house & land evaluation

[corkman]

Hi all,

My Isaan wife and I have decided to call it quits. She has 7 rai of farmland plus a 120sqm house on another piece of land (about 1 rai). The house is in the middle of the village and is built to a so called western standard with a proper toilet and glazed windows etc.

What could I claim these two assets are worth, with a view to off setting it against any claim she will make against my assets.

Is there any "standard" that I could refer to?

The assests are located in Mukdahan. About 45km North of Mukdahan town.

Many thanks.

CM

[cornishcarlos]

Firstly, sorry to hear it hasn't worked out..

Is she actually looking to claim anything from you ?

If it's an amicable split, then just suggest you keep what you both have and move on ?

[corkman]

Thanks for your reply.

Currently it looks like we will split amicably. But I am getting some legal advice and would like to have an idea of the value of all assets etc. Better to hope for best and plan for worst, and put some stealthy precautions in place just in case.

[SantiSuk]

As part of my job as an accountant/corporate finance adviser I valued businesses (and ocassionally assets), but in developed countries.

There are no 'standards' as far as I know, maybe some informal rules of thumb about rebuilding costs that are a bit more than one person's opinion. To do a valuation that would be authoritative you would need assistance from someone who knows the market for building and land who would be prepared to put his/her name to observed or researched transactions in similar assets. It would be possible to do this if you could find some translator to assist you who could help you research bank listings of land for sale and find a builder who would be prepared to estimate re-building costs. Even then it would be difficut to target the valuation of land to the 'quality' of the asset - location, utilities, crop in situ etc, without local input form say a poo-yai baan. If the property is close to a large town I guess it is possible that there are land/property agents who might provide information.

Of course you are not going to do that. I've certainly not gone that route when financing any asset purchases for my wife, but might have done if it was a significant financial issue for me. Is it possible to use cost indexed up and how far does that get you in your desire to prove equivalent values of either sides assets? I doubt anyone here would dispute that land values in isaan have increased 5%+ per annum over the last 8 years (that I happen to have been here). Rebuilding costs more like 10% + pa

I seriously doubt that any values people will punt at you here, based on the limited information you provide, are going to have any meaning in a negotiation with your wife. Eg - I would say a 120 sq m western standard house house would cost 1.5 m baht to build + or minus 0.5m and generic agricultural land away form a large town would be worth 40,000 baht to 400,000 baht per rai. So what?

You would get a closer estimate on the house re-building cost if you posted a plan, broad inventory and pictures. There are many on here who 'do' buildings.

The above is no doubt full of holes to be shot at but it may stimulate thoughts of others.

[DILLIGAD]

Where ALL the assets on "both sides" bought WHILST married to each other?

[corkman]

Santisuk and dilligad.

Thank you for your replies.

Yes, all assets (and debts) have been after we were married.

Land: 300,000 (original price) x 5%PA x 12 years = 540,000

House + Land were 300,000 (original). Say 100k land / 200k house. Say 10 years ago.

Land from 100,000 to 160,000 @5%PA

House from 200,000 to 520,000 @10%PA

Total 680,000.

Those 2 numbers "feel" reasonable insofar as if she came to my now and said she wanted to buy these assets in todays terms then I would not be surprised to be told that amount.

I can advise my solicitor a value of about 1.2 - 1.5MB.

If anyone see fault in the above then please feel free to comment.

[cornishcarlos]

If I ever split with my wife, I'm prepared. I've outsmarted her by putting everything in her name. No way she is getting anything from me !!

[Issangeorge]

45 kilometres north of Mukdahan, I would guess the land, of course depending on the title, if it is paddy land, irrigated, how close to a good road, is worth anywhere from ฿50,000 to ฿100,000 per rai, maybe more. The village house, say what you paid for it. Not much demand for village houses. Your valuation is probably fair, maybe not what she could get for the house, but she might get more for the land, so probably fair.

Edited August 12, 2015 by Issangeorge

[thehelmsman]

If I ever split with my wife, I'm prepared. I've outsmarted her by putting everything in her name. No way she is getting anything from me !!

I have the same strategy, brilliant minds.