Leasing a house for 30 years price indication ?

[john donson]

Is there some kind of formula to determine the value of a lease contract for 30 years ?

 

The house is about 10 years old with a sale value around 6 million baht (other houses listed in the same moo baan).

 

 

[ThailandRyan]

Not sure what your really after, but with doing the math for my leasehold, and the house price as well as other houses of different sizes in the same Moo Ban, I would say your leasehold based upon how our gated community is done, would be about 540K Thb for the full 30 years.  I pay an annual leasehold payment, which is the 30 year amount broken down into 30 payments, and which if I sell the house allows for the new owner to step in and obtain a fresh 30 years.  It is the way it was written into the land lease contract and registered at the Land Transport office.

 

Even if at the end of the 30 years I could not sell the home, I could still walk away knowing that I only paid an average of 30k Thb a month for the house, which is cheaper than renting what I have. Yet my heirs could sell it for whatever they wanted and get some money back into the family trust.

Edited March 25, 2023 by ThailandRyan

[Woof999]

4 hours ago, ThailandRyan said:

540K Thb for the full 30 years

Equivalent of 1.5k baht per month. How does that work?

[ThailandRyan]

1 hour ago, Woof999 said:

Equivalent of 1.5k baht per month. How does that work?

What do you mean how does it work?.  I averaged out the total price for the house and the leasehold as what it would cost one monthly, but your obviously paying the leasehold where I am annually and I paid for the house all at once. 

 

In essence If you buy a house which is leasehold, you buy and pay for the house and then you pay the land lease price the land owner is requesting for the 30 year lease.  The amount I quoted him is an average for a house of similar price in our gated community of pool villas, he stated the house he was looking at was selling for 6 million Thai Baht at purchase and that would not include the land lease, or lease payment which is made to the land owner for the 30 years. 

 

Now where I have purchased my house ,which sits on the land I can not own via a leasehold, I pay the leasehold annually at 1/30th of the total cost for the 30 years, so at the end of the 30 years I have paid the entire leasehold asking price the property owner/property developer/property management company wanted. 

 

If I sell the house anytime during the 30 year period then I do not need to include what I paid for the leasehold as additional monies as if I had paid all 30 years up front.  Because of the way my leasehold is written and signed into the Land Office, the land owner, where we are in a gated community can then give the new owner a new 30 year leasehold instead of them assuming what was left on the 30 year lease.

Edited March 25, 2023 by ThailandRyan