A Property Question...

[properperson]

Could someone please advise me...

I am looking to buy a house, which is owned in a Thai company name..

Can i simply purchase the shares/voting rights from the current British owner, or would i have to set up my own Ltd company and transfer the property into it.

Any ideas what the tax / legal expenses are likely to be - the property is 4m B

Secondly, once i have the proprty in the limited company - if i buy a new condo - can i put the new condo into the ltd company name - or is it one property per limited company ??

Thanks in advance...

[pkrv]

What is the need to put a condo into a company name when it can be in your own name(s)?

Edited January 27, 2010 by pkrv

[MJo]

Read the forum a bit and you find out that using nominee company is not advisable anymore as it is technically illegal and and could be the target of next crackdown any time.

There is other ways, just read and search the forum.

[properperson]

post 2 - there is a huge diference in condo prices between foreign owned and Thai owned.....

[thaiwanderer]

Not if the seller knows the buyer is in reality a foreigner, which they will.

[PattayaParent]

Not if the seller knows the buyer is in reality a foreigner, which they will.

Developers are quite happy to sell at Thai prices to Farangs going the company route to purchase, they proactively encourage it as it takes up part of their unsellable quota.

[properperson]

the 3 or 4 developers we went to have 2 price lists - the Thai price (cheaper) and the Foreigner price...

They were all singing from the same hymn sheet and said that they could easily sell the Foreign quoter, but lowered the prices for the Thai side - but we could "get round this by setting up a Thai company"....

None would budge and sell at Thai price to a foreigner.....

if we decide to go down the Thai company route - does anyone know if we can put mre than one property into it ??

[thaiwanderer]

AFAIK no bar on a Thai company owning more than one property (why would there be?).

Whether its a safe method is another matter but the number of properties held makes no real difference to that - except eggs in one basket.

Edited January 28, 2010 by thaiwanderer

[pkrv]

post 2 - there is a huge diference in condo prices between foreign owned and Thai owned.....

OK you are the guy on the ground. It would help to know how much but maybe you would feel more comfortable expressing this as a % term.

However I have an alarming thought process that you may be penny pinching. You are also getting serious warnings from some excellent posters.

Do you absolutley have to have what you have your eye on? and where are you planning on buying (condo wise)?

Edited January 28, 2010 by pkrv

[properperson]

Condo..

5.2m in foreign name - 4.2m Thai/company name...

Penny pinching ?? - whats 1m B amongst friends ??

[pkrv]

Condo..

5.2m in foreign name - 4.2m Thai/company name...

Penny pinching ?? - whats 1m B amongst friends ??

That was one candid reply! Did you know you are the first person to openly post the price difference between the Thai and Farang quota on a condo?

I only understand Chit Lom Bangkok. That is where I have a home. I can however understand the cost difference and its implications - I personally would advise giving the guys here a location where you wish/may consider buying a (condo). You would probably get a more succinct answer. Thailand let alone Bangkok, is a big place!

[dave111223]

Condo..

5.2m in foreign name - 4.2m Thai/company name...

Penny pinching ?? - whats 1m B amongst friends ??

Could one not just purchase the condo under a Thai company then resell the condo to yourself before the developer had finished selling their foreign quota? Obviously you get hit with 3.xx% tax on the transfer, but sure beats paying 1M extra.

Edited January 28, 2010 by dave111223

[properperson]

the particular development is in Jontiem....

i thought once it was in a Thai company name - that was it ?

[thaiwanderer]

Condo..

5.2m in foreign name - 4.2m Thai/company name...

Penny pinching ?? - whats 1m B amongst friends ??

Could one not just purchase the condo under a Thai company then resell the condo to yourself before the developer had finished selling their foreign quota? Obviously you get hit with 3.xx% tax on the transfer, but sure beats paying 1M extra.

No - if sold under Thai quota it doesn't then become part of the Foreign quota by being sold to a Foreigner (even if the Foreign 'quota' is yet to be exhausted).

It's the developer's decision which units are registered as Thai or Foreign.

Edited January 28, 2010 by thaiwanderer

[thaiwanderer]

Condo..

5.2m in foreign name - 4.2m Thai/company name...

Penny pinching ?? - whats 1m B amongst friends ??

Just for your consideration........

Worst case scenario - nominee Thai company - not be able to freely exercise your vote in the members decisions, lose the unit and therefore lose 4.2million, go to prison then if survive not be allowed back into Thailand.

However unlikely this might make spending a measly 1million look not so bad?

Edited January 28, 2010 by thaiwanderer

[pkrv]

the particular development is in Jontiem....

i thought once it was in a Thai company name - that was it ?

OK you are still getting some really really heavy duty warnings IMO correctly - I will be open here

The Pattaya property market seems to be in dificulties and the condo market in Thailand is tricky to say the least. In some and I repeat some, condo developments the Farang quota is indeed important, in other developments it is utterly irrelevant. Please take a look at the pinned thread. I think you need to make up your own mind.

[PattayaParent]

That was one candid reply! Did you know you are the first person to openly post the price difference between the Thai and Farang quota on a condo?

I thought that was common knowledge, at least to anyone that has enquired about buying in a new development.

[PattayaParent]

Could one not just purchase the condo under a Thai company then resell the condo to yourself before the developer had finished selling their foreign quota? Obviously you get hit with 3.xx% tax on the transfer, but sure beats paying 1M extra.

No - if sold under Thai quota it doesn't then become part of the Foreign quota by being sold to a Foreigner (even if the Foreign 'quota' is yet to be exhausted).

It's the developer's decision which units are registered as Thai or Foreign.

Are you sure about that?

I have a Farang friend that bought a condo from a Thai owner and registered it in his own name.

Edit: ALL the units are orignally in a Thai name (the developer's company) when they are built and prior to being sold.

Edited January 29, 2010 by PattayaParent

[Gary A]

I bought my condo from a Thai and the condo association provided documents saying they were well below the foreign ownership quota. The condo is in my name and there was no problem with the transfer. The Thai wanted to sell and I wanted to buy. He didn't care if I was a foreigner or a Thai.

It's possible that if the foreigner quota is sold out, the price may be higher for a farang owned unit.

I have no idea why anyone would risk owning anything here in Thailand through a bogus company. Why take a chance when you don't have to.

Edited January 29, 2010 by Gary A

[pkrv]

That was one candid reply! Did you know you are the first person to openly post the price difference between the Thai and Farang quota on a condo?

I thought that was common knowledge, at least to anyone that has enquired about buying in a new development.

Hi PattayaParent - yes it is common knowledge that there is a discrepancy however no one to my knowledge has ever posted the figures before 24 ish %, was a shock.

For me alarm bells are ringing – Why? Because most condos are sold to Thais - If Thais are not buying in a particular development and only the Farang quota has sold it could signal a serious problem.

And yes we can talk about shifting the units to leasehold plus loads of other stuff - but the overwhelming fact is that Thais are by far and far away the biggest buyers of condominiums. We Farangs are almost insignificant in the market (except perhaps at the high end).

If in Pattaya you can't find a freehold condominium in the Farang Quota is not something seriously amiss? The guy is not talking about elite stuff here, that seems to start at about 15m.

[properperson]

i think the conclusion i have come to is that i will be putting the property in my own name.....

at least i then know whats what.....

[trogers]

Seems this condo unit is a 'Must Have' beauty... to be willing to pay 20+% more when over 20 other developments are begging you to buy theirs, and at the same time, many farangs are looking to offload their units.

[pkrv]

i think the conclusion i have come to is that i will be putting the property in my own name.....

at least i then know whats what.....

IMO good call

[pkrv]

Seems this condo unit is a 'Must Have' beauty... to be willing to pay 20+% more when over 20 other developments are begging you to buy theirs, and at the same time, many farangs are looking to offload their units.

trogers that was not 20% more, it was 20% (ish) less - that was the problem - Stay awake - -PKRV ];-)

[PattayaParent]

Seems this condo unit is a 'Must Have' beauty... to be willing to pay 20+% more when over 20 other developments are begging you to buy theirs, and at the same time, many farangs are looking to offload their units.

But the others are all selling to Farangs at 20%++ more also.

[PattayaParent]

For me alarm bells are ringing – Why? Because most condos are sold to Thais - If Thais are not buying in a particular development and only the Farang quota has sold it could signal a serious problem.

And yes we can talk about shifting the units to leasehold plus loads of other stuff - but the overwhelming fact is that Thais are by far and far away the biggest buyers of condominiums. We Farangs are almost insignificant in the market (except perhaps at the high end).

I thought that's why a lo of condos actually start off as 'condotels' so the developer can let out the unpurchased Thai quota as a hotel business.

[pkrv]

For me alarm bells are ringing – Why? Because most condos are sold to Thais - If Thais are not buying in a particular development and only the Farang quota has sold it could signal a serious problem.

And yes we can talk about shifting the units to leasehold plus loads of other stuff - but the overwhelming fact is that Thais are by far and far away the biggest buyers of condominiums. We Farangs are almost insignificant in the market (except perhaps at the high end).

I thought that's why a lo of condos actually start off as 'condotels' so the developer can let out the unpurchased Thai quota as a hotel business.

I think I already answered your question - but you are very specifically talking about Pattaya is that not true?

[trogers]

Sure? I do not see such dual pricing in developments in Bangkok.

Seems this condo unit is a 'Must Have' beauty... to be willing to pay 20+% more when over 20 other developments are begging you to buy theirs, and at the same time, many farangs are looking to offload their units.

But the others are all selling to Farangs at 20%++ more also.

[dave111223]

Condo..

5.2m in foreign name - 4.2m Thai/company name...

Penny pinching ?? - whats 1m B amongst friends ??

Could one not just purchase the condo under a Thai company then resell the condo to yourself before the developer had finished selling their foreign quota? Obviously you get hit with 3.xx% tax on the transfer, but sure beats paying 1M extra.

No - if sold under Thai quota it doesn't then become part of the Foreign quota by being sold to a Foreigner (even if the Foreign 'quota' is yet to be exhausted).

It's the developer's decision which units are registered as Thai or Foreign.

I bought my condo from a Thai. It doesn't seem that the units themselves are set as a "Thai" unit, or "Foreign" unit (at the land department), but just depends how many other units are registered to foreigners at the time of the transfer?

So let's say you bring your condo deed to the land department to transfer it from your Thai company to your own name, wouldn't they just look in the book and see "Ok, 35% of this building is currently registered to foreigners" and then proceed with the transaction? Or can the developer pre-register the foreign quota at the land department as "foreign owned" even though the units are still actually owned by the developer (so are not actually foreign owned)?

[PattayaParent]

For me alarm bells are ringing – Why? Because most condos are sold to Thais - If Thais are not buying in a particular development and only the Farang quota has sold it could signal a serious problem.

And yes we can talk about shifting the units to leasehold plus loads of other stuff - but the overwhelming fact is that Thais are by far and far away the biggest buyers of condominiums. We Farangs are almost insignificant in the market (except perhaps at the high end).

I thought that's why a lo of condos actually start off as 'condotels' so the developer can let out the unpurchased Thai quota as a hotel business.

I think I already answered your question - but you are very specifically talking about Pattaya is that not true?

Yes, my experience with condo buying and searching has been based in Pattaya, I can understand that Thais would be more likley to purchase in Bangkok and there may not be the same quota problem.