Purchasing A House In Phuket

[petercallen]

I want to buy a house in phuket in the near future.

Looking at the web sites one agent has some houses as foreign freehold.

I did not think that was allowed, but a house and land could be owned by a Thai company.

They changed the company rules about 2 years ago is it still possible to purchase a house

and land with a company and own the company.

[stevenl]

Yes, you can, but: the company has to be an active company.

[alfieconn]

Yes, you can, but: the company has to be an active company.

And the thai shareholders are not nominees .

[LivinLOS]

Do the Thai shareholders still need to show a money trail to prove their ability to be investors ??

[katabeachbum]

there are some projects with freehold houses for farang. they are classified as condos, even they actually are more like towhouses. Boatlagoon is one such project

Compay route still works for purchasing freehold property, but as said it should be an active (trading) company, and the 51% thai national shareholders should be genuine, IOW show a track of money to be able to by their shares at 510.000 baht. Farang managing director must have workpermit at point of purchase/register ownership, or thai managing director (to be replaced after transfer)

The active company thing is usually ignored, and if checked by government simply start trading.

[barney42bb]

Don't be so ...Far rang cannot own Jack S**T in Thailand.

Not let any swanky salesman tell you otherwise.

Come Thailand.... enjoy,Rent pay and Go always.

Better to invest in a western economy where you have rights Freehold purchase ability..and be protected by law that not only looks after the Indigenous population.

[dave30]

Don't be so ...Far rang cannot own Jack S**T in Thailand.

Not let any swanky salesman tell you otherwise.

Come Thailand.... enjoy,Rent pay and Go always.

Better to invest in a western economy where you have rights Freehold purchase ability..and be protected by law that not only looks after the Indigenous population.

Finally someone has told it how is.

This is the best advice a farang can be given before buying ( renting a home for 30 years ) in Thailand. No matter what anyone tells you Farangs CANT own land in Thailand. The only Farangs who say its a good idea to buy in Thailand are the ones who have already made a big mistake and brought ( rented for 30 years ) a home here. The are normally only saying this to try to make them selfs feel better and to try to convice themselfs that its ok. DONT LISTEN

When the 30 years lease on land ends Farangs will have no rights and the thai's that own the land will simply take it back. All Farangs no this deep down but are to scared to think about it that much.

Unless you have kids with a thai lady so YOUR ( not your wifes kids from another man ) kids have a thai passport so you can put the land 100 % in there name......

FARANGS DONT BUY A HOME IN THAILAND

Edited March 13, 2010 by dave30

[steelepulse]

Finally someone has told it how is.

This is the best advice a farang can be given before buying ( renting a home for 30 years ) in Thailand. No matter what anyone tells you Farangs CANT own land in Thailand. The only Farangs who say its a good idea to buy in Thailand are the ones who have already made a big mistake and brought ( rented for 30 years ) a home here. The are normally only saying this to try to make them selfs feel better and to try to convice themselfs that its ok. DONT LISTEN

When the 30 years lease on land ends Farangs will have no rights and the thai's that own the land will simply take it back. All Farangs no this deep down but are to scared to think about it that much.

Unless you have kids with a thai lady so YOUR ( not your wifes kids from another man ) kids have a thai passport so you can put the land 100 % in there name......

FARANGS DONT BUY A HOME IN THAILAND

So the investment of 40 million to buy land isn't true? Owning a legit Thai company that buys land also isn't true?

[dave30]

So the investment of 40 million to buy land isn't true? Owning a legit Thai company that buys land also isn't true?

Owning a legit Thai company..... but how much of that ' legit ' Thai company can a Farang own ???? 49 % so they dont really own it all. A Farang would own less than half... So how is that owning anything ??

I would love to see your 40 million baht land investment to

Just face facts. Everyone

[steelepulse]

Done. How much are you willing to put up to see it?

BTW seeing as how you didn't address the 40 million baht issue, it must be legal huh?

Edited March 13, 2010 by steelepulse

[LivinLOS]

So the investment of 40 million to buy land isn't true?

Does that really exist ?? I have asked and asked and while I have also heard the rumour no one has ever actually confirmed it.

Plenty of homes over 40m here now.

[KarenBravo]

So the investment of 40 million to buy land isn't true?

Does that really exist ?? I have asked and asked and while I have also heard the rumour no one has ever actually confirmed it.

Plenty of homes over 40m here now.

In theory, if you invest 40 million Baht in Government bonds, or, some such other investment vehicle that you can't touch, you get the right to own one rai of land (you can't use the 40 million to buy it).

Not sure if it was actually ever passed through parliament.

PS. I've been on the land/property ladder sionce 1990. Not only have I lived rent free, I've made money, too.

I've never regreted it. I know a couple of people who have been renting their house for ten to fifteen years. Both of them have now paid several multiples in rent of what their house would have cost originally had they bought.

Edited March 13, 2010 by KarenBravo

[bustersizemore]

Don't be so ...Far rang cannot own Jack S**T in Thailand.

Not let any swanky salesman tell you otherwise.

Come Thailand.... enjoy,Rent pay and Go always.

Better to invest in a western economy where you have rights Freehold purchase ability..and be protected by law that not only looks after the Indigenous population.

So true, so true!

Better to invest in another non-racist country that actually allows foreign ownership. Don't invest any more money in Thailand than you can afford to lose.

[Kimera]

Don't be so ...Far rang cannot own Jack S**T in Thailand.

Not let any swanky salesman tell you otherwise.

Come Thailand.... enjoy,Rent pay and Go always.

Better to invest in a western economy where you have rights Freehold purchase ability..and be protected by law that not only looks after the Indigenous population.

Finally someone has told it how is.

This is the best advice a farang can be given before buying ( renting a home for 30 years ) in Thailand. No matter what anyone tells you Farangs CANT own land in Thailand. The only Farangs who say its a good idea to buy in Thailand are the ones who have already made a big mistake and brought ( rented for 30 years ) a home here. The are normally only saying this to try to make them selfs feel better and to try to convice themselfs that its ok. DONT LISTEN

When the 30 years lease on land ends Farangs will have no rights and the thai's that own the land will simply take it back. All Farangs no this deep down but are to scared to think about it that much.

Unless you have kids with a thai lady so YOUR ( not your wifes kids from another man ) kids have a thai passport so you can put the land 100 % in there name......

FARANGS DONT BUY A HOME IN THAILAND

I have to ask, why do your children with a Thai wife/partner need a Thai passport? the birth cert. or their ID card if they are older, should do, they would need the BC to get their passport anyway, can you elaborate ?

[LivinLOS]

So the investment of 40 million to buy land isn't true?

Does that really exist ?? I have asked and asked and while I have also heard the rumour no one has ever actually confirmed it.

Plenty of homes over 40m here now.

In theory, if you invest 40 million Baht in Government bonds, or, some such other investment vehicle that you can't touch, you get the right to own one rai of land (you can't use the 40 million to buy it).

Not sure if it was actually ever passed through parliament.

That my point.. I heard it a bunch of times, but never been able to get details..

The money cant be used to buy the property ??

PS. I've been on the land/property ladder sionce 1990. Not only have I lived rent free, I've made money, too.

I've never regreted it. I know a couple of people who have been renting their house for ten to fifteen years. Both of them have now paid several multiples in rent of what their house would have cost originally had they bought.

I agree with an understand but one thing people who talk about the 'property ladder' miss is the time value of money.. Eg the last few years I have made 300% or so on my assets, so any 5m baht home I would have bought in 03 or 04 would have to be worth 15m baht now to be a better return than renting (and I know with some land it would be) plus I have had one wife die (would her family have done me over ??) and another house collapse 100%.. When a house is rented for 2 - 3 % of its sale value and I get 20 - 30% returns, its not the dead money that some buyers paint it.

All that said, I am now (mostly) out of my mad years, in a relationship as stable as they get with Thai girls, and its time to have a home thats mine (hers). That calculation has little to do with the money tho and everything to do with my life and lifestyle.

Edited March 14, 2010 by LivinLOS

[Valentine]

The DSI have been in Phuket recently investigating companies that have foreign shareholding, own land, & checking for nominee shareholders. I suggest anyone who is in this position make sure all your shareholders are perfectly legit & that the company actually shows it is trading. BTW comapnies with a foreign shareholder now only need a minimum of 2 Thai shareholders.

I have never liked the idea of leasing as 30 years does not secure the land if you wish to pass on to your heirs & if for investment you can only sell it for the remainder of the lease unless the landowner (who may not be the original one) agrees to change it to another 30 years at which time he will no doubt want extra compensation. The 30 +30 +30 is utter nonsense until it has been put to the test in a court of law or proceeds smoothly once the initial 30 years is up. This I have yet to see & can imagine all sorts of squabbles when the times comes.

[Naam]

Do the Thai shareholders still need to show a money trail to prove their ability to be investors ??

yes... if you believe the fairy tales spread in this forum.

[Naam]

Don't be so ...Far rang cannot own Jack S**T in Thailand. Not let any swanky salesman tell you otherwise. Come Thailand.... enjoy,Rent pay and Go always.

Better to invest in a western economy where you have rights Freehold purchase ability..and be protected by law that not only looks after the Indigenous population.

which enables you to take your property with you when they carry you to the graveyard or crematorium

[Naam]

So the investment of 40 million to buy land isn't true?

Does that really exist ?? I have asked and asked and while I have also heard the rumour no one has ever actually confirmed it.

Plenty of homes over 40m here now.

purchase of immobile property does NOT qualify!

[Naam]

Don't be so ...Far rang cannot own Jack S**T in Thailand. Not let any swanky salesman tell you otherwise. Come Thailand.... enjoy,Rent pay and Go always.

Better to invest in a western economy where you have rights Freehold purchase ability..and be protected by law that not only looks after the Indigenous population.

So true, so true! Better to invest in another non-racist country that actually allows foreign ownership. Don't invest any more money in Thailand than you can afford to lose.

yada... yada... yada... yakety yak...

[Naam]

Don't be so ...Far rang cannot own Jack S**T in Thailand.

Jack Shit Farang who has no money cannot own property in Thailand.

[Naam]

FARANGS DONT BUY A HOME IN THAILAND...

...if you don't have the dough

[markg]

I've followed this closely over the years.

Yeah i'm sure that everyone knows someone who has done a great deal and is better off cos they bought a house.

They are the minority.

Here in Phuket, the property prices are so high and the rental incomes so low that it's madness to buy (lease) a house for 30 years - though there are some exceptions. If you're old, buy a house you can afford to give away and have no kids.

If the above isnt you, then you are far better buying a house in your home country, renting here, and when you die, your kids get your house in your home country.

A good rule of thumb is that we should cast off all notions we have of the Western mentality that buying a home is a sound investment. In Thailand, it isnt.

Second hand homes just don't appreciate much in value because there are so many of them and Thai's often prefer to buy a brand new home out of superstition. If you're buying a modest, average home for less than 10million then you will have real trouble selling it in a few years.

And what if the law changes? And what if you want/need to leave here? Do you read and understand Thai law well enough to deal with this? Because if you employ a lawyer you could get expensively ripped off.

Buy a house in your home country where you understand the laws and just rent here. I've lived in the same house for over 5 years and the rent hasnt gone up and frankly, neither has the value of the house really - even if there was a market for it to be sold. Conversely, my properties in the UK are doing fine thank you very much.

[Ping]

I think markg has probably hit the nail on the head; buy a house in your home country rather than Th (or retain the one you already own) and rent it out, using the proceeds to fund your rental in Thailand. In that way, (in general terms) you keep pace with inflation/rising costs, you keep your investment on shore in your home country, ownership of your property cannot be in issue, there is next to zero chance that a governmental whim would require you to sell or lose your property, and you can safely liquidate it at any time. Yes, there can be issues such as occasions when your house will be vacant, maintenance costs (new floor covers, painting, hot water systems, etc) and the likelihood that Thailand's baht value will increase over time against many other currencies... but it is undoubtedly a better alternative to all of the problems associated with owning/leasing, etc property in Th.

No condo for me.

[KarenBravo]

There are serious income tax implications if you own and rent a house in your home country.

For me, the best reason to buy a house is because you want to live there for a very long time.

I bought the land and had a place built to my own design; that's another (small) advantage.

[Tanaka]

There are serious income tax implications if you own and rent a house in your home country.

For me, the best reason to buy a house is because you want to live there for a very long time.

I bought the land and had a place built to my own design; that's another (small) advantage.

You bought the land? Are you lying to yourself or to the readers?

[LiveSteam]

I wouldn't buy any land if I were you because you never own it. I had bought many pieces of land here in Phuket (in wife's and Mother in Law name) only to get ripped off by my wife of 18 years. The company route wasn't much better after I used this method the tax man puts foreign owned companies under the microscope and I had to pay over 30% capital gains and 10% on the dividend that was left over. They keep files of the price you are selling it for so it's hard to cheat like the Thai's, sorry to say but it's GET Whitey here!

Keep them honest (more or less) get a registered lease. I really don't have faith in these either because if a Thai wants you out they know how to do it.

LiveSteam

[petercallen]

There are serious income tax implications if you own and rent a house in your home country.

For me, the best reason to buy a house is because you want to live there for a very long time.

I bought the land and had a place built to my own design; that's another (small) advantage.

In my home country if you buy an investment property the rent after deductions(maintenance, rates etc) is added to your taxable income.

Also capital gains are taxable when you sell the property.

If you purchase a house for yourself there is no capital gains tax and no problems.

I would only like to buy and own a house and land in Thailand, i am not an investor buying up tracts of valuable land to make a profit, in

most country's you are allowed to own a home and the land it sits on if you live there long term.

After all you cannot pack it in your bag and take it with you if you leave, hopefully the government will change the law in the future so

people who spend there retirement in Thailand can buy up to 1000sm of land.

As far as i can see the is no legal way for anyone who is not a Thai national to own land in Thailand

[LivinLOS]

So the investment of 40 million to buy land isn't true?

Does that really exist ?? I have asked and asked and while I have also heard the rumour no one has ever actually confirmed it.

Plenty of homes over 40m here now.

purchase of immobile property does NOT qualify!

So 40m into Thai bonds and you CAN buy one rai in a farang name ??

How long must it stay in those bonds ??

[Sabre]

So the investment of 40 million to buy land isn't true? Owning a legit Thai company that buys land also isn't true?

Yes, the USD40 million rule is true - but nobody has ever taken advantage of it. (wonder why)

Depends on what you call 'legit'. A company that exists just so that a farang can own something, contrary to the law, is probably not 'legit'.