Can I Buy Only Land (chantote) For Future Building

[HH seeker]

Hi guys,

Ik will be in Thailand in about 2 weeks and i am serious for buying a property overthere. My goal is to buy a property, live with my family for about a month in it each yeay and rent it out for the rest of the year(high season). Because i am renting it out, it is some kind of business so i can set op a limited company for buying the property and pay tax later over the income.

However i saw a piece of land for sale (1 rai 2.5M) and was thinking of buying it and when i have saved enough money to put a house on it. Now the question! Is it possible to buy only the land (chanote) and use the limited company construction for buying it. Later (4 a 5 years) i will put the house on it (i am not in a hurry). This way i don't do any business (renting out) and only use the limited company contruction for buying the land. Is this legal????

Furthermore is this wise to do. Only buying land and never look at it for about 5 years? Hope to get an answer here. Many thanks in advance

Regards Peter

[Thaipwriter]

Hi guys,

Ik will be in Thailand in about 2 weeks and i am serious for buying a property overthere. My goal is to buy a property, live with my family for about a month in it each yeay and rent it out for the rest of the year(high season). Because i am renting it out, it is some kind of business so i can set op a limited company for  buying the property and pay tax later over the income.

However i saw a piece of land for sale (1 rai 2.5M) and was thinking of buying it and when i have saved enough money to put a house on it. Now the question!  Is it possible to buy only the land (chanote)  and use the limited company construction for buying it. Later (4 a 5 years) i will put the house on it (i am not in a hurry). This way i don't do any business (renting out) and only use the limited company contruction for buying the land. Is this legal????

Furthermore is this wise to do. Only buying land and never look at it for about 5 years? Hope to get an answer here.  Many thanks in advance

Regards Peter

Hi Peter

The answer to the main question is yes you can buy land and do nothing with it for 5 years.

One thing you need to be aware of is the changing of zoning in areas like Samui and Phuket, some areas are being re-classified and building could be restricted or ruled out. You quoted a price of 2.5 million per rai, i am guessing that you are talking about an island or a popular location?

The limited company route is a safe way hold the title, you will have to operate the company properly each year and pay tax and submit audits and tax returns. please dont be under the impression that you can set up a company and do no trading....this can lead to problems.

Dont forget that inflation is 6-7 % and the goverment subsidises certain construction materials at the moment...all this could change soon and your building expense may be a lot higher than it is now.

Also consider that future values of real estate here in Thailand are not gauranteed to increase. I deal with many cases of folks that have designed and built their own dream home, only to find that it cannot be sold because finding somebody to buy into their vision is impossible, many cannot even get their outlay back, let alone making a profit.

Your idea sounds really nice but hundreds of other folks have the same idea and your property will be just one amongst them. The market place is littered with unrented homes, Phuket is full of them right now.

Your money would be better spent on renting one of these other homes for one month each year and forgetting about your ownership plan, the follow through costs and risks are just not in your favour.

Use the search function to learn more, try keywords like "land" "lease" "company" etc.

Sorry to sound negative, but the above is the harsh reality IMHO

[Dragonman]

Hi guys,

Ik will be in Thailand in about 2 weeks and i am serious for buying a property overthere. My goal is to buy a property, live with my family for about a month in it each yeay and rent it out for the rest of the year(high season). Because i am renting it out, it is some kind of business so i can set op a limited company for  buying the property and pay tax later over the income.

However i saw a piece of land for sale (1 rai 2.5M) and was thinking of buying it and when i have saved enough money to put a house on it. Now the question!  Is it possible to buy only the land (chanote)  and use the limited company construction for buying it. Later (4 a 5 years) i will put the house on it (i am not in a hurry). This way i don't do any business (renting out) and only use the limited company contruction for buying the land. Is this legal????

Furthermore is this wise to do. Only buying land and never look at it for about 5 years? Hope to get an answer here.  Many thanks in advance

Regards Peter

<{POST_SNAPBACK}>

Hi Peter

The answer to the main question is yes you can buy land and do nothing with it for 5 years.

One thing you need to be aware of is the changing of zoning in areas like Samui and Phuket, some areas are being re-classified and building could be restricted or ruled out. You quoted a price of 2.5 million per rai, i am guessing that you are talking about an island or a popular location?

The limited company route is a safe way hold the title, you will have to operate the company properly each year and pay tax and submit audits and tax returns. please dont be under the impression that you can set up a company and do no trading....this can lead to problems.

Dont forget that inflation is 6-7 % and the goverment subsidises certain construction materials at the moment...all this could change soon and your building expense may be a lot higher than it is now.

Also consider that future values of real estate here in Thailand are not gauranteed to increase. I deal with many cases of folks that have designed and built their own dream home, only to find that it cannot be sold because finding somebody to buy into their vision is impossible, many cannot even get their outlay back, let alone making a profit.

Your idea sounds really nice but hundreds of other folks have the same idea and your property will be just one amongst them. The market place is littered with unrented homes, Phuket is full of them right now.

Your money would be better spent on renting one of these other homes for one month each year and forgetting about your ownership plan, the follow through costs and risks are just not in your favour.

Use the search function to learn more, try keywords like "land" "lease" "company" etc.

Sorry to sound negative, but the above is the harsh reality IMHO

<{POST_SNAPBACK}>

Have to agree with Thaip. Unless you are going to stay here for 6 months a year or are going to move here permanently I do not see the viability in your proposal. Why are you going to the luxury end of the market when you only intend limited stays? You could buy a house and land for 2.5 million and make quick rentals as well as having a holiday home.

[HH seeker]

Thanks Thaip an Dragonman for your reply,

Yes the land is on a popular location south of Hua Hin. I agree with you that buildingcosts will be higher in the future, like anywhere in the world. And agree also that a house personally build won't sell as easy as a house build in a project.

Furthermore building a house requires for me that I will be there during the time the house is build. As i am 38 at the moment and working full time that means to take a sabatical for a year.

Still thinking of buying a house and land in a gated community. The property area will be maintained, also security is important during my absence. I like the communual faciltities like a pool, clubhouse, kindergarden etc. In my opinion these houses are good for renting out to people like me who don't like hotels anymore because of the 2 children. I was thinking of renting out the property for approx. 3 to 4 month a year (november till March) and live in it for a month in july/august. When (my wife and i) are retired we wanna live there for half a year (november till May).

The reason of buying a property now is that we think when we are retired we no longer can afford it because of the higher prices. Nobody can look in the future but IMHO i think Thailand (visit it 8 times during a period of 13 years) is now rapidly changes in a modern land. Prices will rise, what do you think?

I like all sort of comments so don' t try being polite to me :-)

Are there really so many unrented house at the moment? or is it different is a gated community????

Kind Regards Peter

Hi guys,

Ik will be in Thailand in about 2 weeks and i am serious for buying a property overthere. My goal is to buy a property, live with my family for about a month in it each yeay and rent it out for the rest of the year(high season). Because i am renting it out, it is some kind of business so i can set op a limited company for  buying the property and pay tax later over the income.

However i saw a piece of land for sale (1 rai 2.5M) and was thinking of buying it and when i have saved enough money to put a house on it. Now the question!  Is it possible to buy only the land (chanote)  and use the limited company construction for buying it. Later (4 a 5 years) i will put the house on it (i am not in a hurry). This way i don't do any business (renting out) and only use the limited company contruction for buying the land. Is this legal????

Furthermore is this wise to do. Only buying land and never look at it for about 5 years? Hope to get an answer here.  Many thanks in advance

Regards Peter

Hi Peter

The answer to the main question is yes you can buy land and do nothing with it for 5 years.

One thing you need to be aware of is the changing of zoning in areas like Samui and Phuket, some areas are being re-classified and building could be restricted or ruled out. You quoted a price of 2.5 million per rai, i am guessing that you are talking about an island or a popular location?

The limited company route is a safe way hold the title, you will have to operate the company properly each year and pay tax and submit audits and tax returns. please dont be under the impression that you can set up a company and do no trading....this can lead to problems.

Dont forget that inflation is 6-7 % and the goverment subsidises certain construction materials at the moment...all this could change soon and your building expense may be a lot higher than it is now.

Also consider that future values of real estate here in Thailand are not gauranteed to increase. I deal with many cases of folks that have designed and built their own dream home, only to find that it cannot be sold because finding somebody to buy into their vision is impossible, many cannot even get their outlay back, let alone making a profit.

Your idea sounds really nice but hundreds of other folks have the same idea and your property will be just one amongst them. The market place is littered with unrented homes, Phuket is full of them right now.

Your money would be better spent on renting one of these other homes for one month each year and forgetting about your ownership plan, the follow through costs and risks are just not in your favour.

Use the search function to learn more, try keywords like "land" "lease" "company" etc.

Sorry to sound negative, but the above is the harsh reality IMHO

Have to agree with Thaip. Unless you are going to stay here for 6 months a year or are going to move here permanently I do not see the viability in your proposal. Why are you going to the luxury end of the market when you only intend limited stays? You could buy a house and land for 2.5 million and make quick rentals as well as having a holiday home.

[Thaipwriter]

Hi Peter

You may have already seen this website, http://www.huahin-property.com/

Before i decided to live in Khon Kaen, i did a lot of searching around and Hua Hin came a close second.....(i may re-locate there soon).

I made many enquiries about properties listed on this site and the service i was offered was prompt and proffessional. English and Thai team run it.

They have loads of finished homes and can handle the rental and maintainance of the property in your absence. It really makes sense to buy a finished property under your circumstances.

With regard to prices rising, yes they will. This does not mean that the salability and value of your 5 year old home will rise accordingly.

Supply outstrips demand in Thailand, Thai's dont buy second hand homes.

If your home is in superb condition but the one next door is shabby and has noisy dogs, how much is it going to be worth, who will buy it.....or even rent it?

My best advice would to come here and rent and watch the market in your chosen location for a couple of years, look to see what happens to rental prices and quality and availability of properties. then make a desicion.

Dont forget that properly maintaining your Thai company will cost you at least 70,000 baht per year. 4 months rental income might give you 80,000 baht.

Rent what you need, when you need it, where you need it. This is the way to go in Thailand........did i mention that i sell houses here for a "living"?