Condo Ownership

[Simmo]

Is my reading of this correct, I find it very confusing.

http://www.dol.go.th/guide/condo_080745_eng.htm

For 5 years from April 28th 1999 , a foreigner could purchase a condo in Bangkok in a development with more than 49% foreign ownership of all units.

Is the original 49% foreign limit in effect now? A friend recently purchased a condo from a Thai owner in a new development, and he was suprised when I told him about this as he hadn't be told about it. How can he check he is part of the 49%?

How do you check when buying a new condo that your unit is part of the 49%?.

[Casanundra]

Is my reading of this correct, I find it very confusing.

http://www.dol.go.th/guide/condo_080745_eng.htm

For 5 years from April 28th 1999 , a foreigner could purchase a condo in Bangkok in a development with more than 49% foreign ownership of all units.

Is the original 49% foreign limit in effect now? A friend recently purchased a condo from a Thai owner in a new development, and he was suprised when I told him about this as he hadn't be told about it. How can he check he is part of the 49%?

How do you check when buying a new condo that your unit is part of the 49%?.

My understanding is that any foreigner who purchased over and above the already allocated 49% had to do so by doing strange things with nominees and by forming a company, which is now being considered a sort of shady way to do things.

The Condo 'erhum management' and or developer should know who they have allocated 49% of the foreign ownership to and to specifically answer your question, when he goes to register his new Condo with the registry then they should also be able to tell him as well. That's when he may find out that the nice new Condo he just purchased cannot be his to own.

The 49% rule has and always will be the rule in Thailand.

Edited December 18, 2006 by Casanundra

[alexth]

So let me get this straight...If I want to buy an apartment in a condominium where let's say 80% of the apartment owners are thai, I can not buy the apartment in my name???

[Gary A]

When I bought my condo the condo association gave me papers to verify that there were less than 49 percent of the units farang owned. If the land office is not sure the condo will NOT be put in your name. Since you don't pay until you have the chanote in your name I really don't see much of a problem. Just be careful and don't pay a huge deposit.

A friend of mine was snookered by View Talay. He gave a big down payment and after it was determined that there were no units available for farang freehold they didn't want to give his money back. He eventually took it with a bogus company. That was before the big government threat. Keep your money in the bank UNTIL you know for sure.

[quiksilva]

What you quoted is now obsolete this reg was brought in post-crisis to give the property market a boost.

For a short time it allowed farangs to buy units in condo projects where the 49% foreign ownership quota had been filled but this was only effective during the period 1999-2004. It has not been renewed.

Apartments are available for rent only. But Alex if, in your example, you meant Condo, then of course you could buy, because only 20% of the 49% quota had been used.

Edited December 18, 2006 by quiksilva

[alexth]

Thanks for the head up, I'll look into it, I wasn't quite ready to commit so didn't bother getting info on how to do this. Now I know what's gonna be the first question I have to make

[backflip]

"So let me get this straight...If I want to buy an apartment in a condominium where let's say 80% of the apartment owners are thai, I can not buy the apartment in my name???"

Lot's of problems with fractions. Thank goodness we're not sending a guy to the moon. If only 20% of the condos are owned by non-Thais (I calculated this by subtracting 80 from 100), thnis number is less than 49%...which means you can buy a condo in your name.

"you could buy, because only 20% of the 49% quota had been used."

Lot's of problems with fractions. Thank goodness we're not sending a guy to the moon. Your calculation is wrong. If the Kingdom allows 49% of the units to be owned by non-Thais, and 20% of the units are owned by non-Thais, then the percentage of the non-Thai quota that has been filled is 100*20/49 = 41%(approximately).

[quiksilva]

Perhaps I should not have said a % of a %, my bad. I didnt realise we had English teachers on the board.

I meant to say 20% of the units are available and all of these would qualify for foreign ownership. A further 29% of all the apartments (currently owned by Thais) could in theory also be owned by foreigners, due to the foreign ownership quota (49%)

Perhaps you would like to be really useful and offer a typo checking service as well, or perhaps its not strictly necessary just so long as the guy gets the advice he needed?

Edited December 19, 2006 by quiksilva

[backflip]

I too want to provide the proper information to the poster. However, when a "typo" leads to incorrect information, what's the proper protocol - ignoring it, or correcting it?

[RBWilson]

Perhaps I should not have said a % of a %, my bad. I didnt realise we had English teachers on the board.

I meant to say 20% of the units are available and all of these would qualify for foreign ownership. A further 29% of all the apartments (currently owned by Thais) could in theory also be owned by foreigners, due to the foreign ownership quota (49%)

Perhaps you would like to be really useful and offer a typo checking service as well, or perhaps its not strictly necessary just so long as the guy gets the advice he needed?

I believe the 49% ownership rule is based on total square meters of occupied space (not the number of units). Larger units count more against the % than smaller units.

[Simmo]

I checked with my friend and he definitely has the title deed in his name. So he's safe to assume that he's part of the 49%?... Condo management are given him blank stares when he tries to ask them about it.

[mbkudu]

Theoretically, a Foreign owner of a condo could get a better price for his condo than a Thai owner of

the same condo when/if it comes time to sell because:

1. He is part of the 49%.

2. Condos are the only real estate foreigners can really buy.

If the land ownership laws ever changed in Thailand, it would sink the condominium industry.

Edited December 19, 2006 by mbkudu

[mbkudu]

Also theoretically, the new 30% BS could turn off potential foreign condo buyers and weaken the economy even further. Where is Mr. T when he's really needed? Soldiers do not know how to run economies, and probably never will.

Edited December 20, 2006 by mbkudu

[bangkapiboy]

I don't see why this new 30% rule would hamper condo sales. People buy condos in Thailand generally with the idea of keeping it -- not selling quick and wiring the money back outside of Thailand within a year.

[briley]

Bangkapiboy - yes but, if the BOT hold 30% of the transfer for 12 months then you have to bring in extra to cover this bit.

Mind since USD20,000 or under transfers are OK what is wrong with two transfers, that would buy most condo's I know of.

[ThaiBob]

Also theoretically, the new 30% BS could turn off potential foreign condo buyers and weaken the economy even further. Where is Mr. T when he's really needed? Soldiers do not know how to run economies, and probably never will.

This discussion about the 30% tax for foreign condo buyers is now a mute point. Interpretation of the tax provision is that it is not applicable to a condo investment provided the incoming funds are clearly ear-marked for a condo purchase.