Thailand: Plans To Relax Foreign Ownership Rules

[Marvo]

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

Absolute pure and utter <deleted>! Boater is just "'avin' a larf" .

[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.

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

Thanks for the kind words. First i am an 'armchair expert', and now also a <deleted>.

I made the part i commented on bold for easy reference. Or is the word 'imagine'for the whole post and every paragraph?

Or did you 'imagine' thinking the bold part too?

Please state what you think then, without the imagening, would make it easier for all.

[ray08]

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.

I think a 100% open market in the long term would be better , first prices will drop , because supply will double overnight due to foreign quota becoming sellable, i don,t accept the point that just because it is for sale there will be a mad bull market , as for japanese , i think that was in the 80,s or 90,s that they were buying everything at top dollar , also one little thing is that thai banks do not lend to foreigners to purchase real estate,so even if the market did take off it would bring in foreign capital.

In the end of the day Thailand has to grow up and have a free market if it wants to be treated seriously , not a 2 market structure

[haltes]

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).

Most Thais are priced out by other Thais and those that can't afford to buy will probably never be able to afford to buy.

Letting a few foreigners buy some bits and pieces will make no difference to them!

[pkrv]

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.

'Khun Jean' - that was one confusing post! And please don't get me wrong your posts are usually great!

Are you talking only about house/land ownership? -I don't know

Are talking about new condominiums?

Are you talking about existing condominiums?

Please clarify what you mean - because IMO forign ownership rules affect these markets in utterly different ways, some good, some I will not comment on.

Edited October 6, 2008 by pkrv

[Khun Jean]

'Khun Jean' - that was one confusing post! And please don't get me wrong your posts are usually great!

Are you talking only about house/land ownership? -I don't know

Are talking about new condominiums?

Are you talking about existing condominiums?

Please clarify what you mean - because IMO forign ownership rules affect these markets in utterly different ways, some good, some I will not comment on.

well it was in response to someone who was imagining he was thinking, so what do you expect.

My point was really about land ownership.

The 49% quota for condominiums is caused by this. The land that way is still in Thai ownership.

For the rest was just trying to make a point that this landownership law is great for Thais, short run and especially in the long run. When foreigners can not buy they rent/lease/usufruct, so the money is still coming. I don't hear Thais complaining, only realestate agents.

[Khun Jean]

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).

Most Thais are priced out by other Thais and those that can't afford to buy will probably never be able to afford to buy.

Letting a few foreigners buy some bits and pieces will make no difference to them!

I disagree with that, if full ownership will be possible there would not be a 'few' foreigners but most if not all of the desirable places will be sold to foreigners, making it impossible in entire regions for Thais to live for normal prices.

[pkrv]

'Khun Jean' - that was one confusing post! And please don't get me wrong your posts are usually great!

Are you talking only about house/land ownership? -I don't know

Are talking about new condominiums?

Are you talking about existing condominiums?

Please clarify what you mean - because IMO forign ownership rules affect these markets in utterly different ways, some good, some I will not comment on.

well it was in response to someone who was imagining he was thinking, so what do you expect.

My point was really about land ownership.

The 49% quota for condominiums is caused by this. The land that way is still in Thai ownership.

For the rest was just trying to make a point that this landownership law is great for Thais, short run and especially in the long run. When foreigners can not buy they rent/lease/usufruct, so the money is still coming. I don't hear Thais complaining, only realestate agents.

Ok that allows me to answer, in just one of the fields of ownership we are discussing.

On condominiums (it is a %) NO it is not under Thai ownership. It is under your personal ownership including the land (or whoever you give it to's ownership). Under International and Thai law you own your own share that is it. You should look at international law, it is interesting.

The rest over to you guys

Edited October 6, 2008 by pkrv

[johnnyk]

It's all moot, folks.

What we think or imagine is of no consequence.

None.

Zero.

Zip.

Nada.

<deleted> all.

[pkrv]

I should have mentioned - when you buy an existing condominium ALL money goes to Thailand.

When you buy off the plan obviously some money goes to the developer probably 40%

[haltes]

if full ownership will be possible there would not be a 'few' foreigners but most if not all of the desirable places will be sold to foreigners, making it impossible in entire regions for Thais to live for normal prices.

Based on what evidence????

The vast majority of Thais cannot buy land in Bangkok and most foreigners would not want to buy land in deepest darkest Isaan! I think you are dreaming, not that many foreigners even want to buy land here but I don't see anything wrong with people who are married to a Thai or have kids with a Thai citizen wanting to put down some kind of roots to enable them to have some security in their lives.

So what you are saying is that all the desirable places are owned by some very rich Thai families and that's somehow justifies some kind of anti foreigner discrimination based on the fact that some Thais (actually most Thais) also cannot afford to buy it either!

Edited October 7, 2008 by haltes

[Khun Jean]

Based on what evidence???

Have a look in Bangkok, Pattaya, Hua-Hin, Phuket, Samui, Koh Lanta, Koh Chang etc. Local Thais are priced out of the market.

And when you do that ask what prices were about 4-5 years ago and even better before the 'boom' of foreigners around 1999.

If you are married with a Thai and have children with Thai nationality then what is the problem, you can buy land and your children will inherit.

Back to the real topic, In no way will laws be relaxed, ever. The best we can hope for is a longer lease period.

[suiging]

Not sure local Thais want to live where the Farang do in those places, they may want to invest, but live ? The majority prefer to be in more traditional areas........can't blame them.

[haltes]

My point is (which you seem to miss) is that most Thais are already priced out in MOST places and they are priced out by OTHER THAIS!!!

Letting a few foreigners buying a couple of rai here and there for residential purposes or even (shock, horror) to establish a business would actually be good for the economy and bring in a lot of investment. If Thailand will implode if it does not embrace foreign investment or it will be overtaken by Vietnam, Laos, of even Cambodia/Burma.

Laws will have to be relaxed at some point and rightly so otherwise we should lobby all western governments to not allow Thais to own land or businesses in our respective countries.

[LennyW]

My point is (which you seem to miss) is that most Thais are already priced out in MOST places and they are priced out by OTHER THAIS!!!

Letting a few foreigners buying a couple of rai here and there for residential purposes or even (shock, horror) to establish a business would actually be good for the economy and bring in a lot of investment. If Thailand will implode if it does not embrace foreign investment or it will be overtaken by Vietnam, Laos, of even Cambodia/Burma.

Laws will have to be relaxed at some point and rightly so otherwise we should lobby all western governments to not allow Thais to own land or businesses in our respective countries.

Obviously you are a person that is real, what you are saying is possible, but beware of <deleted> like .... .... who have obviuosly been roasted in thailand and regardless of anything else - just wants us all to fail,consistent doom and gloom postings - not sure if .. is a man or a woman, speaks like man, winges like woman etc, probably normal for a ...... ! Iv'e never seen a race so anti everybody...must be with being brought up in a land of pot heeds!!

Not sure if .. falls into the .."My girlfriend is different but i found out later"..... or, "i spent 20,000 dollars in 1979, why the fk is it not 200,000 dollars. 2 years later" Category , but Thailand is not really suited to bitter people like that so just chill!!!!!

All will become clear in due course!!!

[Khun Jean]

^What was that all about? Drunk?

[LennyW]

^What was that all about? Drunk?

Absolutely!!