Buying a house

[jonboy]

Hi all. This is my first post so please go easy on me.

I'm very interested in buying a townhouse and NOT a condo.Now i've looked on the internet for a long long time and most things point to me not being able to so..... or so I thought! I have just got back from talking to property/lawyer company who can arrange for me to buy a home under a business name(my business name) which they will arrange for me at a cost. They are situated in a very nice(expensive) place and they do not seem to be the type of people wanting to rip me off..?

This is what they sugest(very basic as I chatted to them for about 2 hours)......what do you think?.. :-

1) Set up my own company under my name- 40% mine and 60% thai (to 6 other people each only owning 10% each), leaving me the majority share holder(the other 6 people are needed to create a thai company...so im told)

2) The 6 people then sign the shares over to me again so they have nothing to do with the company but i don't register them in my name just keep them safe somewhere.

3) Buy the property under the thai company and get my girlfriend / friend to pay me rent for either the house or the ground floor(thus being the purpose of my company...to collect the rent)

4) etc etc

or so im told..

Like I said I'm keeping it brief!

What do you make of this and have you ever heard of this happening before.If yes do you know of anybody who can do it for me at a competative rate.If no do you have any more suggestions on how to own my own property?

Many thanks in advance.

p.s. sorry for posting this in 2 places but was not sure where best to post.

[Oldfart]

Hi Jonboy,

Interesting post!

Dont wish to patronise but.. in my experience people that want to  "rip us off" NEVER seem to be that type. That's why they are so successful.

The scheme you outline certainly seems to be totally viable to purchase a property in Thailand, and is identical to schemes used worldwide. You don't mention the cost.

Be aware that this is the easy part of the deal... the difficult and expensive part may be when you want to sell your property. Like marriage...any mug can get into it , but only the clever guy comes out smiling.

It would make more sense to NOT buy, but to rent in Thailand. The way the government here discourages it should in itself be sufficient warning for any falang. Property values seem to go down here, and you could end up with a property no one wants. Why not buy in your own country and benefit from the stability (financial and political) and rent it out and use the cash to rent a place here. God knows its cheap enough to rent here. Also, this would keep the property "safe" and appreciating in value in your homeland for when you need to return home after being taken for every last penny by your thai girlfriend and her family.

God I'm so cynical.  Wonder why experience makes one so bitter! Sorry to be so negative, hopefully someone else will be a bit more positive for you.

[sevinnow]

Hi Jon

Just wondering wether the nice guys told you that by having a company in Thailand you need to employ an accountant/Lawyer to submit your tax returns each year which could be a stressful and a costly business as you are earning income from your rent.

Why not have a lease on a property for say 30 years read my add Lease on a New House on the forum page some pretty good advice.    Only thing you need a Thai partner to buy in their name......little risky.....unless you know them well.

As for renting..you can negoiate some serious deals on property if you commit to long term rentals....take the asking rental price and divide it by 2 say for a rental agreement of 3 years plus.

Hope this helps

[jonboy]

Hi and thanks for the replies. The value of the house is between 1 and 1.5 million baht(to be discussed) and includes 12 computers as the groung floor is an established internet cafe down a quiet soi. I think this is so cheap that I dont want to miss out! I'm from England and I know the advice about buying in my own country is good but the 1.5 million baht is all that I have. Also the chances of me getting more than a pile of bricks on an old council estate in England for this money are very slim. Also the internet cafe would provide me with a small income aswell. If there is any more advice out there I would appreciate it!

[sevinnow]

Seriously check out the "minor details" with a qualified Lawyer because there are "too many deals out there too good to miss"

and the reason why? simple they are a scam and you could end up very poor indeed.   Thailand is not exactly the land of smiles for a "farang without money" and they is no social security to fall back on.

Expressing the hard facts is so important if you are investing all you have got.   Spend a few months there first on a non-immigrant visa and check things out in your own time, by talking to local business's around where you want to buy and certainly do not invest everything all in one go!

The Pattaya Expats Club in pattaya is a good starting point to speak to people with first hand knowledge of the "ups & downs" in doing business in Thailand.

But if you want to go for it:  Good Luck

Sev :cool:

[lincoln]

Unless you are doing business in Thailand or have a proposal in near future to do some business and need a company base to run your business, other wise it is not advisable to set up a compnay just for the sake of buying a town house.It cost to maintain the *opeation* of the company and there are alot of management compliment with other law currently enforced and failutre  or non compliment of which will subject you to further problems and financial loss. I am attached with a law firm in bangkok, and if you may need further information and advice, call me  09-9279232 or email me lincolnseng @ hot mail.com

[Brian]

1.5 million baht is all that I have

All the more reason to be extremely careful...

[lopburi3]

and includes 12 computers as the groung floor is an established internet cafe down a quiet soi.

Somehow I can not see that as a moneymaker and suspect that is the reason it is for sale.  On a quiet soi would only attract gamer's I suspect and there is strong backing for police to take action against these type places.  As you have been cautioned before - check more and then some more.  You do not want to be involved in anything subject to closure if you can not survive without its income.  You are aware that you can go online without a phone line here in Bangkok for less than 1k per month now?  I don't see much future for internet cafe unless based on transit population.  But I could be wrong.  Just be very careful if you have limited funds.

[mowlem]

Who found this gem of a property?

Does the soi flood? (Ask the street vendors, NOT the current owners)

Who goes there now?

Remember, it is the school holidays, so your youngsters will all be going to school soon.

Why the hurry?

If the want to sell/screw you, they'll wait.

Why not rent the whole thing for a year.

If they say no, why?

Why so cheap?

Get a Thai friend they don't know, go along, and see how much they try to sell it to her for.

I BET MY LIFE it will be 20-50% cheaper.

Sorry, but I am in the "it smells, walk away from it" camp.

But keep us posted, maybe somebody here can go along and give a second opinion.

BTW

has the business got accounts, (silly question I know...)

[Thetyim]

Sorry mate but I must agree with the Old Fart

rent, rent and rent  never buy.

I am a member of the TiT club (Taken in Thailand) so I speak from expreience.

By the way, where is this town house 1.5m is only cheap if it is in Bangkok ??

[Butch]

Well...

Look, and if I wanna buy a condo in Pataya (Jomtien)?

For a long-long time. For 5 - 7 years. Just rent - same thing that buyin'. Right? For example, I'll pay  $170 per month. For 6 years = $12.240. I can buy a little studio for this money. Right? But if I buy - it's mine! I can leave Thailand back to my country, but my friends etc. can use condo. Right?

So, if I leave, I can sail it. For 40-50% from starting price.

OK! OK! Don't kick me!    I'm from Moscow (Russia), so I'm crazy "communiste" .  I see anything in pink colour... And sorry for my English!  

[cbatson]

For my two cents, I will add to what the others have stressed.  If you don't have Thai citizenship, avoid real estate "purchase" transactions at all costs.  You will only end up regretting it.

1) Set up my own company under my name- 40% mine and 60% thai (to 6 other people each only owning 10% each), leaving me the majority share holder(the other 6 people are needed to create a thai company...so im told)

As for this, I've heard that if the company is more than 30% foreign-owned, the land department will investigate the company.  Also I'm told that companies pay an income tax rate of 15% monthly, and the minimum income for a company for tax purposes is 10,000 baht per month.  Therefore, just to maintain the company legally you will have to pay 1,500 baht per month of tax.  In addition to any other filing and/or accounting requirements mentioned by the others.  I stress this is what I was told when inquiring about establishing a company for the purpose of "owning" land, and as I've never actually established such a company, I don't have any other first-hand experience or knowledge to back this up.

Chuck