Thailand: Plans To Relax Foreign Ownership Rules

[Boater]

In order to make it more tempting for international investors to buy property in Thailand, the Thai Government is considering relaxing the rules on the foreign ownership of property...

Thailand has shot up in popularity with British buyers over the last decade, but the land and property ownership system remains far less straightforward than in other hotspots.

The Seoul Times recently reported while prices increased by 5.6 per cent in the first two quarters of this year, this still represents a real terms drop of 4.18 per cent as the house price rise is lower than overall inflation.

Following on from these prices, the paper said that the Thai government is considering changing the ownership rules to help to draw in international money, thus boosting the property market and the economy as a whole.

The current Thai law does not allow foreigners to buy land, and, since the military coup of 2006, the Government has gone to great lengths to ensure that the law is properly upheld.

Also, if a foreigner is going to operate a business in Thailand then he may purchase the freehold of the land through his Thai limited company. The land will be owned by the Thai Company, not by the individual.

Another stumbling block is the rule that purchasers of condominiums may buy the freehold so long as total foreign ownership does not exceed 49 per cent of the whole structure.

The changes, which have not yet been detailed or confirmed, will aim to remove some of these re4styruictions and make the whole property purchasing process more transparent and straightforward for foreign investors.

There are many plus points of investing in Thailand, including the completion of the Suvarnabhumi-Bangkok International Airport, (SBIA) which is expected to spur growth in commercial property markets in eastern Bangkok as well as make Thailand even more accessible by air. Thailand is also one of the cheapest places to fly to in Asia.

Thailand has an excellent infrastructure as well as world-class facilities in many resort towns, and property is much cheaper in Thailand than elsewhere and an increase in overseas interest in property purchase has helped to create an economic recovery.

Property investors who bought after 1999 have witnessed huge capital growth, particularly in the major cities, and rental potential is great, due to increased government spending luring growing numbers of tourists.

There are tax advantages too- with no capital gains tax for private investors, and low ongoing taxes.

Jason Killingback, Sales Advisor for property specialists David Stanley Redfern Ltd, said that those seeking a pure investment, those looking for a holiday home and those wanting a business-owned property are all showing strong interest in the Thai property market.

http://www.themovechannel.com/news/3F60988F-0CA9/

Other links to this story

http://news.hotproperty.co.uk/Thailand_con...n_18807951.html

http://www.propertyshowrooms.com/thailand/...ules_46401.html

[Farma]

This looks like pure sales pitch to me.

Until I see something official from the Thai government I wouldn’t believe a word of it.

[Pdaz]

55555555555 !

That's almost as amusing as the missleading propaganda interesting features written by that knob from Raimon Land in the BKK Post

[cclub75]

Another pathetic member of the Guru-Boiler-Room-Cheap-Cheap-You-Buy-Me sect.

Almost as pathetic as the Nigerian Scam.

It must be said : due to the political crisis, it's impossible for the gvt (very weak) to take such a decision.

So, let's go back to Christmas Trees... And wait for next year.

By the way, a small news for our friends member of the Sect.

Singapore Home Prices Post First Drop in Four Years (Update3)

Oct. 2 (Bloomberg) -- Singapore's private home prices fell for the first time in more than four years in the third quarter, signaling an end to a real estate boom that began in 2004.

Okay ! Okay ! Okay ! I apologize. Sorry. I forgot : Bangkok is different. Thailand is different. So different. Forever and ever.

Merry Christmas. And have sweet dreams.

Edited October 2, 2008 by cclub75

[prefabs]

Anudulterated pure crap

[KhunTao]

Relaxing foreign ownership restrictions on condos and land/houses, in limited and specific areas (such as BKK, Pattaya/Jomtien, Phuket, Samui perhaps) is something that may actually happen at some point in time. We have seen a 100% foreign ownership quota in the Pattaya/Jomtien area in the past, i.e. there is a precedent.

Remember when the Transfer Tax was reduced from 3,00% to 0,01% and the Specific Business Tax was reduced from 3,30% to 0,11% earlier this year ? It was done suddenly and without any warning whatsoever.

Again, if foreign ownership restrictions are indeed relaxed for such limited areas in Thailand, it will come suddenly and probably without much advance warning.

This is not something I would bank on, but one idea is to buy up older Thai quota condos that (on average) trade at a 20-30% discount (sometimes as much as 50%), fix them up, and hope to sell them as foreign quota units once rules are relaxed ... Interesting but not bankable in my opinion, as betting on a possible relaxation of foreign ownership rules would be very much like betting at the casino right now ...

Edited October 2, 2008 by KhunTao

[prefabs]

Relaxing foreign ownership restrictions on condos and land/houses, in limited and specific areas (such as BKK, Pattaya/Jomtien, Phuket, Samui perhaps) is something that may actually happen at some point in time. We have seen a 100% foreign ownership quota in the Pattaya/Jomtien area in the past, i.e. there is a precedent.

Remember when the Transfer Tax was reduced from 3,00% to 0,01% and the Specific Business Tax was reduced from 3,30% to 0,11% earlier this year ? It was done suddenly and without any warning whatsoever.

Again, if foreign ownership restrictions are indeed relaxed for such limited areas in Thailand, it will come suddenly and probably without much advance warning.

This is not something I would bank on, but one idea is to buy up older Thai quota condos that (on average) trade at a 20-30% discount (sometimes as much as 50%), fix them up, and hope to sell them as foreign quota units once rules are relaxed ... Interesting but not bankable in my opinion, as betting on a possible relaxation of foreign ownership rules would be very much like betting at the casino right now ...

I am sure it is #1 on the new Prime Minister's agenda, relaxing all the regulations on foreign ownership. Which will, no doubt, get right up PAD's noses and lead to further protests. Personally, I get the feeling that we will see Blue Snow in Thailand before this sort of thing happens.

[thailand_tom]

i wouldn't invest another dollar in thailand and i wouldn't even if they did it ..would last as long as the pm and their constitution does in thailand..i said before 33-34 to 1 usd..need to go to 45baht to 1usd..not even worth visiting let alone living there..and as far as real estate in a 3rd world country goes..oooovvvveeeerrrrr priced..i can buy a house on ebay for less then 10,000 usd here in the usa ( just read today a lady bought a house on ebay for 1.75 ) look through any real estate website you can find great deals now and wait till the prices go down even more over the next 6 months..if people are crazy enough to pay these high prices in thailand..good for them..i have bought and sold real estate here in the usa and almost doubled each time..will stay here and do it again..and i have noticed that the classified list for real estate on this website just keeps going up..and just going to keep getting bigger..you want to sell your property in thailand or thailand is worried about people buying..do what banks are doing here..cut the prices by 50%-65% and maybe more for a 3rd world country..and now if this bill passes tomorrow in the usa..fed will buy more of these mortages banks still hold and said to sell them at 80% discount will take 3-6 months to start selling them i heard..abut time they buy.. title clears.. sell them in bundles and all that..i'll buy a few and rent them out..fix them up if i have to like i did my other properties..but again i would not trust anything coming out of the thai government..changed too many times for me to invest..again.

[LennyW]

Would be very welcome if it actually happened, would like to know exactly where/who this story came from ?

[LennyW]

i wouldn't invest another dollar in thailand and i wouldn't even if they did it ..would last as long as the pm and their constitution does in thailand..i said before 33-34 to 1 usd..need to go to 45baht to 1usd..not even worth visiting let alone living there..and as far as real estate in a 3rd world country goes..oooovvvveeeerrrrr priced..i can buy a house on ebay for less then 10,000 usd here in the usa ( just read today a lady bought a house on ebay for 1.75 ) look through any real estate website you can find great deals now and wait till the prices go down even more over the next 6 months..if people are crazy enough to pay these high prices in thailand..good for them..i have bought and sold real estate here in the usa and almost doubled each time..will stay here and do it again..and i have noticed that the classified list for real estate on this website just keeps going up..and just going to keep getting bigger..you want to sell your property in thailand or thailand is worried about people buying..do what banks are doing here..cut the prices by 50%-65% and maybe more for a 3rd world country..and now if this bill passes tomorrow in the usa..fed will buy more of these mortages banks still hold and said to sell them at 80% discount will take 3-6 months to start selling them i heard..abut time they buy.. title clears.. sell them in bundles and all that..i'll buy a few and rent them out..fix them up if i have to like i did my other properties..but again i would not trust anything coming out of the thai government..changed too many times for me to invest..again.

Rather negative comments about Thailand considering your user name... Thailand_Tom

[BEENTHEREDONETHAT]

i wouldn't invest another dollar in thailand and i wouldn't even if they did it ..would last as long as the pm and their constitution does in thailand..i said before 33-34 to 1 usd..need to go to 45baht to 1usd..not even worth visiting let alone living there..and as far as real estate in a 3rd world country goes..oooovvvveeeerrrrr priced..i can buy a house on ebay for less then 10,000 usd here in the usa ( just read today a lady bought a house on ebay for 1.75 ) look through any real estate website you can find great deals now and wait till the prices go down even more over the next 6 months..if people are crazy enough to pay these high prices in thailand..good for them..i have bought and sold real estate here in the usa and almost doubled each time..will stay here and do it again..and i have noticed that the classified list for real estate on this website just keeps going up..and just going to keep getting bigger..you want to sell your property in thailand or thailand is worried about people buying..do what banks are doing here..cut the prices by 50%-65% and maybe more for a 3rd world country..and now if this bill passes tomorrow in the usa..fed will buy more of these mortages banks still hold and said to sell them at 80% discount will take 3-6 months to start selling them i heard..abut time they buy.. title clears.. sell them in bundles and all that..i'll buy a few and rent them out..fix them up if i have to like i did my other properties..but again i would not trust anything coming out of the thai government..changed too many times for me to invest..again.

If you don't live here or even want to visit here........ I"m curious why are you posting here???

[quiksilva]

Whilst I would welcome it, I would be very surprised to see this happen.

[midas]

I know the economic conditions are not what they used to be here so maybe more Thai's in

government think about doing this and you can call me cynical but I am sorry hel_l will

freeze over before farang are allowed to own land outright in this country- it cannot happen

[zorro1]

i wouldn't invest another dollar in thailand and i wouldn't even if they did it ..would last as long as the pm and their constitution does in thailand..i said before 33-34 to 1 usd..need to go to 45baht to 1usd..not even worth visiting let alone living there..and as far as real estate in a 3rd world country goes..oooovvvveeeerrrrr priced..i can buy a house on ebay for less then 10,000 usd here in the usa ( just read today a lady bought a house on ebay for 1.75 ) look through any real estate website you can find great deals now and wait till the prices go down even more over the next 6 months..if people are crazy enough to pay these high prices in thailand..good for them..i have bought and sold real estate here in the usa and almost doubled each time..will stay here and do it again..and i have noticed that the classified list for real estate on this website just keeps going up..and just going to keep getting bigger..you want to sell your property in thailand or thailand is worried about people buying..do what banks are doing here..cut the prices by 50%-65% and maybe more for a 3rd world country..and now if this bill passes tomorrow in the usa..fed will buy more of these mortages banks still hold and said to sell them at 80% discount will take 3-6 months to start selling them i heard..abut time they buy.. title clears.. sell them in bundles and all that..i'll buy a few and rent them out..fix them up if i have to like i did my other properties..but again i would not trust anything coming out of the thai government..changed too many times for me to invest..again.

Rather negative comments about Thailand considering your user name... Thailand_Tom

Thailand Tom you stay right where you are, you sure sound pretty happy there judging by your rant

[pkrv]

This is not something I would bank on, but one idea is to buy up older Thai quota condos that (on average) trade at a 20-30% discount (sometimes as much as 50%), fix them up, and hope to sell them as foreign quota units once rules are relaxed ... Interesting but not bankable in my opinion, as betting on a possible relaxation of foreign ownership rules would be very much like betting at the casino right now ...

I am sorry to wade in but this is an important topic. I'm heavily, heavily opposed the 49%/51 % rules on condominiums and I think you have completely misunderstood why. If the condominium ownership rules are removed your arguments are utterly negated. Thais and Farangs need to live on a level playing field that is it.

Whilst I would welcome it, I would be very surprised to see this happen.

I am sorry to contradict but I have explored this issue before. In the past you have been happy with the 49% Farang/Thai ownership quota - to your credit I think you are adapting - I don't know? This is not a criticism - PKRV

Edited October 3, 2008 by pkrv

[LennyW]

i wouldn't invest another dollar in thailand and i wouldn't even if they did it ..would last as long as the pm and their constitution does in thailand..i said before 33-34 to 1 usd..need to go to 45baht to 1usd..not even worth visiting let alone living there..and as far as real estate in a 3rd world country goes..oooovvvveeeerrrrr priced..i can buy a house on ebay for less then 10,000 usd here in the usa ( just read today a lady bought a house on ebay for 1.75 ) look through any real estate website you can find great deals now and wait till the prices go down even more over the next 6 months..if people are crazy enough to pay these high prices in thailand..good for them..i have bought and sold real estate here in the usa and almost doubled each time..will stay here and do it again..and i have noticed that the classified list for real estate on this website just keeps going up..and just going to keep getting bigger..you want to sell your property in thailand or thailand is worried about people buying..do what banks are doing here..cut the prices by 50%-65% and maybe more for a 3rd world country..and now if this bill passes tomorrow in the usa..fed will buy more of these mortages banks still hold and said to sell them at 80% discount will take 3-6 months to start selling them i heard..abut time they buy.. title clears.. sell them in bundles and all that..i'll buy a few and rent them out..fix them up if i have to like i did my other properties..but again i would not trust anything coming out of the thai government..changed too many times for me to invest..again.

Rather negative comments about Thailand considering your user name... Thailand_Tom

Thailand Tom you stay right where you are, you sure sound pretty happy there judging by your rant

Would that be in cloud cukoo land perhaps??

[johnnyk]

Its always useful to get information about what the Thai government might be up to.

Especially when it comes from a Korean newspaper quoting real estate agents.

For more detailed information I'm going to check out the La Paz (Bolivia) papers, too.

[Khun Jean]

I just call it scamming. When something this big is about to happen it will be because the economy is collapsing. Otherwise there would be no reason at all for Thais to even consider it.

Realestate agents have other interests, that is selling as much as they can. And when people are doubting to buy this kind of 'news' can be the decision maker. How the sell is made is unimportant, lying is acceptable to reach that goal. Once sold, who cares for the rest.

[Naam]

i wouldn't invest another dollar in thailand and i wouldn't even if they did it ..would last as long as the pm and their constitution does in thailand..i said before 33-34 to 1 usd..need to go to 45baht to 1usd..not even worth visiting let alone living there..and as far as real estate in a 3rd world country goes..oooovvvveeeerrrrr priced..i can buy a house on ebay for less then 10,000 usd here in the usa ( just read today a lady bought a house on ebay for 1.75 ) look through any real estate website you can find great deals now and wait till the prices go down even more over the next 6 months..

yeah right! does it look like this one?

[harrry]

i wouldn't invest another dollar in thailand and i wouldn't even if they did it ..would last as long as the pm and their constitution does in thailand..i said before 33-34 to 1 usd..need to go to 45baht to 1usd..not even worth visiting let alone living there..and as far as real estate in a 3rd world country goes..oooovvvveeeerrrrr priced..i can buy a house on ebay for less then 10,000 usd here in the usa ( just read today a lady bought a house on ebay for 1.75 ) look through any real estate website you can find great deals now and wait till the prices go down even more over the next 6 months..

yeah right! does it look like this one?

Nice of you to post a picture of your house Naam. Does it have a chanote.?

Edited October 4, 2008 by harrry

[Naam]

i wouldn't invest another dollar in thailand and i wouldn't even if they did it ..would last as long as the pm and their constitution does in thailand..i said before 33-34 to 1 usd..need to go to 45baht to 1usd..not even worth visiting let alone living there..and as far as real estate in a 3rd world country goes..oooovvvveeeerrrrr priced..i can buy a house on ebay for less then 10,000 usd here in the usa ( just read today a lady bought a house on ebay for 1.75 ) look through any real estate website you can find great deals now and wait till the prices go down even more over the next 6 months..

yeah right! does it look like this one?

Nice of you to post a picture of your house Naam. Does it have a chanote.?

we applied for one but there seems to be a problem. according to the land office it is heavily mortgaged and no payments were made since 11 years. we still have high hopes that our ownership will be confirmed before we die. our heirs are quite worried.

[LennyW]

I just call it scamming. When something this big is about to happen it will be because the economy is collapsing. Otherwise there would be no reason at all for Thais to even consider it.

Realestate agents have other interests, that is selling as much as they can. And when people are doubting to buy this kind of 'news' can be the decision maker. How the sell is made is unimportant, lying is acceptable to reach that goal. Once sold, who cares for the rest.

Yeah right, and people with any ounce of sense that are considering purchasing real estate in Thailand are really going to rely on anything they read from the armchair experts like you in this forum!!

[Moonfruit]

^^ You would be surprised Lenny!

Im on my way out the door to buy myself a top end Condo!

[johnnyk]

^^ You would be surprised Lenny!

Im on my way out the door to buy myself a top end Condo!

I thought sub-prime loans were over with!

[LennyW]

Imagine if the Thai authorities did actually relax the rules on foriegn ownership right now, to say - 100% allocation of condos available for foriegn purchase, and 1 rai plots can be bought outright by a foriegner for a residence as long as they do not resell within 5 years, then i think Thailand would have pulled the master stroke of the century!!!

The immediate take up on the offer and the corresponding influx of cash would sheild Thailand completely from any exposure to the financial crisis in the west, and if anything - make the Thai economy even stronger!!

If indeed there was a perfect time to do such a thing i guess it would be now!

Oh to dream a little dream........

[0Mix1up]

This is not something I would bank on, but one idea is to buy up older Thai quota condos that (on average) trade at a 20-30% discount (sometimes as much as 50%), fix them up, and hope to sell them as foreign quota units once rules are relaxed .

if there were to be a change then it would not happen till the 'in the know people' had bought said properties before the decision

[newtronbom]

I will add my 10 cents worth here. We bought our house just over 5 years ago, at 4.3 mill. We are on average, 35 mins from Phanthip Plaza. Have spent less than 300 thou getting it to look very nice. It is just under 200 g/wha. 5 weeks ago we had the "Land office" value it. 9.5 mill they quoted us. I think that 1 mill a year rise in value is not too bad! There is nothing wrong with the property scene in this country, as long as you buy wisely. Sure. If we wanted to get rid of it quickly, we may have to drop down a bit, but we would still make a nice profit. I think you have to look at the long term. Some of us do live here. "Naams" comment hits the mark. A $10,000 house in the states - $1.75 house? Where is the guys head?

[Khun Jean]

Imagine if the Thai authorities did actually relax the rules on foriegn ownership right now, to say - 100% allocation of condos available for foriegn purchase, and 1 rai plots can be bought outright by a foriegner for a residence as long as they do not resell within 5 years, then i think Thailand would have pulled the master stroke of the century!!!

The immediate take up on the offer and the corresponding influx of cash would sheild Thailand completely from any exposure to the financial crisis in the west, and if anything - make the Thai economy even stronger!!

If indeed there was a perfect time to do such a thing i guess it would be now!

Oh to dream a little dream........

Dream on, it will never happen. If it would it would be the deathstroke for many Thais who can not own anything anymore. The whole 'real estate' economy will be taking place outside Thailand bringing not a penny to the country. (Ok a little bit from transfer tax).

Foreigners are paying very inflated prices already, and it already is making problems for local Thai people. When 100% ownership will be allowed the Thai are comnpletely out of the picture. And don't think we westerners will be very happy with this situation too. It will cause a price rise in all other areas too. And what to think of the japanese. I think they will buy every interesting place in Thailand, leaving westerners with very little and on top of that very high priced.

Renting out for 30 years and keeping it 'in the family' is so much better from a Thai viewpoint.

I think your opinion is the genuine 'arm chair expert' article.

Accepting the rules in Thailand is a first step you have to make when you want to live in Thailand. Hoping that laws will change is really silly, especially when these current laws are working perfectly. They are clear and concise. Lawyers and real estate agents are responsible for making it a 'muddy' area, after which they project themselves as the experts that know their way around. It works as can be seen how many properties are bought by people who really think they own the land under their house.

[johnnyk]

....Accepting the rules in Thailand is a first step you have to make when you want to live in Thailand....

Accept them, make yourself crazy fighting them or go home. Those are the choices and some falangs need to get this through their heads.

The rules, whether falang like them or not, are there for Thais to run Thailand the way they see fit. Period.

Edited October 5, 2008 by johnnyk

[LennyW]

Imagine if the Thai authorities did actually relax the rules on foriegn ownership right now, to say - 100% allocation of condos available for foriegn purchase, and 1 rai plots can be bought outright by a foriegner for a residence as long as they do not resell within 5 years, then i think Thailand would have pulled the master stroke of the century!!!

The immediate take up on the offer and the corresponding influx of cash would sheild Thailand completely from any exposure to the financial crisis in the west, and if anything - make the Thai economy even stronger!!

If indeed there was a perfect time to do such a thing i guess it would be now!

Oh to dream a little dream........

Dream on, it will never happen. If it would it would be the deathstroke for many Thais who can not own anything anymore. The whole 'real estate' economy will be taking place outside Thailand bringing not a penny to the country. (Ok a little bit from transfer tax).

Foreigners are paying very inflated prices already, and it already is making problems for local Thai people. When 100% ownership will be allowed the Thai are comnpletely out of the picture. And don't think we westerners will be very happy with this situation too. It will cause a price rise in all other areas too. And what to think of the japanese. I think they will buy every interesting place in Thailand, leaving westerners with very little and on top of that very high priced.

Renting out for 30 years and keeping it 'in the family' is so much better from a Thai viewpoint.

I think your opinion is the genuine 'arm chair expert' article.

Accepting the rules in Thailand is a first step you have to make when you want to live in Thailand. Hoping that laws will change is really silly, especially when these current laws are working perfectly. They are clear and concise. Lawyers and real estate agents are responsible for making it a 'muddy' area, after which they project themselves as the experts that know their way around. It works as can be seen how many properties are bought by people who really think they own the land under their house.

Read the start of my post again <deleted>!! it says "imagine"