how much time from now will condo prices drop?

[KittenKong]

No you were saying the Thai's are buying in less desirable places. I am saying they are buying everywhere and especially the most sought after.

Surely, but they are in the minority. Most sales of units here that are in nice areas and are larger than shoe-boxes are made to non-Thais. Hence the demand for company ownership. Thais buy some, of course, but not most. But in buildings that are in less desirable areas and/or have much smaller unit sizes the buyers are mostly Thai, with a smaller percentage of foreign buyers.

There are exceptions in various buildings for various reasons, and also notable exceptions at the very top end of the market, but the general trend in what I would call the main market seems quite clear.

[loppylugs1]

Pretty easy to answer this one,they are on the way down already.The place is so overbuilt ,and the building just never stops,let the Thais commit financial suicide,they are quite good at that,for a farang to enter this market they must be nuts

For my part I have been negotiating prices in a nice area in Spain to re-locate to,impossible on a falling market,11% off last quarter,4% off this quarter,where the hell is the bottom line? even rentals there just keep negotiating downwards.

But for all the uncertainty it is the empty condos,the owners that walk away from their problems,toss the keys somewhere and the maintenance fees that are left for the ones left to pick up the tab,security,pool maintenance ,cleaning etc. goes out through the window,an empty shell a worthless one at that

One more thing to consider now the Thai military are in control of Thailand and doing the "right thing" i.e. visa tightening for farang,rice plotting ,taxi mafia in Phuket etc. Will they also be looking at farang purchases of houses or condos via the company route?. Certainly would be looking over my shoulder at this one

Edited July 22, 2014 by loppylugs1

[Rimmer]

A personal attack on another member along with the replies to it have been removed.

[KittenKong]

One more thing to consider now the Thai military are in control of Thailand and doing the "right thing" i.e. visa tightening for farang,rice plotting ,taxi mafia in Phuket etc. Will they also be looking at farang purchases of houses or condos via the company route?.

It would not surprise me. The military mind likes things to be ordered and correct, and most company-owned residential property here appears to be neither.

[craigt3365]

One more thing to consider now the Thai military are in control of Thailand and doing the "right thing" i.e. visa tightening for farang,rice plotting ,taxi mafia in Phuket etc. Will they also be looking at farang purchases of houses or condos via the company route?.

It would not surprise me. The military mind likes things to be ordered and correct, and most company-owned residential property here appears to be neither.

Actually there's a discussion going on about eliminating the number of nominees from 3 down to only 1. But's that's all I have heard so far. Hopefully, they'll implement something like Malaysia has. Lots of land and properties owned by wealthy Thais. Last thing they want is for the market to crash.

[lapd]

The corporate ownership of property being used by farangs to buy thai residential property is a loophole that can and probably will be closed someday. There is definitely a risk to go that route unless you can afford to lose a substantial chunk of that money.

Edited July 22, 2014 by lapd

[Pattaya46]

It would not surprise me. The military mind likes things to be ordered and correct, and most company-owned residential property here appears to be neither.

How can you know? The few farangs I know who "own" a house this way made it the most legal way possible with lawyers specialized in this domain. They have a true company, alive, paying tax on its activity, and at creation money came from different accounts of each "partners". It would need a very thorough research to - maybe - find something wrong.

The corporate ownership of property being used by farangs to buy thai residential property is a loophole that can and probably will be closed someday. There is definitely a risk to go that route unless you can afford to lose a substantial chunk of that money.

As said above, it would not be an easy task in many cases. Real & legal companies. Even if some infraction was found, it could be just some (small) fine. The risk seems really very very small.

[chris2004]

It would not surprise me. The military mind likes things to be ordered and correct, and most company-owned residential property here appears to be neither.

How can you know? The few farangs I know who "own" a house this way made it the most legal way possible with lawyers specialized in this domain. They have a true company, alive, paying tax on its activity, and at creation money came from different accounts of each "partners". It would need a very thorough research to - maybe - find something wrong.

The corporate ownership of property being used by farangs to buy thai residential property is a loophole that can and probably will be closed someday. There is definitely a risk to go that route unless you can afford to lose a substantial chunk of that money.

As said above, it would not be an easy task in many cases. Real & legal companies. Even if some infraction was found, it could be just some (small) fine. The risk seems really very very small.

If the company is not trading in the normal sense and was set up to buy the house it is not legal and they don't "own' the house. I am sure that soon the authorities will starting looking at these deals.

[PattayaPhom]

The corporate ownership of property being used by farangs to buy thai residential property is a loophole that can and probably will be closed someday. There is definitely a risk to go that route unless you can afford to lose a substantial chunk of that money.

I remember reading posts like this 10 years ago, yet still the party goes on. Its not an ideal way of purchasing property but providing the purchaser is made fully aware of whats involved then that is their choice. Lets be clear that the current regulation around Foreign ownership isnt in place to stop Johnny Foreigner buying a few Rai in Phuket or whatever tourist resort, its there to protect the large swathes of agriculture land that help Thailand be self sufficient.

[loppylugs1]

The corporate ownership of property being used by farangs to buy thai residential property is a loophole that can and probably will be closed someday. There is definitely a risk to go that route unless you can afford to lose a substantial chunk of that money.

I remember reading posts like this 10 years ago, yet still the party goes on. Its not an ideal way of purchasing property but providing the purchaser is made fully aware of whats involved then that is their choice. Lets be clear that the current regulation around Foreign ownership isnt in place to stop Johnny Foreigner buying a few Rai in Phuket or whatever tourist resort, its there to protect the large swathes of agriculture land that help Thailand be self sufficient.

Chosen words from a property pimp "ideal way of purchasing property"? The purchaser does not own anything,end of story

[Pattaya46]

If the company is not trading in the normal sense and was set up to buy the house it is not legal

"If", yes, but these companies usually are trading; it's what I mean by "alive". The company leases the house, get the monthly rent, pays tax on it, has accounts & yearly rapport, ... It's a small "business" but they are not "sleeping" companies.

[chris2004]

If the company is not trading in the normal sense and was set up to buy the house it is not legal

"If", yes, but these companies usually are trading; it's what I mean by "alive". The company leases the house, get the monthly rent, pays tax on it, has accounts & yearly rapport, ... It's a small "business" but they are not "sleeping" companies.

Come on that is not trading, there is no "business". It's just a convoluted way of allowing the farand to live in the house. Just because it was set up by some shyster lawyer does not make it legal.

[PattayaPhom]

The corporate ownership of property being used by farangs to buy thai residential property is a loophole that can and probably will be closed someday. There is definitely a risk to go that route unless you can afford to lose a substantial chunk of that money.

I remember reading posts like this 10 years ago, yet still the party goes on. Its not an ideal way of purchasing property but providing the purchaser is made fully aware of whats involved then that is their choice. Lets be clear that the current regulation around Foreign ownership isnt in place to stop Johnny Foreigner buying a few Rai in Phuket or whatever tourist resort, its there to protect the large swathes of agriculture land that help Thailand be self sufficient.

Chosen words from a property pimp "ideal way of purchasing property"? The purchaser does not own anything,end of story

Maybe read my post "not ideal"

Sent from my TRUE BEYOND 4G using Thaivisa Connect Thailand mobile app

[Basil B]

It would not surprise me. The military mind likes things to be ordered and correct, and most company-owned residential property here appears to be neither.

How can you know? The few farangs I know who "own" a house this way made it the most legal way possible with lawyers specialized in this domain. They have a true company, alive, paying tax on its activity, and at creation money came from different accounts of each "partners". It would need a very thorough research to - maybe - find something wrong.

The corporate ownership of property being used by farangs to buy thai residential property is a loophole that can and probably will be closed someday. There is definitely a risk to go that route unless you can afford to lose a substantial chunk of that money.

As said above, it would not be an easy task in many cases. Real & legal companies. Even if some infraction was found, it could be just some (small) fine. The risk seems really very very small.

Clearly the intentions of successive governments (rightly or wrongly) has been to prevent aliens from owning land, the create a company and stuff it with dummy Thai partners that fictitiously own 51% was invented by lawyers and real estate companies to circumvent these laws.

For those who have gone this route, I would have thought what the junta will do is the least of their worries, giving a load of Thai dummies (who maybe not that dum) 51% of their company could lead to a hostile take over.

There has been a lot of heated debates in the past on this subject which seem to have died a death mainly because there has already been much tightening of the rules and the advocaters of "buy with a company" have been proved wrong, but course one should always be wary of any advice on board like this because we do not know who is a seller, lawyer or real estate with vested interests.

Edited July 23, 2014 by Basil B

[boldface]

I've seen prices fairly plummet, and then pick up. The rich Thai's who already have a property portfolio are the ones buying. Farangs seem to be a little scared of the market still but as long as their company is legal (trading that is) or they are buying in a confirmed Non Thai apportioned part of a condo block then there is no real problem.

Some people are scarpering though before they get rejected at the border, which even then is myopic. Unless they need the cash, there is little point throwing money down the drain as they race to sell up.

[Shurup]

Apologies for a little offtopic, I thought falangs can legaly own a condo.

What is this talk about 49 / 51% ownership and buying on a company name? It doesn't apply for buying a condo, does it?

[PattayaPhom]

Apologies for a little offtopic, I thought falangs can legaly own a condo.

What is this talk about 49 / 51% ownership and buying on a company name? It doesn't apply for buying a condo, does it?

Some sought after condos will be purchased by Foreigners in a company set up in the Thai quota as Foreign units rarely become available.

[chiang mai]

Pretty easy to answer this one,they are on the way down already.The place is so overbuilt ,and the building just never stops,let the Thais commit financial suicide,they are quite good at that,for a farang to enter this market they must be nuts

For my part I have been negotiating prices in a nice area in Spain to re-locate to,impossible on a falling market,11% off last quarter,4% off this quarter,where the hell is the bottom line? even rentals there just keep negotiating downwards.

But for all the uncertainty it is the empty condos,the owners that walk away from their problems,toss the keys somewhere and the maintenance fees that are left for the ones left to pick up the tab,security,pool maintenance ,cleaning etc. goes out through the window,an empty shell a worthless one at that

One more thing to consider now the Thai military are in control of Thailand and doing the "right thing" i.e. visa tightening for farang,rice plotting ,taxi mafia in Phuket etc. Will they also be looking at farang purchases of houses or condos via the company route?. Certainly would be looking over my shoulder at this one

They started looking at this and taking action against offenders over two years ago, offenders have six months to transfer the property out of the company.

[Bernard Flint]

well i think there will be an exodus of russians with criminal backgrounds and some folks that use the back to back tourist visas. as we all know it was the russian "invasion" that caused the rise in prices , so it's obvious that there will be a drop in condo prices . it doesn't take a genius to figure that out.

looking at other questions you posted - from getting viagra to fake iphones to condo mgmt fees to soon arriving in Thailand - I assume that you are pretty new to Thailand?

now you ask a question in your OP whether condo prices might fall due to the VISA restrictions... and now you answer your own question with a 100% certainty...

you KNOW that the Russians caused a rise in prices... you KNOW that most of them are criminals... you KNOW that they all must leave Thailand now... and you KNOW that they will all throw their condos onto the Pattaya market...

does not take a genius to see that you have still a lot to figure out...

I think TomTom hass been reading too many mafia books

[Basil B]

Apologies for a little offtopic, I thought falangs can legaly own a condo.

What is this talk about 49 / 51% ownership and buying on a company name? It doesn't apply for buying a condo, does it?

In deed farangs can own a condo in their own name, but any condominium can only register 49% so if a condominium consists of 100 equally sized units (condos), 49 can be owned by farang, the other have to be owned by Thais or companies for which the owner ship shall more than 50% Thai.

None Thai's (farang) can own a house, but not free hold, they can only rent the land it is built on, or as many have done get a local lawyer to make them a company to own it, but on paper they only own 49% of it, so some Thai's are given 51% of the company for free, and you have to pay them and the lawyer ever years to produce the accounts.

Edited July 23, 2014 by Basil B

[JesseFrank]

I have from a very reliable source, a man in a bar, that prices will drop on the 17th of November this year.

Hope you can wait that long.

[Deacon Bell]

When h3ll freezes over.

[Me Yank]

I have from a very reliable source, a man in a bar, that prices will drop on the 17th of November this year.

Hope you can wait that long.

mobi's Bar ??

[KittenKong]

It would not surprise me. The military mind likes things to be ordered and correct, and most company-owned residential property here appears to be neither.

How can you know? The few farangs I know who "own" a house this way made it the most legal way possible with lawyers specialized in this domain. They have a true company, alive, paying tax on its activity, and at creation money came from different accounts of each "partners". It would need a very thorough research to - maybe - find something wrong.

The ones I know of seem to be vague about the nominees, and about the sources of the money. They also seem to involve the farang keeping hold of signed and undated transfer documents from the nominees. Also they dont seem to carry on any proper business at all and just have books falsified by an accountant once a year.

To my mind all that is neither ordered or correct. I dont think it would take anyone more than 5 minutes to see through a setup like that, if they cared to look.

[i claudius]

My wife is conected to the property buisness as are some of my friends ,the one problem i see (apart from shoe boxes at the seafront costing a fortune) is the fact that approx 60% of condoes purchased in Pattaya are not for personal use but as investments ,now i am not saying that it will happen here but remember what happened in Dubai where it was the same scenario.

[Swiss1960]

My wife is conected to the property buisness as are some of my friends ,the one problem i see (apart from shoe boxes at the seafront costing a fortune) is the fact that approx 60% of condoes purchased in Pattaya are not for personal use but as investments ,now i am not saying that it will happen here but remember what happened in Dubai where it was the same scenario.

Not sure you can compare the Thailand situation with any bubble burts in Dubai or US or any European country.... For a bubble to burst, you "need" investors who want to jump out of the bubble in order to cut their losses...

From all I have seen myself and / or read on various sites,

• Thailand investors tend to sit on their investments and would rather cut their own throats instead of selling under their original purchase price, seems to have a lot do do with face
• Thailand investors seem to normally buy "all cash" and not having bank loans, so they can not be harassed by banks for sale when not paying back the loans.

That is why I don't think that the bubble (which exists) will burst any time soon. I will continue to think so until proven wrong

[KittenKong]

Thailand investors tend to sit on their investments and would rather cut their own throats instead of selling under their original purchase price, seems to have a lot do do with face

Applicable to Bangkok, maybe, but most buyers in Pattaya are not Thai.

Thailand investors seem to normally buy "all cash" and not having bank loans, so they can not be harassed by banks for sale when not paying back the loans.

I think that many of the cheap Pattaya developments that sell well to Thais are in fact being sold to a large extent on credit. Thailand has one of the highest personal debt ratios in SEAsia.

[ThaiBob]

I have heard it is easy for a Thai to get a primary residence mortgage but difficult for secondary or holiday home, hence I agree with Swiss 1960 that Thai buyers in Pattaya use cash just like most foreign buyers. I visited Rangsit recently and the amount of home and condo building for the local market is staggering. If the long rumored bubble bursts it will not be Pattaya that leads the way. The Thais were creative when the bubble burst 15 years ago by clearing the condo glut and removing the condo restrictions on foreigners for 5 years in Bangkok and Pattaya.

[JSixpack]

Yawn. Yet another CONDO GLUT and COMING REAL ESTATE DISASTER thread.

If you wanna buy a condo to live in for at least 10 years, and if you've done your due diligence (!), then any time's a good time to buy--if you've got the dosh. Insufficient dosh, then continue saving while you enjoy listening to our forum prognosticators' readings of the tea leaves. That's it.

[ThaiBob]

What I don't get about these "housing/condo bubble" threads or the current one, is everyone charges ahead accepting the poster's premise which is an opinion that is not supported by any data. Yes, there are a lot of homes and condos on the market with many more to come, anybody can see that. A bubble is an unsustainable increase in prices until the saturation point is reached and the market goes in a downward spiral. Simply stated the market analysis done by these big developers carries more weight than the typical barroom dribble that is often posted. The price per sqm for these glorified hotel rooms is down right cheap I might add. No doubt, the market has been thrown a big unwanted curve ball on May 22 with the political situation and I for one would not invest in this market at this time. Thailand has always managed to right the ship in the past, until then I would be very content to be just an observer and not a buyer.