Condo--company V. Foreign Name

[gguy]

A friend is looking at two almost identical condos (same plan and view, one is one floor higher)

One is in a foreign name and can be sold to anyone without problem.

The other is owned by a company owned by a foreigner.

The condo limit is maxed out (49 or 50% of building is foreigner)

My friend likes the company condo but is afraid of the legal problems of owning and transferring.

Is there a cost differential for taking the company risk?

I suggested he might offer 60 to 70% of the foreign name price for the company condo?

Anyone has any experience in this area?

Edited February 10, 2008 by gguy

[Jingthing]

There is a premium for the foreign named condos, but I don't think it is nearly as deep as you suggest. I also think a foreigner who buys a company condo here rather than a foreign named one should spend the money on a head shrinker first.

[naka]

Buying a company owned condo certainly means it will be much harder to sell

if nothing else.

Naka.

[Basil B]

The intentions of prevoious Thai goverments is is very clear on this:

Aliens may not purchase land, including the land on which any property owned by them is built, with the exception of Condominium where the total share of the common property which includes the "Free Hold" shall not exceed 49%, FULL STOP

Where aliens purchase through a dummy company is a loop-hole in the law that is promoted by developers, real estate & solicitors, all of whom stand to gain from this, on the other hand the Thai government is trying to close this loop-hole and as I recall last year made it a requirement of Thai partners in such companies to demonstrate that the had clearly invested money and where the money had come from.

As far as I understand such dummy companies need to submit accounts each year and no doubt the dummy partners will still want there dividend.

Best advice is not to touch property held by company, as the law is always likely to change again and again in order to close this loop-hole, and in the end you could loose all.

BB

Edited February 11, 2008 by Basil B

[torrenova]

You'll not shift the company condo unless at a steep discount but you'd be mad to buy one in a company name. A house I can see why you might skirt the laws as you cannot own the land but you can own a condo.

My interpretation of the crackdown on the nominee 51% Thai shareholders was to find out where the 51% cash came from and whether tax had been paid on it. As its just paper money, no tax has been paid.

Now another way was the issuance of different share classes and they were also doing something about that I believe.

Tell your friend to buy a condo in his name and remodel it if need be.

[naka]

You'll not shift the company condo unless at a steep discount but you'd be mad to buy one in a company name. A house I can see why you might skirt the laws as you cannot own the land but you can own a condo.

My interpretation of the crackdown on the nominee 51% Thai shareholders was to find out where the 51% cash came from and whether tax had been paid on it. As its just paper money, no tax has been paid.

Now another way was the issuance of different share classes and they were also doing something about that I believe.

Tell your friend to buy a condo in his name and remodel it if need be.

Yes, the real estate folks will tell you it's all ok ... why would they not.

There again they don't give a hoot if you have it advertised for sale in the local rags

for five years without a single enquiry

Naka.

[twix38]

Do not buy a condo in company name. Only in foreign name.

Personally I am not interested in company name at all, which means I would not pay 100,000 baht for one (10,000 maybe).

You would have a 2nd rate home liable to enforcement of rules on shraeholders and source of funds or changes in the future and difficult to sell. This as a bare minimum along with paying tax on company etc

[philliphn]

Don't get a conpany!

[Pattaya46]

Hi,

Just an example to give you price indication :

In Center Condo, Pattaya, sold last november,

similar appartments, same floor, same view :

- 1 in Company name : 2.1 m baht

- 1 in Foreign name : 2.6 m baht

But listen to us :

Do not buy a condo in company name !

[plasticpig]

only a fool would buy a condo in a company name.

but we do have a few to many fools in thailand

[marekm1]

You'll not shift the company condo unless at a steep discount but you'd be mad to buy one in a company name. A house I can see why you might skirt the laws as you cannot own the land but you can own a condo.

My interpretation of the crackdown on the nominee 51% Thai shareholders was to find out where the 51% cash came from and whether tax had been paid on it. As its just paper money, no tax has been paid.

Now another way was the issuance of different share classes and they were also doing something about that I believe.

Tell your friend to buy a condo in his name and remodel it if need be.

Yes, the real estate folks will tell you it's all ok ... why would they not.

There again they don't give a hoot if you have it advertised for sale in the local rags

for five years without a single enquiry

Naka.

Just to say something good about real estate agents, few months ago I rang up few of them asking what’s the difference between buying a condo on my name or company name and how hard it is to sell company condo. All of them told me the company condo is nearly impossible to sell. But if I want to keep it forever it’s O.K. to buy. So I think I got a decent answer. Not need to condemn all of them.

There is a lot of extra work and fees every year with company tax and generally it’s against the government policy. Who knows maybe in 5 years time, if the company won’t produce any profit it won’t be able to keep any asset. Also heard, the company might be audit to see if it’s legit. Personally I wouldn’t touch that sort of investment.

[plasticpig]

Ok

Can you tell me why people buy a condo in a company name?

Sorry I will do it for you, it's to circumvent the condo laws of

49% or what ever it is ownership.

So keeping it forever may not be an option if the government start to look into the companies that own the condos. Like where did the share holders get the money for the condo from, could get a bit tricky.

Would you consider that a safe bet.

I would not at all. Unless im an estate agent that is.

So how honest do you thing your guy was now ?

Edited February 16, 2008 by plasticpig

[marekm1]

Ok

Can you tell me why people buy a condo in a company name?

Sorry I will do it for you, it's to circumvent the condo laws of

49% or what ever it is ownership.

So keeping it forever may not be an option if the government start to look into the companies that own the condos. Like where did the share holders get the money for the condo from, could get a bit tricky.

Would you consider that a safe bet.

I would not at all. Unless im an estate agent that is.

So how honest do you thing your guy was now ?

O.K. Plasitcpig, I am 100% with you. Just read my second comment. I personally thing people have to have loose screw to buy a condo on a company name. But they have been warned and they can make their own decision. I personally know the block, who bought a house on girlfriend name after knowing her for 2 weeks. Of course everything collapsed within one year and he had to pay 50% of the house value to get his name on the house. Now the house is empty, nobody rents it and he cannot sell it. It’s on the company name. So here you go, buyers beware.

[plasticpig]

Sorry

[marekm1]

Sorry

don’t be sorry, everyone told him that. From my friends to his accountant. First time in Pattaya. I think he learned his lesson. A bit to late.