Land Prices Nationwide Valued By The Treasury Department 2008

[gdhm]

Hi,

I am totally confused by what the 2008 Land value assessments mean in the "Real World" and I am hoping someone can explain.

Take for instance where I live in Khon Kaen (Muang district)

The Nation Newspaper reported that

.... Prices in the Northeast rose 22.97 per cent. A square Wah in Khon Kaen's Muang district cost Bt200,000...

My understanding is that a Talangwah is the same as a Square Wah.

Most prominent builders selling new houses are selling the land at 12,000 per 1 Talangwah on average PLUS cost of house.

However, if I understand the Treasury Dept's. logic, the builders should be selling a Talangwah for 200,000 baht Plus profit

Clearly there is a major discrepancy and house would be unsellable at these land costs.

If the Treasury Dept. are ONLY using these valuations for Tax. Does this mean that a buyer of 100 Talangwah must pay 2% transfer tax plus other taxes (such as stamp duty etc.) based upon the land being assumed to worth 200,000 per Talangwah and not the actual selling price of 12,000 baht per Talangwah

This would mean would mean on land of 100% Talangwah that transfer tax at 2% would be 400,000 baht and stamp duty at .5% of 100,000 Baht

In other words the tax works out at around 45% of the purchase price of the land.

This does not seem logical (45% tax) so I assume I am completely misunderstanding the issues

My interest is that my wife (not me - I know I cannot buy, own land or have a financial interest in land) is hoping to try and find and purchase some land in the Muang district. we have been "beaten to the punch" on a couple of 200 Talangwah plots where the asking prices ranged between 700,000 Baht to 1,000,000 baht

I am interested in having an idea of the likely tax implication to my wife on such a purchase (intention would be to build a house on the land).

The real cost of the land is not the asking price, but the final cost including all taxes and documentation payable by the buyer for which my wife and I have no understanding.

Hoping someone can enlighten us.

Kind regards

[quiksilva]

Hi,

I am totally confused by what the 2008 Land value assessments mean in the "Real World" and I am hoping someone can explain.

Take for instance where I live in Khon Kaen (Muang district)

The Nation Newspaper reported that

.... Prices in the Northeast rose 22.97 per cent. A square Wah in Khon Kaen's Muang district cost Bt200,000...

My understanding is that a Talangwah is the same as a Square Wah. Correct

Most prominent builders selling new houses are selling the land at 12,000 per 1 Talangwah on average PLUS cost of house. It all depends on the exact location

However, if I understand the Treasury Dept's. logic, the builders should be selling a Talangwah for 200,000 baht Plus profit It all depends on the exact location, this probably a main road

Clearly there is a major discrepancy and house would be unsellable at these land costs. It all depends on the exact location

If the Treasury Dept. are ONLY using these valuations for Tax. Does this mean that a buyer of 100 Talangwah must pay 2% transfer tax plus other taxes (such as stamp duty etc.) based upon the land being assumed to worth 200,000 per Talangwah and not the actual selling price of 12,000 baht per Talangwah

The tax is based on the actual transaction price, or the governments appraised value whichever is higher

This would mean would mean on land of 100% Talangwah that transfer tax at 2% would be 400,000 baht and stamp duty at .5% of 100,000 Baht

In other words the tax works out at around 45% of the purchase price of the land.

This does not seem logical (45% tax) so I assume I am completely misunderstanding the issues

My interest is that my wife (not me - I know I cannot buy, own land or have a financial interest in land) is hoping to try and find and purchase some land in the Muang district. we have been "beaten to the punch" on a couple of 200 Talangwah plots where the asking prices ranged between 700,000 Baht to 1,000,000 baht

I am interested in having an idea of the likely tax implication to my wife on such a purchase (intention would be to build a house on the land).

The real cost of the land is not the asking price, but the final cost including all taxes and documentation payable by the buyer for which my wife and I have no understanding.

Hoping someone can enlighten us.

Kind regards

In addition to my remarks above, the best thing to do is ask for a copy of the chanodes of the land you are interested in. Armed with this information, go to the land department and find out what their assessed value, for that particular plot.

I wouldnt take what you read on this topic in the newspapers too seriously they are notorious for misreporting figures.