Thailand triumphs in UN Human Rights council bid

[Mermaid53]

I am considering going into partnership with a Thai man who already has units off Nai thon beach which he owes the bank for and wants to build more on a seperate block of land that is willed to his wife. I emailed the law firm and they charge 5,000 baht an hour with 7% VAT for an hour phone consult. I am willing to pay for the advice and am wondering about the VAT. Anyway, after reading up on a lot of the Thai law which is confusing to say the least it would look like it is a risky venture to go into a partnership. He says he will offer me one unit to live in when I want to move over there and retire. He says each unit will cost around 4,000 Aus to build. He says he does not want to go into a company type agreement due to the necessity of having a statement every year of earnings etc. He says I would have a percentage of the partnership; obviously with his wife. He says he has plans done up already for the units which are basically like a free standing little motel room.

what do you think about this as I met him while on holiday and he seemed quite genuine enough and was very polite and appropriate towards me. Saying that, I am not stupid enough to be sucked in but just wanted to get some feedback from you guys as you do live there and know the Thai's better than I do. thank you for any input or feedback.

[Musongman]

In general, Thais are risky to trust, in business, Thais absolutely cannot be trusted!!( or farang ex-pats for that matter) IMO.

[Mermaid53]

goodness me that sounds awful! is there no hope in Thailand? I must admit I was excited at first by the offer but did talk to some south african folk who set up a company, bought thier own land and built their own house, sounds like that would be the way to go as what was offered me could go sour down the track and I would be left high and dry.

thanks for the comments.

[Morden]

I would never put money into a business that I could not stand over and be involved in - Thailand or anywhere.

You know, I assume, that you won't own the land on which the business operates. The 'partnership' won't own land either. Some of it doesn't even belong to the Thai 'businessman'. Assume that any money you spend on the land or buildings will be lost if the business fails or the partnership is dissolved - or your partner is never around when you call.

There was a thread recently started by someone who was offered a similar deal on Koh Chang. In that case there was not even a chanoot for the land.

I could go on, but you get my drift. In short, don't even dream about it.

By the way, ask the South African folk to show you the deeds for their land and point out there names on it. I'm willing to bet that they don't own any land.

[richardt1808]

Couldn't agree more with all the comments above. <div><br></div><div>It's all very risky - especially the part where your prospective partner doesn't want a company type agreement because of the tax and annual financial reporting requirements. Every legitimate business here manages to submit reports and pay taxes. Actually, the tax system in Thailand is very favourable in general and with some good planning, a lot of unnecessary taxes can be avoided, so it is a crummy excuse and definitely a LARGE red flag.  Judging by the loads of stories on this forum about people getting ripped of in lesser ventures than this, I would say that you can safely save the 5000 Baht consultancy fee and politely decline the offer.  Thai law, however complex, cannot protect you from an investment which is not legal in the first place. </div><div><br></div><div>Here are the facts: one, foreigners cannot own land here. Two: even if you bought shares in a legitimate company, you would at best own only 49% of it, so you have zero control over what is done because the majority shareholders will be the juristic authority.   Three: even If you are investing in an illegitimate 'company' the only protection you have, is the word of your partner. Four: even if you have an ironclad contract, you also need to check out the stories of recent assassinations of partners in property businesses in several cities in Thailand, which would confirm that nothing is guaranteed and no method is off limits when it comes to partners protecting their investments. </div><div><br></div><div><br></div><div><br></div><div><br></div>

[Mermaid53]

thanks for the inputB) He told me he approached a German guy not so long ago and he never heard back from him; funny that; I'd say he wised up too.

I also am thinking about teaching English and wondering if any of you know of anyone who has done this?

Edited July 19, 2010 by Mermaid53

[Naam]

thanks for the inputB) He told me he approached a German guy not so long ago and he never heard back from him; funny that; I'd say he wised up too.

the German must have realised that for 4,000 aussie dollars one can build a nice doghouse but not a "unit" for human beings to live in.

[Democrat]

Mermaid there are ways of owning a house or condo in thailand. It will cost you a bit more than 4,000 though. If someone sets up an approved project of houses or condos e.g. 100 houses, they sell 51 houses to thai nationals, and 49 to people from other countries. That gives the 51%/49% ratio required for owning land. This way you can have the house in your own name. If you google owning property in Thailand, you will get some helpful hints.

[Mermaid53]

thanks for the reply. the 4,000 Aus was for one unit; my share I guess. this was a very rough estimate could be much more by the time the whole thing is done.

He is doing 6 units. I have ordered a book from Siam Publishers which explains the investing laws and quirks in Thailand.

cheers

Mermaid:jap:

[Naam]

thanks for the reply. the 4,000 Aus was for one unit; my share I guess. this was a very rough estimate could be much more by the time the whole thing is done.

He is doing 6 units. I have ordered a book from Siam Publishers which explains the investing laws and quirks in Thailand.

cheers

Mermaid:jap:

are you one of those who are born every minute?

[IMA_FARANG]

Don't just walk away fast...RUN AWAY as fast as you can. You will only end up losing any money you "invest" in the partnership. Consider this:

1. A foriegner (non Thai) cannot own land in Thailand by Thai law.

2. By Thai law any company, partnership, etc (whatever they call it) must be no more than 49 percent owned by non-Thais...so the Thai partners will own 51 percent...a controlling interest.

3. A common scam is for the "partnership" to find some reason to "need money" for further investment. The 51 percent "controlling interest" (the Thai partners) will send you a request for your "share" of the money required for this further investment opportunity. If you don't/can't/won't pay, you will lose the money you have already "invested" with your Thai partner.

4. The Thai man's desire not to "have to bother" with an signed legal partnership deal is very suspicious. Sounds like he doesn't want any legal paperwork...so when he turns the screws on you for more money ("a great investment opportunity if you act quickly") there will be nothing but a worthless verbal agreement with you to protect what you have already invested.

In short...run away...as fast as you can. If it isn't on paper and signed any agreement is worthless. Even if there is a signed agreement remember...by Thai law you CAN'T OWN the land. (Yes, you can lease the land from the Thai owners/company/partnership...but because a foriegner can't own land in Thailand the owners/company/partnership will always stiil be the owner of the land.)