Popular Post Peterw42 Posted January 22, 2022 Popular Post Share Posted January 22, 2022 I have been looking around for pandemic bargain condo. And starting to see a disturbing trend where, instead of the usual 50/50 split on the 2% transfer fee, Agents (usually russian) are pushing a 50/50 split on all the sellers tax obligations. And trying to make out its the normal process. The taxes are usually Specific Business Tax 3.3% : the seller's duty Stamp duty .5% : the seller's duty Transfer fees 2% : the buyer's duty or shared Withholding tax (income tax at nominal rate) : always the seller's duty This can mean the difference between half of 20k, to half of 200k. Is anyone else noticing this. 2 1 Link to comment Share on other sites More sharing options...
Popular Post Thailand Posted January 22, 2022 Popular Post Share Posted January 22, 2022 Just say no and see how quickly the requirements change. Had that when selling a house recently. 2 1 Link to comment Share on other sites More sharing options...
Popular Post scubascuba3 Posted January 22, 2022 Popular Post Share Posted January 22, 2022 Yes I've seen that also, just say you pay transfer fees 2% or 1% only, if they say no and you feel strongly pull out 3 Link to comment Share on other sites More sharing options...
Popular Post spidermike007 Posted January 22, 2022 Popular Post Share Posted January 22, 2022 The market is horrendously weak at this time for condos. As a buyer with cash, I would be asking for 40% off the sales price and the seller pays ALL fees. Or I walk. There are thousands of bargains out there being offered by more motivated sellers. And besides since when have we started listening to the advice of Russian brokers, or bowing to silly demands? 10 Link to comment Share on other sites More sharing options...
Peterw42 Posted January 22, 2022 Author Share Posted January 22, 2022 39 minutes ago, scubascuba3 said: Yes I've seen that also, just say you pay transfer fees 2% or 1% only, if they say no and you feel strongly pull out Yes, that's a given, have walked away from 3 viewings (without bothering to view) . Link to comment Share on other sites More sharing options...
Peterw42 Posted January 22, 2022 Author Share Posted January 22, 2022 (edited) 39 minutes ago, spidermike007 said: The market is horrendously weak at this time for condos. As a buyer with cash, I would be asking for 40% off the sales price and the seller pays ALL fees. Or I walk. There are thousands of bargains out there being offered by more motivated sellers. And besides since when have we started listening to the advice of Russian brokers, or bowing to silly demands? I agree. You would think it would be the opposite at the moment. Buyer pays all fees etc They do it so the list price can be very low. Went to look at an 800k condo, which in reality, after paying sellers tax came to over 1 mill Edited January 22, 2022 by Peterw42 Link to comment Share on other sites More sharing options...
scubascuba3 Posted January 22, 2022 Share Posted January 22, 2022 31 minutes ago, Peterw42 said: Yes, that's a given, have walked away from 3 viewings (without bothering to view) . i would do the negotiations after viewing for fees, for condo price in advance i agree 1 Link to comment Share on other sites More sharing options...
scubascuba3 Posted January 22, 2022 Share Posted January 22, 2022 27 minutes ago, Peterw42 said: I agree. You would think it would be the opposite at the moment. Buyer pays all fees etc They do it so the list price can be very low. Went to look at an 800k condo, which in reality, after paying sellers tax came to over 1 mill 800k to 1m doesn't sound right, how do you calculate that? Link to comment Share on other sites More sharing options...
GrandPapillon Posted January 22, 2022 Share Posted January 22, 2022 (edited) 1 hour ago, Peterw42 said: I have been looking around for pandemic bargain condo. And starting to see a disturbing trend where, instead of the usual 50/50 split on the 2% transfer fee, Agents (usually russian) are pushing a 50/50 split on all the sellers tax obligations. And trying to make out its the normal process. I have seen the same over a decade with Thais, they also do it on big deals. It's more like a "goodwill" gesture for them, works well in a hot market when you are competing for deals. In this market, get a huge discount on the property and then pay 50% of the tax to make them happy. It's like a bribe thing for them, purely "political". At the end what matters is the final cost of the property and how below the market it is. Alternatively, you could pay official price to break even on the tax, and then additional price in cash under the table. Edited January 22, 2022 by GrandPapillon 1 1 Link to comment Share on other sites More sharing options...
scubascuba3 Posted January 22, 2022 Share Posted January 22, 2022 1 minute ago, GrandPapillon said: Alternatively, you could pay official price to break even on the tax, and then additional price in cash under the table. you pay the tax of the land office value, condo office should also have a copy, doesn't matter what you sell at Link to comment Share on other sites More sharing options...
GrandPapillon Posted January 22, 2022 Share Posted January 22, 2022 2 minutes ago, scubascuba3 said: you pay the tax of the land office value, condo office should also have a copy, doesn't matter what you sell at price is probably above that value, and it's possible that the previous owner paid more than the land office value. If it's a company buying, you can play the gain/loss there. The transfer tax used to be on the sale price, maybe that changed now. Link to comment Share on other sites More sharing options...
Peterw42 Posted January 22, 2022 Author Share Posted January 22, 2022 50 minutes ago, scubascuba3 said: 800k to 1m doesn't sound right, how do you calculate that? Yes, it wasn't that much, I was using round figures to make the point. I think I did a quick calc on the day and it was something like 70-80k, the main tax being the withholding tax as the property had been owned for 9 years (for some unknown reason it gets bigger over time) Link to comment Share on other sites More sharing options...
Peterw42 Posted January 22, 2022 Author Share Posted January 22, 2022 50 minutes ago, GrandPapillon said: The transfer tax used to be on the sale price, maybe that changed now. Its done on whichever is the highest, land office appraised price or sale price. Nowadays its not uncommon for the appraised price to be higher than even the made-up sales price. Link to comment Share on other sites More sharing options...
ChaiyaTH Posted January 22, 2022 Share Posted January 22, 2022 Guess it depends where you are as in Chiang Mai a bigger property company just did a promotion with 0.01% transfer fees on second hand properties up to 3 million baht. Link to comment Share on other sites More sharing options...
smutcakes Posted January 23, 2022 Share Posted January 23, 2022 Its not that unusual, taxes are just another negotiation factor. If you are searching in the 800-1K bracket and squabbling about taxes, even if you had to adsorb all 6.3% you are talking about a couple of thousand USD. If its a great condo in great location and position, sometimes its best to get it and forget about the extra money. 1 Link to comment Share on other sites More sharing options...
2009 Posted January 23, 2022 Share Posted January 23, 2022 Who would put themselves through the gauntlet of buying property from a Thai here? Just hang them out to dry for a bit. 1 1 Link to comment Share on other sites More sharing options...
OneMoreFarang Posted January 23, 2022 Share Posted January 23, 2022 27 minutes ago, 2009 said: Who would put themselves through the gauntlet of buying property from a Thai here? Just hang them out to dry for a bit. Could it be that most property in Thailand is sold by Thai people? And sometimes these Thai owners don't know much about selling property. Maybe they did it only one time in their life and maybe that was a long time ago. Link to comment Share on other sites More sharing options...
Peterw42 Posted January 23, 2022 Author Share Posted January 23, 2022 14 hours ago, ChaiyaTH said: Guess it depends where you are as in Chiang Mai a bigger property company just did a promotion with 0.01% transfer fees on second hand properties up to 3 million baht. That's nothing to do with location, the 0.01% transfer is a recent national announcement to stimulate economy etc, applies all across Thailand for a limited period. Link to comment Share on other sites More sharing options...
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