Land Values

[builderstu]

We bought our house almost 6 years ago, it was then 1.5mil Baht (what we paid) and sits on 1 Rai land approximately 800m from two major roads and about 1km from the towns market. We are not in a small village but a rather big town, we have a Big C, several 7-11s, Tesco Express and many other shops. We are a fairly large town I would say with a good farang community as well.

We have bought and sold many pieces of land around us over the past few years so we have become very accustomed to the land values, some land right on the main road for similar to Pattaya prices and maybe even higher. Land here is very expensive now days.

Well today my wife went to the local land office to get a survey and land value of our own home, now I know that they always air on the side of caution and to that they told us the "current" value. 200Baht per square wah. Multiply that to Rai and you get 80,000 Baht for 1 rai. Now the last piece of land we bought and sold was 1/4 Rai we paid 500,000 baht (got it round 2/3rds of the actual going price) and registered at local land office at 150,000 so multiply that by 4 means land office value should be 600,000 per rai?

So how can they justify my land as being 80,000 Baht, when land around me is selling between 2 - 4 million per Rai? Its not possible to be that far out. Now if they could say to me that they have 500 rai available at their values I would take it all and ask for more, but it just isn't there. Land we bought on the main road works at 16,000,000 per rai going rate, where do they get this stupid valuation from? Their valuations are so far from the actual prices.

Can anyone answer my questions how this actually works? Cause I aint got a clue and I have dealt with a lot of land purchases and sales back home and here in Thailand.

[Rdrokit]

Sounds like they valued your land as "farm only" land which is land that you can farm but not erect any housing.

[builderstu]

No our land is in residential area and has all building permits for the house and is registered as a house with them. Cause I did think about that to. It just doesn't make any sense at all. They must be using valuations from 10 years ago or something.

[SunsetT]

Back in my 2nd year in Thailand, I was given a good bit of advice.............Stop asking "Why?" in Thailand! There is no logic here.

[builderstu]

Back in my 2nd year in Thailand, I was given a good bit of advice.............Stop asking "Why?" in Thailand! There is no logic here.

Change it to "how can they" then

[mistabent]

Sure they're way off, but what's the problem? I see this only as a positive. If you're not selling then it doesn't matter. If you are selling (or will someday), market price is market price. It will sell for market price (ie whatever someone is willing to pay for it, tax accessed value is irrelevant). So that doesn't change. But now there will be super low transfer taxes. So what's the problem if it's under accessed? I wish all my property was under valued for tax purposes.

[Issangeorge]

What title is the land?

[96tehtarp]

What title is the land?

This is a good question.

There sometimes also is a large discrepancy between market value and assessment value for tax with the latter often lagging a decade behind the former. This is the case in my home country.

Edited August 16, 2014 by 96tehtarp

[SlyAnimal]

Maybe they intentionally value the land as quite low, as it would likely keep most parties happy, since then the land taxes would be lower.

[fatfather]

Maybe they intentionally value the land as quite low, as it would likely keep most parties happy, since then the land taxes would be lower.

You got it on the point. It is irrelevant what the land office thinks is the value of your land.... you'll sell it for the price you like. I've never seen that land is registered at its true value, because of the tax...

Fatfather

[Cashboy]

No our land is in residential area and has all building permits for the house and is registered as a house with them. Cause I did think about that to. It just doesn't make any sense at all. They must be using valuations from 10 years ago or something.

Which town is it you live in in Isaan?

I say this because I have been looking at land (farm and village)

Just last week I see building land in the village 4 Kms from Kumpawapi but 200 metres from main road (Bangkok to Udonthani).

2 gnang sold for 200,000 bt => 400,000 bt per rai.

That was expensive because the person wanted it for access to their house.

Farm land is being asked at 100,000 bt per rai that I think it too much.

You cannot get a return on farming on land if you pay 100,000 bt per rai.

I am surprised that they "undervalue" the land because I understand that the tax you pay on purchase is based on the government valuation.

[bedrock]

Just read your post
Sorry I cannot answer the question TIT
But maybe youre wife can inquire with Farmer Bank as to values if you said you wanted a loan , they will value upto 50% current value
Can l ask have you any knowledge of Chumpae ? Steve ,, ,

**email address removed, please pm the user if you would like to contact them **

Edited August 17, 2014 by SlyAnimal
Removed email address

[PattayaPhom]

Your comparison to Pattaya is totally off skew. Land on the main Sukhumvit if at all possible to get goes for 30 Million + a Rai, Land office value at 8,000-12,000 per TW so 1/10 of the actual selling price.

[SilverBeast]

Sounds like an immature market. Should be a bunch of money to be made then...

[bigwhitewarrior]

No our land is in residential area and has all building permits for the house and is registered as a house with them. Cause I did think about that to. It just doesn't make any sense at all. They must be using valuations from 10 years ago or something.

Probably .. Calculator broken ;-)

[cassde]

Recently I loaned a farmer in Isaan 30,000 baht and in return received 2 rai of land for 3 years with sugar tree planted. I thought that was a good deal - thoughts?

[Issangeorge]

My wife rented 10 rai for three years for ฿20,000, so I would say you got a good deal.

[Assurancetourix]

Maybe the price the local Land office gave to u is the price the government will pay to u if they want to expropriate u because there is oil , gold ,... or something else in the ground .

About the prices of land here..it's like SunsetT answered to u : there is no logic here.

Off subject,

I like to cycle with my mountain bike and I know very well all the pists within a radius of 20 kilometers around our house;

I can maintain Google maps is often wrong with roads which do not exist ...( no logic also on Thai-Google maps )