Would you buy a Farang Home?

[NorthernRyland]

This made me laugh when I saw it. There's a YouTube channel called "Farang Home" (https://www.youtube.com/@faranghomes/videos) which is selling property in Thailand targeted directly at you know who. All prices shown in USD even.

 

Surely these prices are a rip off if you knew the local market yourself but the question is how isn't this kind of thing not illegal? To purchase these you need to setup a fraudulent nominee company right? If not that some entity is issuing 30 year leases but there must be some limit to those in practice. What's even the point of the fraud nominee system, just issue leases right? Help me make sense of this.

If every property developer could simply issue unlimited leases to foreign buyers the property market would be swamped right now. I just heard that a shocking 46% of ALL condo sales in Thailand are to Chinese buyers (seen below) and just imagine what would happen if buying homes was just as easy.  

 

 

[JBChiangRai]

Farang Homes are probably selling to Farang Husbands with Thai wives.

[BobBKK]

You are getting confused. Foreigners may buy up to 49% of condo buildings - legally. 

[OneMoreFarang]

55 minutes ago, NorthernRyland said:

Help me make sense of this.

Why do you expect that it makes sense? 

[Hummin]

 

Went to several "Falang" built villages in Hua Hin, where several options of ownership of the house was presented. Putting it in my gf name was an option as well. 

Well built villas with high western standards, and with the exchange rate back them, a fair price compared to now. 

However there is no way I could thrive on 600m2 land with no other view than the neighbours and the fencing wall. Also, I think I built on almost 4 rai land in my gf name a few years later, for 1/5 of the price, and no neighbours, of course thai style and labour work.

I will never have to worry about selling it.

 

But for those whos elderly, some of this foreigner agents do a good job, and serve good quality, and also help to make proper deals in decent run villages. You just need to to background checks, and find the right one. Personally I would not buy any project in Thailand, only finished villas, already run for a few years, so you know it is already have the necessary legal papers. 

 

 

 

 

[BobBKK]

The YouTube channel is condos - what is the confusion? Foreigners have a 49% quota. Why mention nominee companies (which are sometimes used for houses and land)?

[KhunLA]

We wouldn't buy any pre-built house, as prices have been silly.   We simply contracted the builder, to build on our land.  In our 3rd house.  At least 1/2 the price per m², and as good or better materials.

 

One builder in Udon Thani didn't even earth the electric ing the house, or use 3 prong plugs.  Said they didn't have to, since they bought the land before it was mandatory buy law/ordinance 

 

Had to pay extra for earthing, and these were ฿7-10M houses & up 

 

Most used cinder & red block, no insulation ... just crap IMHO

 

Not saying our builds were perfect, and needed tweaks along the way, and afterwards.   But far better than what was on offer that we saw.

[NorthernRyland]

7 hours ago, BobBKK said:

You are getting confused. Foreigners may buy up to 49% of condo buildings - legally. 

They're selling detached houses too though. I assume they're facilitating the purchase also.

[NorthernRyland]

6 hours ago, BobBKK said:

The YouTube channel is condos - what is the confusion? Foreigners have a 49% quota. Why mention nominee companies (which are sometimes used for houses and land)?

[NorthernRyland]

5 hours ago, KhunLA said:

Had to pay extra for earthing, and these were ฿7-10M houses & up 

 

Most used cinder & red block, no insulation ... just crap IMHO

 

 

Property developers are in full swing in Chiang Mai. That's all you see built anymore and they're all horrible congested sweat boxes. Now they're targeting foreigners apparently which seems blatantly illegal and all publicly on the internet.

[NorthernRyland]

7 hours ago, Hummin said:

But for those whos elderly, some of this foreigner agents do a good job, and serve good quality, and also help to make proper deals in decent run villages. You just need to to background checks, and find the right one. Personally I would not buy any project in Thailand, only finished villas, already run for a few years, so you know it is already have the necessary legal papers. 

 

How is this legal though? The impression I get is anyone from anywhere can buy any property they want. Something does add up.

[Liverpool Lou]

8 hours ago, Sticky Rice Balls said:

8 hours ago, BobBKK said:

You are getting confused. Foreigners may buy up to 49% of condo buildings - legally. 

the 51 being the "catch".....just enough to lure you in before they strike

Before who "strikes"?  And "strikes" with what?

[Liverpool Lou]

7 hours ago, BobBKK said:

The YouTube channel is condos - what is the confusion? Foreigners have a 49% quota. Why mention nominee companies (which are sometimes used for houses and land)?

It is advertising houses, villas, condos and hotels, not just condos, that's why he mentioned nominee companies.

[Liverpool Lou]

1 hour ago, NorthernRyland said:

Now they're targeting foreigners apparently which seems blatantly illegal and all publicly on the internet.

Advertising property for sale is not illegal.  Are you claiming that they are offering to circumvent the property ownership laws, if so, where did you get that information?

[NorthernRyland]

12 hours ago, Liverpool Lou said:

Advertising property for sale is not illegal.  Are you claiming that they are offering to circumvent the property ownership laws, if so, where did you get that information?

How do they expect the non-Thai speaking person who is shopping in USD to purchase the house? They must be facilitating the purchase somehow. This content was made for people who are going to move to Thailand and are otherwise unattached, don't have a Thai wife etc.. In fact there are lots of videos of foreigners showing their new house they "bought" in Thailand.

 

I get the impression they've bent the old laws so much foreigners can quite easily purchase land here now via leases/nominees etc...

[NorthernRyland]

Here's a pic from the video description. Note "Are you considering investing in Thailand real estate? Property in Thailand is an attractive investment opportunity for locals and foreigners looking to diversify their portfolios."

 

If the 30 year lease thing really exists then there's no limit to the amount of property they can sell and the market is fully open to anyone. That doesn't sound right though so what's the catch?

 

[Liverpool Lou]

24 minutes ago, NorthernRyland said:

This content was made for people who are going to move to Thailand and are otherwise unattached, don't have a Thai wife etc..

Was it?  I think that your speculating wildly on that for the benefit of your OP but if you have spoken to them and had it confirmed, then I stand corrected.

[Tropicalevo]

16 minutes ago, NorthernRyland said:

If the 30 year lease thing really exists then there's no limit to the amount of property they can sell and the market is fully open to anyone. That doesn't sound right though so what's the catch?

A 30 year lease is legal.

A second 30 years as an option is also legal (or it was back in 2001). This gives 60 years.

Some developers have been known to offer 90 year leases. Not legal. 60 was the maximum.

The thing to remember with a lease that it is ONLY for the people included in the contact. The lease dies when they do.

[Liverpool Lou]

26 minutes ago, NorthernRyland said:

I get the impression they've bent the old laws so much foreigners can quite easily purchase land here now via leases/nominees etc...

"...they've bent the old laws so much..."

Who is the "they" that you're referring to?  Foreigners cannot own land through leases and using nominees is illegal and runs the risk of losing both the investment and the property.  

[Liverpool Lou]

13 hours ago, NorthernRyland said:

How is this legal though? The impression I get is anyone from anywhere can buy any property they want.

Yes, they can, legally, buy a property, it is the land that foreigners cannot own.

[Liverpool Lou]

26 minutes ago, NorthernRyland said:

Here's a pic from the video description. Note "Are you considering investing in Thailand real estate? Property in Thailand is an attractive investment opportunity for locals and foreigners looking to diversify their portfolios."

 

If the 30 year lease thing really exists then there's no limit to the amount of property they can sell and the market is fully open to anyone. That doesn't sound right though so what's the catch?

The channel specifically states that it is not a real estate agency and is only marketing the properties, it makes no claim that it can facilitate ownership.  Of course the leasing of property exists, legally.

[jvs]

19 hours ago, KhunLA said:

We wouldn't buy any pre-built house, as prices have been silly.   We simply contracted the builder, to build on our land.  In our 3rd house.  At least 1/2 the price per m², and as good or better materials.

 

One builder in Udon Thani didn't even earth the electric ing the house, or use 3 prong plugs.  Said they didn't have to, since they bought the land before it was mandatory buy law/ordinance 

 

Had to pay extra for earthing, and these were ฿7-10M houses & up 

 

Most used cinder & red block, no insulation ... just crap IMHO

 

Not saying our builds were perfect, and needed tweaks along the way, and afterwards.   But far better than what was on offer that we saw.

Yes nothing like your "own" place.

Basically my dream has come true here but i agree with posters about doing your home work before diving in.

[NorthernRyland]

51 minutes ago, Liverpool Lou said:

Was it?  I think that your speculating wildly on that for the benefit of your OP but if you have spoken to them and had it confirmed, then I stand corrected.

I'm just trying to figure out what's happening here because I'm curious. 

[NorthernRyland]

49 minutes ago, Tropicalevo said:

A 30 year lease is legal.

A second 30 years as an option is also legal (or it was back in 2001). This gives 60 years.

Some developers have been known to offer 90 year leases. Not legal. 60 was the maximum.

The thing to remember with a lease that it is ONLY for the people included in the contact. The lease dies when they do.

 

I wonder if there are limits on who can issue these leases. Can you transfer the lease to another Thai citizen? If you can do that there are functionally no limits here. Most people don't live in a house for 30 years anyways so buying and selling means they can inflate the property market. Curious if that's what's happening now.

[NorthernRyland]

30 minutes ago, jvs said:

Yes nothing like your "own" place.

Basically my dream has come true here but i agree with posters about doing your home work before diving in.

sweet. Where is that?

[jvs]

8 minutes ago, NorthernRyland said:

sweet. Where is that?

Cha-am area,good place to live.

 

[jvs]

11 minutes ago, NorthernRyland said:

 

I wonder if there are limits on who can issue these leases. Can you transfer the lease to another Thai citizen? If you can do that there are functionally no limits here. Most people don't live in a house for 30 years anyways so buying and selling means they can inflate the property market. Curious if that's what's happening now.

I know a guy who is older already and he has a 30 year lease but his daughter is also on the contract ,no idea how that would workout but if it is legal then she will be able to use the property after he is no longer here

[Tropicalevo]

20 minutes ago, jvs said:

I know a guy who is older already and he has a 30 year lease but his daughter is also on the contract ,no idea how that would workout but if it is legal then she will be able to use the property after he is no longer here

Correct. As she was named in the contract.

She will not be able to pass it on. Only those that were named on the contact.

[jvs]

1 minute ago, Tropicalevo said:

Correct. As she was named in the contract.

She will not be able to pass it on. Only those that were named on the contact.

So it would be a good idea for any one who is buying a lease to include a childs name?

If they don't want to life here they could still rent the property out?

 

[NorthernRyland]

OK well I guess I got my answer. Targeting foreigners to purchase homes via a 30 year lease seems like a viable business. Retired people will be dead before then anyways so who cares and if the lease permits you can sell to another Thai, which makes it a viable investment for people of any age. If this is true I think the "foreigners can't buy homes" in Thailand narrative is greatly over stated.