Buying a condo for daughter foreign quota

[Cricky]

I'd like to buy a condominium for my daughter.

She is Thai, has a Thai ID card and has a has a foreigner name (my surname).

 

There are plenty of foreign quota units available for a higher price, I am OK with paying extra for foreign quota.

 

I'd like her to buy with foreign quota, the sales people are saying she doesn't have to buy as foreigner or can't have the title in foreign quota.

 

Anyone know if this is true?

 

[Peterw42]

She is Thai, of course she cant buy in the foreign quota.

I cant believe you are even asking the question. If Thais can buy up all the foreign quota, then its no longer the foreign quota.

[Hummin]

14 minutes ago, Cricky said:

I'd like to buy a condominium for my daughter.

She is Thai, has a Thai ID card and has a has a foreigner name (my surname).

 

There are plenty of foreign quota units available for a higher price, I am OK with paying extra for foreign quota.

 

I'd like her to buy with foreign quota, the sales people are saying she doesn't have to buy as foreigner or can't have the title in foreign quota.

 

Anyone know if this is true?

 

your daughter ? Why not get her your citienship and passport? or buy in your name, and later transfer to her when she get the papers done

[OneMoreFarang]

14 minutes ago, Cricky said:

I'd like her to buy with foreign quota

Why?

She is Thai.

Are foreign quota units somehow better? 

[Hummin]

and I do not understand, the thai quota is for protect Thais so they are not completely bought out, I seriously do not think it works the other way since the foreigner qouta is not protected

[Hummin]

3 minutes ago, OneMoreFarang said:

Why?

She is Thai.

Are foreign quota units somehow better? 

Appartments  are not marked

[scubascuba3]

If she had a foreign passport maybe it's possible even though she's Thai? foreign quota is easier to sell for sure

[newnative]

2 hours ago, Hummin said:

and I do not understand, the thai quota is for protect Thais so they are not completely bought out, I seriously do not think it works the other way since the foreigner qouta is not protected

     Supposedly, one of the reasons for having the foreign quota limited to 49% was to keep Thai owners in control of a condo project.  However, there is no requirement that a project's governing condo board must have a majority of Thai owners.  At the last condo project that I owned at, the condo board had a majority of foreign board members; if I remember correctly, there were only one or two Thais on the board.  So, the foreign owners were in charge at that project.  

[digbeth]

only reason to want foreign quota is to sell later on, you'd have more opportunity and price if the condo is still in foreigner quota

 

but are there anyway for a Thai to hold on to foreign quota? I don't think so, short of using her foreign identity to but the condo with associated paperwork like FET 

if the occupancy is not filled up it may be still possible to transfer to foreigner while the 49% is not met, but this can't be guaranteed won't be filled by the time you want to sell. 

[ChaiyaTH]

If she has double passports she can simply buy with the foreign passport under foreign quota, logical. I don't believe this with not being able to buy as a Thai from a condo with foreigner quota too, my friends here sold their condo's plenty of times to a Thai, while they had the foreigner quota.

 

I could believe you might 'lose the foreigner quota' once buying it as a Thai, but it should not be impossible to buy the unit itself in general.

[Cricky]

3 hours ago, Peterw42 said:

She is Thai, of course she cant buy in the foreign quota.

I cant believe you are even asking the question. If Thais can buy up all the foreign quota, then its no longer the foreign quota.

She has an Australian passport.

 

[Cricky]

4 minutes ago, ChaiyaTH said:

If she has double passports she can simply buy with the foreign passport under foreign quota, logical. I don't believe this with not being able to buy as a Thai from a condo with foreigner quota too, my friends here sold their condo's plenty of times to a Thai, while they had the foreigner quota.

Thanks, that's what I thought.

[Dan O]

The real question is why the desire to buy under the foreign quota if the daughter is Thai? Without knowing that reason good advice cant be given. Under her Thai passport and documentation, she can't buy as a foreigner, but I believe she can if using the other nationality documents. I dont see the advantage of being under the foreigner quota but I presume there is some reason to want to do that. 

[Cricky]

2 hours ago, scubascuba3 said:

If she had a foreign passport maybe it's possible even though she's Thai? foreign quota is easier to sell for sure

Yes, she has an Australian passport and yes, higher resale value.

[Cricky]

3 hours ago, OneMoreFarang said:

Why?

She is Thai.

Are foreign quota units somehow better? 

Yes, easier to sell

[scubascuba3]

16 minutes ago, ChaiyaTH said:

my friends here sold their condo's plenty of times to a Thai, while they had the foreigner quota.

No issue there ever, it just goes into Thai name

[Hummin]

18 minutes ago, Cricky said:

Yes, she has an Australian passport and yes, higher resale value.

well, is it? Marked value is always about location,  standard and there is foreign interest in the complex. 

[quake]

 I would think that someone would be committing some kind of fraud

at some point,  down the road with government documentation

doing this.

Good luck.

l

[Cricky]

1 minute ago, quake said:

 I would think that someone would be committing some kind of fraud

at some point,  down the road with government documentation

doing this.

Good luck.

l

Thank you.

 

This is why I'm asking the question.

 

[Cricky]

5 minutes ago, Hummin said:

well, is it? Marked value is always about location,  standard and there is foreign interest in the complex. 

Not interested, just want to know legalities.

 

A Thai with an Australian passport buying condo with foreign quota.

 

[digbeth]

Is the 'potential' higher resale value be worth more than the worse exchange rate if you were to transfer the funds in through proper means that can provide FET to satisfy the land office? vs just using money already in Thailand or transferring in though other means that won't have FET?

 

The condo being in Thai name doesn't mean you won't be able to sell into foreign quota later if the condo's quota isn't all used up

[newnative]

32 minutes ago, Dan O said:

The real question is why the desire to buy under the foreign quota if the daughter is Thai? Without knowing that reason good advice cant be given. Under her Thai passport and documentation, she can't buy as a foreigner, but I believe she can if using the other nationality documents. I dont see the advantage of being under the foreigner quota but I presume there is some reason to want to do that. 

     The advantage, as others have said, is a foreign quota condo can be easier to sell down the road than one in Thai or company name, if foreign quota is full in the condo project.  This is more of a factor in places in Thailand, such as Pattaya, with higher concentrations of foreigners.   Many foreign buyers want to buy a condo only in foreign quota as it allows them to have the condo title in their name.  

     Speaking from experience, my Thai spouse and I have owned two condos at different projects that were bought in Thai name when foreign quota was full.  One would have sold much faster when we went to sell it had it been in foreign quota--we had a number of buyers who told us they would have bought the condo if it was in foreign quota.  The other condo was in such a sought-after project that we were able to sell it more easily to a Thai/farang couple who kept the condo in Thai name.

[impulse]

I'll confess ignorance...  How is a condo allocated to the "foreign quota"? 

 

Does the developer declare it when he first offers them for sale?  Is it first come, first served, closing when 49% are bought by foreigners?  Or are they pre-allocated? 

 

If I own a "foreign quota" condo, can I sell it to a Thai?  If I do sell to a Thai, is it still in the foreign quota?  Once a condo is part of the foreign quota, is that cast in stone, or can the status change?

 

I can see where being in the foreign quota may make a condo easier to sell (perhaps at a higher price), but I'm not clear on how that works if a Thai person wants to buy a condo from a foreigner.  Does that then open the possibility for another condo in the project to be bought by a foreigner if it results in less than 49% foreign ownership?

 

[digbeth]

11 minutes ago, impulse said:

I'll confess ignorance...  How is a condo allocated to the "foreign quota"? 

 

Does the developer declare it when he first offers them for sale?  Is it first come, first served, closing when 49% are bought by foreigners?  Or are they pre-allocated? 

 

If I own a "foreign quota" condo, can I sell it to a Thai?  If I do sell to a Thai, is it still in the foreign quota?  Once a condo is part of the foreign quota, is that cast in stone, or can the status change?

 

I can see where being in the foreign quota may make a condo easier to sell (perhaps at a higher price), but I'm not clear on how that works if a Thai person wants to buy a condo from a foreigner.  Does that then open the possibility for another condo in the project to be bought by a foreigner if it results in less than 49% foreign ownership?

 

 

First come first served, it's maintained per building so not attached to a specific room

so you can, and if you sell to a Thai, the foreign quota for that condo became available for others, the Juristic Manager would know if the quota is used up or not.

[Dan O]

4 hours ago, newnative said:

     The advantage, as others have said, is a foreign quota condo can be easier to sell down the road than one in Thai or company name, if foreign quota is full in the condo project.  This is more of a factor in places in Thailand, such as Pattaya, with higher concentrations of foreigners.   Many foreign buyers want to buy a condo only in foreign quota as it allows them to have the condo title in their name.  

     Speaking from experience, my Thai spouse and I have owned two condos at different projects that were bought in Thai name when foreign quota was full.  One would have sold much faster when we went to sell it had it been in foreign quota--we had a number of buyers who told us they would have bought the condo if it was in foreign quota.  The other condo was in such a sought-after project that we were able to sell it more easily to a Thai/farang couple who kept the condo in Thai name.

My question was really to the OP to understand their thinking..

 

your scenario only comes into play if the quota is already met and a foreigner wants to be in that condo bldg. A Thai can sell to a foreigner if the quota isn't already met and then its added to the foreign quota. 

[Captain Monday]

8 hours ago, Hummin said:

and I do not understand, the thai quota is for protect Thais so they are not completely bought out, I seriously do not think it works the other way since the foreigner qouta is not protected

How does it protect Thais?

In a sought after Tourist area with high foreign interests and the quota is full

I see it as an economic distortion that lowers the value of the Thai owned units.

[hunkidori]

I am about to buy a FQ condo and want to add my 15 year old to the chanoote so we can jointly own it. One objective is to keep his mother from being able to borrow against it or transfer ownership without our authorisation.

 

My boy is duel nationality and without doubt foreign quota condos are much easier to sell in the future and will command higher prices.

[newnative]

3 hours ago, Dan O said:

My question was really to the OP to understand their thinking..

 

your scenario only comes into play if the quota is already met and a foreigner wants to be in that condo bldg. A Thai can sell to a foreigner if the quota isn't already met and then its added to the foreign quota. 

     Yes, of course, if foreign quota is still available a condo held in Thai name can be purchased in foreign quota.  I think you will find, though, that in places like Pattaya with high concentrations of foreigners, a number of the most desirable condo projects popular with foreigners no longer have foreign quota available.   So, the 'scenario' comes into play fairly often here.

     The situation can be different in other areas, including Bangkok.  When my spouse and I bought our Bangkok condo it was in a very desirable center city project steps away from an MRT station.  But, its location and quality also appealed to plenty of Thai buyers, as well, and when we bought the re-sale in 2019 there was lots of foreign quota still available.  Since the project opened in 2013 and there was still FQ available in abundance in 2019, this project will likely not run out of FQ anytime soon.

[digbeth]

18 minutes ago, newnative said:

     Yes, of course, if foreign quota is still available a condo held in Thai name can be purchased in foreign quota.  I think you will find, though, that in places like Pattaya with high concentrations of foreigners, a number of the most desirable condo projects popular with foreigners no longer have foreign quota available.   So, the 'scenario' comes into play fairly often here.

     The situation can be different in other areas, including Bangkok.  When my spouse and I bought our Bangkok condo it was in a very desirable center city project steps away from an MRT station.  But, its location and quality also appealed to plenty of Thai buyers, as well, and when we bought the re-sale in 2019 there was lots of foreign quota still available.  Since the project opened in 2013 and there was still FQ available in abundance in 2019, this project will likely not run out of FQ anytime soon.

 

For most new builds in Bangkok 3-7 years back Thais would be queueing to buy off-plan on launch day and could even flip the deposit for profit 

[NativeBob]

57 minutes ago, hunkidori said:

One objective is to keep his mother from being able to borrow against it or transfer ownership without our authorisation.

Happened to friend. 7 mill condo pawned by "Our Lady From Buriram".