Securing a property investment for a Thai/farang married couple.

[pluto_manibo]

The options seem to be;

1. Company set up to acquire land/house- This has become very controversial, the doom of a crackdown on companies run by foreigners for the sole purpose of owning land, are now subject to government inspections and scrutiny. New guidelines have been implemented to check source of funds of all shareholders in foreign run/ non trading companies.

2. Buy on wife's name ; Land office asks the farang husband to sign a form that he has no claim whatsoever to the land and that the property does not fall under "Sin somros"(joint married/communal) assets. However,(in theory?) in case of divorce, the court overrules this and does not acknowledge this form. The court rules it is under "Sin Somros" assets and in case of divorce, the property is to be divided equally 50/50.(Is this true?)

3. 30 yr lease, usufruct or superficies- The landowner(wife), can lease the land to the foreign husband for 30 yrs or amend a usufruct clause(where the usufructee (farang) can use the land until his demise). Superficies- from what I understand this is when Land and building are owned separately. ie: land by the Thai person and building by the foreign repugnant entity..

We have all heard of numerous crackdowns throughout the years, however things are moving forward to clampdown on the company option. Implementations and interpretation of the law varies in all provinces. What is accepted in one is not in another ie; usufruct and superficies. The 30 yr lease option can also be disputed in courts, if it has been done between husband and wife...under the presumption that contracts are not valid in a married couple. In the eyes of the law, a married couple is regarded as one entity. Therefore according to several sources, in a worst case scenario, the land owner can void the lease agreement.

In conclusion, there seems to be no pro's and all cons in somewhat securing your financial contribution. Are these assumptions correct?

Edited January 12, 2015 by pluto_manibo

[trogers]

In conclusion, there seems to be no pro's and all cons in somewhat securing your financial contribution. Are these assumptions correct?

Why crack your head over a piece of land? Get a condo in joint names - "Sin somros"(joint married/communal) assets. You provide the finance and she her youth.

[mikebell]

Famous last words - I went the company route in buying a house. Of course I worry about the various crackdowns imminent during the last 7 years. I console myself that: there are thousands of Thai lawyers setting up these bogus companies and a similar number of Thai auditors who 'do the books' for these companies annually. By closing this loophole ((m)illions of baht would not be spent.

Renting a 3 bedroom/2 bathroom house with garden would cost 25K monthly? 7 years x 12 months = 84 = 2.1 million baht less village fees of 18K x 7= 126,000. Amount saved against rent money = 1.974 million. Auditor costs = 70,000 over 7 years reduces that figure.

When I bought the house UK pound was at 73 baht. Now it's 49. If I sold it for 3 million (current prices of houses on my estate = 4 million) I would be quids in.

[pluto_manibo]

Famous last words - I went the company route in buying a house. Of course I worry about the various crackdowns imminent during the last 7 years. I console myself that: there are thousands of Thai lawyers setting up these bogus companies and a similar number of Thai auditors who 'do the books' for these companies annually. By closing this loophole ((m)illions of baht would not be spent.

Renting a 3 bedroom/2 bathroom house with garden would cost 25K monthly? 7 years x 12 months = 84 = 2.1 million baht less village fees of 18K x 7= 126,000. Amount saved against rent money = 1.974 million. Auditor costs = 70,000 over 7 years reduces that figure.

When I bought the house UK pound was at 73 baht. Now it's 49. If I sold it for 3 million (current prices of houses on my estate = 4 million) I would be quids in.

Twelve yrs, got my chips back in regards to rent as well. However would like to ugrade and move, it doesn't seem likely now. Just got back from the lawyers and to put it bluntly, you have no rights and every option can result in a painful outcome in court. Leases, usufruct can be contested. Superficies in the Pattaya area are not recognised. The company route requires proof of funds for all Thai shareholders. A proposed option was to register as a full Thai company, therefore bypassing the investigation of foreign limited companies, acquire the property and be instated as "director" after the purchase. Not for me, thank you very much.

[dunks]

Where are you looking to purchase? I have some lovely F/F condos in Thai or foregn ownership available. Some lovely land plots also.

FYI, on any property you can get USUFRUCT.

Feel free to PM me if you wish to discuss.

http://m.ddproperty.com/en/listing/994664

Edited January 13, 2015 by dunks

[ggt]

Whatever direction you decide to go with your investment...be careful to double check all baht transactions for possible..."errors"...