Quote:
Originally Posted by Dodger
A related question, farang can legally own the building freehold but only rent the land for a 30 year period. I sort of assumed the farang market was not yet established in a biggish way for 30 years but has it ever come to court that the 30 year lease has expired, the Thai lessor has then asked for the use of his land back but the farang has freehold ownership of his house on the other guys land?
I sort of felt that the rules were a little more slack years ago, the Thai limited company route was more prevalent years ago and of course most guys add the option to buy if rules change and extension on leases for two further sets of 30 years, but wondered if any one knows of any case that has gone to court or even been disputed as I cannot get my head round how they could do it legally.
|
The farang has the right to sell the home to the lease holder, attempt to renew, take the building down, buldoze it, do whet they like.. Not great options tho I would agree.
Theres the 30+30+30 lease structure thats put out many times, a experienced property agent says that this has never been tested under Thai law (no 30 year old leases expired, looking back to the 70's for that) and I strongly doubt that a Thai would lose this to a Farang.
Also dont forget that Thai buildings are not built to last in the same way.. Many homes get knocked down after 20 years, even new structures dont hold up the same way. I think the Thai mindset is different from the western one where we have expensive or simply old homes lasting 100's of years. We once lived in an old coach house that dated back to the 1600's.. Did a barn conversion on a stone barn that had an 1800's foundation marker. Look at a thai home from 50 years back ?? The building mindset here doesnt stretch to old homes.
Another point re the mindset of old homes and how values are effected. I am told that Thais very much prefer a new built home over a pre owned home. Theres the mindset of new is always better, theres the fact that Thailand has developed quickly so often new homes ARE better, I am also told that Thais dont like pre owned homes as they fear ghosts of other people there (wifey was certain of this). I feel westerners come here, buy up homes, and expect the resale market to operate like it does back home. But these does seem real issues here that are harder to understand or at least we are not experienced with and used to.
Another thing no to forget is people who bought pre 1997, when the baht was 25 to the USD and 40 to GBP, only just came out on top on property in the 2003 2004 kind of timescale, the currency loss was offsetting any real estate value gains. Secondly Phuket is a microcosm (that you could include Patts and BKK central) where a flood of new people both farangs arriving to live here and Thais coming here to target the farangs money, created a large under supply of homes, under supply and increased demand created BIG profits. It doesnt take much for the supply demand thing to change and make big differences. Prices of homes up in Hua hin are far more reasonable than here. Phuket is kind of an artificial tourism powered market / bubble.