Villa/house Ownersip

[Dragonman]

In theory yes. However options do not have the legal status of a formal lease. I never same across an option I could not have nullified when I worked in property law in Uk. Thailand probably even easier.

Yes, I can quite see that this is possible.

I have recently had problems in Uk due to a badly written document ( written by a lawyer, who was paid for his incompetence)

That cost me £27,000 in all.

I no longer trust the legal system in Uk and certainly would not put too much faith in it in Thailand.

I can imagine it quite possible that a clever lawyer could get around a farang's bogus company property ownership as well. Has this ever been tried?

<{POST_SNAPBACK}>

I would have checked it for free. Most of my pro bono cases were taking on idiot lawyers

Haven't heard of anyone questioning the company system in Court. Yet! I suppose they'd have to have a very good reason to do so, as the lawyer in question wouldn't be too popular

[Lazy Sod]

On the much discussed topic of buying in the spouse's name vs company name. I've been here a long time and I've heard of many many cases of the foreigner losing everything when a house is bought under the spouse's name, but I've never heard of the foreigner losing everything when he buys using the company method. Neither method is ideal, but the statistics favour the company route in my opinion.

[sadako]

Hmmmm , interesting point there sir , that is definitely the way to go if you have sufficient funds to afford a decent property to rent out in the UK , then accept the money in Thailand , but unfortunately I dont . My fortune for trying is around 4.5 million baht ( £ 65,000 ) . 1.4 of that is already gone on a condo and furnishings in BKK . That leaves me with about 3 + for another investment property next year good enough to provide a fair rental return while I search for jobs , other business etc ......£ 65,000 wont get me much of a property worth renting here where I live Im afraid ! But in Thailand it goes a long way . That is why I originally started the subject related to the ownership for a house / villa . Hmmmmmm , company route seems favourable , I wonder if I can transfer to my girl's name later ....think Ill go and have a look at the " married to a Thai " posts now ......hee he

Hi.

I'm new to this forum, but have about 24 years experience in and out of Thailand and years of business experience, including international investment expertise.  On the subject of a foreigner owing land for investment purposes in Thailand, I just spoke with a Thai attorney in Chiang Mai on the subject.  Basically, after her counsel, the best strategy (for guys like me) is to rent in Thailand, investing your money in real estate in your country.

If you are from the US, for example, in certain markets real estate jumps in price every year (so it seems!).  You are much better off purchasing property in the US, renting out the property, and living in Thailand on the equity as your property in the US rises in value.

Having said that, real estate is market driven.  In Thailand, foreigners are disadvantaged in the Thai market place (the laws are written to make it so), and supply greatly out numbers demand.  Hence, for most purposes, you are better to keep your investments in your mother country and rent in Thailand. 

This strategy was confirmed by my very capable Thai attorney who represents many farangs in Chiang Mai.  Most have very sad stories about their investment experience(s) in Thailand, as you, as a foreiger, are significantly disadvanged in the marketplace in Thailand.  Invest where you are not a disadvanaged farang and be happy!

The best overall strategy is to keep as little as your money in Thailand as possible, or, as someone said, only money you are willing to walk away from. 

If you wish to retire in Thailand, and want to own vis-a-vis rent, that is another story, but even in this case, renting with your retirement money invested in your home country is a safer, less risky strategy.  If, on the other hand, you simply want to buy a condo, go ahead, but make sure you have your financial goals outlined before jumping in, and consult a Thai attorney with your goals in mind.

<{POST_SNAPBACK}>

[Thaipwriter]

Hi.

I'm new to this forum, but have about 24 years experience in and out of Thailand and years of business experience, including international investment expertise.  On the subject of a foreigner owing land for investment purposes in Thailand, I just spoke with a Thai attorney in Chiang Mai on the subject.  Basically, after her counsel, the best strategy (for guys like me) is to rent in Thailand, investing your money in real estate in your country.

If you are from the US, for example, in certain markets real estate jumps in price every year (so it seems!).  You are much better off purchasing property in the US, renting out the property, and living in Thailand on the equity as your property in the US rises in value.

Having said that, real estate is market driven.  In Thailand, foreigners are disadvantaged in the Thai market place (the laws are written to make it so), and supply greatly out numbers demand.  Hence, for most purposes, you are better to keep your investments in your mother country and rent in Thailand. 

This strategy was confirmed by my very capable Thai attorney who represents many farangs in Chiang Mai.  Most have very sad stories about their investment experience(s) in Thailand, as you, as a foreiger, are significantly disadvanged in the marketplace in Thailand.  Invest where you are not a disadvanaged farang and be happy!

The best overall strategy is to keep as little as your money in Thailand as possible, or, as someone said, only money you are willing to walk away from. 

If you wish to retire in Thailand, and want to own vis-a-vis rent, that is another story, but even in this case, renting with your retirement money invested in your home country is a safer, less risky strategy.  If, on the other hand, you simply want to buy a condo, go ahead, but make sure you have your financial goals outlined before jumping in, and consult a Thai attorney with your goals in mind.

Mr Farang

Welcome to the forum. This is a solid post and your first post too. good on ya

Your observation about supply outstripping demand is absolutley spot on, residual values of property here can be very flaky indeed.

Richard

[Dragonman]

On the much discussed topic of buying in the spouse's name vs company name. I've been here a long time and I've heard of many many cases of the foreigner losing everything when a house is bought under the spouse's name, but I've never heard of the foreigner losing everything when he buys using the company method. Neither method is ideal, but the statistics favour the company route in my opinion.

<{POST_SNAPBACK}>

As long as the Company is not bogus there is nothing to worry about

If the wife is not bogus you have nothing to worry about.

[NotaNutter]

I assume by mean "bogus" you mean the company is only set-up to buy a house. But even if it is "bogus", I also have never heard of anyone losing a house because it has been bought using a company.

[Dragonman]

I assume by mean "bogus" you mean the company is only set-up to buy a house. But even if it is "bogus", I also have never heard of anyone losing a house because it has been bought using a company.

<{POST_SNAPBACK}>

May not have heard of anyone losing as yet, but does not make the situation any more legitimate and the situation can change instantly without any new legislation.

You make your own decision whether to take the risk.

[Sumitr Man]

I have heard of a couple of cases in Phataya where the lawyer who set up the company did the dirty.

I have to agree I have not heard, as yet, of any government action.

SM

[Mr. Farang]

Hmmmm , interesting point there sir ,  that is definitely the way to go if you have sufficient funds to afford a decent property to rent out in the UK , then accept the money in Thailand , but unfortunately I dont . My fortune for trying is around 4.5 million baht ( £ 65,000 ) . 1.4 of that is already gone on a condo and furnishings in BKK . That leaves me with about 3 + for another investment property next year good enough to provide a fair rental return while I search for jobs , other business etc ......£ 65,000 wont get me much of a property worth renting here where I live Im afraid ! But in Thailand it goes a long way . That is why I originally started the subject related to the ownership for a house / villa . Hmmmmmm , company route seems favourable , I wonder if I can transfer to my girl's name later ....think Ill go and have a look at the " married to a Thai " posts now ......hee he

<{POST_SNAPBACK}>

Dear Sadako,

In reply, just to be complete, in high income producing real estate in the US, many people rent homes for less than their mortgage payments, but make money on the increase in equity. Hence, if you have 65k pounds sterling, you can purchase a nice equity building property for around 1/2 that amount of working capital. In the US, popular are 80/10/10 loans, with 10 percent down, a second (HELOC - home equity line of credit) trust of 10 percent and an 80 percent first trust, interest only, 5 year adjustable, fixed for the first 5 years (refinance later!).

Therefore, in your position, you can buy a nice equity building property down for about 70K USD (in the US), in a hot market like Northern Virginia - DC, and build equity on a $700K property. The increase in equity provides more than enough capital out with HELOC to rent a nice place in Thailand.

Another point, I kindly recommend you do not put your hard earned UK 65,000 pounds sterling in Thailand, under any circumstances. All advisors counsel against this strategy - and there are thousands of stories of very depressed farangs in Thailand who, after the passion of the relationship with your lovely Thai female wanes, find themselves a stranger-in-a-strange-land, and the laws and customs (and language) are not favorable to you.

All advisors who really have your concern at heart will advise you to invest in your country (the UK) or the US, and rent in Thailand. This is a safe, low risk strategy which you will be well advised to follow. Many advise to only move money to Thailand you are happy to "walk away from" - - as in playing slots in Las Vegas or Monaco. Please think carefully (not with your passion and your heart - but with solid financial advise from professionals) before moving your life fortune to property (or otherwise) in Thailand - - 65K sterling seems to be your onlyl nest egg.

Your Friend,

Mr. Farang

[Mr. Farang]

Dear Sakado,

On second thought, if your mind is made up on investing in Thailand, perhaps you could benefit from buying a company brokered by SunBelt:

http://www.sunbeltnetwork.com

I have been browsing the different businesses for sale (in Thailand) section of SunBelt and was impressed with the quality of the businesses for sale in their portfolio.

As always, due dilgence is critical to success. Perform your due diligence before buying any company.

Yours sincerely,

Mr. Farang

[COBBER]

Hmmmm , interesting point there sir , that is definitely the way to go if you have sufficient funds to afford a decent property to rent out in the UK , then accept the money in Thailand , but unfortunately I dont . My fortune for trying is around 4.5 million baht ( £ 65,000 ) . 1.4 of that is already gone on a condo and furnishings in BKK . That leaves me with about 3 + for another investment property next year good enough to provide a fair rental return while I search for jobs , other business etc ......£ 65,000 wont get me much of a property worth renting here where I live Im afraid ! But in Thailand it goes a long way . That is why I originally started the subject related to the ownership for a house / villa . Hmmmmmm , company route seems favourable , I wonder if I can transfer to my girl's name later ....think Ill go and have a look at the " married to a Thai " posts now ......hee he

A neighbour recently changed his house ownership from Company to t/w name and the transfer fee was 70000 baht. This was for a house worth around 2mil. baht that the company had owned for 2 years.