Buy House By Creating A Company

[bonpourlazil]

Hi everybody !

First, I’m sorry if someone ask the same question as me….

I live in Phuket with a tourist visa and would like to buy a house on my name by creating a company. Is it safe to do that? How to do it? Do you know a good lawyer in Phuket who can help me please ?

Thanks a lot for your precious help !

Regards

Fred

[Forkinhades]

you live in Phuket on a tourist visa? do some homework mate, or your going to get fleeced

[LivinginKata]

It is now illegal to form a company for the sole purpose of holding land ( that the house stand on) for personal use. If a lawyer tells you otherwise, then buyer beware. There are legal ways of dealing with this problem, but all will need the involvement of a Thai national, and quite honestly you will be at the mercy of your Thai partner and your Thai lawyer.

Tread very carefully, and the best of luck. You will need it ...

[bonpourlazil]

Hi !

I have only a tourist visa and would like to buy a house on my name by creating a company. Can i do it? I'm not married, i have only a thai gf. What other solutions for me to buy a house ? Leasing 30 years ?

Thanks a lot for your precious help !

Regards

[JohnC]

In the current political unrest you really want to put money into Thailand??

Bottom line, get a good lawyer if you really want to go down this road.

If you are in Pattaya and have 2.5mil you can have my 2bed 2 b/r des res!

Edited April 18, 2009 by JohnC

[hkt83100]

I live in Phuket with a tourist visa and would like to buy a house on my name by creating a company.

I live in Phuket for 14 years now, I rent a house 13 years ago, made a contract for 2 years with the landlord in the beginning, after two years he told me "we have to make a new contract", but we never did. I am still living in the same house, still the same conditions, still the same rent. I would never ever buy, just live in peave. Find the right landlord and be happy....

Good luck!

[frenchFARANGbkk]

It is now illegal to form a company for the sole purpose of holding land ( that the house stand on) for personal use. If a lawyer tells you otherwise, then buyer beware. There are legal ways of dealing with this problem, but all will need the involvement of a Thai national, and quite honestly you will be at the mercy of your Thai partner and your Thai lawyer.

Tread very carefully, and the best of luck. You will need it ...

Hi,

So, what is the solution now and how much does it cost to do that ? And what about all the people who already made a company to buy a house ?

Thanks.

[johnnyk]

Help yourself, please.

Use the search engine. This topic has been discussed hundreds of times in many threads.

[geriatrickid]

The notion is best dismissed by the french expression "il est inutile" - It is useless. Don't waste time or money on that strategy. Sooner or later, schemes intended to circumvent the law come undone and you have to deal with the mess. Unless you have a family and plan to live here do not even consider buying. Rent.

The best advice given by the oldtimers in here that I listened to was; Do not buy unless you are able to absorb the loss and/or you plan on giving it to your Thai family. Go read the real estate forum to understand the point.

[a99az]

It is easy to buy a house, find a nice Thai girl and tell her you want to marry so you can buy a house. Won't take too long. She will help you sort it all out, just leave to her and sit back and enjoy.

[Valentine]

If the company conducts other business other than just owning the land it may be OK. You could consider leasing the land. It is all about the land, you can own the house but not the land. If leasing beware of anyone who syas you can get 90 years, 30 + 30 + 30, as there is no legal basis for this.

For me even leasing can present problems as what happens if the owner of the land dies or sells the land? Is the lease still valid? I am unsure if all these factors are written into the lease contract that the court will still uphold it. I also understand that to have any hope in a Thai court case the contract has to be in Thai.

[LivinginKata]

So, what is the solution now and how much does it cost to do that ? And what about all the people who already made a company to buy a house ?

There are a couple of ways that I know about (but I don't really recommend)...

1) Form a registered Thai partnership to buy the land. It's 50/50 Thai & foreigner, can be 1/1 or 2/2, etc. Less company operating costs as less accounting than full company. I've looked into partnerships, but have no practical experience.

2) Get a Thai to buy the land, and make a 30 year land lease registered in foreigner's name. This method is full full of pitfalls. It's illegal for the Thai to buy the land as a proxy for the foreigner. What happens after 30 years, as there is no way to compel the Thai owner to extend (for no more payment). Major problems if the Thai owner or the leasee dies. I have a great deal of practical experience in 30 years leases, and also 6 years worth of court time fighting a ruthless Thai landowner.

I'll say it again... tread very carefully when buying land in Thailand, and be cautious about what other people advise you (me too !!), and that includes your lawyer.

[keestha]

There are so many people, often retired, moving to Thailand, and the first thing they want to do is buy a house.

I always advised them rather to rent, because:

1) Buying prices are relatively high in Thailand, whilst renting prices are relatively low. In Europe it is the better decision financially to buy&take a mortgage, but in Thailand it is better to rent. You are better off financially if you invest the money, reaping the highest interest you can get risk free, and pay the rent off that.

2) In Thailand, it is very easy to buy a house (not talking about legal complications now), but it might prove very difficult to sell it. So many people got stuck with houses in places like Pattaya, which they rent out for very little money now, having left Pattaya a long time ago. Gosh, they're even lucky if they found somebody to rent the place.

3) Places change. Maybe you like Phuket/Pattaya/Hua Hin very much as it is now, but in 5 years time it will have changed a lot, and maybe you'll want to move out, and you will be stuck with a house you cannot sell.

Almost none of the freshly arrived retired Thailand residents took my advice. At home they have always owned a house, and they are totally fixed on the idea of owning property. No way to talk it out of their thick heads, somehow they think they are still in Germany or Sweden.

Edited April 19, 2009 by keestha

[BEENTHEREDONETHAT]

You can legally own a condo without any problem as long as the thai ownership is above 51% of the building.

[LivinginKata]

You can legally own a condo without any problem as long as the thai ownership is above 51% of the building.

That's usually a 90 year lease deal. More recently the condo is held by a Thai company, with individual apartment owners have executive director voting rights. Works Ok, but realistically the owners at at the mercy of the 51% Thais. Also these sort of arrangements have high monthly maintenance fees and also the holding company management can charge what they want for electric & water bills. Works well for many owners, good resale potential...

[Valentine]

Perhaps I can inform the group next time IBAP holds a "Legal Eagles" meeting. We normally have these once or twice per year whereby we have a panel of local legal experts who offer free advice in response to questions from the group. Naturally one of the hot topics is related to land ownership but also others such as company law & recent changes in legislation.

I totally agree with Living in Kata that any advice, no matter how well meaning, should be taken very cautiously. We all have our own experiences which may have worked in the past & could possibly have been illegal but were "overlooked". A legal expert has told me that a foreigner with a Thai wife which is leaglly registered can actually claim 50% of the sale proceeds of a property. I am sure there are other details involved.

There are probably more answers than questions when it comes to land ownership but number one on anyone's list when it comes to property or any business transaction should be due dilligence.

[LivinLOS]

Almost none of the freshly arrived retired Thailand residents took my advice. At home they have always owned a house, and they are totally fixed on the idea of owning property. No way to talk it out of their thick heads, somehow they think they are still in Germany or Sweden.

100% agree.. A couple have listened but the vast majority just wont change the idea that buying is the only long term solution.. The whole 'property never goes down' and ownership ideas are simply stuck there and the new reality of Thai ownership (and I use that term loosely), the inability to sell, the market prices for rental v ownership, simply dont make the same thing.

I you have lived here min 5 years, are in a long term stable relationship with a permanent Thai wife (who you would probably give a house to if you broke up anyway) or if you have Thai children to leave it to and you truly feel like this is 100% where you want to own, as a place to live forever, with no thought to its value or the mindset that its a asset of value / investment then maybe maybe consider buying.

[LivinginKata]

A legal expert has told me that a foreigner with a Thai wife which is leaglly registered can actually claim 50% of the sale proceeds of a property. I am sure there are other details involved.

Only if the property was bought after the legal marriage. Then it becomes a communal asset, and the husband is legally entitle to 50% on the sale price. Property bought before marriage, then the husband has no % right.

[joskydive]

Hi !

I have only a tourist visa and would like to buy a house on my name by creating a company. Can i do it? I'm not married, i have only a thai gf. What other solutions for me to buy a house ? Leasing 30 years ?

Thanks a lot for your precious help !

Regards

Don't do it unless you want to lose your money!!! You cannot form a Company for the sole reason of buying a house anymore.

[spacefruit]

The only way I have ever managed to get even a glimmer of understanding from foreigners re house ownership, is to ask them to look at it as buying a new car.

Immediate devaluation on purchase and subsequent maintenance issues and re-sale difficulties.

They still buy.

[trogers]

The only way I have ever managed to get even a glimmer of understanding from foreigners re house ownership, is to ask them to look at it as buying a new car.

Immediate devaluation on purchase and subsequent maintenance issues and re-sale difficulties.

They still buy.

Spacefruit, do you have a place called 'Home'? Or are you a wandering nomad?

Some buy a house for a home, a place to setup a family. Others buy as a long term investment.

Those who rents only have an intention to be at a place for a short duration of time, probably due to a job assignment. In the long run, everyone needs a stable place called 'Home' - even retirees.

[hhgz]

"I live in Phuket with a tourist visa and would like to buy a house on my name by creating a company. "

Asked and answered dozens of times. DOZENS of times. Use the forum search function.

[brianinbangkok]

Rent do not buy.

I agree 100% with geriatrickid

Thai law is pretty clear foreign nationals are not allowed to own land in Thailand.

People who "bend the law" so they can own land here get into trouble when things go wrong as its breaking the law.

What you going to do ? Tell the judge you set up a company to own the house ?

You ex wife/GF will do that if it comes to that.

The risk is just too high.

Buy and rent out a property in your home country for investment.

If you must buy here get a condo at least you can legaly have this on your name (yellow book).

Edited April 19, 2009 by brianinbangkok

[frenchFARANGbkk]

Hi,

Can i know how much it cost in legal fee to do the leasing thing ?

And can the Thai who lease you the land to you sell it to another Thai when you ask him/her to do ? (is it possible to imagine using a Thai name to buy the land then ask him/her to sell it to a future wife/child later ?)

Thanks.

[LivinginKata]

an i know how much it cost in legal fee to do the leasing thing ?

And can the Thai who lease you the land to you sell it to another Thai when you ask him/her to do ? (is it possible to imagine using a Thai name to buy the land then ask him/her to sell it to a future wife/child later ?)

Costs depend a lot on the what lawyer you use. I've always had my wife do it herself. It's not legally necessary to use a lawyer, but you must to have a good trustworthy knowlegable Thai.

You cannot legally compel the land owner to sell the land. Even with a side civil contract covering this point, if the owner refuses then it's a long civil case court battle. Nightmare ...

[BEENTHEREDONETHAT]

You can legally own a condo without any problem as long as the thai ownership is above 51% of the building.

That's usually a 90 year lease deal. More recently the condo is held by a Thai company, with individual apartment owners have executive director voting rights. Works Ok, but realistically the owners at at the mercy of the 51% Thais. Also these sort of arrangements have high monthly maintenance fees and also the holding company management can charge what they want for electric & water bills. Works well for many owners, good resale potential...

Can only respond with knowledge on the condo I own. Have a chanote on it and even though it is 10 years old it is in excellent shape.

The entire building was painted on the outside and the common area 4 months ago. The maintenance fee is 21Baht per M2 and the

reserve is over 14 million baht. All maintenance payments up to date but on one unit ( it is a 38 unit complex). The manager is very responsive to any problems and has been the manager since the building was initially occupied.

There is a farang on the board and has no problems working with the Thai Board members and getting things done. The electric bill is the same rate as charged by the power company and the water bill is insignificant.

I'm sure this is not typical of many of the condos but pointing out that they do not all have problems, do your homework before you buy.

Did not think I would like living in a condo as I was use to living on acreage. Not willing to do the company of lease method so chose to buy a condo instead, very happy with the decision and quite like the condo living.

[trogers]

This is my advice to foreigners having the intention to buy a landed property. By law, foreigners cannot own freehold land (except for some large BOI promoted investments). But you can pay for a landed property that is to be fully owned by your Thai wife and your children with her if any, that is, you will have no legal claim of ownership to it even though you paid for it.

If you are still single or intending to get married or just got married but without children, I would suggest you first buy a condo in a location that is relatively easy to rent out, and which gives you at least 5% return per year on the investment. You can choose to live in it, instead of paying pure rent to someone else.

Take 4-5 years to decide if Thailand is the place you want to retire, or the Thai gf or wife can be your partner in life, or when you have a child or two.

After this period of time, you will know how firm you are in settling in Thailand, and then look for a house for your family and your retirement. Then buy it in your wife's and children's names.

The condo can be kept as a long term investment for leasing, or can be sold to supplement the cost of the house.

[frenchFARANGbkk]

People are nice, but the OP question is not "Should i buy a house" but "I want to buy a house, how to do?".

I was also thinking to get one, so it seems that the only solution is the lease thing, and i understand that even you cannot legally compel the land owner to sell the land it's possible to sell it anyway if the land owner is a trusty and reliable person, so after having kids it is possible to transfer property of the land to your kids.

[bonpourlazil]

Thanks to everybody for the answer i gonna explore the way for leasing but what happened if i want to sell the house before the 30 years or my thai partner want to sell it?

Nice to you !

[trogers]

Thanks to everybody for the answer i gonna explore the way for leasing but what happened if i want to sell the house before the 30 years or my thai partner want to sell it?

Nice to you !

Leasing is another word for renting. The land belongs to someone else, and if he or she passes away, the land may be shared among his or her family members. You are renting the land for your use for a fixed period of time. If you want to move out, you can try to sell the balance of the renting period to some other people, if you can find any. But you cannot sell the house or the land. They do not belong to you!