Your opinion on leasing ? Why isn’t more popular ? It offers some kind of certainty

[Franck60]

Hi guys,

 

I’m a 59 years old frenchman who will come and live in Thailand in about 4 years time.

 

I will probably be renting as it guarantees freedom but … at the same, I was thinking about leasing (not straight away but after a while, once having explored around a bit). 

 

What’s your opinion about the value of leasing?

Thanks for your advice and help figuring out that stuff,
 

Franck
 

[soi3eddie]

 

Renting vs Leasing? Aren't they the same thing? Are you talking about property, a vehicle or a woman? 

 

Please clarify for us as many may be curious as to your plan.

 

Edited September 26 by soi3eddie

[Nemises]

Rent never buy. Life is short and variety is the spice of it. 

[soi3eddie]

5 minutes ago, Nemises said:

Rent never buy. Life is short and variety is the spice of it. 

Yes, but the OP never mentioned buying.

 

[motdaeng]

37 minutes ago, Franck60 said:

I’m a 59 years old frenchman who will come and live in Thailand in about 4 years time.

 

in 4 years a lot can change, in your personal life as in thailand as well ...

it seems you're serious about your plan to leave your home country ... 

 

[Nemises]

16 minutes ago, soi3eddie said:

Yes, but the OP never mentioned buying.

 

The OP mentioned that he will probably be renting, hence my post supporting his intention to rent.

[Gottfrid]

@Franck60 What are you talking about? I assume you are talking about a car?
 

53 minutes ago, soi3eddie said:

 

Renting vs Leasing? Aren't they the same thing?

 

Renting and leasing are not the same¹². Here are some differences between the two:

• Leasing contracts have two parties – lessor and lessee. A rental agreement has two parties as well – landlord and tenant.
• Leasing is usually done for assets/equipment. Renting is mostly done for properties or lands.
• In leasing, the servicing and maintenance are done by the lessee when s/he takes the equipment on lease. In renting, on the other hand, the servicing and maintenance are done by the landlord even if the tenant takes the property on rent.
• The critical difference between lease and rent is their duration. Whereas a leasing remains valid for the period specified in a formal agreement (typically one year), a rental agreement could cover a short-term period for month-to-month stays or vacation rentals.

Edited September 26 by Gottfrid

[ujayujay]

Theres no Leasing for Cars in TH.

[Srikcir]

31 minutes ago, ujayujay said:

Theres no Leasing for Cars in TH.

Many car leasing firms in Thailand...Google it.

Example: https://carasti.com/AE/en   (previously Carzuno)

[Franck60]

I was talking about LEASING land for a 20-year period … for example. I thought I read about it,

[khunPer]

10 hours ago, Franck60 said:

Hi guys,

 

I’m a 59 years old frenchman who will come and live in Thailand in about 4 years time.

 

I will probably be renting as it guarantees freedom but … at the same, I was thinking about leasing (not straight away but after a while, once having explored around a bit). 

 

What’s your opinion about the value of leasing?

Thanks for your advice and help figuring out that stuff,
 

Franck

In the Thai law there is no difference between rent and lease. But in practise "leasing" means a longer fixed period than 3 years.

 

When renting (leasing) for more than 3 years the agreement is registered on the title deed at a Land Office and tax shall be paid for the whole agreed period. It's illegal to agree periods over 3 years duration without registering. Some renter s won't make rental agreements for more than 3 years, both to avoid tax, but also for the freedom to raise the rent after the agreed period or sell their property without any registered obligations on the title deed, which obligations continues for a new owner.

 

Often lease is agreed for 30 years, which is the maximum period. Any agreement of additional leasing period(s) is not registered and might be hard to lawfully enforce, if the lessor backs out, sells or die.

 

You can find the law "Rent of property" in English translation HERE.

[oxo1947]

1 hour ago, Franck60 said:

I was talking about LEASING land for a 20-year period … for example. I thought I read about it,

 

Why would you want to Lease land for 20 years--- it really doesn't make a lot of sense .

If you are thinking of building something on that land to live in--then give it back to the owner after 20 years ,

leaving the woman you will probably meet and live with nothing---then it makes even less sense.

 

If you have not live full time in Thailand before , then yes rent --

--- have a look around for a few years, maybe by then Vietnam, Cambodia, PI, --might interest you more.

[bradiston]

7 hours ago, khunPer said:

In the Thai law there is no difference between rent and lease. But in practise "leasing" means a longer fixed period than 3 years.

 

When renting (leasing) for more than 3 years the agreement is registered on the title deed at a Land Office and tax shall be paid for the whole agreed period. It's illegal to agree periods over 3 years duration without registering. Some renter s won't make rental agreements for more than 3 years, both to avoid tax, but also for the freedom to raise the rent after the agreed period or sell their property without any registered obligations on the title deed, which obligations continues for a new owner.

 

Often lease is agreed for 30 years, which is the maximum period. Any agreement of additional leasing period(s) is not registered and might be hard to lawfully enforce, if the lessor backs out, sells or die.

 

You can find the law "Rent of property" in English translation HERE.

I lived on a resort where the owner was selling 30 year leases, with the con that they were renewable for 30 years. I have a Thai daughter, so got a 3 year lease with the option to buy in my daughter's name within that period. Cost nothing. It worked out and we got the chanote. But later on, another leaseholder tried to buy the land in his Thai daughter's name, based on a similar option to buy, and the owner challenged it in court, and won. The judge said a lease cannot be construed as a sales contract.

 

Now, virtually all the leaseholders (maybe 10) have sold up, at very poor prices. The clock is ticking with a lease. If there's only say 15 years left, who will want to buy it, if the lessor won't issue a new lease?

 

[Franck60]

Thank y’all for your contributions. I’ll mull over the information,

[simon43]

When I built small hotels in Phuket, I always leased the land for 20 years at a cheap, monthly rate.  The lease of course was registered at the land office. The contract actually stipulated no financial penalty on me if I 'abandoned' the land before the end of the lease, because although I owned the buildings on this land, the land owner could claim these if I abandoned the lease. Of course, a non-Thai can legally lease land in his/her name.

 

[Ben Zioner]

On 9/27/2024 at 5:33 AM, Gottfrid said:

@Franck60 What are you talking about? I assume you are talking about a car?
 

Renting and leasing are not the same¹². Here are some differences between the two:

• Leasing contracts have two parties – lessor and lessee. A rental agreement has two parties as well – landlord and tenant.
• Leasing is usually done for assets/equipment. Renting is mostly done for properties or lands.
• In leasing, the servicing and maintenance are done by the lessee when s/he takes the equipment on lease. In renting, on the other hand, the servicing and maintenance are done by the landlord even if the tenant takes the property on rent.
• The critical difference between lease and rent is their duration. Whereas a leasing remains valid for the period specified in a formal agreement (typically one year), a rental agreement could cover a short-term period for month-to-month stays or vacation rentals.

Thanks Gott,

[JimTripper]

On 9/27/2024 at 4:39 AM, soi3eddie said:

Renting vs Leasing? Aren't they the same thing? Are you talking about property, a vehicle or a woman? 

 

Please clarify for us as many may be curious as to your plan.

Other countries have a lease to own, but it's more for vehicles, at least in the USA.

 

Meaning, you are making payments like renting but you can end up buying the property if you make payments long enough (although you would be paying much more then simply purchasing outright). Conversely, you can break the lease and walk away.

 

I don't think Thailand has many of these lease setups. It's just rent or buy.

Edited September 29 by JimTripper

[Franck60]

 

 @JimTripper

@Ben Zioner  … Like @simon43  I was talking about the opportunities of leasing LAND. Apparently, you can lease LAND for up to 20, 25 or even 30 years in Thailand. The advantage could be the security over a long period of time, and the fact that the lease in ON YOUR NAME.  Actually, I wondered if that could be a good solution to built a house  !?
Read @simon43 ‘s post,

 

Edited September 29 by Franck60

[JimTripper]

1 hour ago, Franck60 said:

 

 @JimTripper

@Ben Zioner  … Like @simon43  I was talking about the opportunities of leasing LAND. Apparently, you can lease LAND for up to 20, 25 or even 30 years in Thailand. The advantage could be the security over a long period of time, and the fact that the lease in ON YOUR NAME.  Actually, I wondered if that could be a good solution to built a house  !?
Read @simon43 ‘s post,

 

I would check to make sure the owner can't walk away from the lease, if you want that kind of security. It feels like in Thailand they usually have that option, at least for rentals.