Youve Gotta Be Nutz To Buy Property In Thailand

[Krub]

LOVEDABLUES

Please tell me where you put 2 mil baht to guarentee you 12% ? Not saying your lying but I don't think your telling the trueth either..... let me know as I could do with some.If you come up with the answer I'll stand corrected and apologise

Insulting someone you don't know is a poor way to get investment advice. So you keep your apology and I'll keep making the 12%. BTW, as far as risk it's only slightly risker than investing in a United States Certificate of Deposit.

Wish I could say I'm an 'investment specialist' LOL. Actually I know little about investing other than rental units (6) I used to own. Years ago I did a favor for a guy I didn't previously know (involves the sale of a car....long story). Anyway turns out he has multi-millions made thru investing. He took a liking to me after I did him the favor and the rest is history. I've made 12% for roughly the last 5 years. This enabled me to retire sooner with a NICE chunk of cash in the bank. All because I did a favor for someone. Proves the old sayings.....'what goes around comes around.' or 'do good get good; do bad get bad'.

An added bonus is he is now one of my best friends. Not because of the money he's helped me to make but because he is truly a nice human being. He and his wife just got back from 2 weeks in Costa Rica. The travel a lot all over the world. I'm happy for him he's a great guy and deserves everything he has.

Don't be shy and share the good info, it might help me retire earlier too.....especially if the risk is not more than a US CD !

[expatgaz]

LOVEDABLUES,

Do not see how my post was any way insulting, I was asking a simple question, which you took offence to.

My question still stands how do you get 12%, you on the other hand have gone from saying guarenteed to slight risk......this is not the same.I also recieve 12% but its NOT guarenteed I just thought a fellow poster may enlighten and help fellow posters to earn a few extra $$.It would seem not.

[LoveDaBlues]

LOVEDABLUES,

Do not see how my post was any way insulting, I was asking a simple question, which you took offence to.

My question still stands how do you get 12%, you on the other hand have gone from saying guarenteed to slight risk......this is not the same.I also recieve 12% but its NOT guarenteed I just thought a fellow poster may enlighten and help fellow posters to earn a few extra $$.It would seem not.

LOVEDABLUES

Please tell me where you put 2 mil baht to guarentee you 12% ? Not saying your lying but I don't think your telling the trueth either..... let me know as I could do with some.If you come up with the answer I'll stand corrected and apologise

You don't see where the above post is insulting? When you say 'I don't think your telling the trueth either' I consider this an insult. If you don't consider the above insulting to me then why would you offer to 'apologise'?

Here's my post; never edited. Nowhere is the word 'guarantee' used. YOU used the word in your post....not me. Are you on crack or currently just drunk? Seriously.....do you bother to even read what people write?

hmm......put 2 million baht in a house? Let's see....I've made 12% on my money for many years now. So this pays 20,000 baht a month on the 2 million. After paying rent of 6,000 baht I've got 14,000 baht left for whatever each month PLUS I keep the 2 million baht intact. I prefer this route.

I'm not saying I'm RIGHT I'm just saying this makes more sense TO ME.

***********************************

Quote:

You can rent for years and be thrown out the next day with nothing to show for the money you paid month after month.

Wrong. First of all my lease requires a 1 month notice; can't be 'thrown out' in a day. Nothing to show for the money? Sure there is.....shelter! When you spend money for food each month do you think you got 'nothing to show for the money' just because both the money and food are gone? Same with taking a nice vacation. Money is gone.....vacation is over..... but you received something for it.

***********************************

Quote:

Need repairs? The landlord might disagree so you live in a slum or move with all the fun that entails.

Wrong. My landlord takes care of repairs. Guess what...even if he didn't so what this is Thailand.....costs next to nothing for repairs. Labor 130-150 baht a day...parts cheap...no brainer.

BTW....my 4 BR, 3 bath rental house comes FURNISHED so if I have to move not a big problem at all.

**********************************

Only good argument for building AT THIS TIME in my opinion is you can design house to your specs.

**********************************

Big downside to building/owning that no one wants to mention. The area of Thailand I like (Issan) has NO zoning as far as I've been able to determine. Good luck with building that 2-3 million baht house and 4 months later someone opens a restaurant, motorcycle repair, or karoke bar next door. See how much you enjoy paradise after that happens. If I'm wrong on the zoning issue please correct me....I hope I am wrong........lack of zoning here sucks IMO. By renting if the neighborhood goes bad I have the option of moving and can do so quickly. If you own a house not so easy.......in fact can be nearly impossible unless you want to take a huge loss.

Steve

BTW, in my investments the 12% return IS 'guaranteed' in writing even though I never stated this before.......LOL.......this doesn't mean there isn't some slight risk involved.......only a COMPLETE FOOL would believe there is ANY investment with ZERO risk involved.....it doesn't exist.

[bangkapiboy]

It would seem to me if one is just not comfortable buying property in Thailand, then simply just don't do it.

Owning a condo outright is legal, the same as a Thai owning a condo outright legally. The same cannot be said for a farrang owning houses and land -- so the two scenarios cannot be lumped together to argue a point, since a farrang owning a house for residence is not really legal.

[Krub]

It would seem to me if one is just not comfortable buying property in Thailand, then simply just don't do it.

Owning a condo outright is legal, the same as a Thai owning a condo outright legally. The same cannot be said for a farrang owning houses and land -- so the two scenarios cannot be lumped together to argue a point, since a farrang owning a house for residence is not really legal.

Farang can own the house but not the land it is build on

The land maybe leased and registerred as such for 30 years.

After the 30 years it is up to you and the owner of the land to agree or not on a further lease contract.

[bangkapiboy]

Farrang can own the house but not the land, yes. The legality of that is superfluous as it is doubtful the house could be moved to the land of your next 30 year lease without a wish coming true. I can't imagine what Thai would like to renew a 30 year lease for a Farrang to keep living on their land with his house when he/she could instead just kick you off of the land.

[Krub]

Farrang can own the house but not the land, yes. The legality of that is superfluous as it is doubtful the house could be moved to the land of your next 30 year lease without a wish coming true. I can't imagine what Thai would like to renew a 30 year lease for a Farrang to keep living on their land with his house when he/she could instead just kick you off of the land.

A decent house can be built for 1 mio baht

This makes a rent of less than 3.000 baht/month for the house even if you have to walk away from it after the 30 years.

To that you have to add the cost of the land lease depending on the size of land, etc.

I do not think that it is a big risk in these conditions to 'buy' vs rent

[Heng]

Farrang can own the house but not the land, yes. The legality of that is superfluous as it is doubtful the house could be moved to the land of your next 30 year lease without a wish coming true.

It can come true if you are still on good terms. I've seen more than a few pre-fab warehouses and buildings moved around (usually on the same property, but surely you can move it a ways as well). Have moved antique Thai style houses personally, but that's pretty much wood and brick child's play.

[steveromagnino]

BTW, in my investments the 12% return IS 'guaranteed' in writing even though I never stated this before.......LOL.......this doesn't mean there isn't some slight risk involved.......only a COMPLETE FOOL would believe there is ANY investment with ZERO risk involved.....it doesn't exist.

I would be curious also to know what investment nets 12% year in year out, with minimal risk; because that is not bad at all. I would not be too worried about the comment trying to call you out; this is quite a fair way out of the ordinary, and while you may be able to earn this, many others may not, which perhaps makes your own statement of economics (20 - 14 = 6) a little less applicable.

After all, just because I have , let's pretend, made 50% on the sharemarket say over the last 2 years doesn't mean that investing in the bank and earning 4% on TD is a mugs game; that's the whole risk return trade off. And just because I could have made 50% on the sharemarket doesn't mean that someone else can (or even that I could do it again if I did). I realise you make the very clear point that it is for you and in your opinion, but I guess many of us are interested to know how likely it is that we could be in your position; if you are talking equities then that has considerably more than slight risk and 12% is in keeping with the 7% premium on average demanded in USA for stocks as a premium; if warrants, mortgages, bonds or otherwise, well 12% is an interesting number that many would be interested in. not exact details, just the market you are dealing with would be interesting enough.

As far as property goes, there is always always always the chance to buy bargains in a market like property where the transparency is not that good; even more so in Thailand where the market is even less transparent. However, that lack of transparency is problematic for some foreigners who ae not able to see or make sense of the market. After all, when there is blood on the streets, that means there are bargains to be had.

Only question is can you get hold of one?

For those that can't, the non financial aspects can appeal - you get to own it, you can improve it how you want, the landlord cannot be a pain or ask you to leave (whether that day, a month later, 90 days later)... doesn't seem too bad a deal to me if it is one of several assets.

[expatgaz]

So it would seem that Iam not the only one "wondering" about this 12 %. I would also hazard a guess that the other guy"wondering" is also quite an astute person, used to business dealing.I have a very successful business and know an awful lot regarding trading and profit & loss, thats why I asked about the 12%, surely you could help all us minows and give us all an insight to enable us to make as much profit as you. funny you should mention "crack" good profits there so I heard........

[LoveDaBlues]

So it would seem that Iam not the only one "wondering" about this 12 %. I would also hazard a guess that the other guy"wondering" is also quite an astute person, used to business dealing.I have a very successful business and know an awful lot regarding trading and profit & loss, thats why I asked about the 12%, surely you could help all us minows and give us all an insight to enable us to make as much profit as you. funny you should mention "crack" good profits there so I heard........

Okay you're right. I don't have investments making 12%. I didn't retire at 48. In fact, I don't have any money or even a job. I don't live in Thailand but in a cardboard box under an LA freeway. From time to time I sweep up an internet cafe and the owner gives me free computer time. You called me out...you caught me....you the man! Don't brag too much about exposing me though......after all you have a "very successful business" and I'm just a guy living in a box.

If I did have some bucks....I wouldn't try to make money trading.....think I'd try something with less risk and time involved as I don't have the stomach for risky investments and I enjoy my free time ..........

[Sir Burr]

So it would seem that Iam not the only one "wondering" about this 12 %. I would also hazard a guess that the other guy"wondering" is also quite an astute person, used to business dealing.I have a very successful business and know an awful lot regarding trading and profit & loss, thats why I asked about the 12%, surely you could help all us minows and give us all an insight to enable us to make as much profit as you. funny you should mention "crack" good profits there so I heard........

Okay you're right. I don't have investments making 12%. I didn't retire at 48. In fact, I don't have any money or even a job. I don't live in Thailand but in a cardboard box under an LA freeway. From time to time I sweep up an internet cafe and the owner gives me free computer time. You called me out...you caught me....you the man! Don't brag too much about exposing me though......after all you have a "very successful business" and I'm just a guy living in a box.

If I did have some bucks....I wouldn't try to make money trading.....think I'd try something with less risk and time involved as I don't have the stomach for risky investments and I enjoy my free time ..........

Blimey! What a drama-queen.

A simple "I'd rather not say" would have sufficed.

[LoveDaBlues]

Actually I can't say due to some promises made. But of course I'll be called a liar about that too from the KnowItAlls here. This thread is about property buying/not buying anyway so my last post on this subject.

drama-queen huh......I do have some nice legs IMO......

[BIGTOE3]

Actually I can't say due to some promises made. But of course I'll be called a liar about that too from the KnowItAlls here. This thread is about property buying/not buying anyway so my last post on this subject.

drama-queen huh......I do have some nice legs IMO......

Now now guys, we are getting touchy, I am only sticking one of my toes in as I was enjoying this thread. I was on the side of buying not renting BUT due to good sound reasoning and listening to those MORE experienced than me I am now waivering and thinking of renting at least in short term to see HOW IT GOES.

I do APPRECIATE all the comments so far, so thank you everyone and for G-DS SAKE just advise him.

Big Toe

Just not sure of the depth

[Krub]

I feel there is some confusion on this subject as to the purpose of buying/renting property in Thailand.

If you are looking for somewhere to live with your family for the next 10-20 years and you find a place/area you like at reasonable rent, I am sure it is a good option. If not, leasing land and building on it is also a good option IMO very similar in cost (at least up country)

If on top of that you are looking for return on investment, it is a totaly other game and leasing a piece of land to build on it is not a good idea if you want to try and sell it for a profit later.

I believe it is the very reason Thailand does not allow farangs to own property outright to keep the price of land and property at a decent level. They are doing a pretty good job of it too.

Enjoy the freedom of choice rent for 30 years or lease the land and build your own home for 30 years at equal cost .....Where else in the world do you have that choice.

[Neeranam]

What about your children? Where are they suppose to live if something happens to you?

[Heng]

Legacy in terms of real estate is obviously not a consideration for the pro-rent crowd. Nothing wrong with that.

I woudln't do it though.

[Web_Director]

Given the horrific legal system in Thailand, and the rumored treatment of farang in these courts, why would you possibley want to buy property here? Y ou cant even own it outright for chrissakes. Who even wants to mess around with it then? I cant imagine dropping 8 million baht on a condo in Bangkok, to find out in five years that it was built like crap or is being maintained like crap. What kind of gurantee do you have in Thailand? Absolutely zero.

Invest your money and rent.

Sorry Mike,

I think that you are misunderstanding. The fact is that under Thai laws, foreigners cannot own land in Thailand. However, you can own a condo in Thailand.

As a local lawyer, I would say that even a foreigner is prohibited to own land but we have a way to help foreigner owns land indirectly. Isn't it interesting?

[sriracha john]

What about your children? Where are they suppose to live if something happens to you?

Legacy in terms of real estate is obviously not a consideration for the pro-rent crowd. Nothing wrong with that.

I woudln't do it though.

a 10 million baht, or more if you like, life insurance policy should cover that... there's many ways to provide for offspring then just simply passing along real estate....

[Heng]

What about your children? Where are they suppose to live if something happens to you?

Legacy in terms of real estate is obviously not a consideration for the pro-rent crowd. Nothing wrong with that.

I woudln't do it though.

a 10 million baht, or more if you like, life insurance policy should cover that... there's many ways to provide for offspring then just simply passing along real estate....

Who said it was an either/or choice? Real estate is just another piece (albeit a cornerstone piece, in addition to cash) of a complete estate. Unlike cash though, real estate (and other long term family holdings/assets) can carry tradition with it.

[Krub]

What about your children? Where are they suppose to live if something happens to you?

Legacy in terms of real estate is obviously not a consideration for the pro-rent crowd. Nothing wrong with that.

I woudln't do it though.

a 10 million baht, or more if you like, life insurance policy should cover that... there's many ways to provide for offspring then just simply passing along real estate....

Who said it was an either/or choice? Real estate is just another piece (albeit a cornerstone piece, in addition to cash) of a complete estate. Unlike cash though, real estate (and other long term family holdings/assets) can carry tradition with it.

If you are married and/or have children and they have the Thai nationality, the problem is not there as they are allowed to own land under Thai law and you can buy under their name and then to cover your own 'life' lease from them.....

[Heng]

Exactly. As long as they aren't way over the hill, foreigners only have to wait until their children are of legal age (and we all know how time flies and how fast 18 years can be), and then "family" ownership is secure for the rest of their lives. This is assuming that said foreigners trust their own children of course. Locals who do not wish their spouses to have direct legal access to certain pieces of property do the same thing.

[david96]

The following was extracted from a Thai Real Estate website catering to foreigners.

1. A foreigner may legally purchase together with his Thai wife a house, land or property not exceeding 1 Rai which is duly purchased as marital property: That is, the Parties are legally married and documented at the local Amphur (government) office.

The purchase must be jointly held and cannot be sold without the other partner's signature, nor can either force the other out of residence without due compensation. The foreigner's name will never be on the actual Title Deed, but a Memorandum is attached to it indicating his legal attachment to the owner.

2. If you are single, the easiest way to do this is through a loan/lease agreement, our lawyers are past masters at overcoming the difficulties and setting up a legal instrument that allows foreigners to buy and legally control ownership of the property.

To put it simply, you lend the money to a Thai under a legal loan contract which will specify that the money must be used to purchase a property. The loan will be 'on call', giving the lender the power to recall the loan at any time. Your Thai partner will buy the property using the money from the loan and then legally 'own' the land. At the same time, our lawyer will set up a Lease agreement giving the lender a 30, 60, or 90 year leasehold agreement on the property. We will also require the lender and the borrower to write out a separate Last Will and Testament which will deed the property to the surviving member. If the survivor is you, the foreigner, you may legally own the property for up to 12 months after your partner's demise. Then you must sell it to a Thai to recover your original investment plus any profit you make on the sale.

3. Buying a House with a Thai Company: It is possible for a Thai company to buy and own property, and this is how many foreign buyers overcome the restrictions on land ownership. Our lawyers work with our clients to set up the company so that they, in effect, have complete control over it.

Basically, it works like this. The foreigner sets up a Thai company holding the legal percentage of preferential shares with voting rights of 10 to 100 votes per share (you choose the number of votes when you set up the company), with 7 Thais holding 51% ordinary shares of 1 vote per share. Our lawyer will find 6 Thais willing to own one share in the company (usually other lawyers in his office), and the foreigner can nominate one other Thai to hold the rest of the shares. If the foreigner doesn't know anyone we at [name of real estate company]can help select someone trustworthy and honest.

The Thais will 'borrow' the money from the foreigner to buy their shares, and they will sign over their control of the shares to the foreigner to secure the loan. This way, the foreigner controls the voting on all the shares. The foreigner can and should be the Managing Director of the company.

This is a simplification of the method, but our lawyer will explain exactly how it works.

Read item 2 and 3 and the compare it with Thai Law.

Item 1 is community property. There is no problem with this.

Edit: Link please, David.

(udon)

[chiangrai57020]

The following was extracted from a Thai Real Estate website catering to foreigners.

1. A foreigner may legally purchase together with his Thai wife a house, land or property not exceeding 1 Rai which is duly purchased as marital property: That is, the Parties are legally married and documented at the local Amphur (government) office.

The purchase must be jointly held and cannot be sold without the other partner's signature, nor can either force the other out of residence without due compensation. The foreigner's name will never be on the actual Title Deed, but a Memorandum is attached to it indicating his legal attachment to the owner.

2. If you are single, the easiest way to do this is through a loan/lease agreement, our lawyers are past masters at overcoming the difficulties and setting up a legal instrument that allows foreigners to buy and legally control ownership of the property.

To put it simply, you lend the money to a Thai under a legal loan contract which will specify that the money must be used to purchase a property. The loan will be 'on call', giving the lender the power to recall the loan at any time. Your Thai partner will buy the property using the money from the loan and then legally 'own' the land. At the same time, our lawyer will set up a Lease agreement giving the lender a 30, 60, or 90 year leasehold agreement on the property. We will also require the lender and the borrower to write out a separate Last Will and Testament which will deed the property to the surviving member. If the survivor is you, the foreigner, you may legally own the property for up to 12 months after your partner's demise. Then you must sell it to a Thai to recover your original investment plus any profit you make on the sale.

3. Buying a House with a Thai Company: It is possible for a Thai company to buy and own property, and this is how many foreign buyers overcome the restrictions on land ownership. Our lawyers work with our clients to set up the company so that they, in effect, have complete control over it.

Basically, it works like this. The foreigner sets up a Thai company holding the legal percentage of preferential shares with voting rights of 10 to 100 votes per share (you choose the number of votes when you set up the company), with 7 Thais holding 51% ordinary shares of 1 vote per share. Our lawyer will find 6 Thais willing to own one share in the company (usually other lawyers in his office), and the foreigner can nominate one other Thai to hold the rest of the shares. If the foreigner doesn't know anyone we at [name of real estate company]can help select someone trustworthy and honest.

The Thais will 'borrow' the money from the foreigner to buy their shares, and they will sign over their control of the shares to the foreigner to secure the loan. This way, the foreigner controls the voting on all the shares. The foreigner can and should be the Managing Director of the company.

This is a simplification of the method, but our lawyer will explain exactly how it works.

Read item 2 and 3 and the compare it with Thai Law.

Item 1 is community property. There is no problem with this.

The following was extracted from a Thai Real Estate website catering to foreigners.

Can you provide the web-site address for look-up? I am primarily interested in Item #1. Never heard this before.

Thanks

[dclaryjr]

I do like what ThaiPauly said about leaving a house for his wife; a cool thing to do for someone you care about.

When I first considered retiring in Thailand, and after viewing what was available as rental property on the web, I thought renting would be the way to go. I eventually gave in, however, and agreed to buy property and build a house, even though it will be several years before I get to live in it. I console myself with the fact that I'm getting it paid for while I still am earning a good living, and it will be paid for when I retire (around eight years out). Meanwhile I have a real nice vacation house to use on visits, and my in-laws are taking care of it and sometimes use it on weekends. So I'm ok with the decision but as others have said a lot depends on one's situation.

[david96]

The following was extracted from a Thai Real Estate website catering to foreigners.

1. A foreigner may legally purchase together with his Thai wife a house, land or property not exceeding 1 Rai which is duly purchased as marital property: That is, the Parties are legally married and documented at the local Amphur (government) office.

The purchase must be jointly held and cannot be sold without the other partner's signature, nor can either force the other out of residence without due compensation. The foreigner's name will never be on the actual Title Deed, but a Memorandum is attached to it indicating his legal attachment to the owner.

2. If you are single, the easiest way to do this is through a loan/lease agreement, our lawyers are past masters at overcoming the difficulties and setting up a legal instrument that allows foreigners to buy and legally control ownership of the property.

To put it simply, you lend the money to a Thai under a legal loan contract which will specify that the money must be used to purchase a property. The loan will be 'on call', giving the lender the power to recall the loan at any time. Your Thai partner will buy the property using the money from the loan and then legally 'own' the land. At the same time, our lawyer will set up a Lease agreement giving the lender a 30, 60, or 90 year leasehold agreement on the property. We will also require the lender and the borrower to write out a separate Last Will and Testament which will deed the property to the surviving member. If the survivor is you, the foreigner, you may legally own the property for up to 12 months after your partner's demise. Then you must sell it to a Thai to recover your original investment plus any profit you make on the sale.

3. Buying a House with a Thai Company: It is possible for a Thai company to buy and own property, and this is how many foreign buyers overcome the restrictions on land ownership. Our lawyers work with our clients to set up the company so that they, in effect, have complete control over it.

Basically, it works like this. The foreigner sets up a Thai company holding the legal percentage of preferential shares with voting rights of 10 to 100 votes per share (you choose the number of votes when you set up the company), with 7 Thais holding 51% ordinary shares of 1 vote per share. Our lawyer will find 6 Thais willing to own one share in the company (usually other lawyers in his office), and the foreigner can nominate one other Thai to hold the rest of the shares. If the foreigner doesn't know anyone we at [name of real estate company]can help select someone trustworthy and honest.

The Thais will 'borrow' the money from the foreigner to buy their shares, and they will sign over their control of the shares to the foreigner to secure the loan. This way, the foreigner controls the voting on all the shares. The foreigner can and should be the Managing Director of the company.

This is a simplification of the method, but our lawyer will explain exactly how it works.

Read item 2 and 3 and the compare it with Thai Law.

Item 1 is community property. There is no problem with this.

Edit: Link please, David.

(udon)

Here is the link with the full text

http://www.holt-realty.com/real-estate-thailand-canubuy.php

[pnustedt]

My wife owns quite a lot of property in Thailand which I paid for, including a new house which we won't live in for a couple of years. To me it seems a good option - there are no serious "extra" costs to ownership as in most western countries (such as council taxes or rates) and the price of ownership is a fraction of what I am used to. Also, I have never seen a property to rent in the area we wish to live which would suit my lifestyle.

The house provides us with a sense of security (and possibly an investment) and the land provides an income for the family.

[Dragonman]

The following was extracted from a Thai Real Estate website catering to foreigners.

1. A foreigner may legally purchase together with his Thai wife a house, land or property not exceeding 1 Rai which is duly purchased as marital property: That is, the Parties are legally married and documented at the local Amphur (government) office.

The purchase must be jointly held and cannot be sold without the other partner's signature, nor can either force the other out of residence without due compensation. The foreigner's name will never be on the actual Title Deed, but a Memorandum is attached to it indicating his legal attachment to the owner.

2. If you are single, the easiest way to do this is through a loan/lease agreement, our lawyers are past masters at overcoming the difficulties and setting up a legal instrument that allows foreigners to buy and legally control ownership of the property.

To put it simply, you lend the money to a Thai under a legal loan contract which will specify that the money must be used to purchase a property. The loan will be 'on call', giving the lender the power to recall the loan at any time. Your Thai partner will buy the property using the money from the loan and then legally 'own' the land. At the same time, our lawyer will set up a Lease agreement giving the lender a 30, 60, or 90 year leasehold agreement on the property. We will also require the lender and the borrower to write out a separate Last Will and Testament which will deed the property to the surviving member. If the survivor is you, the foreigner, you may legally own the property for up to 12 months after your partner's demise. Then you must sell it to a Thai to recover your original investment plus any profit you make on the sale.

3. Buying a House with a Thai Company: It is possible for a Thai company to buy and own property, and this is how many foreign buyers overcome the restrictions on land ownership. Our lawyers work with our clients to set up the company so that they, in effect, have complete control over it.

Basically, it works like this. The foreigner sets up a Thai company holding the legal percentage of preferential shares with voting rights of 10 to 100 votes per share (you choose the number of votes when you set up the company), with 7 Thais holding 51% ordinary shares of 1 vote per share. Our lawyer will find 6 Thais willing to own one share in the company (usually other lawyers in his office), and the foreigner can nominate one other Thai to hold the rest of the shares. If the foreigner doesn't know anyone we at [name of real estate company]can help select someone trustworthy and honest.

The Thais will 'borrow' the money from the foreigner to buy their shares, and they will sign over their control of the shares to the foreigner to secure the loan. This way, the foreigner controls the voting on all the shares. The foreigner can and should be the Managing Director of the company.

This is a simplification of the method, but our lawyer will explain exactly how it works.

Read item 2 and 3 and the compare it with Thai Law.

Item 1 is community property. There is no problem with this.

Edit: Link please, David.

(udon)

Here is the link with the full text

http://www.holt-realty.com/real-estate-thailand-canubuy.php

Whilst I have previously argued the legal complexity of communal property laws outweighing Land Act legislation, it would be a matter for each Judge to decide on an individual basis. It is not as simplistic as the web site proclaims. I start to worry about truthfulness when realtors and lawyers state you can achieve a 30, 60 or 90 year leasehold agreement.

[johnnyk]

Whilst I have previously argued the legal complexity of communal property laws outweighing Land Act legislation, it would be a matter for each Judge to decide on an individual basis. It is not as simplistic as the web site proclaims. I start to worry about truthfulness when realtors and lawyers state you can achieve a 30, 60 or 90 year leasehold agreement.

Absolutely.

The realtor has a vested interest. You wouldn't ask a barber if you need a haircut.

The 30-year lease is pretty tight and legal, as long as the lessor has a chanote.

Beyond 30 years, there is nothing in Thai law AFAIK where it can be enforced as its an agreement between two individuals and not registered at the Land Office.

An eminent BKK lawyer advised me that his firm kept seeing these 60 and 90 year leases and there was nothing binding about them in his opinion.

Imperfect as it is, I decided on the company structure and to make sure the company shows business activity, files tax returns and pays something every year.

[alexth]

People, you lost money and properties before, what you want now is leave the impression that you are prepared to loose it again. That's accepting looses, that's ok. But don't you think you're getting to sentimentally involved...I mean, living with a tiger and wonder yourselfs about WHEN will they attack...excuse me, but I think this is nutz