Buying A Second Hand House In Pattaya

[p414]

I have a chance to buy a house in pattaya.what costs are there other than legal fees?

[eljeque]

Sir,

You have a lot of chances to buy a lot of houses in Pattaya.

I would spend a lot of time searching, and I would certainly wait a few months into low season when sales are really low in order to get a better price, unless you are buying a house being built directly from the developer, as he will not lower his prices, but will instead raise them as the evelopment becomes closer to completion.

Fees vary depending on:

Are you buying it from a foreigner or a Thai?

Are you putting it into your company's name or into a Thai girlfriend's or wife's name?

The smartest way to do it, if you really have to own a home for your own needs,

is to form a company using an accountant. My accountant, whom I have used for 6 houses over the 14 years I have been here charges 30,000 baht. That is the standard rate.

To put the house into your company's name costs an additional 12,000 baht.

All other fees are born by the seller.

If you are buying the house from a foreigner and he has already formed a company, then you simply trasfer his shares in the company into your name, and pay the share transfer cost of about 10 -12,000 baht.

You have your accountant check to make sure that the company's taxes are paid up to date as well.

I have not done it in a few years, so pricees may have changed a little.

If you are not putting it into a company that you have formed, and are putting it into your wife's name, or geting a lease, or whatever, then the fees are the cost of the house, as it is not yours, and betwen now and the time that you choose to leave Thailand or pass away, 90% of the time, someone else will end up with the house.

If your girlfriend of wife complains about your not putting it into their names, you know why.

I will be happy to point you towards a few developments that are resonably priced in which the developer has a good reputation for finishing the houses on time and more importantly, FINISHING THE HOUSES!! Some developers accept payments for a year or two and never get much accomplished. There are several developments on Theprasit Road, in Jomtien and on the east side of Sukhumvit which were never completed.

You can email me and I will be happy to give you my accountant's phone number. She has been here at least 20 years and has a great reputation. She is located near Carrefour.

[email protected] 06 722 1216

[Digger]

I have a chance to buy a house in pattaya.what costs are there other than legal fees?

<{POST_SNAPBACK}>

There is also a land office transfer tax which depends upon how the property is owned. If its by a company and you are taking over the company as well, no transfer fees to pay to the land office as that company still owns the house and land, you are merely just changing the name of the director. If the house is owned in a Thai name, there are the land transfer taxes to pay. These can be quite high and you need to establish who is paying what. Typically its 50/50 on a second hand home BUT you must establish this as even if you set up a company, the land title is still showing a change of ownership from the Thai person to the new company and thus taxes have to paid on transfer. These are somewhere around 3/4% of declared value (not always same as what you pay for the property as the land office have their own standard valuations on Land and SQ M of the property from which they calculate the tax due.

[Digger]

Sir,

  You have a lot of chances to buy a lot of houses in Pattaya.

  I would spend a lot of time searching, and I would certainly wait  a few months into low season when sales are really low in order to get a better price, unless you are buying a house being built directly from the developer, as he will not lower his prices, but will instead raise them as the evelopment becomes closer to completion.

Fees vary depending on:

Are you buying it from a foreigner or a Thai?

Are you putting it into your company's name or into a Thai girlfriend's or wife's name?

The smartest way to do it, if you really have to own a home for your own needs,

is to form a company using an accountant.  My accountant, whom I have used for 6 houses over the 14 years I have been here charges 30,000 baht.  That is the standard rate.

To put the house into your company's name costs an additional 12,000 baht.

All other fees are born by the seller.

If you are buying the house from a foreigner and he has already formed a company, then you simply trasfer his shares in the company into your name, and pay the share transfer cost of about 10 -12,000 baht.

You have your accountant check to make sure that the company's taxes are paid up to date as well.

I have not done it in a few years, so pricees may have changed a little.

If you are not putting it into a company that you have formed, and are putting it into your wife's name, or geting a lease, or whatever, then the fees are the cost of the house, as it is not yours, and betwen now and the time that you choose to leave Thailand or pass away, 90% of the time, someone else will end up with the house.

  If your girlfriend of wife complains about your not putting it into their names, you know why.

  I will be happy to point you towards a few developments that are resonably priced in which the developer has a good reputation for finishing the houses on time and more importantly, FINISHING THE HOUSES!!  Some developers accept payments for a year or two and never get  much accomplished.  There are several developments on Theprasit Road, in Jomtien and on the east side of Sukhumvit which were never completed.

  You can email me and I will be happy to give you my accountant's phone number.  She has been here at least 20 years and has a great reputation. She is located near Carrefour.

  [email protected]   06  722  1216

<{POST_SNAPBACK}>

Eljeque - Was it you indicating that you had bought some of the houses near that development between the Lion Bar and Harley Pub on Soi 8/Soi 17?

I have driven past it a couple of times over the last 6 months including last weekend and I thought they were doing an appalling job of progress. I'd have hated to bought into that project, paid a deposit and basically sweet FA has happended. By now they should be way way further on. Sounds like a classic case of taking your money and using it for something else in MHO.

Edited February 18, 2005 by Digger

[p414]

Sir,

  You have a lot of chances to buy a lot of houses in Pattaya.

  I would spend a lot of time searching, and I would certainly wait  a few months into low season when sales are really low in order to get a better price, unless you are buying a house being built directly from the developer, as he will not lower his prices, but will instead raise them as the evelopment becomes closer to completion.

Fees vary depending on:

Are you buying it from a foreigner or a Thai?

Are you putting it into your company's name or into a Thai girlfriend's or wife's name?

The smartest way to do it, if you really have to own a home for your own needs,

is to form a company using an accountant.  My accountant, whom I have used for 6 houses over the 14 years I have been here charges 30,000 baht.  That is the standard rate.

To put the house into your company's name costs an additional 12,000 baht.

All other fees are born by the seller.

If you are buying the house from a foreigner and he has already formed a company, then you simply trasfer his shares in the company into your name, and pay the share transfer cost of about 10 -12,000 baht.

You have your accountant check to make sure that the company's taxes are paid up to date as well.

I have not done it in a few years, so pricees may have changed a little.

If you are not putting it into a company that you have formed, and are putting it into your wife's name, or geting a lease, or whatever, then the fees are the cost of the house, as it is not yours, and betwen now and the time that you choose to leave Thailand or pass away, 90% of the time, someone else will end up with the house.

  If your girlfriend of wife complains about your not putting it into their names, you know why.

  I will be happy to point you towards a few developments that are resonably priced in which the developer has a good reputation for finishing the houses on time and more importantly, FINISHING THE HOUSES!!  Some developers accept payments for a year or two and never get  much accomplished.  There are several developments on Theprasit Road, in Jomtien and on the east side of Sukhumvit which were never completed.

  You can email me and I will be happy to give you my accountant's phone number.  She has been here at least 20 years and has a great reputation. She is located near Carrefour.

  [email protected]   06  722  1216

<{POST_SNAPBACK}>

Eljeque - Was it you indicating that you had bought some of the houses near that development between the Lion Bar and Harley Pub on Soi 8/Soi 17?

I have driven past it a couple of times over the last 6 months including last weekend and I thought they were doing an appalling job of progress. I'd have hated to bought into that project, paid a deposit and basically sweet FA has happended. By now they should be way way further on. Sounds like a classic case of taking your money and using it for something else in MHO.

<{POST_SNAPBACK}>

Thanks Eljeque and Digger.much appreciated.

I am buying a house app 8 yo from a thai living abroad..

It was the land tax I was unsure of....So= 7,500 baht land tax for I million price.yes?..As it is not in a company name am I right in supposing that there are no other taxes to pay.Thanks guys. P414

Edited February 18, 2005 by p414

[Digger]

Sir,

  You have a lot of chances to buy a lot of houses in Pattaya.

  I would spend a lot of time searching, and I would certainly wait  a few months into low season when sales are really low in order to get a better price, unless you are buying a house being built directly from the developer, as he will not lower his prices, but will instead raise them as the evelopment becomes closer to completion.

Fees vary depending on:

Are you buying it from a foreigner or a Thai?

Are you putting it into your company's name or into a Thai girlfriend's or wife's name?

The smartest way to do it, if you really have to own a home for your own needs,

is to form a company using an accountant.  My accountant, whom I have used for 6 houses over the 14 years I have been here charges 30,000 baht.  That is the standard rate.

To put the house into your company's name costs an additional 12,000 baht.

All other fees are born by the seller.

If you are buying the house from a foreigner and he has already formed a company, then you simply trasfer his shares in the company into your name, and pay the share transfer cost of about 10 -12,000 baht.

You have your accountant check to make sure that the company's taxes are paid up to date as well.

I have not done it in a few years, so pricees may have changed a little.

If you are not putting it into a company that you have formed, and are putting it into your wife's name, or geting a lease, or whatever, then the fees are the cost of the house, as it is not yours, and betwen now and the time that you choose to leave Thailand or pass away, 90% of the time, someone else will end up with the house.

  If your girlfriend of wife complains about your not putting it into their names, you know why.

  I will be happy to point you towards a few developments that are resonably priced in which the developer has a good reputation for finishing the houses on time and more importantly, FINISHING THE HOUSES!!  Some developers accept payments for a year or two and never get  much accomplished.  There are several developments on Theprasit Road, in Jomtien and on the east side of Sukhumvit which were never completed.

  You can email me and I will be happy to give you my accountant's phone number.  She has been here at least 20 years and has a great reputation. She is located near Carrefour.

  [email protected]   06  722  1216

<{POST_SNAPBACK}>

Eljeque - Was it you indicating that you had bought some of the houses near that development between the Lion Bar and Harley Pub on Soi 8/Soi 17?

I have driven past it a couple of times over the last 6 months including last weekend and I thought they were doing an appalling job of progress. I'd have hated to bought into that project, paid a deposit and basically sweet FA has happended. By now they should be way way further on. Sounds like a classic case of taking your money and using it for something else in MHO.

<{POST_SNAPBACK}>

Thanks Eljeque and Digger.much appreciated.

I am buying a house app 8 yo from a thai living abroad..

It was the land tax I was unsure of....So= 7,500 baht land tax for I million price.yes?..As it is not in a company name am I right in supposing that there are no other taxes to pay.Thanks guys. P414

<{POST_SNAPBACK}>

No its more like 20,000 - 40,000 baht for each 1,000,000 baht - somewhere between 2-4% from memory and you must establish who is paying it before you close the deal. If your buying from a non resident Thai, you might also want to check, if the house is in a village, are the communal charges up to date - many have never paid communal charges and the estate will come after you to pay them and all the back charges.

[COBBER]

My understanding is that the Land Tax is based on the period of time the previous owner has owned the house. If it is less than 1 year it is very high and goes on a sliding scale down to 10 years where it is minimal. There are exceptions such as transfer of property to family members and i think where companies are involved it is a little differant. Digger is quite right in saying you must establish this in the negotiations with the vendor or you could end up with a nasty little bill at the end.The most important thing you should do is consult a competant property lawyer.

[eljeque]

Get your company formed and ready .... it takes about three weeks, before you pay out any money. As the others have said, the general rule is that the transfer tax is shared but the other fees are the sellers. make sure to get it all out in writing prior to paying any money. I am happy to get you in touch with my accountant if you do not already have one.

[eljeque]

""Eljeque - Was it you indicating that you had bought some of the houses near that development between the Lion Bar and Harley Pub on Soi 8/Soi 17?

I have driven past it a couple of times over the last 6 months including last weekend and I thought they were doing an appalling job of progress. I'd have hated to bought into that project, paid a deposit and basically sweet FA has happended. By now they should be way way further on. Sounds like a classic case of taking your money and using it for something else in MHO."""

I am in no hurry for the houses to be built, but they got running a couple of weeks ago. I guess the workers came back from their farms.

I think they have been in business there for only about 2 1/2 to three months.

In fact, they started building my friend's homes prior to him giving them the drawing changes. He had to change houses - which was not a problem.

Now, they are pushing me to give them my changes as well, and I do not want the hassle of having to look at the place every few days to make sure that they are doing everything right. I wanted to wait another few months.

My other home with them over on Soi Chaiyapruk - I am buying it for 2.39, is already up 300,000 in about 10 months. I am quite happy about it. I have stalled them on that one for as long as they are willing to accept, and now I must finally give them a drawing to work from. They have done prety good work on all of the changes that my friend made to his, so I hope that I will be as fortunate, but if not, they will have to do it over.

Any news on that expensive development on Soi 17 Jomtien.... Jomtien Villas?

I drove by the other day and it seemed to be moving along at a reasonable clip.

[astral]

The land tax is down to the seller, but best to make that clear from the outset.

Most sellers will register a lower price than the one you are paying, but

that does not matter to you.

Best to have a lawyer look over the papers first and act for you at the Land Office.

You also need the forms for the old owner to sign, passing the water, electricity and telephone services over to your name.

[p414]

The land tax is down to the seller, but best to make that clear from the outset.

Most sellers will register a lower price than the one you are paying, but

that does not matter to you.

Best to have a lawyer look over the papers first and act for you at the Land Office.

You also need the forms for the old owner to sign, passing the water, electricity and telephone services over to your name.

<{POST_SNAPBACK}>

THANKS ALL FOR YOUR HELP...MUCH APPRECIATED.

I am thinking of putting it in my girlfriends name with a lease option for 30 years..I have no one i want to leave this property to so is not a problem..I understand I can do anything with the house under these terms and she cannot evict me...My lawyer is thai and very good but at the moment he has not taken any money from me and i do not want to bother him until I am sure of going ahead with the deal..

[Digger]

The land tax is down to the seller, but best to make that clear from the outset.

Most sellers will register a lower price than the one you are paying, but

that does not matter to you.

Best to have a lawyer look over the papers first and act for you at the Land Office.

You also need the forms for the old owner to sign, passing the water, electricity and telephone services over to your name.

<{POST_SNAPBACK}>

THANKS ALL FOR YOUR HELP...MUCH APPRECIATED.

I am thinking of putting it in my girlfriends name with a lease option for 30 years..I have no one i want to leave this property to so is not a problem..I understand I can do anything with the house under these terms and she cannot evict me...My lawyer is thai and very good but at the moment he has not taken any money from me and i do not want to bother him until I am sure of going ahead with the deal..

<{POST_SNAPBACK}>

Er, yes she can - its called possession is 9/10th's of the law in Thailand. All she does to get rid of you is welcome the entire family, chickens, pigs, etc to come and stay at the house as well as a couple of Thai lowlifes in need of free accomodation in your room. Then she plays Karioke all day and night and if you dont like, you take her to court. But that will probably take 4 years, by which time you have left and given up. Dont think a piece of paper is going to influence a Thai girl - the house in her name and thats all she understands. If it gets nasty, she hires couple of thugs to suggest you move out pronto, or even worse pays a couple of police to harrass you. End result is she will end up with the property. She cant sell it of course with a land office registered lease but unless she is highly educated, she will not be thinking about that. So all she will do is rent it out for a tiny sum every month in cash to anyone with money.

[eljeque]

I go along with Mr. Digger. The ONLY way to intelligentally buy a house here is to form a company so that it is yours. You will change girlfriends while you are here, and you do not want to lose a house over it. There is a reason she wants you to put it in her name.

If you are not willing to go the Company route, which is the way 1,000s of foreigners have done it for 30 years, then buy a condo.

If you buy property in a THai name, you are buying the Thai the property.

I have talked to a lot of guys who have lost homes to girls, but I have never even heard of a story of a guy losing a house while using a company.

Forget about those lease ideas and the buybacks, and whatever else anyone or any lawyer has ever told you. Accountants form companies for 30,000 and it costs an additional 12,000 to put the company shares into your name.

If you want to speak to my accountant, who has served me and a half dozen friends for 14 years, I will be happy to give you her number.

[email protected] 06 722 1216

[Krub]

I go along with Mr. Digger.  The ONLY way to intelligentally buy a house here is to form a company so that it is yours.  You will change girlfriends while you are here, and you do not want to lose a house over it.  There is a reason she wants you to put it in her name.

If you are not willing to go the Company route, which is the way 1,000s of foreigners have done it for 30 years, then buy a condo.

If you buy property in a THai name, you are buying the Thai the property.

I have talked to a lot of guys who have lost homes to girls, but I have never even heard of a story of a guy losing a house while using a company.

Forget about those lease ideas and the buybacks, and whatever else anyone or any lawyer has ever told you.  Accountants form companies for 30,000 and it costs an additional 12,000 to put the company shares into your name.

If you want to speak to my accountant, who has served me and a half dozen friends for 14 years, I will be happy to give you her number.

  [email protected]    06  722  1216

<{POST_SNAPBACK}>

You can lease the land from the girl friend for 30 years and register the property in your own name. This make sit more difficult for her to bring in the whole village to live with you

[Digger]

I go along with Mr. Digger.  The ONLY way to intelligentally buy a house here is to form a company so that it is yours.  You will change girlfriends while you are here, and you do not want to lose a house over it.  There is a reason she wants you to put it in her name.

If you are not willing to go the Company route, which is the way 1,000s of foreigners have done it for 30 years, then buy a condo.

If you buy property in a THai name, you are buying the Thai the property.

I have talked to a lot of guys who have lost homes to girls, but I have never even heard of a story of a guy losing a house while using a company.

Forget about those lease ideas and the buybacks, and whatever else anyone or any lawyer has ever told you.  Accountants form companies for 30,000 and it costs an additional 12,000 to put the company shares into your name.

If you want to speak to my accountant, who has served me and a half dozen friends for 14 years, I will be happy to give you her number.

   [email protected]     06  722  1216

<{POST_SNAPBACK}>

You can lease the land from the girl friend for 30 years and register the property in your own name. This make sit more difficult for her to bring in the whole village to live with you

<{POST_SNAPBACK}>

In theory yes, but in reality, we are not talking about educated Thais. If this girl thinks she owns the property, there aint a lot that you can do to change her thinking. Sure, the law is on your side, but to my mind its a disaster waiting to happen. Just set up a company and make her aware from the outset that the house is not hers and you will have no problems. Also never tell her you have nobody to leave the property to - that in itself could spark another game.

Other option is to go down the lease route and recognise that odds are within 3-5 years you aint going to be living there and be prepared to walk away from however much you have spent on it.

[p414]

Thanks everyone for your time and help.

I think I will try the 30 year lease option. the girl has a uni education . I have a pension but not so much in lump sums to pay out. I am considering buying over 15 year mortgage in her name with the 30 year lease back..No family will visit.I do not have anything to do with her family.[3 years]...