Can a foreigner buy land in Thailand>

[egeefay]

Can a foreigner own land in Thailand?

Foreigners have never been allowed to own land in Thailand (with a few exceptions)

In fact the rules were so prohibitive that not long ago a Thai who married a foreigner lost his/her rights to own property in Thailand.

Of course if you visit Thailand today you’ll notice that lots of foreigners own villas and houses in Thailand. What gives?

Until the new government took over in the recent coup, foreigners could take possession of houses and the land under them using a “shell company”. Though not technically legal, the government, anxious to encourage investment in Thailand ,turned a blind eye to this loophole.

Then new government marched in and decided to put a stop to the practice.
They are now in the process of revising the old Foreign Business Act.
What the new act will look like is anyone’s guess
Hence There is currently a lot of confusion and uncertainty in the Thai property market

For now Thai lawyers are recommending that their foreign clients steer clear of trying to form “companies” to own land.

Buying a house and Leasing land under it for 30 years is perfectly legal in Thailand
(although that begs the question..”what happens when the lease expires?” )
Most lawyers are recommending if you want to buy a house in Thailand you go this route for now….. or wait until the government finally revises the Foreign Business Act.
I’ll keep an eye on this and let you know if I hear of any changes.

Another route to buying a house in Thailand is to be married to a Thai or to have someone you really trust, like an adult Thai son or daughter buy the property in their name. I don’t have to elaborate on the pitfalls you could run into using this route. But if you’ve been married to a Thai woman for 30 years, like I have, you can probably sleep a little easier than they guy who meets a Thai bar girl and brilliantly decides to get married and buy a house in her name. Thailand is full of sad stories of “farangs” who made that mistake.

[higherstate]

Hi, any more news on any changes to the foreign ownership laws?

[agentkhoo]

Originally Posted by higherstate

Hi, any more news on any changes to the foreign ownership laws?

Its not changed much, the new government that has just come on board has been sworn in, but there is still quite a bit of fighting, as it is similar to the Thaksin government, very pro-foreign investment, but there are many people who are still fighting such pro-foreign investment policies in Thailand.

Which is making it very difficult for investors and foreigners who are trying to do business there. The situation is very similar in Vietnam, where the property market is booming over there. And they have just relaxed rules slightly, allowing foreigners to buy property with a 50 year lease (which is slightly better than in Thailand).

I have a good friend (we're Singaporean), who was lucky enough to marry a Vietnamese, and is now a property developer in Vietnam, mainly HCMC based, this friend of mine can buy land and build shopping malls.

If you like that part of the world, you might want to consider Vietnam as well. The standard of living in Vietnam is soaring by leaps and bounds, and the Junta government doesn't seem to be as hard-nosed as it used to be.

[pectin232]

Originally Posted by agentkhoo

Its not changed much, the new government that has just come on board has been sworn in, but there is still quite a bit of fighting, as it is similar to the Thaksin government, very pro-foreign investment, but there are many people who are still fighting such pro-foreign investment policies in Thailand.

Which is making it very difficult for investors and foreigners who are trying to do business there. The situation is very similar in Vietnam, where the property market is booming over there. And they have just relaxed rules slightly, allowing foreigners to buy property with a 50 year lease (which is slightly better than in Thailand).

I have a good friend (we're Singaporean), who was lucky enough to marry a Vietnamese, and is now a property developer in Vietnam, mainly HCMC based, this friend of mine can buy land and build shopping malls.

If you like that part of the world, you might want to consider Vietnam as well. The standard of living in Vietnam is soaring by leaps and bounds, and the Junta government doesn't seem to be as hard-nosed as it used to be.

Hi Khoo can you send me email at pectin232 at yahoo I am interested to ask you more. I am also from Singapore but living in the states and interested in some foreign investments....

[Sean@Phuket]

Originally Posted by higherstate

Hi, any more news on any changes to the foreign ownership laws?

Hi higherestate

The laws in Thailand have not at all change just yet, there are always rumors circulating of change taking place but as yet nothing concrete. However, are you aware that a foreigner can own a condominium outright?

The rumors always center around leases changing from 30 year to 75 year terms but nothing has come into the fray so don't take to much notice if you here otherwise.

At the moment Thailand buyers continue to use the 30 year lease with an additional 30 + 30 years after, some choose to set up 'proxy' companies to own through the company and of course some own condominiums outright.

Hope I am of some help

Sean

[layangardens]

Q. As a non-Thai national can I own the land upon which the apartment is built?
A. There are ways for this to be achieved however because we are offering 90 years leases (3 x 30 years) and giving the owners the control of the land owning company upon completion it isn't deemed necessary.
Q. If I wish to buy my apartment on a freehold basis as a Thai national or through the formation of a Thai company will I be allowed to do so?
A. No! In order to protect the aesthetics of the development and to ensure conformity in designs etc. we have decided that each apartment will be sold on a 90-years lease (3 x 30 years, back to back). Additionally we will offer all the shares in the company which owns the land and all the common facilities to each owner as a part of the purchase package. Thus you will be leasing from a company that is owned in its entirety by yourself and fellow owners only. This concept allows for the most comfort and investment security for foreign ownership under present Thai Law.

Q. Who will manage the Phuket apardevelopment once it is completed?
A. The developers will set up all the maintenance contracts i.e. gardening, pool cleaning, security, engineering etc. and manage them for the first six months. Once everything is running smoothly the running of the development will be handed over the Owners. The owners will form a committee and the committee will manage the development and the facilities through the full time Estate Manager and his/her team.
Q. How do you expect property prices to perform in Phuket in the future?
A. Obviously one can never absolutely predict any sort of property value increase. However it is a fact that property values in the Laguna/Layan areas have increased by approximately 100% in the last five years! This illustrates the popularity and value for money in Phuket when compared against property values and rises in Bangkok and throughout most of Asia over same period!
Q. What extra on-costs are there associated with my purchase other than for any optional extras, one-off sinking fund or furniture package if required?
A. Only the cost of Lease Registration with the land department which includes stamp duty, taxes and registration fees. These are split 50/50 with the Developer and based on current charges (September 2004) should be between 125,000 and 200,000 Baht dependant upon the size of the apartment you purchase.
Q. Is there a financing solution available for potential purchasers to take advantage of?
A. As a consequence of the pre-2000 financial crisis in Asia, no local (Thai) banks or finance houses are either willing or legally able to offer mortgage facilities for non-Thai nationals. However your local offshore bank may well be able to offer you mortgage facilities against this property or another that you may own in your home country if you are expatriate in Asia. Layan Gardens also offers a finance package.
Q. If, at some point in the future I should desire to sell my property how easy would it be to do so?
A. There are several excellent local and International Estate Agencies established in the Laguna area and most of the best are situated in the nearby Plaza Del Mar center. The paperwork is simple and your appointed agent will deal with everything for you. Additionally we, the developer, also offer a re-sales service to our buyers. All our recent re-sales in the Laguna/Layan area have been relatively quick and all have achieved superb returns on the original purchase price.
Q. What sort of return can I expect if I choose to let out my apartment when I am not in residence?
A. The rental return for each week's rental should be approximately as follows: -


2 Bedroom
3 Bedroom
Penthouse

Low season
(May to November)
US$ 800
US$ 900
US$ 1,500

High Season
(December to April)
US$ 1,200
US$ 1,300
US$ 2,200

Peak Season (December 16th to January 16th)
US$ 1,500
US$ 1,600
US$ 2,600


Longer-term rentals will return a little less.
Rentals will be generated through our Layan Gardens website, enquiries to our office, from travel operators and by each owner themselves.
Once all our apartments are sold our web site will be used exclusively for property rentals and any re-sales on behalf of the owners. Additionally rentals will also be sought on behalf of the owners through local contacts, information web sites and property agents where all availability will be listed.
Whilst the Layan Gardens Management Office will not be marketing the rental of the properties in any other way, our staff will be pleased to facilitate and book advertisements and classified advertisements. They will also recommend inexpensive and effective publications should you or a group of owners wish to share the expense of advertising for prospective customers.

Additionally, we are very happy for you to market your own property and to keep the proceeds of your marketing efforts, which is quite unique amongst the many property developments on the island. In this case, a flat fee will be charged on a daily/weekly basis by your management office to cover the cost of airport transfers, laundry, toiletries and household cleaning.


Hope the above questions and answers help with your needs

tony@layangardens.com

[waynehyl]

is anyone interested to own a freehold seafront villa at Langkawi Island?