Property Investment

[Swelters]

In my view all of the posts here are worth studying, many but not all reflect the various experiences good and bad that people have had here. Some people have ended up in Thailand because they lost a lot of money back home in various risky investments, so risk is not confined to Thailand.

Property prices and investment returns can be a bargain here because of the limited market.

The company route is complicated and introduces headaches and possible abuses but has worked for some for many years. But if you approach it only as a "technique" to control land in Thailand you are skirting the intent of Thai law that permits such an arrangement.

The relationship with a Thai partner is central in most cases, and this has to do with the integrity, intent, and stability of both parties.

[thaigene2]

The Government announced in I believe April 2001 that it was aware of alien purchase of property through vicarious means and would be looking into the matter. Nothing has happened since!

The Thai government made this public announcement to restate 'on the record' that foreigners cannot own property through companies formed for that purpose. It doesn't get much clearer than that. How do you know nothing's happened Dragonman? Thais walk slowly too..but it's often said that 'slow and steady wins the race.'

As others have said, the Thai Govt could come down like a tonne of bricks on this sort of thing...and I think they are preparing to do just that. They've warned us.

As for those trying to reassure themselves that Thailand wouldn't want to spook foreign investors by cracking down on those owning property illegally. Are you kidding??

Hadn't you noticed that fleecing foreigners here - especially farang - is a national sport? Besides they've basically shifted their gaze to China and other east asian sources of future investment. They don't care about the farangs anymore, and in fact have been chasing out the poorer ones..Look at other posts of these older guys retired here with meager sources of income..they can't afford to stay because they're expected to have monthly foreign pension incomes double the monthly SALARY of a thai professional! Thailand economically powerful chinese-thai community wants us to bring - and leave - our foreign cah here. But they don't want us staying here and competing with them (and their businesses). That's the cold hard truth of it..

[silk123]

Does the bubble look like bursting this year, what with the familiar Birthday speech and Taksin selling of shin corp and

Does the bubble look like bursting this year, what with the familiar Birthday speech and Taksin selling of shin corp and

This won't post. maybe if i delete that.

[Dragonman]

The Government announced in I believe April 2001 that it was aware of alien purchase of property through vicarious means and would be looking into the matter. Nothing has happened since!

The Thai government made this public announcement to restate 'on the record' that foreigners cannot own property through companies formed for that purpose. It doesn't get much clearer than that. How do you know nothing's happened Dragonman? Thais walk slowly too..but it's often said that 'slow and steady wins the race.'

As others have said, the Thai Govt could come down like a tonne of bricks on this sort of thing...and I think they are preparing to do just that. They've warned us.

As for those trying to reassure themselves that Thailand wouldn't want to spook foreign investors by cracking down on those owning property illegally. Are you kidding??

Hadn't you noticed that fleecing foreigners here - especially farang - is a national sport? Besides they've basically shifted their gaze to China and other east asian sources of future investment. They don't care about the farangs anymore, and in fact have been chasing out the poorer ones..Look at other posts of these older guys retired here with meager sources of income..they can't afford to stay because they're expected to have monthly foreign pension incomes double the monthly SALARY of a thai professional! Thailand economically powerful chinese-thai community wants us to bring - and leave - our foreign cah here. But they don't want us staying here and competing with them (and their businesses). That's the cold hard truth of it..

I see no evidence to date of any hardening of the situation since the Government's statement. In fact what has happened is even a softening by the Land Department, who now, from recent information on this forum, do not even investigate Companies with foreign ownership of 49%!

There may be a change with the new Minister of Interior, but I am sure there will be warnings of such intent.

[roamer]

If you are Thai and you own property...no problem.

If you are farang...........well decide which of the posts you want to bet your money on.

Some of us are farangs married to a Thai and have to make a choice between trusting the wife &Thai legislation now and in the future.

I pick the wife.

[sleepyjohn]

If you are farang...........well decide which of the posts you want to bet your money on.

Some of us are farangs married to a Thai and have to make a choice between trusting the wife &Thai legislation now and in the future.

I pick the wife.

I DON'T pick the wife!

If the average reader here did they've got about a 50% chance of retaining ownership of your house, not necessarily through their wife's fault I might add. Of course you know your wife better than any of us, and good luck.

I however do tend to agree with Skip about the negativity in this thread.

I am in the situation of deciding and putting my money on the line right now...and I can't afford to throw it away.

Looking at the evidence I have decided.....

Has there been a problem yet?

I have a friend who went through developing four houses over many years, and he had great homes and made a bit of money and had no fatal hassle with any of them. I have in fact never heard of a problem with the company method.

Is there going to be a problem?

Common sense says absolutely not. All policymakers in this country, as well as people of influence on a local level, own property and land. Thaksin has had land agents scouring the country and buying a land bank I hear. So are they going to create a pullout and cut their own throats? Yeah right. The only possibility would be to scare the foreigners to get the price down whilst buying more. But legislation that would depress the market for a decade at least? Never. House prices are like traffic....you only need a few less to make a lot less traffic jams or a lot lower prices.

I might add that there's a right way to do these things.

When you have your land...be a good citizen. Pay the pooyaybahn to supply you with one or two of your requirements....he won't expect fortunes. Contribute to the new roof on the wat....a few thousand baht will be remembered and hey you're helping out as you should do. Try to buy where you have contacts and friends. Treat any staff well. Be respectful and you'll be respected.

I hope it works out for me.

QUESTION: I believe if the worst ever comes to the worst the house gets auctioned or something or a forced sale happens so actually you get your money back anyway....or is that true? Anyone can provide any info? Thanx.

Edited February 5, 2006 by sleepyjohn

[Dragonman]

If you are farang...........well decide which of the posts you want to bet your money on.

Some of us are farangs married to a Thai and have to make a choice between trusting the wife &Thai legislation now and in the future.

I pick the wife.

I DON'T pick the wife!

If the average reader here did they've got about a 50% chance of retaining ownership of your house, not necessarily through their wife's fault I might add. Of course you know your wife better than any of us, and good luck.

I however do tend to agree with Skip about the negativity in this thread.

I am in the situation of deciding and putting my money on the line right now...and I can't afford to throw it away.

Looking at the evidence I have decided.....

Has there been a problem yet?

I have a friend who went through developing four houses over many years, and he had great homes and made a bit of money and had no fatal hassle with any of them. I have in fact never heard of a problem with the company method.

Is there going to be a problem?

Common sense says absolutely not. All policymakers in this country, as well as people of influence on a local level, own property and land. Thaksin has had land agents scouring the country and buying a land bank I hear. So are they going to create a pullout and cut their own throats? Yeah right. The only possibility would be to scare the foreigners to get the price down whilst buying more. But legislation that would depress the market for a decade at least? Never. House prices are like traffic....you only need a few less to make a lot less traffic jams or a lot lower prices.

I might add that there's a right way to do these things.

When you have your land...be a good citizen. Pay the pooyaybahn to supply you with one or two of your requirements....he won't expect fortunes. Contribute to the new roof on the wat....a few thousand baht will be remembered and hey you're helping out as you should do. Try to buy where you have contacts and friends. Treat any staff well. Be respectful and you'll be respected.

I hope it works out for me.

QUESTION: I believe if the worst ever comes to the worst the house gets auctioned or something or a forced sale happens so actually you get your money back anyway....or is that true? Anyone can provide any info? Thanx.

With regard to your last paragraph you are mainly correct. If the Company is found to be non active, or even illegal, you will have 1 year to sell before the property is auctioned by the relevant Government Department. You may of course not get all your money back, as there will be no reserve price. This has been clarified by the Supreme Court.

[Blue Unicorn]

Currently real estate in Thailand is a great investment and I have many many friends who have made alot of money from it. It has been for some time, a superb invesment. Also, contrary to what some people say, you can own property in Thailand. The technicalities are different to US or Europe but considering you are paying approximately a quatre of what you would pay for something similar in the US or Europe, it makes sense to anyone with money and a good invesment knowledge. Obviously if the country fell into chaos or war, then it would be problematic. However that is unlikely and once again, the low cost makes it a risk worth taking. Construction standards are well below the US or Europe unless it is built by professional people. I used to have 2 homes in Thailand and like anyone with common sense, employed a Thai company with foreign consultants to construct them. Cost more, but they did not rip me off and they understood building standards. I made excellent returns on my investment and enjoyed 10 years of good living at a fraction of the cost back home.

But if you lack funds and are risking your life savings then tread carefully.