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For those that want to own business and houses in thailand.

Discussion forum for expats moving to or living in Thailand.

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Re: For those that want to own business and houses in thaila

Post Posted: Tue Jul 11, 2006 10:39 am

Hi Elaine, the idea of a Thai National buying the land & giving you a 30 year lease? Buying the land with their $$$? That would be a first except maybe holiday areas & the development company would be leasing the land to you @ exhorbitant rates! It would be the equivalent of renting??? If you loan the Thai National the $$$ to purchase the land & then lease back, how would that 'fit'? CM is quite reasonable although prices range from maybe THB1m to THB100m.
My guess is that you wish to be near the sea. You wouldn't want to swim @ Pattaya - pollution. It is also a 'man's town'. In fact, Thailand is a 'man's country'.
CM is 1hr by plane to BKK & there is now plenty of competition amongst the providers.
I agree totally re WP. I was trying to emphasise that you should have your job lined up 'watertight' before you arrive with a reputable educational institution. You do not need any problems with Immigration! Salaries in CM are 50% of BKK but so is the cost of living. CM is also far less stressful.Go to BKK, Hua Hin & Pattaya for a holiday?
I know the principals of the following but I warn you - property agents in UK & CM may not supply the same level of service. The quality of construction in Thailand is far inferior to UK but then again just look @ the price. Remember that the largest component of the purchase price may be the land. Don't expect to make a profit on sale of property in CM. Look for lifestyle.
Chiangmailiving - one is from UK - www.chiangmailiving.com
First National - there are 2 Australians - www.firstnationalthailand.com
Chiangmai House - run by a Thai National - he is OK too. www.chiangmaihouse.com
I know another but her website is so-so. (They know me under another name)
Why not come over for a holiday/research tour for say 3 months? (I know that this sounds cruel but if you found a good home for your pet dog in UK, your options grow exponentially?)

 

mahatma
Newbie
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Re: For those that want to own business and houses in thaila

Post Posted: Tue Jul 11, 2006 1:43 pm

Another viewpoint. I am not a professional by any stretch of the imagination, but we've been dealing with many of these exact issues for the past year and this is some of what I've picked up. First, I would highly recommend that you do seek the advice of a qualified professional to help with some of these hazards. We've had good luck with the specialists at Sunbelt Asia, which we initially contacted through the board at Thaivisa.Com.

Moule, we're currently in the process of relocating from the States to Hua Hin. We have bought property in a new development, which is currently under construction and should be completed within the next month or two (crossing fingers -- everything takes longer in the LOS, but we're beginning to get used to that. mai bpen rai...).

There are actually at least two ways that you can acquire property in Thailand. The first is to take advantage of a loophole in the law that allows for companies to purchase land if they are of greater than 51% owned by Thai nationals. Most people doing this have a few Thai partners through the real estate firm help establish the company, who then sign over their control to the actual farang principals. You need to be careful when structuring your share votes, though, as many real estate firms set it up the easiest possible way, which is not necessarily the most legally correct way. You do probably need a good lawyer in addition to the real estate firm to do it properly.

Unfortunately, this method has been under fire since May 15th, when local land offices (starting in Chonburi & Pattaya) began cracking down on this and examining the actual fiscal participation of the Thai partners. However, I received a little bit of good news from our development's manager in regard to Hua Hin this week. It seems the land board there is going to be reviewing its practices to see if they are in line with the spirit of the actual call for review by the national office. We'll see how things go with that in a few days...

Otherwise, you are indeed correct that you may purchase the land on a 30-year lease, with an option (if properly worded) to extend for two more 30-year terms. There are actually at least four different ways to do this that I can think of off the top of my head.

The first (and *not* recommended) way is to have the land purchased in the name of a Thai national, such as a spouse, who then leases the land over to you. As Mahatma mentions, this is pretty risky, as you can be completely exposed if your relationship ever goes sour. However, there are some very happy Thai-Farang marriages out there, and that option may actually work for some of them.

The second, and simplest, way is to approach the development project from which you are purchasing the property to see if they will go through the lease paperwork rather than selling you the land outright. Since the crackdown on foreign-owned companies, this option has begun to look more and more viable to those selling houses; especially since in the future this may be the only way for many Thai property developments to sell to farang. Once the land office began to get a bit restrictive, our developer did agree to work out a lease arrangement with us if we were unable to purchase the land through a company. It would only end up costing an extra ~2500 Baht per year to pay the government administrative fee.

Third, and pretty safe if a little more complicated, is to approach a Thai bank to act as a leasing agent. They would purchase the land on your behalf, then (in addition to the cost of the land) you would pay them a recurring administrative fee for their trouble.

Fourth, if you've got an extra 1,000,000 Baht to donate, you can join the Thai Elite program set up by the government. In this case, the Thai government itself has set up a company explicitly for facilitating the purchase and leaseback of land for its members.

There are probably a few other methods for purchasing land via a lease. I've heard of several people having done this, and it doesn't seem to be any more or less a hassle than using a company you've set up, although there do seem to be a couple of exposures you've got to work around (mostly dealing with the death of either the lessor or lessee). That's not to say there won't be hassles with either one -- you're dealing with a fair number of corrupt officials and a less-than-uniform system of implementing the laws. However, it is possible to work with the system to own property if you do your research.

As far as the build quality of the houses, I'd say that -- as anywhere -- you need to look at the workmanship of the builder. I'd put our property up against the build quality of any I've seen in the UK. It's certainly better than what we're used to in the US, where many houses are predominantly wood frame and drywall. Our new house is a bunker; all cinder block, brick, and cement. While there may be a few things I'd do differently on the finishing side, the actual construction is rock solid. Of course, YMMV. We recently paid a visit to one of the neighboring developments, and I left with the impression that I certainly wouldn't buy one of their properties. It just looked like sloppy workmanship and substandard materials to me.

The bottom line is -- again, as anywhere -- if you don't want a crappy house, don't buy a crappy house. There are good builders and bad builders in Thailand. Do a bit of research, and you shouldn't have any problem finding someplace with decent build quality.

Oh, and on a final note, we're moving our five cats over with us. I've seen no mention anywhere of any restrictions or quarantine on pets. However, you probably do need to get your WP and Residency Permit in order before bringing over a large amount of personal goods or your furry family member(s). If you attempt to live off of a Tourist Visa and do runs across the border every 30-60 days, such things as bringing household goods or pets into the country *could* possibly tip off Customs that you're abusing the system. Then again, somebody's probably gotten away with it somewhere... Wink

Let us know if you have any more questions. But, by all means, please seek the guidance of a good lawyer/specialist. Good luck!

-- glitch.@#$%!
_

 

glitch
Newbie
Newbie
 
 
  
Re: For those that want to own business and houses in thaila

Post Posted: Tue Jul 11, 2006 1:55 pm

Oh, and one more quick thing: you may have noticed above that I kept referring to "buying from a development". It is indeed possible to merely acquire the land then find a builder to erect your house. However, there are sooooooo many more things that could potentially go wrong when taking that route.

If that's what you really, really want to do, then you'll want to undertake a LOT more research. Also, I wouldn't personally go for that option unless I'd already lived in Thailand for several years. You're going to need established local contacts to assist with problems, a source for materials which isn't going to charge you at farang prices, a good command of Thai to communicate with the workcrew, etc., etc.

I think that's *way* more to bite off, from the position I understand you to be at currently. As always, however, it's your call.

-- glitch.@#$%!

_

 

glitch
Newbie
Newbie
 
 
  
Re: For those that want to own business and houses in thailand.

Post Posted: Thu Jul 20, 2006 12:39 am

Hello Mahatma and Glitch, many thanks for your responses. There is an awful lot to research and try to find a decent site that will give proper and correct information. I know it is a big upheavel to up stakes to foreign parts, and I am most definitely not looking at the situation through rose coloured glasses, I appreciate there are many factors to consider also many pitfalls to overcome. All I want to do is move to Thailand, buy/lease whatever a nice house/bungalow teach English and live happily ever after, not looking for love or a husband, I'm happy on my home thanks very much - been there done it not doing it again!!
Surpirse surprise we are having a heatwave in England at the moment - temperatures reaching approx 33 degrees
Take care


_________________

Elaine in Birmingham

 

moule
Newbie
Newbie
 
 
  
Re: For those that want to own business and houses in thailand.

Post Posted: Fri Aug 11, 2006 8:47 am

Hi Glitch:

Just imagine 5 cats running happily on the beach in Hua Hin. Would look cute!

 

khunsee
Regular Poster
Regular Poster
 
 
  
Re: For those that want to own business and houses in thaila

Post Posted: Mon Aug 28, 2006 7:01 am

- khunsee

Just imagine 5 cats running happily on the beach in Hua Hin. Would look cute!



Yes, but much funnier would be watching their Papa running down the beach yelling and chasing them (herding cats?). They're indoor kitties, and wouldn't have a clue how to survive outside. Laughing

-- glitch.@#$%!

_

 

glitch
Newbie
Newbie
 
 
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