good will have a lawyer go thru copy of chinote the owners family ID .to make sure she is the owner & not a duplicate chinote scenario.

I guess at this time I am asking the advice from the people on this site as a lot of you have experience in buying real estate.

The questions I have are:

(1)How long does my girl have to have funds in her acct. to avoid any legal repercussions in case the Gov. thinks I am buying it for myself?

(2) Can land be subdivided if I wait 5-6 years in Bang Sare or do I have to have it written up as 4 different 1 Rai+ parcels to subdivide?

(3) Are the stages of events survey they land with owner- check with the planning commission-have the lawyer go thru the paperwork the proper order of events ….have I left anything out?

(4) I am going to try to get her to kick the 2.55 Rai extra in for the asking price of 4 Rai instead of her paying full for the transfer I will pay half & she will pay half.

(I believe she has had the property for at least 10 years& has not sold any of the other properties she owns this year.)

What roughly on 1,752,500 baht can I expect to pay for land transfer at the local land office?

I know the lawyers end is 10,000-15,000 to do the paperwork & investigation of the land.

What are the other hidden costs I may have overlooked in purchasing land?

(5) I read about ways of purchase unfruct & other ways what would you guys or gals suggest?

I am used to U.S. land deals & they are absolutely nothing like home!!!!

Once again Thank you for the Help as I am lowly educated to the ways of real estate in Thailand(except I realize there are many ways of getting burned including by the girl your with…that always seems to get everything in the end anyway)

Humbly………Beardog

Well sell me a rai im looking for up to a rai or even half in that area been quoted a stupid price one million for 200 wah they are joking its on the left hand side of sukimvit road,next left after non nook gardens.Im looking to build a nice 4 bed with a pool etc for myself and my wife and daughter if you cant help maybe you can point me to some more land.

[lannarebirth]

If I were you I'd involve a lawyer in your process. Sunbelt is my recommendation, since most Thai firms are suspect. With regard to your questions.

1) I've never heard of the 3 month rule, and I don't think it exists.

2) subdivision is dependant on your title. You need't survey to subdivide, but it's probably recommended.

I wouldn't worry too much about the subdivision process now, only to the extent that is it subdividable now or in future. If you're going to be away for several years, try to have some activity on the land on your behalf to sifle would be squatters, claimants.

[quiksilva]

1) likewise never heard of that requirement. Anyway how would the Gov know that it is for you, you are not married yet.

2) It is dependant on the shape and location of the title. Check at the land department or against restricted uses for your locale in the town plan.

3) Lawyers are essential in title deed investigation and conveyancing process. You may wish to get the land department will survey the land to verify that you are getting what you paid for.

4)

Transfer Fee

The transfer fee is usually collected at the rate of 2 % of the appraised value of property by the Land Department, or the purchase price whichever is higher.

Stamp Duty

Stamp duty shall be collected at the rate of 0.5% of the actual purchase price or the appraised value of the Land Department, whichever is the higher.

Withholding Tax

Withholding tax is a tax payable by the seller to the Land Department on transfer. Its based on the appraised value again and in this case is likely to be withholding tax on personal income that is payable at progressive rates.

Survey & legal fees

5) I would opt for an usufruct, but if you are planning to sub-divide and sell off smaller 1 rai plots later on this may work against you. (the buyers would have to honour your right to live on their land until you die.. So its far better to sub-divide and get an usufruct over the actual plot that you intend to reside in, and leave the other titles clean.

[astral]

Are you really sure you want to put down all that money.

Firstly the prices sound exhorbitant.

Secondly once the money is in your girlfriend's name it is out of your control.

Yes, that is your decision and you may trust her absolutely......... Why haven't you got married?

I am sorry if I sound cynical.

I am, I have been around Thailand to 20+ years and seen most of the scams that go on.

Never invest more in Thailand than you are prepared to walk away from.

[Beardog]

Astral that is good advice. I am not to worried about if I lose my funds. at least I was smart in choosing a good girl in working in a beauty salon instead of a bar girl. My last girlfriends cost me much much more , so this would be a minor setback that I could recover from in 1-1& 1/2 years.

There is a story on why I have not tied the Knot but it would be foolish for me to post it on the web.

The way I see it it is almost 2 acres in some of the most prime area in Bang Sare. While I like Pattaya

I wouldn't dump 200,000 baht a Rai on the area as I have looked here & people are dreaming. average prices are 1,000,000-1,500,000 for what I would consider to me as crap..

I like the mountains the lakes & the Clean Ocean next to where I want to live.

As for a condo I couldn't do it. I would live in California for these prices. But I have never been the kind of person to live under all the rules they make.

The land is $ 42,500 U.S. -$49,765 for just a little shy of 2 complete acres overlooking the mountains &

one of the lakes.I have had 3 people make offers on looking at the pictures & do not intend to sell.

I have been pounding Pattaya- the new airport & have not found anything close to the Beauty of this property. It is as good as Lake Tahoe property I had at a fraction of the price.The land if it checks out is a great value to me as even if I don't sell any of it in 5 -6 years I won't care. To me thats what defines a good investment .Are you happy with it when you buy it! Otherwise I would not buy in Thailand.

I value your posts & your comments.

If you have any inside info on land less than 380,000 a Rai I would be stoked & would be super appreciative of it! the other property I looked at came out to 4.3 million a Rai & it is 2 kilo's away.Even in this slow economy now. I don't see it going down unless 1997 starts all over again.

I do regret putting in the part about my girlfriend as I would hope that does not become the focus of the discussion, but rather the right info to make the right legal decisions. Thanks for the advise. I am glad that a lot of people spend their time helping other expats.That is why I like this site.And I get to meet a lot of new people with diverse views as it would be real boring if we were all the same.

I wasn't patronizing you either you do have some good views & I do enjoy the commaradarie

I only wish I could spell & type better

Beardog Just wanted to see what this icon looks like.

Edited June 4, 2007 by Beardog

[Jai Dee]

Thread closed by OP's request.

/Closed.