Land Prices

[RichardG]

Hi,

we are buying some land outside of Chiang Mai (San Patong area) It is 10 Rai, has electric and a well. We are planning to grow Lam Yai trees and try and get a bit of additional income.

I need to know a couple of things if anyone can help?

1: Is 1,000,000 Baht too expensive? I have looked around and 100K / Rai is pretty much the rate - or is this being inflated as I am a FFarang?

2: Can my son have the land registered in his name, he has a Thai birth cert. and passport, but is half English half Thai. By the way he is only three, but I wanted to put it in his name so if everything were to go horribly wrong, at least he could have some security for the future.

As regards living expenses in or around Chiang Mai, 30K / month should be sufficient (no need to pay for accomodation) have already.

Advice welcome.

Thanks

[dr_Pat_Pong]

The child becoming the registered proprietor has heaps of problems. This purchase is too much to piss about with. Go see a lawyer on Monday.

[RichardG]

Heaps of problems????? don't like the sound of that.

I have spoken with a lawyer, and at the time she advised that I could put the land in my wife's name then if I needed to, could put in a 30 year lease to myself.

At the time, we never thought about putting it in my son's name, it just seemed like the best thing to do for his future.

Thanks again, I will talk to a lawyer again.

[astral]

As with any land, price relates to location.

However 1M/rai sounds like central CM prices.

To own land a Thai must be 21.

You can put it in your wife's name? If so, you want a back to back agreement with a loan to cover the cost. The loan must be registered on the land document so that the land cannot be sold without the loan being cleared first. (You hold the purse strings). You may trust your wife completely, but she also has family. I remember a report in the papers, back in the late 80's. "Farang found dead at bottom of well"

Mother-in-law had had him bumped off!!

Alternatively talk to your lawyer about starting a company, cost 30-50K baht.

You will have 49% share and the other share holders are nominees. Only you, as MD, have signing power. Then buy the land in the company name.

You can lease part of the land to build a house, and run the rest as business.

You will pay a small amount of tax. Mine costs me 3000 baht a year tax plus 12,000 auditors fees. A small price to pay for peace of mind.

[mouse]

Crimey! We paid 6,000 Baht a RAI just a short while ago. Do you get oil right with that price? Oh yeah big city. Where do I live? TOP SECRET

[exp9696]

6000 baht for 1 rai,i know where you live MOUSE ( in a hole )

[Guest IT Manager]

The 1 million baht is 10 Rai not 1.

The price is fine.

6,000 baht per rai is quite reasonable in Isan.

I agree. Talk to the lawyer again.

IT

[chanchao]

My gf is from around there and I just asked what she thinks land goes for and she guessed 200,000 baht per rai. So that would be twice the price you were quoted. I always thought she values land too high though, in my opinion 100K is fine.

It depends greatly on the location of course, but that there's electricity is a good sign. (And road access, I suppose. Also make sure that the land is of the kind that can be sold and used for any purpose, not just the 'use for livelyhood' crap.

Cheers,

Chanchao

[p_brownstone]

I purchased land upcountry about 15 years ago and registered it in my (natural) daughters' name; she was then 6 years old and a Thai citizen - I am British and at that time my Thai wife could not purchase land herself because she was married to a Farang.

There was absolutely no problem with the transaction, the only thing which was pointed out to us was that my daughter could not sell the land until she was 18 (or 21 - I forget) without getting permission from a Thai court - again, I forget the exact requirement but since we bought the land as a retirement home it was never our intention to sell anyway so it was not relevant.

Unless the law has changed there should be no problem in registering land to your son - you should check the original title to the land of course, what I purchased had full "Chanote" documentation, it is possible that any land with a lesser title may be subject to different rules.

[RichardG]

Thanks everyone,

how do I tell if the land can be sold / used for anything as opposed to for livelihood purposes?

Thanks

[Maverick]

As with any land, price relates to location.

However 1M/rai sounds like central CM prices.

To own land a Thai must be 21.

You can put it in your wife's name? If so, you want a back to back agreement with a loan to cover the cost. The loan must be registered on the land document so that the land cannot be sold without the loan being cleared first. (You hold the purse strings). You may trust your wife completely, but she also has family. I remember a report in the papers, back in the late 80's. "Farang found dead at bottom of well"

Mother-in-law had had him bumped off!!

Alternatively talk to your lawyer about starting a company, cost 30-50K baht.

You will have 49% share and the other share holders are nominees. Only you, as MD, have signing power. Then buy the land in the company name.

You can lease part of the land to build a house, and run the rest as business.

You will pay a small amount of tax. Mine costs me 3000 baht a year tax plus 12,000 auditors fees. A small price to pay for peace of mind.

I agree with Dr P - get legal advice.

My understanding is this:

1. If you arrange a loan and get it registered at Land ministry what happens when they require you to sign that you have no claim on the land, monies as I was asked to sign when we bought land in C Mai (and i wasnt just there as a spectator not buying it!).

2. A company owning land is not 100% satisfactory if it is a 'dummy' company ie set up just to circumvent Thai Law. If the company is a real business (ie it does also trade) thats a different story I believe.

3. Putting land in ownership of a child - maybe ok donkeys years ago but I suspect not now. You can I believe get the child listed as a beneficiary on the title as an added safeguard but it isnt again 100%

4. Price - we paid 1 million for one rai in Samoeng - chanote, mountain views and all amenities and whilst it was a bit loaded due to my pale face was about right in that area (cooler and close to resorts, mountains etc). Friend paid 5 million per rai in central C Mai for a 'compound' plot which was going rate. Of course u can pay less but its never easy to get bargains in LOS as everyone is an agent and thais will sit on land rather than sell 'cheap'.

[Maverick]

Oh by the way just been down to Pranburi holiday/land hunt. Two plots on direct seafront at the beach at Pranburi each plot about 1 rai - price per rai - 25 million baht. Great views though and wake up to the sea crashing on the beach. They will get these prices eventually. Cheapest seaviews in Pranburi 3 million per rai (that we saw).

[Boon Mee]

Anybody have an idea what the "Thai" price for land in Suphanburi goes for now? My wife is keen on some property a little closer to Bkk and as I understand it, Suphanburi is only an hour from the "Smoke".

Thanks!

Boon Mee

[RichardG]

Thanks again,

we have definately got the 100% Chanote, that is no problem.

We just need to get the bits sorted about putting it in my son's name.

As for the mother in law and the well, it's going to be a race, and believe me, i can get there quicker! LOL

Anyone know someone can help me out, 12 bore, noose, rat poison - she'probably immune to rat poison though.

Thanks again!

Appreciated

[p1p]

Land price, 100K/Rai at Sanpatong - about average. However I would think very strongly about planting with Longan (Lamyai) trees. I have just sold a Lamyai plantation because the average price has been dropping yearly for the past seven or eight years. (After taking relative crop size into account.)

Ten years ago the prices were very high. Since then the number of trees has increased by almost 50% year on year and the returns have fallen considerably. We were looking to just about break even this year, assuming we could sell the crop. Looks to be a heavy season with a glut on the market. I fear many crops will go unsold.

Take care