Wanting to start a long term investment for Thai partner…to make sure they’re looked after.

[Shannoblic]

I agree with Mike Teavee - a UK private pension often has provision for spousal support usually at the 50% rate but this can be changed according to the age of the beneficiary.  I have done the same as Mike and registered my spouse with my private pension company and know she will be taken care of for the rest of her life.

 

What I do NOT know is whether you can set up a fund [of some type] similar to a private pension fund to provide solely a monthly income.  I think you would need to discuss this with either your bank or a financial advisor in your home country.

[KhunLA]

1 hour ago, arithai12 said:

It is on topic, the OP starts with partner (singular) and continues with "they" (plural), so one might imagine it could be a same sex relationship, which is none of my business but it makes a lot of a difference in terms of what kind of investments or inheritance would be appropriate. The OP also is completely vague on the amount, how many zeroes. I could suggest life insurance with payouts, but it depends on the above.

Why ... males  & females are pretty much equal in my world, how would either's financial needs, abilities be different.

[retarius]

I have been thinking about this for some time. I am relatively well off and will leave my Thai wife land, property and cash. She also has her own money but only about 40,000 baht a month pension from her previous husband. Our house is very large and expensive to run 20K/month for electric, 40K/month for staff to drive, garden etc, 50K/year insurance on cars but no debts. I'm over 70, but not really in good shape and don't expect to last more than 5 years at most and based on this expectation I expect top leave her between $600K and $1M in cash. I am worried sick that this will just disappear when the family get their hooks into her. 

I have assets in the US that I can put in trust and stop her from accessing, but realistically, with the new tax laws I don't want to be sending over cash over here to her. My US pensions will go to my ex-wife in the US and I will leave money for my kids to help their retirement. 

I will be grateful for any ideas from this forum.

[The Cyclist]

14 minutes ago, retarius said:

I expect top leave her between $600K and $1M in cash. I am worried sick that this will just disappear when the family get their hooks into her.

 

14 minutes ago, retarius said:

will be grateful for any ideas from this forum

 

Stick the cash into a high interest fund, to be converted to a lifetime annuity for your wife after 5 years or upon your death.

 

Monthly income for life, no large cash windfall for others to get their claws into, or fight over.

[retarius]

2 minutes ago, The Cyclist said:

 

 

Stick the cash into a high interest fund, to be converted to a lifetime annuity for your wife after 5 years or upon your death.

 

Monthly income for life, no large cash windfall for others to get their claws into, or fight over.

Thanks. Can you recommend a bank(s) that does such high interest funds? I wasn't aware they were available in Thailand.

[4MyEgo]

2 hours ago, Mike Lister said:

It's not widely known but there are several species of ducks that can't fly, including the Pekin and Moulard. 🤣

 

There used to be a show back in Oz on Saturday night, and they had a wheel called Pluck a Duck, you could imagine what they used to get up to with the name Pluck a Duck.

[4MyEgo]

2 hours ago, Mike Lister said:

I see in the Bangkok Post this morning that the GSB is starting to offer reverse home loans or real estate equity loans, for the first time. This is the problem with using land or houses in an attempt to provide security during older years, the banks will come along and profit from the scheme. 

 

It's all about getting people in debt and keeping them in debt, i.e. debt = control.

 

There are governments that allow people, if they qualify to go into debt with the government, e.g. they buy a house and the government will partner with them up to 40%.

 

Tells me when things are slow, they have to come up with ways to keep the sheep controlled.

[The Cyclist]

6 minutes ago, retarius said:

Thanks. Can you recommend a bank(s) that does such high interest funds? I wasn't aware they were available in Thailand.

 

Sorry, no recommendations for Thailand, but they must be available. Try asking at the bank you normally bank at.

 

Personally, I have this setup through a UK Company and I use them as I was more than happy with the 15 plan they had provided for me previously.

 

Currently, 7 years into a 15 year plan that should set the LHG up nicely when I fall off the perch.

[Mike Lister]

28 minutes ago, The Cyclist said:

 

 

Stick the cash into a high interest fund, to be converted to a lifetime annuity for your wife after 5 years or upon your death.

 

Monthly income for life, no large cash windfall for others to get their claws into, or fight over.

There are no such instruments at Thai banks, they offer standard rates on variable and fixed accounts and also occasionally some specials that are advertised in branch, that's it. 2.45% is the best you can get currently on a 2 year fix. Anything else is either life insurance or investment fund based, such as 7 year LTF's.

 

https://www.bot.or.th/en/statistics/interest-rate.html

 

 

[The Cyclist]

11 minutes ago, Mike Lister said:

There are no such instruments at Thai banks,

 

Thanks, I had no idea as I have never looked into in Thailand

 

22 minutes ago, The Cyclist said:

Personally, I have this setup through a UK Company and I use them as I was more than happy with the 15 plan they had provided for me previously.

 

Currently, 7 years into a 15 year plan that should set the LHG up nicely when I fall off the perch.

 

[1FinickyOne]

We started buying farmland about 15 years ago around my wife's village - our first purchase was 40k per rai.. our last purchase was about 5 years ago for 150k per rai... going price is now 250k per rai...

 

my wife is smart and I taught her to only buy great land when reasonably priced... be patient. In addition to the price appreciation, the family farms the land and makes a living. 

 

if you want more info, you can pm. 

[newnative]

     I'm in sort of the same boat as the OP.  I'm 71, spouse is late 50s.  He, fortunately, is educated and intelligent and will not squander any money away.  He might qualify for some SS benefits when he reaches 62--I am a USA citizen and we were legally married in the US.  That is sort of a murky area for me at this point as I don't know if we would have to live in the USA for 5 years for him to qualify for anything or if that is waived for survivor SS benefits--and the rules may be different when he reaches 62. 

    He currently works and earns income on his own but I want him to be comfortable after I pass away.  Our current strategy consists of USA stocks, most providing dividends, Thailand property--Pattaya house and Bangkok condo, and some cash in both countries.  We maintain a joint USA bank account and some Thai bank accounts. 

    Right now I feel we have more money in cash than we need, earning very low interest in both our USA and Thai bank accounts.  More of the money is here in Thailand but we have not found anything like bonds, cds, etc. here that would be safe but still earn around 4 or 5% interest.   We can afford to have the money tied up for several years or more.  If anyone has stumbled upon any new investments here along those lines we would appreciate the heads up.  

[ChrisKC]

If your partner has the will and some ability she can set up a YouTube Channel (free) and make videos about anything she is interested in and over a period, learning about editing and so on (also free) maybe she can start earning for her future and maybe with encouragement and little financial help from you,  create something very worthwhile for herself! You can both be a part of this; Starting now!

[khunPer]

21 hours ago, mikey88 said:

I’m thinking of a long term …safe….investment .

Something that I might be able to add to over the remaining years and something they can access in 20 or so years…?

Any thoughts ? 

It's individual and depends on the partner, but I can tell you what I have done, for your inspiration:

 

I'm also in my early half of my 70s and my girlfriend is 32 years younger, we been together now for almost 20 years.

 

Firstly I taught my partner about how to save up – i.e. Henry Ford's advice: "It's not the money you earn that makes you rich, it's the money you do not spend."

 

The is to my knowledge nothing like trust funds or like, which can freeze the investment for a number of years, but there are several retirement saving option in the various banks. However, they are often linked with a life-insurance and might be too costly compared to other possibilities, which however don't stop the partner from spending the savings (why the first clause is important).

 

Together my girlfriend and I decided to buy some land for her. In my opinion it's little more difficult to just let go than cashing bank savings or fund book investments (mutual funds). Furthermore, land can produce an ongoing small income on top of increased long-term value. The income can be from farm land – which is a good long-term investment – as a part of the harvest or a fixed annual fee per rai; at the moment around 1,000 baht, but depending of area and farming value of the land. So depending of land price the outcome can be in the level of 1-1,5% per year. Land would normally have an average long term value increase in the level 4-8 percent per year.

 

Additionally we decided for savings in fund books – it's mutual funds offered by the banks with a variety of possibilities, including both accumulating fund and dividend paying funds. You can find some fairly safe funds and start with a small amount – 5,000 baht or less – which can be topped up annually or in whatever term, also in quite small lots. There are both money market funds, equity funs and foreign markets. The higher potential gain, the higher risk, as it often is with investment. We decided to avoid foreign markets to avoid currency exchange, as the fund are going to be used in local currency; i.e. Thai baht.

 

After some years we changed most of the funds to real stock market with a SET (Stock Exchange of Thailand) trading account through a bank. The first stocks I helped with choosing, but my girlfriend go so interested in investment that she began to follow news and find potential stocks herself. Again based on the very first – learn about savings and get interested – she is actually doing well and also saving for investment from her own income. Many Thai stocks are good dividend payers – but little slower in value increase – so with the right mix you can (easily) get about 4-5% dividends after 10% withholding tax per year. You can for example use this principle for dividends: "Never spend more than half of you income, the other half you save up." Then you feel there is both an outcome of your efforts and you still increase the savings. Capital gain from SET is (so far) free of income tax.

 

We did similar for child savings for our daughter; so far it has worked well...

[fittobethaied]

7 hours ago, Mike Lister said:

Perhaps a better option is to open the account in both names but instead of being X and Y, make it X or Y and keep the book hidden. That way, when you pass on, she can operate the account without needing it to go through probate or be subject to a will. My wife and I operate several of our accounts this way, fixed deposits and savings interest accounts. When I die, my wife can use the accounts as is without any changes of approvals. The only thing she can't do is close the account, without my permission which if I'm dead, is a moot point. 

Mike Lister, you may want to confirm with a lawyer or the bank's manager that you have Joint Accounts with Right of Survivorship (like we have in the West), which I don't think you have here in Thailand. I have been advised by a high ranking official at Bangkok Bank in the Bangkok corporate office, to have my wife immediately clean the joint account out after I pass on and not to tell the bank that I am deceased; otherwise, the bank will freeze the account and my Will will have to be probated in order for my wife to access the funds in the once Joint Account. Without a probated Will or a court appointed Executor, the money will be divided by Thailand's complicated line of inheritance protocols. Also, if all you have is a Power of Attorney on the account with your spouse as your legal representative, a POA ceases to be valid upon your death. Let us know what you find out!

[Mike Lister]

2 minutes ago, fittobethaied said:

Mike Lister, you may want to confirm with a lawyer or the bank's manager that you have Joint Accounts with Right of Survivorship (like we have in the West), which I don't think you have here in Thailand. I have been advised by a high ranking official at Bangkok Bank in the Bangkok corporate office, to have my wife immediately clean the joint account out after I pass on and not to tell the bank that I am deceased; otherwise, the bank will freeze the account and my Will will have to be probated in order for my wife to access the funds in the once Joint Account. Without a probated Will or a court appointed Executor, the money will be divided by Thailand's complicated line of inheritance protocols. Also, if all you have is a Power of Attorney on the account with your spouse as your legal representative, a POA ceases to be valid upon your death. Let us know what you find out!

I've already been down that road, the account is NOT a joint account. The account is wholly owned by whichever party transacts on the account.

 

Also, banks in Thailand are not obliged to accept a POA, unless they were a party to the POA agreement. Just walking into a bank here with a POA and showing them a POA that the account holder has signed and had witnessed, doesn't mean anything to them. FYI the bank where we hold these "or" accounts is UOB.

[thailand49]

Bit younger you are in your 70's 

then where are you living in the west abroad or in Thailand. Working again where and doing what if abroad does she want to stay if can or return to Thailand.

So Im going to assume!

Western ideas and suggestion if living in Thailand her level of education sorry but dont say Unniversity if she is wouldnt be with you 🤣.  All the ideas being thrown out are great but does she have an understanding to these suggestion and what they are my experience living with Thai the % is very slim.

If she is 50-60 she is already done  in Thailand, 

I would if not already make sure she has a roof over her head. Maybe a mix use property where the two of you can live later herself. For example like Pattaya small piece of land house set in from main road in front shop house that rent for 10-15,000 baht a month. 

I like the suggestion of land but at her age? Farming it hard work.  

Also as noted there something called a life estate you can deed it so as long as you are alive can live on the property.

There are options but without answer tough only guessing

 

 

 

 

 

[stupidfarang]

20 hours ago, retarius said:

I have been thinking about this for some time. I am relatively well off and will leave my Thai wife land, property and cash. She also has her own money but only about 40,000 baht a month pension from her previous husband. Our house is very large and expensive to run 20K/month for electric, 40K/month for staff to drive, garden etc, 50K/year insurance on cars but no debts. I'm over 70, but not really in good shape and don't expect to last more than 5 years at most and based on this expectation I expect top leave her between $600K and $1M in cash. I am worried sick that this will just disappear when the family get their hooks into her. 

I have assets in the US that I can put in trust and stop her from accessing, but realistically, with the new tax laws I don't want to be sending over cash over here to her. My US pensions will go to my ex-wife in the US and I will leave money for my kids to help their retirement. 

I will be grateful for any ideas from this forum.

As you said family and friends will be around very fast with their hands out, maybe better to have money sent over monthly from the USA and not worry to much about the tax, better to have some income instead of it all going to the family and left with nothing. Find out what percentage the tax would be. Also maybe downsize the house as the out goings are high and while you are alive all is good, but once gone, what is her income and how long will her inheritance last paying the house bills. Do not worry to much, do not want stress at our age. Wish you all the best

[stupidfarang]

16 hours ago, khunPer said:

It's individual and depends on the partner, but I can tell you what I have done, for your inspiration:

 

I'm also in my early half of my 70s and my girlfriend is 32 years younger, we been together now for almost 20 years.

 

Firstly I taught my partner about how to save up – i.e. Henry Ford's advice: "It's not the money you earn that makes you rich, it's the money you do not spend."

 

The is to my knowledge nothing like trust funds or like, which can freeze the investment for a number of years, but there are several retirement saving option in the various banks. However, they are often linked with a life-insurance and might be too costly compared to other possibilities, which however don't stop the partner from spending the savings (why the first clause is important).

 

Together my girlfriend and I decided to buy some land for her. In my opinion it's little more difficult to just let go than cashing bank savings or fund book investments (mutual funds). Furthermore, land can produce an ongoing small income on top of increased long-term value. The income can be from farm land – which is a good long-term investment – as a part of the harvest or a fixed annual fee per rai; at the moment around 1,000 baht, but depending of area and farming value of the land. So depending of land price the outcome can be in the level of 1-1,5% per year. Land would normally have an average long term value increase in the level 4-8 percent per year.

 

Additionally we decided for savings in fund books – it's mutual funds offered by the banks with a variety of possibilities, including both accumulating fund and dividend paying funds. You can find some fairly safe funds and start with a small amount – 5,000 baht or less – which can be topped up annually or in whatever term, also in quite small lots. There are both money market funds, equity funs and foreign markets. The higher potential gain, the higher risk, as it often is with investment. We decided to avoid foreign markets to avoid currency exchange, as the fund are going to be used in local currency; i.e. Thai baht.

 

After some years we changed most of the funds to real stock market with a SET (Stock Exchange of Thailand) trading account through a bank. The first stocks I helped with choosing, but my girlfriend go so interested in investment that she began to follow news and find potential stocks herself. Again based on the very first – learn about savings and get interested – she is actually doing well and also saving for investment from her own income. Many Thai stocks are good dividend payers – but little slower in value increase – so with the right mix you can (easily) get about 4-5% dividends after 10% withholding tax per year. You can for example use this principle for dividends: "Never spend more than half of you income, the other half you save up." Then you feel there is both an outcome of your efforts and you still increase the savings. Capital gain from SET is (so far) free of income tax.

 

We did similar for child savings for our daughter; so far it has worked well...

Hi, interested in what you did for the child savings, can you explain a bit more please? I have a 3 year old and she has a normal savings account, but I would like to change.

 

[khunPer]

5 hours ago, stupidfarang said:

Hi, interested in what you did for the child savings, can you explain a bit more please? I have a 3 year old and she has a normal savings account, but I would like to change.

 

Yes, and thank for your comment.

 

My lovely girlfriend suggested a child savings account in a bank, but I knew from my home country that bank-interest rate is a bad investment for the coming up to 18 years, which is the child-saving term in my home country. My child in Thailand is my first, so my knowledge is second hand and from news media, but a bank interest rate lower than inflation rate will by normal sense and calculation result in a loss in buying value.

 

I said, that I instead would place a lump sum in a plot of land, and then I could deposit 500 baht a month in a savings account, so there would also be some cash. Land can in general double in value in 10-20 years – sometimes faster – and with the ideal 2% consumer inflation, consumer prices will in average double in about 35 years, so land is a gain, fixed bank interest at around 1.5% is a loss.

 

My girlfriend agreed and found a nice plot of farmland for a cheap price, as the sellers needed fast money. Some in her family rented the land for farming – cheap rent, so they also got helped, as the value gain was the idea of long-term investment – the small fee from the land were saved, in the beginning as cash, later invested.

 

Land prices varies a lot from area to area, and also fee for rent, which can either be a share of the harvest or a fixed sum of money per rai. I decided for the lower end of fixed sum at that time, which was 500 baht per rai – today it's more likely around 1,000 baht – upper end was 1,000 baht at that time, which today is between 1,500 baht and perhaps up to 2,000 baht. In general you can count like 1% to 1.5% of the investment comes back in annual rent – of course, depending of the land price – so it's actually as good as a fixed term savings account in a bank. However, the difference is, that it's fairly easy to withdraw cash from a bank, whilst selling a plot of land can take long time. In my daughter's case was the interest higher, as she got her land very cheap.

 

I decided to change from savings account to so-called Fund books – when I learned more about investment possibilities in Thailand – where I could find some fairly safe funds with a tax benefit – i.e. not tax at all, if the fund were kept for 5 years – called LTF. The tax-free periode since changed to 7 year. So the last 5 years, which became 7 years, I could not use LTFs.

 

Instead af a normal bank account, we – because my daughter was old enough to understand about saving and investment – decided to invest in SET stocks. So we cashed out the LTFs that had matured and bought stocks instead, I suggestions and she chosed which of them she wanted. The deal was that she could have half the dividends, and the other half should be re-invested together with the land rent and my still monthly 500 baht in "child savings". This way, she could both create interest in saving and investing, and also get a cash benefit from her efforts. She is 18 tears ole now, so two more years to go; then she can herself decide what she want to do; i.e. cash out and sell land, or...

 

Historically results are not a prediction of the future – investment can be a risky business – but can be a guide. In my daughter's case the land value has increased between 4 times to 8 times, based on fast sale and actual trading prices per rai land in the area. 4 times gain equals a value-double up in 10-years; but remember, we got a good deal when buying the land. The rent has been as high as 4% per year and the last two years little higher – again, due to the low buying price – so around 65% of the initial land value has also been placed in the stock market over the years. The affordable 500 baht per month, is 6,000 baht per year; so, over a 20-year period it's another 120,000 baht, which during the years has increased by both interest, dividends and hopefully some value gain – "hopefully", because the SET is little low at the moment, both due to after effects of the Covid-19 and the change in government, the last has been the worst for the Thai stock market.

 

The Thai Consumer Price Index has gone up from index 75 to index 108 during my daughter's child-saving period, a circa 44% increase; i.e., you in average need 44% more money today to buy the same, as when the child saving period started. A fixed term bank deposit with average 1.5% annual interest would only have result in a total capital increase of 30%. The investment in land together with the monthly savings, have all together increased with 277% until now (over 18 years) – when using the lowest land value – and 500% or more, if land can be sold for a high end price.

 

In general, land is always considered an excellent investment.

 

Hope this can help you, feel free to ask, if you need more information...🙂

[stupidfarang]

3 hours ago, khunPer said:

Yes, and thank for your comment.

 

My lovely girlfriend suggested a child savings account in a bank, but I knew from my home country that bank-interest rate is a bad investment for the coming up to 18 years, which is the child-saving term in my home country. My child in Thailand is my first, so my knowledge is second hand and from news media, but a bank interest rate lower than inflation rate will by normal sense and calculation result in a loss in buying value.

 

I said, that I instead would place a lump sum in a plot of land, and then I could deposit 500 baht a month in a savings account, so there would also be some cash. Land can in general double in value in 10-20 years – sometimes faster – and with the ideal 2% consumer inflation, consumer prices will in average double in about 35 years, so land is a gain, fixed bank interest at around 1.5% is a loss.

 

My girlfriend agreed and found a nice plot of farmland for a cheap price, as the sellers needed fast money. Some in her family rented the land for farming – cheap rent, so they also got helped, as the value gain was the idea of long-term investment – the small fee from the land were saved, in the beginning as cash, later invested.

 

Land prices varies a lot from area to area, and also fee for rent, which can either be a share of the harvest or a fixed sum of money per rai. I decided for the lower end of fixed sum at that time, which was 500 baht per rai – today it's more likely around 1,000 baht – upper end was 1,000 baht at that time, which today is between 1,500 baht and perhaps up to 2,000 baht. In general you can count like 1% to 1.5% of the investment comes back in annual rent – of course, depending of the land price – so it's actually as good as a fixed term savings account in a bank. However, the difference is, that it's fairly easy to withdraw cash from a bank, whilst selling a plot of land can take long time. In my daughter's case was the interest higher, as she got her land very cheap.

 

I decided to change from savings account to so-called Fund books – when I learned more about investment possibilities in Thailand – where I could find some fairly safe funds with a tax benefit – i.e. not tax at all, if the fund were kept for 5 years – called LTF. The tax-free periode since changed to 7 year. So the last 5 years, which became 7 years, I could not use LTFs.

 

Instead af a normal bank account, we – because my daughter was old enough to understand about saving and investment – decided to invest in SET stocks. So we cashed out the LTFs that had matured and bought stocks instead, I suggestions and she chosed which of them she wanted. The deal was that she could have half the dividends, and the other half should be re-invested together with the land rent and my still monthly 500 baht in "child savings". This way, she could both create interest in saving and investing, and also get a cash benefit from her efforts. She is 18 tears ole now, so two more years to go; then she can herself decide what she want to do; i.e. cash out and sell land, or...

 

Historically results are not a prediction of the future – investment can be a risky business – but can be a guide. In my daughter's case the land value has increased between 4 times to 8 times, based on fast sale and actual trading prices per rai land in the area. 4 times gain equals a value-double up in 10-years; but remember, we got a good deal when buying the land. The rent has been as high as 4% per year and the last two years little higher – again, due to the low buying price – so around 65% of the initial land value has also been placed in the stock market over the years. The affordable 500 baht per month, is 6,000 baht per year; so, over a 20-year period it's another 120,000 baht, which during the years has increased by both interest, dividends and hopefully some value gain – "hopefully", because the SET is little low at the moment, both due to after effects of the Covid-19 and the change in government, the last has been the worst for the Thai stock market.

 

The Thai Consumer Price Index has gone up from index 75 to index 108 during my daughter's child-saving period, a circa 44% increase; i.e., you in average need 44% more money today to buy the same, as when the child saving period started. A fixed term bank deposit with average 1.5% annual interest would only have result in a total capital increase of 30%. The investment in land together with the monthly savings, have all together increased with 277% until now (over 18 years) – when using the lowest land value – and 500% or more, if land can be sold for a high end price.

 

In general, land is always considered an excellent investment.

 

Hope this can help you, feel free to ask, if you need more information...🙂

WOW! thank you that is very detailed info. Yes land is a good investment, have been looking at the stock market but am not an expert, will need to study it more. I assume you bought land on Samui which if so you would have done very well. I will have to digest all this infomation for now. Thank you for the input, greatly appreciated. 

[khunPer]

20 hours ago, stupidfarang said:

WOW! thank you that is very detailed info. Yes land is a good investment, have been looking at the stock market but am not an expert, will need to study it more. I assume you bought land on Samui which if so you would have done very well. I will have to digest all this infomation for now. Thank you for the input, greatly appreciated. 

No – "assume you bought land on Samui" – my daughter's land is farmland up in Isaan. You could get around 100 rai in Isaan for the cost of 1 rai on Samui, which of course is not Samui prime-land for that kind of small money. Farmland is many fold cheaper than Samui-land, and the demand for farmland is higher than land in a holiday-destination; prices have not moved much up on Samui during the past decade or so, whilst the price on farmland has been increasing all the time.

[ChaiyaTH]

On 10/30/2023 at 11:58 AM, 1FinickyOne said:

We started buying farmland about 15 years ago around my wife's village - our first purchase was 40k per rai.. our last purchase was about 5 years ago for 150k per rai... going price is now 250k per rai...

 

my wife is smart and I taught her to only buy great land when reasonably priced... be patient. In addition to the price appreciation, the family farms the land and makes a living. 

 

if you want more info, you can pm. 

''The going price now'' and are there actual buyers who would put that figure down if you now wanted to sell 20 rai at once? My family in law also have over 100 rai and the going price is outstanding, however once they wanted a mortgage or loan for a house on the same land, it was barely worth anything compared to those figures, to the banks at least. Those prices are insane high for the middle of nowhere in Thailand.

Edited November 1, 2023 by ChaiyaTH

[Mike Teavee]

6 minutes ago, ChaiyaTH said:

''The going price now'' and are there actual buyers who would put that figure down if you now wanted to sell 20 rai at once? My family in law also have over 100 rai and the going price is outstanding, however once they wanted a mortgage or loan for a house on the same land, it was barely worth anything compared to those figures, to the banks at least. Those prices are insane high for the middle of nowhere in Thailand.

A couple of years back, GF & I looked at buying some land in Satun as a future income stream (renting out to people to grow Rubber/Palm oil crop) for her & there was a massive difference in the price of land depending on whether it had "Paper" (Chanote?) or not.  IIRC there was 1 plot of 4 Rai going for 1.5Million with "Paper" & another 20 Rai plot going for 1Million without "Paper". 

 

I don't understand the significance but she seemed adamant that she wanted land with "Paper", something about somebody (Government?) could claim the land back without it, TBH I'd lost interest in it at that point so didn't get into anymore details.

[Adumbration]

Land.  With a life usufruct in your name stamped on the back.

 

[1FinickyOne]

10 hours ago, ChaiyaTH said:

''The going price now'' and are there actual buyers who would put that figure down if you now wanted to sell 20 rai at once? My family in law also have over 100 rai and the going price is outstanding, however once they wanted a mortgage or loan for a house on the same land, it was barely worth anything compared to those figures, to the banks at least. Those prices are insane high for the middle of nowhere in Thailand.

I don't know about the banks lending money against land - - we have never needed or wanted to borrow - - but where we live, there has always been a demand for land and it is never advertised but sold by word of mouth. Sometimes owners want 2-3x going rate - I don't think they sell. I have always stressed to my wife to be a patient buyer and only buy the best land - - based on road access and water. Sometimes people will offer less than the best land for a slight discount but mostly she has bought at known market value, even with being patient.  

[khunPer]

22 hours ago, ChaiyaTH said:

''The going price now'' and are there actual buyers who would put that figure down if you now wanted to sell 20 rai at once? My family in law also have over 100 rai and the going price is outstanding, however once they wanted a mortgage or loan for a house on the same land, it was barely worth anything compared to those figures, to the banks at least. Those prices are insane high for the middle of nowhere in Thailand.

It's depending on the title deed. Many farm-land plots are not real ownership deeds – it cannot be sold – but that kind of land is still traded at quite high prices. Real title deed with full ownership – which is only nor sor 4, aka Chanote – has little higher price par rai. Banks cannot get mortgage on land with low title deeds – the deed says so on the back; i.e., the land cannot se sold or mortgaged – only the house, which might be allowed to be build on the land depending of the title of the deed, can be financed. Therefore the trading value of land can have no value at all, when it comes to borrowing money.

[GarryP]

19 minutes ago, khunPer said:

It's depending on the title deed. Many farm-land plots are not real ownership deeds – it cannot be sold – but that kind of land is still traded at quite high prices. Real title deed with full ownership – which is only nor sor 4, aka Chanote – has little higher price par rai. Banks cannot get mortgage on land with low title deeds – the deed says so on the back; i.e., the land cannot se sold or mortgaged – only the house, which might be allowed to be build on the land depending of the title of the deed, can be financed. Therefore the trading value of land can have no value at all, when it comes to borrowing money.

This government is planning to change Sor Por Kor land (many land plots used for agriculture) to land with title deeds. That may actually push up the price of the land. 

[khunPer]

13 minutes ago, GarryP said:

This government is planning to change Sor Por Kor land (many land plots used for agriculture) to land with title deeds. That may actually push up the price of the land. 

Various governments have planned that. It has been widely discussed, if the original owner's name will appear on the upgraded title deed – if not a close family member that can legally have the land transferred –  or the illegal new owner will have his/hers name on the title deed.

[elektrified]

On 10/30/2023 at 5:51 AM, Dave0206 said:

Not that it makes one bit of difference regarding advice sought or given but no where does it mention a she or a he .Good luck either way nice you are thinking of there future 

It mentions "they". 😆