Thai Treasury Dept Eyes Property Purchases In Euro Zone

[webfact]

Treasury Dept eyes property purchases in euro zone

Suphannee Pootpisut

The Nation

BANGKOK: -- The Treasury Department is interested in buying land and other property in the troubled euro zone due to the attractive prices currently available there.

The agency also hopes to offer a lease on property in a prime area of Bangkok to the French Embassy, should it first terminate a contract with Natural Park for development of the land.

Naris Chaiyasoot, director-general of the Treasury Department, yesterday said officials were studying investment opportunities to buy land and property overseas, particularly in the European Union, where land prices have fallen as a result of the euro-zone economic crisis.

The department hopes to take advantage of the lower prices to invest in property that could be used by Thai government agencies, he said.

"We have received reports that land prices in Europe, in particular in France, have dropped sharply and that many plots have been put up for sale, so we are considering buying and developing some of those properties," Naris said.

The property could be used as government agency offices, or for trade exhibitions to promote Thai products, he added.

Meanwhile, the department is considering terminating its contract with the Natural Park for the development of land located between Charoen Krung Road and the Chao Phraya River, due to delayed property development by the company, the agency chief said.

It has been seven years since the two sides signed an agreement to develop a 5-rai area and an old building, but the project has made no progress, he said, adding that the French Embassy in Bangkok is interested in leasing the property.

The department is consulting with the Office of the Attorney-General over what to do if the fire-fighting unit run by Bangkok Metropolitan Administration, which currently occupies the area, does not move out.

The BMA argues that Natural Park has broken a contract clause related to the fire-fighters' unit vacating the area.

If the public prosecutor advises that the company has breached the contract, the department will hold another round of bidding to develop the property, he said.

Under the contract, Natural Park agreed to pay Bt1.35 billion to the Finance Ministry for a 30-year lease, and a separate fee of about Bt278 million.

The department also plans to make use of its land for social purposes, Naris said.

The agency recently offered a 6-rai plot close to Bangchak BTS station to the Sports Authority of Thailand at an annual rent of only Bt100 per rai.

To date, 900 plots of department land have been allocated for social development purposes around the country, he added.

-- The Nation 2012-08-28

[jackr]

I do hope they are only allowed to purchase 49%.

[cloudhopper]

"We have received reports that land prices in Europe, in particular in France, have dropped sharply and that many plots have been put up for sale, so we are considering buying and developing some of those properties," Naris said.

Machinations of a greater fool savvy investor.

[Ricardo]

Is land/property-speculation a normal activity, for the Treasury Department ?

And are other government-departments, who have a real need for overseas-properties, incapable of finding them for themselves ?

[Mosha]

I do hope they are only allowed to purchase 49%.

I hope the property is only on 1 Rai

[GentlemanJim]

Now there is serious scope for corruption. How easy will it be to keep these deals from the eyes of the Thai people. In his first wave of corruption at least Thaksin was buying land and selling it in Thailand! Imagine the scope for 'using' Government money now to buy and sell land in France!!

[keith101]

if a foreigner cannot buy land in this country freehold why should the Thai Gov be allowed to buy outside of this country so much double standards,one rule for us and one for them.

[ramrod711]

Quite simply, the Thai government should not be speculating with the peoples money.

[johna]

With passage of the biggest budget in Thai history 2.4 Trillion฿, I'm surprised there's any money left over to purchase foreign property, but I'm sure this will all be done with the usual transparency.

[asiawatcher]

Euro has dropped more than 20% in the last few years and is likely going to be rejected by Germany along with some other countries soon. If UniCredit fails in Italy the chain reaction will drop the Euro. Then prices will be down so unless the Treasury Dept knows how to 'short' currencies, seems to me buying land in Europe is a foolhardy move. As is already said, why are they speculating on something they know nothing about?

[davejones]

if a foreigner cannot buy land in this country freehold why should the Thai Gov be allowed to buy outside of this country so much double standards,one rule for us and one for them.

Euro has dropped more than 20% in the last few years and is likely going to be rejected by Germany along with some other countries soon. If UniCredit fails in Italy the chain reaction will drop the Euro. Then prices will be down so unless the Treasury Dept knows how to 'short' currencies, seems to me buying land in Europe is a foolhardy move. As is already said, why are they speculating on something they know nothing about?

Buying land/property in parts of the Eurozone at this time is far from foolhardy. This is the time to get some of the best bargains ever, and they won't last for long. If Thailand needs property in this area, then now is an excellent time to buy it.

There is no way Germany will give up the Euro, as their economy would be in deep recession if they left. You obviously have no understanding of the politics and economy of the Eurozone.

[54321]

and from the headline I thought the article was going to be about the Thai govt investigating tax affairs of thai citizens buying property in Europe!

[belg]

do embassies overhere in thailand actually own the land they put their building on, or just leased land that can be taken away ???

so hypocrite and xenophobic... so thais can build land where ever in the world... but oh, do not let a farang own 1 rai of land on his name to put a house on, unwelcomed guest

[Soutpeel]

if a foreigner cannot buy land in this country freehold why should the Thai Gov be allowed to buy outside of this country so much double standards,one rule for us and one for them.

Oh well that only took 7 posts before some piped in this one, you forgot to mentioned the restrictive visa polices imposed in Thailand and how farangs have no rights in Thailand and they are 2nd class citizens and Thai's are racist xenophobes....

[chooka]

if a foreigner cannot buy land in this country freehold why should the Thai Gov be allowed to buy outside of this country so much double standards,one rule for us and one for them.

I agree there should be an understanding between countries, If Thailand can by land in another country then the retired expats in Thailand should be able to buy land in Thailand. You scratch my back and I'II scratch yours friend. It will never happen tho, what is Thailands belongs to Thailand and what is yours will belong to Thailand also.

[OzMick]

They are asking their real estate agent based in Dubai to look into this for them.

[JanKlaasen]

if a foreigner cannot buy land in this country freehold why should the Thai Gov be allowed to buy outside of this country so much double standards,one rule for us and one for them.

Oh well that only took 7 posts before some piped in this one, you forgot to mentioned the restrictive visa polices imposed in Thailand and how farangs have no rights in Thailand and they are 2nd class citizens and Thai's are racist xenophobes....

Indeed,Keith101 forgot to mention those restrictions, he could even have added some more reasons why this should not be allowed.

[jpp2bkk]

Thais are forbidden to buy and own land in Europe especially in France.

คนไทยเป็นสิ่งต้องห้ามที่จะซื้อและเป็นเจ้าของที่ดินในยุโรปโดยเฉพาะอย่างยิ่งในประเทศฝรั่งเศส

[alant]

I do hope they are only allowed to purchase 49%.

tend to agree, but imagine the outcry of unfair farang protectionist behaviour...

[tomross46]

The Treaury Dept. has outstanding debt to pay, not counting the promices made before the election. Now it wants to take tax payers money and speculate on land in France. Pay your debts first, unless you want to be like Greece.

[softgeorge]

if a foreigner cannot buy land in this country freehold why should the Thai Gov be allowed to buy outside of this country so much double standards,one rule for us and one for them.

Other countries (West) have restrictions on foreigners buying land also.

Foreign Investors - Buying property as a foreigner or Temporary Resident in Australia

If the Foreign Investment Review Board (FIRB) feels that the residential real estate in question is only being purchased by a foreign citizen or company just for the purpose of renting it out, or because the purchaser wants to speculate on the property’s future value, permission to purchase will be refused.

On the other hand, approval IS usually granted to foreign applicants in the following circumstances:

• A. Where the applicant is residing in Australia on the basis of a Temporary Entry Visa (with more than 12 months validity) and is wanting to buy a residence for themselves - as long as the property is sold when the person no longer lives in Australia Applicants who are entitled to purchase on these terms include students over 18 studying at a recognised tertiary institution for more than one year who need accommodation, but a general limit of $300,000 applies to the value of any such property acquired by a student temporarily resident in Australia. Other applicants entitled to purchase are long stay retirees and people in Australia for work reasons who need accommodation. Again, any property must be sold when these categories of buyers no longer live in Australia.
  This category does not cover people with visitor or bridging visas.
  
• B. Where a company from a foreign country wants to provide housing for its senior executives while they are posted to Australia for more than 12 months - again, as long as the property is sold when the employee is no longer living in Australia. These senior executives have to be specifically named. Usually, the purchase of two houses per company are permitted.
  

The purchase of another residence, such as a "weekender" for recreational use, is not approved under any of the above circumstances.

Edited August 28, 2012 by softgeorge

[Baerboxer]

Thais are forbidden to buy and own land in Europe especially in France.

คนไทยเป็นสิ่งต้องห้ามที่จะซื้อและเป็นเจ้าของที่ดินในยุโรปโดยเฉพาะอย่างยิ่งในประเทศฝรั่งเศส

Does that include politicians?

[jaltsc]

If the Thai government has that much money that they can afford to purchase land in the Euro Zone, then they should have enough money to help Thai citizens who are in need of economic help. I wonder who will reap the benefits of these purchases

Edited August 28, 2012 by jaltsc

[Baerboxer]

Quite simply, the Thai government should not be speculating with the peoples money.

They're not. Once the taxes are collected it's the government's money not the peoples anymore. You elect a governmant and they can spend the government's money. Of course, it might be easier, just for all the red tape you understand, to buy the land in the name of trusted members of government. All above board.

Edited August 28, 2012 by Baerboxer

[Baerboxer]

If the Thai government has that much money that they can afford to purchase land in the Euro Zone, then they should have enough money to help Thai citizens who are in need of economic help. I wonder who will reap the benefits of these purchases

I guess this is a rhetorical question !

[1bbcd5]

I love this thread already..

[jpp2bkk]

Thais are forbidden to buy and own land in Europe especially in France.

คนไทยเป็นสิ่งต้องห้ามที่จะซื้อและเป็นเจ้าของที่ดินในยุโรปโดยเฉพาะอย่างยิ่งในประเทศฝรั่งเศส

Does that include politicians?

All Thais which are aliens on Euro land

Anyway even if it will never happen they will pay huge taxes on it

[Soutpeel]

If Thailand can by land in another country then the retired expats in Thailand should be able to buy land in Thailand.

why only retired expats, this is blatant discrimination, I work here and pay Thai tax...If some old wrinkly is allowed to buy land then people who are working here legitimately should be allowed as well, in fact they should have priority over the old wrinklies

[vijer]

Under the contract, Natural Park agreed to pay Bt1.35 billion to the Finance Ministry for a 30-year lease, and a separate fee of about Bt278 million.

Isn't it nice when you can specify the Tea Money in the contract!

[Kaker]

if a foreigner cannot buy land in this country freehold why should the Thai Gov be allowed to buy outside of this country so much double standards,one rule for us and one for them.

Euro has dropped more than 20% in the last few years and is likely going to be rejected by Germany along with some other countries soon. If UniCredit fails in Italy the chain reaction will drop the Euro. Then prices will be down so unless the Treasury Dept knows how to 'short' currencies, seems to me buying land in Europe is a foolhardy move. As is already said, why are they speculating on something they know nothing about?

Buying land/property in parts of the Eurozone at this time is far from foolhardy. This is the time to get some of the best bargains ever, and they won't last for long. If Thailand needs property in this area, then now is an excellent time to buy it.

There is no way Germany will give up the Euro, as their economy would be in deep recession if they left. You obviously have no understanding of the politics and economy of the Eurozone.

The moment Germany feels that the costs of maintaining the monetary union outweigh its benefits to Germany, they will drop it like it's hot. I am not saying this will definitely happen, but it is definitely within the realm of possibility. Discounting it as "impossible", and insulting someone with a different opinion on the subject only shows your own ignorance (or denial) of the situation.