Thailand

marc26 · #1 30-09-2004, 20:19

does anyone own property and could you tell me what the interest rates on property are?

LivinLOS · #2 30-09-2004, 20:44

Quote:

Originally Posted by marc26

does anyone own property and could you tell me what the interest rates on property are?

There are no 'rates' as in the UK eg paying for social services... Also you only pay capital gains tax on property in a very weird basis.. The gov will asess value (usually a long long way below market value) and make you pay taxes on the profit at sale.. Of course as with anything in Thailand there are ways around this, you can have a company that owns the land and sell the company to the new purchaser and pay not capital gains tax at all...

If you mean what is the normal appreciation of land per annum it can be madness.. I know lad that was 1 - 2 mil per rai 4 years ago that is 10 - 15 now...

define rates and I will be more specific...

marc26 · #3 30-09-2004, 20:49

ok, say if the house costs 40,000USD and i put down 10,000USD. what would the percentage rate on the 30,000 borrowed? also, what does a chanote title mean?

LivinLOS · #4 01-10-2004, 11:25

Farangs find it nearly impossible to obtain a mortgage in Thailand..

If you have it in your wifes name AND she has a regular reliable proven job history and salary your wife MIGHT get one.. If she is working in the nightlife I doubt it.. Plus then its her house not yours...

This law is mostly due to farangs not being legally able to own the land anyway, bt even with condo's that can be owned it seems impossible to obatin loans based on the property title.

marc26 · #5 01-10-2004, 20:41

id just get a loan in the US then and pay cash. there is some kind of provision that US citizens can buy property

LivinLOS · #6 02-10-2004, 00:41

No that is a common missconception.. There was (it is still in effect for a month or two but is being phased out) a deal where a seppo could own a thai company restricted from certain markets 100% outright instead of the usual 49%.. However that company is barred from owning land...

It was a common belief that you could own the company outright and then the land but it is not possible to use this loophole the way you intend.

That said land ownership is possible via a few loopholes..

marc26 · #7 04-10-2004, 19:29

ive read somewhere where US citizens can buy land in thailand

LivinLOS · #8 04-10-2004, 22:36

Its a common myth (I represent property) no alien can own land without special approval from the ministry of the interior...

If you invest 40 mil into Thailand and keep it there you can obtain this permission under a special investment scheme to own less than 1 rai to establish your own residence on it. Other than that its company formation, leases, or nominee owners.

Even the treaty of Amnity between the USA and Thailand that allowed Americans to own a company more than 50% is being phased out as part of the WTO agreement recently signed. This was the loophole tht many people claimed allowed ownership of the land but in fact one of the restrictions on these American owned companies was that it specifically could not own land (this was an enorced law as opposed to the law that says that a company cannot be formed for the purpose of owning land which is not enforced

)

marc26 · #9 04-10-2004, 22:53

livinlos
thank you very much. i know that you are right because what i did read, i also read that it was being phased out. oh well, good idea. i will not buy land with a thai girl. my GF, to her detriment, has scared the shit out of me by telling me stories of ladies in her village staying with a farnag ffor 10 years and then screwing him for a thai guy.

LivinLOS · #10 05-10-2004, 14:31

Theres lots of ways it can be possible.. Corporate ownership is one but has high running costs.. My favorite and reccomended solution is the 30 year lease with 1st purchase option at fixed price.. So year 29 and 11 months IF the law still says foriegners cant own land you still buy it for a token payment. If at any time proir to that the law says an Alien can own land you buy it.. Either way your good to go.

You can in fact have 3 x 30 year leases set up but the land office will only certify the first 30 year lease. As no one has ever got to the end of a 30 year lease and had the paper owner attempt to contest the second or 3rd leases yet it is still not proven in a court what would happen. There is a lot of evidence to suggest that as you would own the property / building (as distinct from the land itself) outright and have a solid claim to the land underneat that it would hold anyway. Would depend on the mood of the gov at that time perhaps. Couple this with the 29 year buyout insurance and the land is yours.

urtheman · #11 06-10-2004, 15:26

I've read that if you were to put a house in a TG's name but got a 30 year lease it would be extremely hard for her to screw you out of the house. Somehow and I'm not an expert on this it's a little protection.

LivinLOS · #12 06-10-2004, 18:13

Its very hard for her to screw you out fo the lease for the next 30 years yes...

The protections outlined above can work for a lot longer and also leases expire on the leesee's death so you are not leaving anything to your inheritants / dependants (other than the TG

)

marc26 · #13 06-10-2004, 22:25

if anyone knows a good lawyer that deals with expat issues,let me know

Nicke · #14 07-10-2004, 03:39

I can recommend Phuket International Law, they have good reputation and also give advices for free. You pay for services or actual work done.

I would recommend anyone who is going to buy or lease anything to talk with them first.

LivinLOS · #15 08-10-2004, 19:08

Ditto very good people to deal with and I pass a fair bit of work his way... All positive responses so far.