Thai Property Reforms: A Boon or Burden for Foreign Buyers?

[BarBoy]

4 minutes ago, hotchilli said:

No, they've witnessed what happens in other countries and don't want the same outcome

...Resistance is futile.

[transam]

1 minute ago, BarBoy said:

He's obsessed with me. And he keeps confusing me with this guy called Bob.

 

I don't know any bob and my name is Colin Neville and I live in LOS.

Don't take any notice of the bloke, our resident Mr. Angry.......

[proton]

Bad idea, look at London half of it is owned by bleeding foreiigners, Arabs and Chinese

1 hour ago, Nickcage49 said:

Get with the times Thailand. Foreign ownership is necessary.

 

The developers will thank you.

 

No it's not. NZ stopped foreigners buyers some years ago as the Chinese were buying up too much and the prices went ballistic. Friends in Cambridge sold their house, bought as non residents, then were not allowed to buy another. Keep the foreigners out at all costs.

[OJAS]

2 hours ago, rocksniffer said:

Land in Bangkok is already more expensive than London.

 

Links to back up that assertion, please.

 

[Albo]

Commercial interests aside the land lease thing is just idiocy. The 49% + is a red herring. Outside of a few buildings in BKK, Phuket and Pattaya meaningless.

 

Allowing foreigners to buy one rai or less will do nothing to the property market. Long overdue. They could if must restrict it to those married to Thai.

 

Seems the most damage to property market is the Chinese always scamming the Thais in various ways related to property, real estate.

 

Definitely weakness in condos 1-4M central Bangkok

 

Well, they better get someone to buy their shi++y condos or banks will get stuck with even more NPLs. Economy is going nowhere. Thais are busted broke and their credit shot. Your move Shinawatras ..

 

Currency is wildly overvalued and the income tax on foreigners will NEVER sit well with farang.

 

I could fix the problem tomorrow. I suspect many Thai banks and bureaucrats could as well. The trouble is you get into sensitivities and the elites wealth structure and altering that will be avoided above all. So .. nothing changes. Thailand just rearranging deck chairs on the Titanic

 

Edited 7 hours ago by Albo

[Nid_Noi]

1 hour ago, quake said:

 

If you say so, how's the neighbors. 

 

 

No close neighbours at this time…

[Nid_Noi]

1 hour ago, Ralf001 said:

 

1 Rai is 1600sqm....

 

what you doing with the other 40 sqm ?

We have a pond with fish.

[zepplin]

11 hours ago, webfact said:

Picture courtesy: Thai Rath

 

Thailand is currently at a crossroads, deliberating potential reforms to its property laws that could significantly alter the landscape for foreign buyers. Prominent figures, including Thaksin Shinawatra, an unofficial adviser to the government, are advocating for changes to bolster foreign investment in the country’s real estate market, hoping to invigorate economic growth that has remained sluggish in recent years.

 

At present, Thailand’s property laws are quite restrictive to foreign ownership. Foreigners can own a maximum of 49% of condominium units in any building, ensuring that Thai citizens maintain majority control. Land leases, on the other hand, are typically capped at 30 years, a policy designed to prevent permanent foreign ownership over what is deemed a national asset.

 

However, the proposed reforms seek to extend these limits significantly. Suggestions include allowing foreigners to own up to 75% of condo units and extending leaseholds on land to 90 years. Proponents argue these changes would stimulate the property market by attracting foreign capital, providing a much-needed revenue stream, reported Barry Kenyon for Pattaya Mail

 

Yet, this move isn’t without contention. Critics suggest that easing restrictions could jeopardise national sovereignty, allowing foreign entities to gain undue influence over Thai property markets. Concerns have been raised about inflated property prices and the possibility of foreign interests encroaching on residential spaces, echoing issues previously seen in markets like Canada.

The Housing Business Association (HBA) acknowledges the complexity of such reforms. Suggestions have surfaced that any increase in the foreign quota for condominiums might come with stipulations, such as a minimum sale price of about 10 million Thai Baht (approximately £222,000), and targeted only in areas already favoured by expatriates.

 

Additionally, potential reform measures could involve increasing taxes on properties owned by foreigners and restricting their roles in property management committees to ensure Thais remain in control. Proposed changes to land lease laws could also include stringent regulations to eliminate nominee shareholders and carefully manage land use to prevent large-scale foreign acquisitions.

 

This isn't the first time property reforms have been proposed in Thailand. Following a coup in 2014, a regulation was introduced to allow foreigners investing 40 million Thai Baht (about £887,000) to purchase land, but it was quickly rescinded due to public backlash.

 

Now, as Thailand contemplates new legislative proposals, the outcome remains uncertain, aside from one clear reality: the details will be critical. How these proposals are crafted and implemented could make the difference between unlocking economic potential or igniting national controversy.

 

-- 2024-11-30

 

 

Well investments must be absolute rock bottom now that the gov is going to investigate 27000 limited companies, that was perfectly legal before, but now it’s obvious a bone of contention, I wonder how many brown envelopes will change hands to make it “legal” again, they really have no idea, they even took 100 mill bht of a Thai maid on Samui , because the assets were in a LTD company, that operated for over 15 years without an issue! Not much of an incentive to invest here, with results like this….

[newnative]

3 hours ago, quake said:

 

You need 3 rai for descent house with  garden / pool / car port and so on.

 

 

     Depends on what you want and your lifestyle.  My spouse and I don't like to garden so we didn't want a big yard to take care of.  We have a large single-floor 4 bedroom/5 bath house with 2-car garage and 3 meter by 9 meter pool on a land plot of about 120 square wah.   That's plenty big enough for our needs and we still have some garden spaces by the pool and around the house, with the main focus the pool area and a large covered deck .  All the homes in the project are single-story  with solid perimeter walls so we have complete privacy.

[newnative]

    Limiting foreign condo ownership to 49% does NOT automatically insure that Thai owners remain in control of condo projects.   At the last condo project I owned at, the condo board was majority foreign owners.  Since that can be the case, I see no harm in raising foreign quota to 60% or 75%, or eliminating it altogether.  

[quake]

4 minutes ago, newnative said:

     Depends on what you want and your lifestyle.  My spouse and I don't like to garden so we didn't want a big yard to take care of.  We have a large single-floor 4 bedroom/5 bath house with 2-car garage and 3 meter by 9 meter pool on a land plot of about 120 square wah.   That's plenty big enough for our needs and we still have some garden spaces by the pool and around the house, with the main focus the pool area and a large covered deck .  All the homes in the project are single-story  with solid perimeter walls so we have complete privacy.

 

Yes, I agree.

But if the government is going to let us in, 1 rai, just.  does not cut it for me.

it needs to be more.  for me to open the cash box. it's like they are just throwing us bread crumbs.

I live on 1.5 rai, not enough for me.

But it's the wife's land and I just gave her a house on it. ( it will do )

But if I could have had say 3 Rai in my name, I would have done that.

anyway TIT.

 

 

 

 

 

 

[newnative]

Just now, quake said:

 

Yes, I agree.

But if the government is going to let us in, 1 rai, just.  does not cut it for me.

it needs to be more.  for me to open the cash box. it's like they are just throwing us bread crumbs.

I live on 1.5 rai, not enough for me.

But it's the wife's land and I just gave her a house on it. ( it will do )

But if I could have had say 3 Rai in my name, I would have done that.

anyway TIT.

 

 

 

 

 

 

    I see no reason why foreigners shouldn't be allowed to own land, as long as it is a limited amount suitable for a house and not large tracts.

[bradiston]

1 hour ago, khunPer said:

Allowing foreigners to buy property beyond the present rules won't benefit Thais that want to own their home.

 

It seems like yet one more attempt from the government's quick cash flow to recover the financial downturn after Covid closure. Where increased tourism might not have long term downside – apart from infrastructure and over-tourism – the property market might be more difficult in long term if prices are sky-rocking, so many Thai citizens cannot afford to buy a home.

They can't afford to buy, but it's nothing to do with foreign ownership, because there isn't any! Land is and always has been, a safe investment. It takes no outlay in maintenance, and never depreciates. But a pickup truck is an instant loss maker unless you're making money with it. Nobody has to sell their land. Some Thais have hundreds of rai, 1000s even. Why prevent them from selling one rai, or a quarter, or half to a cash buyer?

[hotchilli]

1 hour ago, BarBoy said:

...Resistance is futile.

Resistance is strong in this one

[Albo]

Put up an article about Thailand. All the bogans prattling on about Oz

[bradiston]

Perhaps the article should have been titled "Thai property reforms. A boon or burden for Thais"? They really should consult grass roots Thais, not just Bangkok power brokers. Another referendum on the cards?

[Scouse123]

They can never simplify things, they are always harping on about protecting national sovereignty,

 

it's all jingoism. That's what it is.

 

Everything comes here with never ending caveats, only to be shelved because they can't agree.

 

Don't forget westerners, if you want to make full use of your newly acquired condo at 10 million baht plus, it will cost you an extra 35%

 

I don't think I will bother.

[Tomtomtom69]

4 hours ago, Nid_Noi said:

Exactly, there are so many countries where foreigners are landowners and can leave something valuable to their kids. You can’t even donate a 30 year lease to your kids. It will be on the edge of expiration.

Here's a thought: just register the land in your Thai citizen children's name(s). They're allowed to own land, even if you aren't. 

[Tomtomtom69]

1 hour ago, bradiston said:

They can't afford to buy, but it's nothing to do with foreign ownership, because there isn't any! Land is and always has been, a safe investment. It takes no outlay in maintenance, and never depreciates. But a pickup truck is an instant loss maker unless you're making money with it. Nobody has to sell their land. Some Thais have hundreds of rai, 1000s even. Why prevent them from selling one rai, or a quarter, or half to a cash buyer?

 

Because the Chinese will buy up the entire country, pricing everyone out of the market. 

 

Why does land need to be in your name anyway? So you can brag about it? Also, why should anyone be forced to sell land to you, or any other foreigner? 

 

It can be in your Thai wife's name or your Thai citizen children's name..that should be good enough.

[Tomtomtom69]

1 hour ago, quake said:

 

Yes, I agree.

But if the government is going to let us in, 1 rai, just.  does not cut it for me.

it needs to be more.  for me to open the cash box. it's like they are just throwing us bread crumbs.

I live on 1.5 rai, not enough for me.

But it's the wife's land and I just gave her a house on it. ( it will do )

But if I could have had say 3 Rai in my name, I would have done that.

anyway TIT.

 

 

 

 

 

 

 

Well, the problem with that greedy logic is that there will be a person called quake2 who says they need at least 10 rai, and quake3 will need 100 rai and soon the whole country will belong to foreigners, which will build resentment, lead to racial tensions / anti-foreigner sentiment and so forth.

 

No one is limiting your wife from owning more than 1 rai; if you love her, then it's almost like it's your land anyway. 

[Gknrd]

Another how to fleece a farang scam . By the government, for the government and the rich condo owners.  

Endless merry-go round.  

 

Polluted unlivable cities by most standards. I would not give 1 baht/sq. meter.   And that is even if they threw in a rent a wife for 5 years with an option to renew for another 5...  

Edited 4 hours ago by Gknrd

[Gknrd]

2 hours ago, newnative said:

     Depends on what you want and your lifestyle.  My spouse and I don't like to garden so we didn't want a big yard to take care of.  We have a large single-floor 4 bedroom/5 bath house with 2-car garage and 3 meter by 9 meter pool on a land plot of about 120 square wah.   That's plenty big enough for our needs and we still have some garden spaces by the pool and around the house, with the main focus the pool area and a large covered deck .  All the homes in the project are single-story  with solid perimeter walls so we have complete privacy.

"4 bedroom/5 bath house".   Agree as I am getting older a bathroom within arms reach is the most important thing.. 

[BumGun]

7 hours ago, Polaky said:

If they were to follow Australia, then the price of realestate would sky-rocket to unbelievable heights,

That's a much trotted out myth. Foreigners make up about 1% of property transactions in Australia, a percentage of them also go on to be permanent residents or citizens anyway. 

 

But foreigners still make up about only 1 per cent of all purchases in Australia

 

That said, I  would like to see some reciprocity, though I can sort of understanding why they don't.

 

[bradiston]

12 minutes ago, Tomtomtom69 said:

 

Because the Chinese will buy up the entire country, pricing everyone out of the market. 

 

Why does land need to be in your name anyway? So you can brag about it? Also, why should anyone be forced to sell land to you, or any other foreigner? 

 

It can be in your Thai wife's name or your Thai citizen children's name..that should be good enough.

Not one of your arguments stands up.

 

1 "The Chinese" can't "buy everything". Even now they have to buy via nominees and the money's laundered. It's completely out of control. It's almost the same prescription as for ganja. Legalise, tax, and let the people decide.

 

2 If the land's held in your name you have a safeguard. It's yours. No fake company, no nominees, no lease, no gf/wife involved. You can do what you like with it within the framework of Thai property ownership, common to everybody.

 

3 But what if I don't have a Thai family at the time of looking for a plot of land on which to build? You're 55. You visit Thailand. You find an area you think would make a wonderful spot for later in life. You buy a rai of land there and come back in 10 years. The land price has doubled but that's not why you bought it. You hire surveyors, lawyers, builders, all the people you'll need. It's all money into Thai bank accounts. Or, you sell it on. Or.... Whatever.

[bradiston]

33 minutes ago, Tomtomtom69 said:

 

Well, the problem with that greedy logic is that there will be a person called quake2 who says they need at least 10 rai, and quake3 will need 100 rai and soon the whole country will belong to foreigners, which will build resentment, lead to racial tensions / anti-foreigner sentiment and so forth.

 

No one is limiting your wife from owning more than 1 rai; if you love her, then it's almost like it's your land anyway. 

Easy fix. You limit foreign ownership to just a few or several or even 1 rai.

[newnative]

4 hours ago, bradiston said:

Easy fix. You limit foreign ownership to just a few or several or even 1 rai.

Agree.  This isn't brain surgery.