Clearing up the 30 year lease issues in Phuket

[stevenl]

If I understood the OP right, then the 30 year lease was not registered with the Land department and documented on the chanote as required by law and that alone makes the whole thing moot, doesn't it? So many other things wrong in this story like lessees and lessors both defaulting... I think you can't extrapolate too much from this case.

Is there a proper translation of the verdict? Because all other reports seem like very vague hear-say.

You did not understand right.

I got confused by this quote then:

The ruling was not actually an original challenge to the leases, but was in fact a case relating to ‘right of redemption’ and breaches alleged by several parties, including alleged breaches of the unregistered lease agreements, Woraphong Leksakulchai, managing partner at Thailand-based law firm Hughes Krupica, toldProperty Report.

“In this case there was a right of redemption; alleged default by lessees; alleged default by lessors and leases were not registered on land title documents,”

Reading the original report will clarify. The link in this thread is 'just' an attempt at damage limitation by an interested party. Edited March 30, 2015 by stevenl

[hansgruber]

We have a newbie friend who came here to Phuket and bought a condo in an unfinished project. When he got to know a few locals, they all said the same thing...get out. He couldn't. He's in. Buying something under construction, IMHO, is a very risky thing right now. The Russians left with their money that was holding up a teetering property market in Phuket.

There is probably a lot of investment opportunities here right now. Good luck.

One rule I live by. Don't buy anything off the plan or until it's completed or if it's a free-standing villa on some land that's unfinished I might bite depending on what's needed.

Your friend made an error which only happens if you don't do the proper due diligence.

A little research into companies can go a long way.

[hansgruber]

We got NKM and Pinot. Two self confessed renters with no experience in real estate here besides renting a room.

Funny how it's all stories about a friend told him this and that. Leave the thread guys, it's obviously outside your personal experience and gossip stories just don't add to your credibility or the conversation.

[NamKangMan]

We got NKM and Pinot. Two self confessed renters with no experience in real estate here besides renting a room.

Funny how it's all stories about a friend told him this and that. Leave the thread guys, it's obviously outside your personal experience and gossip stories just don't add to your credibility or the conversation.

As mentioned before, I have a small property portfolio, over 3 continents, yet, I would never "buy" in Thailand.

As a single person, I admit, I do not rent a mansion, but I do rent a property considerably more substantial than "a room."

Would you care to address my post, rather than myself?

[LivinginKata]

<snip>

Tell me - why bother buying????

Clearly we don't agree. I'm not advising you, or anyone, to buy. I am making my position clear for others to decide what is best for them. That's my last word to your question.

[NamKangMan]

<snip>

Tell me - why bother buying????

Clearly we don't agree. I'm not advising you, or anyone, to buy. I am making my position clear for others to decide what is best for them. That's my last word to your question.

What, exactly, is your "position" then?

As a property owner, on Phuket, what would your CURRENT advice be to perspectve purchasers?

"That's my last word to your question." - your silence on the matter doesn't exactly exude confidence in the market.

[LivinginKata]

What, exactly, is your "position" then?

As a property owner, on Phuket, what would your CURRENT advice be to perspectve purchasers?

"That's my last word to your question." - your silence on the matter doesn't exactly exude confidence in the market.

Throw your bait out all you like. You are good at that. Goodbye. Farewell.

[AJBangkok]

My advice is buy a condo in your own name, or do a 30 year lease on a Vila from a thai.

Google will tell you in a heartbeat that the maximum leasehold period in Thailand is 30 years. If you want to do a Thai company with nominee shareholders to purchase land or a villa then understand that you may be breaking the law, using a loophole to circumvent the law, or at a minium not acting in the spirit of the law. If you can accept the fact that one day you may lose your property then by all means go ahead and do it but don't come back here whining when you do.

[keestha]

Not mentioned yet is the usufruct construction, it gives you the right to use a property for your natural life time, after that the full rights return to the owner or his heirs. Usufruct can be on a foreigners name.

[simon43]

My advice is buy a condo in your own name, or do a 30 year lease on a Vila from a thai.

Or do as I did, (where passing on the house to my heirs after I die is not important) - Lease a plot of land for 20 - 30 years in your name only, (no Thai names on the lease), pay a low monthly rent for the land, (no upfront payments, no rent increase during the lease term), build a modest house to live in (say 2 million baht), enjoy your life

[robertthebruce]

Or Just employ a good ''LAWYER''...

end of...

[NamKangMan]

Not mentioned yet is the usufruct construction, it gives you the right to use a property for your natural life time, after that the full rights return to the owner or his heirs. Usufruct can be on a foreigners name.

"it gives you the right to use a property for your natural life time" - sounds like an invitation to the owner to throw you off a balcony.

[LivinginKata]

Or Just employ a good ''LAWYER''...

end of...

I'm sad to say that Thai lawyers often look after their own interests well ahead of their clients interests.

[NamKangMan]

Or Just employ a good ''LAWYER''...

end of...

I'm sad to say that Thai lawyers often look after their own interests well ahead of their clients interests.

Not just "Thai lawyers" - lawyers from every country.

[thaibeachlovers]

^

Oh dear, Mr Doom and Gloom chimes in yet again. The old rent is much better than buy/lease mantra.

One must consider the whole picture. For sure if a foreigner has no Thai connections/responsibities then rent is a very good short term plan. It's a completely different picture for those of us who have life commitments here in Thailand.

For sure it's much more difficult to plan that 'property' and a home as an appreciating asset, but there is more to that equation than monetary value, how about considering life style, status to one's Thai partner.

"Oh dear, Mr Doom and Gloom chimes in yet again." - which one am I, Mr. Doom, or Mr. Gloom?

"For sure if a foreigner has no Thai connections/responsibities then rent is a very good short term plan." - my question to you, LIK, is even if a foreigner has "Thai connections/responsibilities" why isn't "rent" a good long term plan????????

"there is more to that equation than monetary value, how about considering life style" - EXACTLY.

Why tie up cash in a depreciating asset, that is poorly constructed, when that cash, invested elsewhere, makes more money than the rent asked for buying the same property????????

Doesn't the residual money profit in the rent v buy analysis also offer "lifestyle" BUT with the added freedom of movement, if so desired, for any reason, at any time, away from a certain property / location?

Basically, if you rent, you can live in a new house, every few years, without maintenance costs etc, and still leave your capital invested in western countries, earning more than the cost of rent on Phuket.

If you buy on Phuket, you are on a depreciating asset, with who knows what will become of the location, or the demographic, where you chose to buy.

Tell me - why bother buying????

Very well said. I agree 100%.

[schlog]

There is no right or wrong in this context. It is up to the individual situation and person.

Being at the right place to the right time with a keen mind and having a little bit of luck will do the trick if you really want to buy. My first deal here on HKT was 5 rai chanote for 500k. Sold last year 1 rai for 1.900k. A very good rise in value in 16 years.

But i also had not luck with a house deal in a villa, and i did my homework like everytime, it was like a lemon car. Was happy when i sold it again after 3 years and the loss was only 100k.

Good deals are always possible but never invest more then 10% of your assets in one project. This way you will sleep well and the deals can't break your neck.

Would i buy today again in HKT? No not now. Better times for good deals will come again.

I think Thailand is more near to a civil war in the next years then to a golden time. But who knows and the land plots don't mind how old they are. Call me crazy but i bought Euros in the last 2 weeks with the money from the land deal last year. Only dead fish swim with the stream.