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Investing in Thailand

Discussion in 'Where to Buy' started by Darlinghurst Boy, 26th Jul, 2015.

  1. Darlinghurst Boy

    Darlinghurst Boy Well-Known Member

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    Recently came back from Pattaya Thailand.
    Couldnt believe the amount of investment properties apartments etc going cheap there.

    Anyone have any properties in Thailand ?
    Phuket looks so expensive but if you can rent to expats all the better.
     
  2. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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    I 'own' a few over there. Best to avoid it because of the various issues.

    'earn dollars spend baht' is my motto.
     
    The Falcon, radson and OC1 like this.
  3. DaveM

    DaveM Adelaide Buyers Agent & KFC Strategist Business Member

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    Foreigners cant own houses there, hence dodgy marriage arrangements
     
  4. pinkboy

    pinkboy Well-Known Member Premium Member

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    You need 50%+ ownership by a national in Thailand, so you're going to need a partner over there.

    @Terry_w probably knows more.

    pinkboy
     
  5. mrdobalina

    mrdobalina Well-Known Member

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    From what I recall, I think foreigners can own condos in a complex, but not land.
     
  6. radson

    radson Well-Known Member

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    I worked there for 2 years. I guess, I'm not a huge fan. Maybe an idea to wait and see what happens with the King's progression
     
  7. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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    Foreigners generally cannot own land in Thailand. They can own apartments but there are restrictions such as no more than 50% in any development may be foreign owned.

    To get around the not being able to own land part there are a few strategies.

    One is have a Thai national own the land with the foreigner own the building on the loan. The foreigner then (or before building!) enters into a 30 year lease with an option for another 30 years. A nominal rent is paid.

    Another is to set up a company with majority Thai ownership - min 7 shareholders. This is fraught with danger as you will not have control. but various strategies could be implemented such as different classes of shares, different voting rights and shareholders not knowing each other. But it is no technically legal for the foreigner to control he company. It is also relatively expensive.

    Nominee owners - similar to a trust arrangement, but trusts are no recognised under Thai law (except in limited situations). So you are really in need of someone you can trust. But the problems here are ex-spouses, children, death, bankruptcy, and outright deception.

    The laws in Thailand are very different. There is no law of equity for example so if your name is on title you are not protected. If you are legally married and the spouse owns then there is some protection and you can even own land inherited for a brief period before it must be sold.

    Procedures are also very different and there are many many cases of forged signatures and land being sold or stolen by others.

    Best to rent in my opinion. Only buy what you can afford to lose.
     
  8. Darlinghurst Boy

    Darlinghurst Boy Well-Known Member

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    Foreigners can own condo/apartments.

    I saw one in Pattaya 400,000 baht about $13,000 rents out for $150 a month.
    In fact there are a few like this that are rented by older expats.

    jomtien Beach area tons of apartments for sale right in the beach from about $30,000 rent out fir about $300 a month.
    There are Real Estate agents in Pattaya including Australian.
     
  9. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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    Heaps of structural type issues with apartments too. Building work is not very good, generally, and there are reports of car park basements flooding, buildings being unsafe and the foreigner will often be ripped off with inflated charges and pretend expenses.
     
  10. DaveM

    DaveM Adelaide Buyers Agent & KFC Strategist Business Member

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    Given how much shonky building work I saw when in Patong this year, I wouldnt own there :)