Anyone have any advice/experience regarding leasing land to build an office on? (vs. buying the land outright). Obviously it would be a lot cheaper to lease, but wondering what if any pitfalls may come with leasing. Thanks.

One of the pitfalls is that for a company it's easier to secure bank loans if the company owns real stuff. if they don't even own the land that the building sits on, that will make matters more difficult. Banks here don't go for fancy business plans or even proven results, they want bricks & mortar into ground that you own.

This applies even to getting an overdraft account at a bank to help your cash flow..

Edited February 6, 201115 yr by WinnieTheKhwai

Lease 30 years or buy freehold, the land price is the same!

To own land in your name in Thailand you need to register a Thai Limited Company, or your wife can own the land and you own the buildings sitting on the land. Eventually you can get a USUFRUCT (similar to a life-time lease) on the land.

Finally you can invest 40 million THB in Thailand and you get the right to own 1 rai of land in your name. This requires you set up a BOI (Board of Investment).

> This requires you set up a BOI (Board of Investment).

I'd word that as "Acquire BOI approval for your company." It involves doing a business plan and sending it in for approval. (Possibly some meetings are required)

One of the pitfalls is that for a company it's easier to secure bank loans if the company owns real stuff. if they don't even own the land that the building sits on, that will make matters more difficult. Banks here don't go for fancy business plans or even proven results, they want bricks & mortar into ground that you own.

This applies even to getting an overdraft account at a bank to help your cash flow..

Sounds like it may make the most sense to buy outright, partly as an investment as well since land prices seem to be going up in general. Thanks for your comments.

Lease price on a 30 year lease should be around 70% of the current market value. The lease payment is payable upfront. You do not want to do a Usufruct lease (even those almost all lawyers in CM will steer you down this path) as it only gives you the rights to the land for 30 years. YOu don't have the right to sell your leasehold rights. If you do a lease do a 30 year lease with the option to sell, convey, or give your leasehold rights to anyone you desire without owner's approval.

Better yet, form a company and have the company buy it. Make sure you have complete control of the company. There are a few lawyers that can steer you on how to do this properly - most won't. Most will want you to do a usufruct lease with them as the owner. Some of the best thieves I've met have been lawyers, both here and at home. I would suggest that you go and talk to several lawyers to get a feel for pricing and how exactly they would do it for you so you have complete - not partial - control.

Lease price on a 30 year lease should be around 70% of the current market value. The lease payment is payable upfront. You do not want to do a Usufruct lease (even those almost all lawyers in CM will steer you down this path) as it only gives you the rights to the land for 30 years. YOu don't have the right to sell your leasehold rights. If you do a lease do a 30 year lease with the option to sell, convey, or give your leasehold rights to anyone you desire without owner's approval.

Better yet, form a company and have the company buy it. Make sure you have complete control of the company. There are a few lawyers that can steer you on how to do this properly - most won't. Most will want you to do a usufruct lease with them as the owner. Some of the best thieves I've met have been lawyers, both here and at home. I would suggest that you go and talk to several lawyers to get a feel for pricing and how exactly they would do it for you so you have complete - not partial - control.

That's great advice, thanks. Mainly I'm considering the financial issues of lease vs. buy, not the land ownership legalities, as my wife can purchase outright if the price is right. For now it's more of an issue of the lease being less of an upfront cost, so I'd have more cash for building and outfitting the office. But I'd need to figure out what happens with the building once the lease expires, i.e. can I sell it etc.

"Lease price on a 30 year lease should be around 70% of the current market value.".....well...."should be".....but the reaity it often somewhat else than "should be"....it's entirely up to the owner/seller what he/she want......

"What happens with the building once the lease expiries?"....either you can be lucky to sell it to the land owner, or you can remove every bit of the construction and re-build it on another plot....or just accept that when the lease expires, all the buildings on the land will belong to the owner of the land!

But you can also get a 30+30 years lease = 60 years legally.

The first 30 years lease agreement registered at the land office will contain an option of renewal for another 30 years.

If you die in the meanwhile, your children or relatives can inherit the lease.