Opting out a teaching job before the term starts

[Keith5588]

I am confused after speaking with a friend.
I am a UK citizen, I have lived in Thailand for the past 7 years with my Thai gf. I have been and still am renting a house but next year I might consider buying a house.
If I bought a house + land 15 years ago for 4 million THB with a 30 year lease on the land. The 30 year land lease costing 1 million THB so the house value would be 3 Million THB. Let's assume house prices have stayed the same over the 15 years.  What is the situation if I wanted to sell my house now.
My friend said
1. I would probably have a land lease contract for 30+30+30 years.
2. The seller (me) would have to pay for a new land lease of 30 years.
3. If unable to obtain a new 30 year land lease I could not transfer the remaining 15 years of the land lease to a buyer. Basically I would be unable to sell it.
My thoughts
1. I think it is Thai law that a farang cannot lease land for more than 30 years. So these 30+30+30 years are not guaranteed. Also each time a land lease is renewed then there will be a fee paid to the land owner.
2. I guess the seller needs to pay for the new 30 year land lease simply because most houses prices advertised are for the house + a 30 year land lease.
3. I think I read that a land lease can be passed on but that was when I was writing my Thai Will and so it was a bit different. But I find it hard to believe that if I bought a house + 30 year land lease. If 1 year after buying it I wanted to sell it and the land owner would not form a new land lease contract with the buyer then I could simply not sell it. If I moved away then the only option would be to rent it out for 29 years?

4. Could I sell the house with the remaining 15 years land lease?  If so how much would it be valued at? Does anyone sell a house with less than a 30 year land lease remaining?
 

On a slightly different note I would now probably look to buy a house freehold, my gf buying the land freehold, plus have a Usufruct contract. If a house + 30 year land lease is being sold for 4 Million would you expect to pay more if you bought that same house freehold?

Any advice to clarify any of the about greatly appreciated.
Thanks in advance
Keith
 

[Will B Good]

17 minutes ago, Keith5588 said:

I am confused after speaking with a friend.
I am a UK citizen, I have lived in Thailand for the past 7 years with my Thai gf. I have been and still am renting a house but next year I might consider buying a house.
If I bought a house + land 15 years ago for 4 million THB with a 30 year lease on the land. The 30 year land lease costing 1 million THB so the house value would be 3 Million THB. Let's assume house prices have stayed the same over the 15 years.  What is the situation if I wanted to sell my house now.
My friend said
1. I would probably have a land lease contract for 30+30+30 years.
2. The seller (me) would have to pay for a new land lease of 30 years.
3. If unable to obtain a new 30 year land lease I could not transfer the remaining 15 years of the land lease to a buyer. Basically I would be unable to sell it.
My thoughts
1. I think it is Thai law that a farang cannot lease land for more than 30 years. So these 30+30+30 years are not guaranteed. Also each time a land lease is renewed then there will be a fee paid to the land owner.
2. I guess the seller needs to pay for the new 30 year land lease simply because most houses prices advertised are for the house + a 30 year land lease.
3. I think I read that a land lease can be passed on but that was when I was writing my Thai Will and so it was a bit different. But I find it hard to believe that if I bought a house + 30 year land lease. If 1 year after buying it I wanted to sell it and the land owner would not form a new land lease contract with the buyer then I could simply not sell it. If I moved away then the only option would be to rent it out for 29 years?

4. Could I sell the house with the remaining 15 years land lease?  If so how much would it be valued at? Does anyone sell a house with less than a 30 year land lease remaining?
 

On a slightly different note I would now probably look to buy a house freehold, my gf buying the land freehold, plus have a Usufruct contract. If a house + 30 year land lease is being sold for 4 Million would you expect to pay more if you bought that same house freehold?

Any advice to clarify any of the about greatly appreciated.
Thanks in advance
Keith
 

 

 

Doesn't everything you have just written scream.....rent?

 

 

[rocketboy2]

Quote

1. I would probably have a land lease contract for 30+30+30 years.

 

 Lost interest at that point.

Good luck. 

[simon43]

A land lease contract for 30+30+30 years is 100% illegal and, from my knowledge of Thai law, the existence of such a written contract actually nullifies the complete contract, including for the first 30 years.

 

Rent!!

[MalcolmB]

Just buy house and land in a company setup.

 

Leasing is just a scam. They will want it back after 30 years.

[jvs]

You can buy a condo 100% in your name.That is one thing.

Yes you can buy a house in your gf name but how much do you trust her?

30+30+30 year lease,forget about that .

When you lease it will be harder to sell on.

Is your gf working?

Would you buy the house you are living in now?

 

[newnative]

       Your safest option if you want to own property would be to buy a condo in foreign quota.  Your name would be on the title deed and you would be the sole owner of the condo, with all that entails.   Foreign quota condos are often easier to sell, as they are seen as more desirable for a foreign buyer. This is especially true if foreign quota becomes full in a project, which can happen with some projects popular with foreign buyers.

      I would in most cases not buy a condo in Thai or Company name.   Several posters have said only rent but if you think you will be here for the long haul, buying can have some advantages.  I always like paying myself each month, rather than the landlord. 

      As we have seen with a recent thread of a buyer complaining about airport noise after he bought his condo, it's important to take your time before any condo purchase.  Do your homework and find out as much as you can about the project you are interested in, including condo fee, foreign quota availability, project financials, observations of project maintenance, condition of pool, gym and other amenities, ratio of owner-residents to renters, any problems with illegal daily renters, abundance of, or lack of, parking.  If possible, talk with some residents and make a number of visits to the project at different times of the day.  

      Buying property is a big purchase, at least it is for me.  Select the area you want to live in and then see as much property available for sale as you possibly can.  Again, go slow and gather all the information you need before purchase--it's too late to check on airport noise after you have bought the property. 

     As the buyer, you are in the driver's seat.  Don't be rushed by agents into making a purchase, whether condo or house.   I would not even consider buying a house on leased land.  Leasing is renting and I'm not a renter--but that's me.  If you are only interested in a house purchase, buying in company name is an option.