Forming A Company To Purchase A Condo

[johnh101]

Apologies if this is a repeated topic but my internet is terrible today and I have been searching through old posts for more than 3 hours now.

I want to buy a condo.

Problem is it is in a Thai name and I want to buy in Farang name. The owners agent has told me that this is not a problem, I set up a Thai Company and buy it that way.

I thought that this was actually illegal to do (although many people still do so), can anyone point me in the direction of the truth ?

If it is legal, what are the pitfalls of this method of purchase.

I would appreciate any help, and again apologise if I am retreading an old path.

[trogers]

I did not know there is a shortage of condos in the market, even those within the 49% permitted for foreign ownership.

[PattayaPhom]

First check at the JP office to see if foreign quota is full, you may find that you can purchase in foreign name even though it is currently held under Thai name.

[davejones]

There is a lot of debate about whether buying via a company is legal or not. But you need to look into it very carefully. Who will be the Thai person who owns the 51% of the company? What will you do if you need to sell but they have disappeared, died, etc? Will it be more difficult to sell, because many farangs don't want to use the company method? Lots of other things to consider. Don't listen to anyone who won't point out the pitfalls. You need the full facts before you can decide for yourself whether it's the method for you or not. And don't forget that you'll have to pay an accountant to make company returns every year.

[TommoPhysicist]

First check at the JP office to see if foreign quota is full, you may find that you can purchase in foreign name even though it is currently held under Thai name.

What he says, check to see if the quota is full.

Don't believe the agency.

[Khun Jean]

That's easy. Skip that one and find one that is available in the foreign quota. There must be thousands if not more of them. Maybe the one on the other floor.

Any price advantage will be gone when you use a company to own it, with years of headache included.

Someone mentioned pitfalls, i would say show me which advatages a company ownership of a condo has.

I can't think of even one.

If an agents lips are moving, it means they are lying. Check everything yourself.

Rememebr 99.9% of the agents make it difficult for the 0.1% good guys.

Edited September 27, 2012 by Khun Jean

[PattayaPhom]

First check at the JP office to see if foreign quota is full, you may find that you can purchase in foreign name even though it is currently held under Thai name.

What he says, check to see if the quota is full.

Don't believe the agency.

My comment was suggesting that although this unit is currently under Thai name, the foreign quota may NOT be full, hence allowing the OP to purchase in his own name. Confirmation of quoto is needed from JP at land office anyway.

[bdw]

JP = Justice of the Peace ?

[LennyW]

JP = Justice of the Peace ?

Juristic Person.

[keeniau96]

If you do form a company you will have annual hassles re the tax filings, which will require an accountant and considerable expense. That's even if the company has no income and no expenses. Simply not worth the overall hassle re the Thai shareholders and the very questionable legality of the arrangement. No shortage of condos for sale.

[thaigold]

My question to you is; why on earth would you want to buy a condo in Thailand? Buying a condo in London or LA is a risk, one here is a sure loser. Where's the benefit?

[TommoPhysicist]

My question to you is; why on earth would you want to buy a condo in Thailand? Buying a condo in London or LA is a risk, one here is a sure loser. Where's the benefit?

I'm thinking of buying a condo in CM ..... 150kbht (3,000UKP) ..... hardly a big risk.

[davejones]

My question to you is; why on earth would you want to buy a condo in Thailand? Buying a condo in London or LA is a risk, one here is a sure loser. Where's the benefit?

I'm thinking of buying a condo in CM ..... 150kbht (3,000UKP) ..... hardly a big risk.

You could end up spending more on the accountant than the condo is worth. Best to buy in your own name.

[davejones]

My question to you is; why on earth would you want to buy a condo in Thailand? Buying a condo in London or LA is a risk, one here is a sure loser. Where's the benefit?

Plenty of people have made good money buying condos in Thailand. Not sure why you think he'd be sure to make a loss?

And you think buying a condo in London is a risk? I suggest you don't buy anything, as everything is likely to be too risky for you.

[54321]

My question to you is; why on earth would you want to buy a condo in Thailand? Buying a condo in London or LA is a risk, one here is a sure loser. Where's the benefit?

Benefits include

Capital appreciation

Stability- a landlord may decide he wants to sell his condo

No rent to pay

Ability to decorate to your own tastes

Why on earth is it "surely a loser"?

[davejones]

My question to you is; why on earth would you want to buy a condo in Thailand? Buying a condo in London or LA is a risk, one here is a sure loser. Where's the benefit?

Benefits include

Capital appreciation

Stability- a landlord may decide he wants to sell his condo

No rent to pay

Ability to decorate to your own tastes

Why on earth is it "surely a loser"?

Simply because many posters come on here just to make stupid comments. They have no idea at all what they are talking about. Most are such failures that they can't bear to see anyone else make some money, buy a condo, have a good life, etc.

[trogers]

I'm thinking of buying a condo in CM ..... 150kbht (3,000UKP) ..... hardly a big risk.

Keep your Bt 150k and use the money that you will have to pay the accountant yearly to rent instead.

[melvinmelvin]

Some pointed out the potential risk if the majority (Thai) shareholders should pass away.

There are relatively simple and cheap ways to overcome those risks,

by writing and registering properly company internal rules.

[TommoPhysicist]

My question to you is; why on earth would you want to buy a condo in Thailand? Buying a condo in London or LA is a risk, one here is a sure loser. Where's the benefit?

Benefits include

Capital appreciation

Stability- a landlord may decide he wants to sell his condo

No rent to pay

Ability to decorate to your own tastes

Why on earth is it "surely a loser"?

Simply because many posters come on here just to make stupid comments. They have no idea at all what they are talking about. Most are such failures that they can't bear to see anyone else make some money, buy a condo, have a good life, etc.

For every 1 that has capital appreciation, 99 make a capital loss.

[davejones]

My question to you is; why on earth would you want to buy a condo in Thailand? Buying a condo in London or LA is a risk, one here is a sure loser. Where's the benefit?

Benefits include

Capital appreciation

Stability- a landlord may decide he wants to sell his condo

No rent to pay

Ability to decorate to your own tastes

Why on earth is it "surely a loser"?

Simply because many posters come on here just to make stupid comments. They have no idea at all what they are talking about. Most are such failures that they can't bear to see anyone else make some money, buy a condo, have a good life, etc.

For every 1 that has capital appreciation, 99 make a capital loss.

That is just a load of <deleted>. You obviously have no idea whatsoever what you are talking about. Even I don't think the condo market in Thailand is great, but only 1% making capital gains? I don't think so. Perhaps you can tell us how you came up with this ludicrous figure. The building I now live in is around 7 years old. The condos here have increased in priced by around 50% in that time, so 100% of the condos here have appreciated in value. And these figures are based on recent sales, not asking prices. I'm sure there are some condo buildings that have gone down in value, especially in the short-term, but what you say just shows you up as either ignorant or a troll.

[54321]

My question to you is; why on earth would you want to buy a condo in Thailand? Buying a condo in London or LA is a risk, one here is a sure loser. Where's the benefit?

Benefits include

Capital appreciation

Stability- a landlord may decide he wants to sell his condo

No rent to pay

Ability to decorate to your own tastes

Why on earth is it "surely a loser"?

Simply because many posters come on here just to make stupid comments. They have no idea at all what they are talking about. Most are such failures that they can't bear to see anyone else make some money, buy a condo, have a good life, etc.

For every 1 that has capital appreciation, 99 make a capital loss.

I am not sure were you get your numbers from but they are quite unbelievable.

In the last few years I have bought 5 condos in 4 different developments were a total of over 8000 units have been built, on average the condos are selling for 40% more than I paid. I wonder where the unlucky loss making condos are? I suspect that I and the other 8000 odd buyers have been very lucky to have avoided the bad ones, or your numbers are just drivel?

[davejones]

For every 1 that has capital appreciation, 99 make a capital loss.

I am not sure were you get your numbers from but they are quite unbelievable.

In the last few years I have bought 5 condos in 4 different developments were a total of over 8000 units have been built, on average the condos are selling for 40% more than I paid. I wonder where the unlucky loss making condos are? I suspect that I and the other 8000 odd buyers have been very lucky to have avoided the bad ones, or your numbers are just drivel?

I'm glad to see another post with actual real-life experience rather than the usual drivel we get on here. Out of interest, where did you buy these condos? Pattaya? If so, how do you think the market's doing there at the moment, and what do you think are the best areas to buy. I just finished a book that reckoned Wongamat was the area most likely to see capital appreciation. Maybe also central Pattaya. Book was Pattaya Property and Thailand's Real Estate. Good a good read, especially the section on whether to buy in your own name or via a company. The book recommends buying in your own name.

[TommoPhysicist]

Simply because many posters come on here just to make stupid comments. They have no idea at all what they are talking about. Most are such failures that they can't bear to see anyone else make some money, buy a condo, have a good life, etc.

For every 1 that has capital appreciation, 99 make a capital loss.

I am not sure were you get your numbers from but they are quite unbelievable.

In the last few years I have bought 5 condos in 4 different developments were a total of over 8000 units have been built, on average the condos are selling for 40% more than I paid. I wonder where the unlucky loss making condos are? I suspect that I and the other 8000 odd buyers have been very lucky to have avoided the bad ones, or your numbers are just drivel?

Bought 5 ..... and sold how many?

(I'm guessing sold none)

[davejones]

Bought 5 ..... and sold how many?

(I'm guessing sold none)

That's the whole point though. You are just guessing and pretending you know. Why don't you just stick to taking advice from people who have actually bought and sold property instead of repeating what the losers without money have to stay. You're making a bit of a fool of yourself with the constant negative posts, especially when it's clear that you are just a troll who know nothing about Thai property.

As that old saying goes... Will the people who think it can't be done please keep quiet, so that the people that are actually doing it can get on with their work.

[TommoPhysicist]

Bought 5 ..... and sold how many?

(I'm guessing sold none)

That's the whole point though. You are just guessing and pretending you know. Why don't you just stick to taking advice from people who have actually bought and sold property instead of repeating what the losers without money have to stay. You're making a bit of a fool of yourself with the constant negative posts, especially when it's clear that you are just a troll who know nothing about Thai property.

As that old saying goes... Will the people who think it can't be done please keep quiet, so that the people that are actually doing it can get on with their work.

So if you have sold some at a profit let us all know so our misguided ideas are corrected.

Bought 5, sold ??, profit as a percentage on each sale after deducting tax, fees, etc..............

I am happy to be proven wrong.

Edited September 29, 2012 by TommoPhysicist

[Rancid]

My question to you is; why on earth would you want to buy a condo in Thailand? Buying a condo in London or LA is a risk, one here is a sure loser. Where's the benefit?

If you can't afford to buy a condo that is fine, but as a person that doesn't own how is it you can advise others against it? There are no proiblems buying and selling condos in Thailand, they appreciate just like anywhere else. Crashes will come, but there is always more people and the same amount of land, so they do rebound.

[TommoPhysicist]

My question to you is; why on earth would you want to buy a condo in Thailand? Buying a condo in London or LA is a risk, one here is a sure loser. Where's the benefit?

If you can't afford to buy a condo that is fine, but as a person that doesn't own how is it you can advise others against it? There are no proiblems buying and selling condos in Thailand, they appreciate just like anywhere else. Crashes will come, but there is always more people and the same amount of land, so they do rebound.

I haven't jumped off a 5th floor balcony, but I know it wouldn't be a good idea.

As for not affording a condo, I doubt if anyone on TV couldn't afford the 150kbht (4000USD or 3000UKP) to buy one near CM.

[54321]

Simply because many posters come on here just to make stupid comments. They have no idea at all what they are talking about. Most are such failures that they can't bear to see anyone else make some money, buy a condo, have a good life, etc.

For every 1 that has capital appreciation, 99 make a capital loss.

I am not sure were you get your numbers from but they are quite unbelievable.

In the last few years I have bought 5 condos in 4 different developments were a total of over 8000 units have been built, on average the condos are selling for 40% more than I paid. I wonder where the unlucky loss making condos are? I suspect that I and the other 8000 odd buyers have been very lucky to have avoided the bad ones, or your numbers are just drivel?

Bought 5 ..... and sold how many?

(I'm guessing sold none)

I wanted avoid being rude. Yes I have sold none (they are currently earning about a 7% yield and I am hapy), but I can read. I can see what they are being advertised for. I enquire about them with no intention to buy more. I make offers at way below the asking price to ascertain the true market value, and get rejections. I suspect you are a bitter fool who has been stung by something or someone and sit in your house (somewhere) trying to project a bleak picture of property in Thailand. I don't know why, and really don't care

[TommoPhysicist]

I wanted avoid being rude. Yes I have sold none (they are currently earning about a 7% yield and I am hapy), but I can read. I can see what they are being advertised for. I enquire about them with no intention to buy more. I make offers at way below the asking price to ascertain the true market value, and get rejections. I suspect you are a bitter fool who has been stung by something or someone and sit in your house (somewhere) trying to project a bleak picture of property in Thailand. I don't know why, and really don't care

I think you will find many sellers would rather have an empty and unused property than drop their price.

Something that appears unique to Thailand. It doesn't mean the asking price is realistic.

Any "fire sale" condos do not appear on the open market, they are purchased by the agents "selling" them.

Until you have sold, your "profit" is entirely imaginary, and you may never be able to sell.

You are currently making 7% return by renting on a fairly new condo, is that after paying the agents fees and 15% tax on your rental income, or are you breaking the law? One complaint from a dissatisfied tenant, and you could be paying many years of back taxes.

But really, I wish you the best of luck and hope you do profit from future sales.

PS

In CM (my nearest property hotspot), rental income is between 4% and 5%, after tax, agents fees, maintenance, that would be a return of about 3%-3.5%. I can get 6-8% return elsewhere with little risk to my capital.

Edited September 29, 2012 by TommoPhysicist

[54321]

I wanted avoid being rude. Yes I have sold none (they are currently earning about a 7% yield and I am hapy), but I can read. I can see what they are being advertised for. I enquire about them with no intention to buy more. I make offers at way below the asking price to ascertain the true market value, and get rejections. I suspect you are a bitter fool who has been stung by something or someone and sit in your house (somewhere) trying to project a bleak picture of property in Thailand. I don't know why, and really don't care

I think you will find many sellers would rather have an empty and unused property than drop their price.

Something that appears unique to Thailand. It doesn't mean the asking price is realistic.

Any "fire sale" condos do not appear on the open market, they are purchased by the agents "selling" them.

Until you have sold, your "profit" is entirely imaginary, and you may never be able to sell.

You are currently making 7% return by renting on a fairly new condo, is that after paying the agents fees and 15% tax on your rental income, or are you breaking the law? One complaint from a dissatisfied tenant, and you could be paying many years of back taxes.

But really, I wish you the best of luck and hope you do profit from future sales.

PS

In CM (my nearest property hotspot), rental income is between 4% and 5%, after tax, agents fees, maintenance, that would be a return of about 3%-3.5%. I can get 6-8% return elsewhere with little risk to my capital.

Thanks and to be fair, it appears we are talking about two different markets CM v BKK, I have no idea about CM but I suspect its like comparing London with Birmingham, they are totally different markets. Over and out