Buying Land/house... Would This Work

[hullmonkee]

Hi all

I have posted before as hull monkey but have lost my password and cannot access my old email account

I am married to a Thai and was hoping to build/buy a house in Thailand later this year. I have read through many of the posts on this forum and have put together a mixture of options to protect my investment. Could somebody verify that this plan would work?

1) Buy land in a company name owned 60% by wife 40% by myself. Then lease land to my son or myself on a 30+30 year lease. I would also leave my company shares to my son in my will as I will be in my seventies when the 30 year lease is up.

I was hoping that this would mean a low taxable rent for the land as opposed to paying rent for the house as well.

The way I have understood previous posts The company ownership can be set up so the 40% partner runs the company, this would mean the lease extension issue would not be a problem

2) Build house owned 100% by myself.

Hopefully this would put me in a stronger position if my marriage went tits up. Also if Thai law changes and companies are chased down the house is not affected so would still be mine.

Any informed opinions would be much appreciated

[Thaipwriter]

The best way forward is to keep reading this forum, please use the search function to find the many threads that cover this subject in depth.

All the answers are available.

Either that or just get a lawyer to handle this for you!

[stevehaigh]

Hi all

I have posted before as hull monkey but have lost my password and cannot access my old email account

I am married to a Thai and was hoping to build/buy a house in Thailand later this year. I have read through many of the posts on this forum and have put together a mixture of options to protect my investment. Could somebody verify that this plan would work?

1) Buy land in a company name owned 60% by wife 40% by myself. Then lease land to my son or myself on a 30+30 year lease. I would also leave my company shares to my son in my will as I will be in my seventies when the 30 year lease is up.

I was hoping that this would mean a low taxable rent for the land as opposed to paying rent for the house as well.

The way I have understood previous posts The company ownership can be set up so the 40% partner runs the company, this would mean the lease extension issue would not be a problem

2) Build house owned 100% by myself.

Hopefully this would put me in a stronger position if my marriage went tits up. Also if Thai law changes and companies are chased down the house is not affected so would still be mine.

Any informed opinions would be much appreciated

I think you are a bit confused. If you buy land through a company (you can own 49% of the shares and 90%+ of the voting rights and your wife plus 5 other sharholders, minimum 4 Thai, will own 51%. See http://www.buildingthailand.com/btl-ch1.pdf for the full story) then you don't need a lease.

I don't see what good leasing to your son will do unless i'm missing something. you can will your shares to your son. you can own the house 100%.

steve

Edited January 20, 2006 by stevehaigh

[Dragonman]

Hi all

I have posted before as hull monkey but have lost my password and cannot access my old email account

I am married to a Thai and was hoping to build/buy a house in Thailand later this year. I have read through many of the posts on this forum and have put together a mixture of options to protect my investment. Could somebody verify that this plan would work?

1) Buy land in a company name owned 60% by wife 40% by myself. Then lease land to my son or myself on a 30+30 year lease. I would also leave my company shares to my son in my will as I will be in my seventies when the 30 year lease is up.

I was hoping that this would mean a low taxable rent for the land as opposed to paying rent for the house as well.

The way I have understood previous posts The company ownership can be set up so the 40% partner runs the company, this would mean the lease extension issue would not be a problem

2) Build house owned 100% by myself.

Hopefully this would put me in a stronger position if my marriage went tits up. Also if Thai law changes and companies are chased down the house is not affected so would still be mine.

Any informed opinions would be much appreciated

I think you are a bit confused. If you buy land through a company (you can own 49% of the shares and 90%+ of the voting rights and your wife plus 5 other sharholders, minimum 4 Thai, will own 51%. See http://www.buildingthailand.com/btl-ch1.pdf for the full story) then you don't need a lease.

I don't see what good leasing to your son will do unless i'm missing something. you can will your shares to your son. you can own the house 100%.

steve

The main problems I see, other than those steve have mentioned, is that you wouldn't seem to have much of a Company! A 30+ 30 lease/option to the Managing Director, or his son, on land which doesn't have any house. Actually the freehold value and hence assets of the Company seem minimal:capitalized value of a Land Lease.

[Morden]

Several devices are used in attempts by foreigners to own land and the pro's and con's have been discussed, even argued over, in previous threads. My own view is based on these premises:

1. The company device is of doubtful legality unless it is a genuine trading company and you follow the provisions of the law.

2. The protection of a lease on the land is probably only as strong as the goodwill of your wife and her family in the event of a divorce.

3. Whilst protecting the interests of yourself and your offspring from an earlier relationship it is only fair to consider the legitimate interests of your wife in the event of divorce or your death.

If you are legally married, that marriage will be recognised in law in your own country as well as in Thailand. You and your wife would have to accept a division of assets in both countries if you divorce. What you could or would want to retain in Thailand is rather limited. If you can show that you have made proper and fair provision for her in Thailand by way of a home and, perhaps, a means by which she could live after a divorce, then you may get to keep your assets in your own country. In short, keep a home in your own country and expect not to keep the home in Thailand.

There's an often repeated saying that's worth bearing in mind; spend nothing in Thailand that you are not prepared to lose. If you can't afford to give your wife a house there and keep your own, perhaps you shouldn't do it.