Buying A Home With American Money

[RedOctober]

Hello all, I have been married to a Thai National for about 11 years. We cue=reently live in NYC and have 2 small children and within the next 2 years would like to relocate to the Udon thani area in Thailand. I will be 43 years old at retirement from my current government job and will have a pension between 60 and 70K USC.

I have a million questions and I figured that the more senior members of the group would vist this section of the forum so here goes with the questions:

1. Can I leave a large sum of money in my American account and use it to buy land (yes I trust the wife) and build a home?

2. Can I buy a house outright from my American bank account?

3. What should I be careful of, or avoid while moving and buying real estate in Thailand?

I have many more questions but I thought I'd limit it somewhat. Thanks in advance for the help.

Edited July 12, 2009 by RedOctober

[nakachalet]

redoctober

sawaddee krub, welcome. when you have time try to go back and read the numerous posts

concerning a farang owning real estate in thailand. there are many brilliant suggestions there.

but more importantly, locate a competent lawyer team to assist you in this important investment, ok?

under the current statue, any farang can purchase real estate but you can not own it, legally.

but your thai wife can. and there are numerous ways to structure this. succinctly, only thais can have

their names on the cha-note, legally.

on the other hands, there are several farangs i knew, both from the states and european countries,

who bought lands and built homes for wives and children, even though, the children are not theirs....

bless thier kind hearts. amen.

most importantly, do not try to circumvent the funny thai laws concerning properties and such, yes, i

know many smart people are doing it, but fundamentally we should avoid this approach, imho.

why oh why....? the time and money you save now, one day in the distant future, will never ever

compensate for the mega headache and legal entanglement that follow....

and the endless sleepless nights that you and yours will suffer.... when there is a legal complaint

from someone close or some jealous soul....

allow your competent lawyer team to earn their worth pls.

all the best to you and yours and your children.

the best answer is your thai wife can purchase and own real estate and the chatel.

[Maestro]

I am moving this topic from the forum “Thai visas, residency and work permits” to the forum “Real Estate, housing, house and land ownership”

--

Maestro

[moo9]

But congratulations for your retirement at 43 yrs with a nice yearly income :-)

With regard to your question, your wife can own and buy land and house, but currently there is some confusion about the origin of the money. Best would be imho to put the money into your wife's US bank account and she should transfer it to her Thai account then. This would insure that it is really her money used for the purchase.

However, as you are married abt. 11 yrs there should not be a problem at the land office either.

Cheers

[trogers]

Retiring at age 43. I would advise not to put all your eggs into one basket. Best to allocate part of your cash to acquire one or two freehold condos for renting out.

The future rental income of the condo will be a security for you and your family and a hedge against falling value of the US dollar. Pension can stop flowing.

Edited July 13, 2009 by trogers

[chiangmaibruce]

1. Can I leave a large sum of money in my American account and use it to buy land (yes I trust the wife) and build a home?

2. Can I buy a house outright from my American bank account?

3. What should I be careful of, or avoid while moving and buying real estate in Thailand?

The very short answers are:

1. yes

2. yes

3. about a million things

Now some more detail:

I am not sure what you see as the significance of the source of the money (?) see prior threads/pinned topics on restrictions on bringing funds into the country. Basically there are no restrictions on bringing it in - from any country

As someone has stated it might be prudent to put the money into your wife's account and then she transfers it into the country. This is on the basis you are buying land and NOT a condo. See existing ongoing thread on this issue (foreigner buying land with their money but in the name of their wife)

You don't mention how much time you have spent in thailand, but conventional wisdom is to live here for AT LEAST a year (renting) prior to buying anything. You may not like udon thani, you may not even like thailand (as a place to live

As someone has already suggested you need to spend a few hours now reading through all the relevant earlier threads here in thaivisa (search using key words and/or just scroll back onto previous pages of threads in the real estate subforum).

[rgs2001uk]

Retiring at age 43. I would advise not to put all your eggs into one basket. Best to allocate part of your cash to acquire one or two freehold condos for renting out.

The future rental income of the condo will be a security for you and your family and a hedge against falling value of the US dollar. Pension can stop flowing.

While I agree on the whole with this advice, I would add the following rider, apply due dilligence and proceed with caution, there are many unscrupulous developers out there waiting for the unsuspecting buyer with promises of all sorts of returns.

At this moment in time with bank interest rates being so low many are being lulled into a false sense of security, thinking they can apply the 1/100 guideline, eg buy a condo for say 5 million baht and rent it out

for 50,000 baht per month.

Its all about location, as many in places such as Pattaya for example are now finding out, an oversupply

of condos for rent.

Many also make the mistake of only buying new, the second hand market is also worth investigating.

The advice about not putting all your eggs in one basket also applies to Thailand as a whole, I would advise not to put all your money in Thailand, never burn your bridges, always have an escape route.

I would have thought in the current climate there would be many attractive properties in America, for

those who have the luxury of time on their hands and no need for an instant return on investment.

Commercial as oppossed to residential properties is an often overlooked market.

Yes a future rental income may well be a hedge, if you dont have to drop your rent just to have your property rented out for a source of income, thus negating any currency fluctuations.

[BEENTHEREDONETHAT]

Red

I agree with most of the advice you have been given. In particular the advice to wait at least a year to make a commitment that would be hard and time consuming to get out of. It is always possible that you or your wife may decide LOS is not for you.

Might be advisable for you to have a very clear money trail, showing that your wife brought the money in from the US. That way if in the future you want to take it our again, it will be much easier.

Go slow and enjoy it. Truly great to be able to retire at 47, especially with the economy being in such a mess.

Good Luck

[ballbreaker]

Best advice for now is to rent for a year in area you plan to build and see if you like. You have many years ahead of you so don't rush into anything.

[RedOctober]

Wow what a great response! I never thought to hedge the falling dollar against real property but that is definitely something to thing about. When I was dating my wife she already owned a condo close to where the new airport opened in Bangkok. We thought about buying the condo next door and breaking through the wall to expand it but we figured we just keep it as is and keep it rented.

One of the reasons I picked Northeast Thailand (other than the fact that my wife paternal family live there) is cost of living. A dollar still goes pretty far there, I'm sure much farther than it does in BKK.

Renting is another great idea, advice that I will follow.

About bank accounts, if the account is in both names is it OK? Or does it need to been in just her name?

Being American, I have a fear that the currency is going to take a beating over the next 5 years. So, should I cash out on part of my pension? By this I mean reduce it by say 15k a year to get about 150,000 USC In hand to invest overseas (Land of Smiles)?

Thanks in advance folks

Edited July 13, 2009 by RedOctober

[Aswin]

FWIW, 5 years ago, I wired my mother (her money) $150K for her to buy a house. And she did. I had to put in the wire xfer form the purpose, I wrote "to buy a house". That was that. Mother didn't have to pay tax on it or anything.

[RedOctober]

FWIW, 5 years ago, I wired my mother (her money) $150K for her to buy a house. And she did. I had to put in the wire xfer form the purpose, I wrote "to buy a house". That was that. Mother didn't have to pay tax on it or anything.

Sweet thanks!!

[Artisi]

Investigate with a couple of the major banks re opening an US $ bank account, it pays higher interest than a local currency account and you get to retain your $$$ which you can convert to Baht when the exchange rates are in your favour.

[nakachalet]

artisi

just curious, what are some of the fees they require, to open and maintain a

us dollar acct?

several years back, i had such an acct with chase in bkk but the fees then were

quite excessive.

what did they quote you per your inquiry? thx.

[Artisi]

artisi

just curious, what are some of the fees they require, to open and maintain a

us dollar acct?

several years back, i had such an acct with chase in bkk but the fees then were

quite excessive.

what did they quote you per your inquiry? thx.

Sorry, can't answer the question as I haven't gone down that path - my comment was based on the knowledge that foreign currency accounts can be opened at higher interest rates than local currency.

[rgs2001uk]

Wow what a great response! I never thought to hedge the falling dollar against real property but that is definitely something to thing about. When I was dating my wife she already owned a condo close to where the new airport opened in Bangkok. We thought about buying the condo next door and breaking through the wall to expand it but we figured we just keep it as is and keep it rented.

One of the reasons I picked Northeast Thailand (other than the fact that my wife paternal family live there) is cost of living. A dollar still goes pretty far there, I'm sure much farther than it does in BKK.

Renting is another great idea, advice that I will follow.

About bank accounts, if the account is in both names is it OK? Or does it need to been in just her name?

Being American, I have a fear that the currency is going to take a beating over the next 5 years. So, should I cash out on part of my pension? By this I mean reduce it by say 15k a year to get about 150,000 USC In hand to invest overseas (Land of Smiles)?

Thanks in advance folks

I strongly urge you seek independant financial advice whether its from your bank manager, accountant or your pension provider before you even consider such a course of action.

Anyone who has gained a pension of the mangnitude you have amassed at such a young age obviously isnt a fool, think long and hard.

If you take a reduced pension of $10,000 per year to get your hands on $150,000 now , the numbers dont add up, lets say you can expect to live until you are 70, you are already operating at a loss.

I assume you have an index linked prension, even better if its a government pension, Uncle Sam may be bust already, but as long as the Chinese keep buying his IOUs I dont forsee a problem.

Dont be fooled into thinking Bangkok is anymore expensive than the rest of Thailand, as far as I know, all utilities are the same price, no discount for living up country, there is more to Bangkok than the Central Business District, in fact living in Bangkok may be cheaper in the long run.

Personally I would rather live in Bangkok and have access to things like main hospitals, banks,embassay etc

than live in the middle of nowhere upcountry, the choice is yours as they say.

I suggest you try living upcountry for at least 2 years before you even consider investing in property in the region, just because your wifes family is from there is no reason to live there, live somewhere that suits you, not your wifes family, unless of course you have a good heart.

[nakachalet]

rgs2001uk

funny you should say that living in bkk town is better than living in other parts of thailand.

i would like to ask you what other parts of thailand have you ever spent a few weeks in, pls?

as far as my experience goes, coming back to bkk mostly once a month, is almost chocking

me to practical death.... sobbing.... lol

the air pollution, the noise pollution, the congestion, the traffic, the time it takes to

drop a kid off at school and the time it takes to get to your own office bldg and to pick

up your kid after school or schools.... you see my point?

it usually takes about 2 hours or more each week day to complete this routine in

the wonderful city of angels--bkk

whereas in other cities, whether in the northern or southern parts, or eastern parts;

it will usually take less than 30 min to complete this daily routine.

and with very much less pressure and anxiety as well.

other members of my family in bkk would seize every opportunity, even making

up excuses, just to leave bkk to cool off....

living in bkk is better? more convenient? more plentiful?.... lol

yes, i also remember, one man's gourmets can be garbages and poisons for others.... lol

yes, continue to live in bkk if you like.... lol

[Tokay]

Perhaps set yourself up with an offshore account in a few other currencies. I also feel the USD is going to take a beating and have spread out across many currencies, only keeping about 20% in USD. With the state of things in the USA and the printing presses running around the clock making more money, I'm not going to take any chances. I've worked to hard to lose a lot of it due to a severe currency drop.

Everyone says, "don't keep all your eggs in one basket." What they don't say is that the same holds true with currency. No reason for you to bet it all on the USD. Heaven help you and your family if/when it tanks and you have all your assets spread out and in several baskets except the one thing that matters most, your liquid cash. Hence another reason for buying some rental property with it.

Best of luck with your move here.

[rgs2001uk]

rgs2001uk

funny you should say that living in bkk town is better than living in other parts of thailand.

nakachalet, more than happy to answer your questions, first I didnt say living in Bangkok was better, I dont subscribe to the myth that living in Bangkok is any more expensive than living elsewhere in Thailand.

as far as I know I pay the same price , if not less than, for water, gas, internet, health insurance, car insurance, house insurance, satellite tv etc etc etc, sure there are many more.

As I also said there is more to Bangkok than the Central Business District, try across the river on the west side, or some of the suburbs in the north of the city, most pleasant, there are no skyscrapers or high rise buildings where I live, only 1 km from the expressway, I can be at Suan Plu for my 90 day reporting in about 30 minutes, a taxi home from say Sukhumvit at night is about 120 baht and takes about 20-25 minutes.

i would like to ask you what other parts of thailand have you ever spent a few weeks in, pls?

I have travelled all over Thailand and have spent more than a few weeks in the following areas Chaing Mai, Phrae in the north, in Issan, Mahasarakam (spelling?) Ubon and Udorn as well as time spent in Buriram and Surin as well as the outskirts of Surin, Prasat (spelling?).Khon Kaen and Korat as well.

Have also spent time in the central area, Saraburi, Lop Buri, Ayuttaya, Nakhorn Nayok,Chachaengsao (spelling?)

Have also spent time in the eastern seaboard area, in fact last year the wife was offered property just outside Utapao airport, will address that point later.

The furthest south I have been was Hua Hin.

as far as my experience goes, coming back to bkk mostly once a month, is almost chocking

me to practical death.... sobbing.... lol

Yes Bangkok isnt for the faint hearted or those with respitory problems.

the air pollution, the noise pollution, the congestion, the traffic, the time it takes to

drop a kid off at school and the time it takes to get to your own office bldg and to pick

up your kid after school or schools.... you see my point?

Sorry thought you were talking about Chaing Mai for a moment.

As for pollution , have you seen what spews out from Rayong each day , one of the reasons the wife declined the offer of property in the area.

There are of course other areas where regulations (lol)if they even exist is debatable.

It usually takes about 2 hours or more each week day to complete this routine in

the wonderful city of angels--bkk

How you manage your time is of course a concern, not my concern though. Most people I know either get their wife to drop off or pick up children from school, or the children go to and from scholl in a mini bus, I understand off course that this may not suit everyone. Others employ drivers to do these chores for them, finances will of course dictate if this is an option.

whereas in other cities, whether in the northern or southern parts, or eastern parts;

it will usually take less than 30 min to complete this daily routine.

I dont doubt it, depending of course where you live, have you seen the traffic in Pattaya recently, a nighmare.

and with very much less pressure and anxiety as well.

Jai yen yen, na krap, khit serious mai dee chai mai?

other members of my family in bkk would seize every opportunity, even making

up excuses, just to leave bkk to cool off....

Yes the wife and I are lucky we have the luxury of visiting friends in various parts of Thailand, and are able to see first hand the pros and cons of each area, and hear also from the locals the problems each area has, be it water shortages, flooding etc etc.

living in bkk is better? more convenient? more plentiful?.... lol

Yes, for me it is, I love Thai food as much as the next man, however I dont restrict myself to a Thai food only diet, I am able to take advantage of the many international foods available in Bangkok. I do of course realise some may not have that luxury, budget doesnt allow it.

I also have a taste for fine wine and cheeses, try sourcing those in darkest Issan.

Playing golf is another pursuit I have, luckily living where I live i am able to choose from an array of golf courses. In fact The wife and I are heading to Pattaya tomorrow where we will be staying for a few days while I indulge myself.

I have seen how some live up in the sticks, the highlight of the week is being sat outside some mom and pop store, drinking lao kao with the locals on a Sunday afternoon while watching muay thai on a portable black and white tv, sorry not for me.

In other parts, its up when the cock crows and off to bed when it gets dark, no hot water for a shower, perhaps I have been spoiled over the years,but I like my creature comforts.

yes, i also remember, one man's gourmets can be garbages and poisons for others.... lol

As you say, each to their own.

yes, continue to live in bkk if you like.... lol

Dont worry, wouldnt think of relocating to anywhere else, Kanchanaburi (spelling?) did cross my mind, nice out that way, liked the waterfalls and the greenery, however just that little bit too far out, same problem up Nakorn Nayok, up past klong 14 way.

Another option was Chajaengsao, but it had problems as well.

Suppose I am lucky, in that my wifes family didnt dictate where we live, and the problems that brings to the door, no relatives queing up looking for handouts or vultures circling in for the kill, lol.

Yes anything for a quiet life, as long as it suits the wife and I this is where we will be.

I off course understand many dont have that luxury of choosing where they live, only thankful I didnt marry a, same same girl.

Enjoy your time here, dont get to stressed out, spread your wings and see what Thailand has to offer.

There is off course a huge difference in living in a place for a few weeks on holiday and living in it full time, many find that out when its too late.

Out of interest, where in Thailand are you in residence?, sounds like you have found nirvana.