Reader question: Buying a house in Thailand
Dear readers,
After 8 years of regularly going on holiday to Thailand, we have now come to the point of buying a house in Thailand. We have oriented ourselves well and read a lot here and on various other forums. So I am reasonably well informed, but we can always use advice from experts by experience.
To be clear, I am Dutch, have a Dutch wife and 4 children 🙂 there is no question of risky constructions with Thai girlfriends or relationships.
Our goal is to buy a house in Thailand for our old age, I am an entrepreneur and have saved up, want to go there for a few months a year and rent out the house the rest of the time. What we have in mind is a beautifully situated villa with swimming pool, 4 rooms in a quiet place. At the moment it is owned by an elderly British couple who bought it in 2006 from a Thai property Company with a Thai woman who takes care of the maintenance and reception of guests, a kind of commission, she does not own the Company.
The British couple are now in their mid-70s and want to get rid of it.
They offered us the house for a nice amount and we are now thinking about that. But what should we take into account, they want to transfer the company to us, that includes the land and the house. The Thai woman also wants to help us with all paperwork and accounting matters for the Thai Property Company. The house will need some maintenance, modernization. Not that it's old stuff, I was there recently and took pictures of everything, but you still want to have your own taste.
Concrete question: What should I take into account? Which bears might cross our path? The aim is to buy house and land in a construction where income is generated by renting and we can enjoy our old age there.
I'm 47 now so I'm still allowed a while.
I would also consider hiring a reliable independent person in Thailand to guide us. For a fee, of course, although we already have some Thai acquaintances.
Regards,
Thailandgoer
Have the company's books checked. In particular, whether there are debts in the company and whether all taxes of the company have been paid. If you buy the company (including houses, etc.) you also take over the debts.
Get a good lawyer. Costs a few cents but that is nothing compared to the purchase price
Those are great plans at such a young age. Perhaps the following can help you, as we will soon also start selling retirement/care homes in Ayutthaya. Our entire journey of living in Thailand with options for property, rental, visas, insurances and other services is offered in one package. For this we have engaged a lawyer with the necessary knowledge of the matter in question. A big advantage of this lawyer is that in addition to Thai nationality, he also has American nationality, and therefore speaks fluent English (one of the most important points of communication!). Otherwise, feel free to contact him. His name is Pan and his phone number is 089 897 7980. Good luck with these beautiful resolutions.
Is there a website with more information? I might be interested in such a retirement house.
At the moment there is no website yet, the project is still under development (website should be ready within now and three weeks…). However, some of the homes have already been completed and have already been sold. If you are in the area, we would like to invite you to visit the site. Please also contact Pan for this.
A company limited with foreign shareholders whose sole purpose is to own land is an illegal (but often tolerated) construction in Thailand. So my advice is: Don't do it.
Furthermore, there may not be a Thai girlfriend, but the company will have to have 51% or more Thai shareholders. So the risk remains.
I also want to buy a house with land in Thailand, but I will wait until my son is 18 years old then I will buy it in his name. We currently live in a rented house.
Was doing the same thing. But luckily I got there just in time, just in the nick of time, that a new highway passes right behind it, 140 meters away. In Pattaya East, a 4 or perhaps even 6 lane highway will soon cut through Pattaya East.
Is now very quiet but in 2 years so not anymore. So luckily discovered just in time. You can hear highway traffic from afar.
So if it is in Pattaya East look at the drawing of the new highway. Many owners here who know that their house will be expropriated or are in the noise zone now want to sell their house quickly and are very friendly.
There will be no new highway straight through Pattaya East.
There has been a new 2 lane road for 6 years. The lamps along the road are regularly tested.
When the last sections towards Rayong are completed, the road will be opened.
From Ban Amphur towards Pattaya you can turn right on this road or from Banglamung turn left on this road to relieve the Sukhumvit Rd.
Too bad I can't post aerial photos in the comment, then it would become a bit clearer for you.
I'm sorry, but you have to give correct information about something so important. There will be a new highway. Don't do anything here.
company is certainly possible, but try to rent the house first, then you will know immediately whether you want to live there longer
Maybe renting will work out just fine, you never know
Always hire a good lawyer who will find out whether the company is well organized
Good luck and living pleasure, and stay healthy!
With 47 years and 4 children, I assume that the dot in the horizon is somewhere in 20 years.
That house has long since gone out of fashion and who knows if the area is still as nice. If you have it, just get rid of it as a foreigner.
Those are not bears on the road, but they are the reality in my opinion.
Although it is not an unusual construction, buying a house with land through a Thai company is illegal. This can sooner or later cause major problems. The company must also file annual tax returns, which can also cause costs and problems. Also take into account the new property tax law that is now slowly coming into effect, but no one knows exactly how. My advice (from experience) is don't do it.
You can become 100% owner of a condo, but you also have to be careful what you buy.
Good luck
Judgment of the Pattaya Court dated February 22, 2018 Civil Case 975/2558 Thai company constructions are no longer allowed.
Some Thai Laywers will put this document together with dry eyes (money talks), the consequences are sooner or later for the buyer.
Verdict: You are in Thailand and therefore you should know the Thai law in this area.
You are young and enthusiastic and you look through colored glasses.
Please read the information below on Thailandblog
Risks of buying a house in Thailand with a company construction? | Thailandblog
Sep 14 2561 BE · A question about buying a house with a company name in Thailand. In the Netherlands it is not recommended to take over a BV (private limited company) instead of establishing one yourself. This …
As for renting out the house, you know how many houses are for rent and for sale.
And if you want to live in your house for a few months, then those are usually just the months that you can rent it out, because yes Dec.Jan.and Febr. then there may be customers, but the rest of the year ???
Better to rent out your house in the Netherlands properly. If you live in a city with a university, it's a breeze. Preferably to foreign students or better interns. Don't go for the maximum achievable prices, but select based on people. Leave a room quite handy if you or one of the children or someone else you trust wants to sleep there for a few nights. Just some control. Living somewhere else, especially with four children, one of whom might be less able to settle in, is a significant risk. Adventure beckons. Going on holiday with a generous budget is quite different from building a future as a child. … I am retired but would like to continue living in the Netherlands and would rather go to Asia regularly with my half-Thai daughter, 11 years old, than buy anything there. Could afford it. Buying something that is not legal, especially with the major consequences of Corona in Thailand, is in my opinion too big of a gamble. The current or next government needs a lot of money and taxing foreigners is less unpopular. Count your losses.
Dear Thailand visitor,
Just contact me by email.
I live here 16 years and do a lot of business, including this.
[email protected]
The real estate market in Thailand is completely different in every respect than in the Netherlands.
Houses are everywhere, often for sale and rent for years.
Once you buy a house and you never get rid of it without huge losses.
Governments, real estate agents, lawyers, selling owners: everyone is just messing around and getting your rights after a conflict is very uncertain.
The construction with a company is very controversial, don't do it.
You can forget renting and if you find someone, your house can be left ruined.
Anyone can start a night club, dog kennel, factory, rehearsal room for pop musicians, etc. right next to your house. and you do nothing about it.
Nice neighbors move out and the new neighbors have a party every night.
Overdone? I've been through it all.
I saw a beautiful house by the sea, soothing talks from the owner and the municipality, three months later there was a huge apartment complex one and a half meters next to my dream house full of workers who were working on a new hotel 100 meters away. Lots of noise, marital quarrels, shouting, drunkenness, etc.
Luckily nothing signed yet.
My advice: NEVER buy a house, but rent.
Beware of proximity to schools, temples, local public address systems, workers' houses, bars: all are very noisy.
There are many responses, but I still miss the steps to follow to buy the house as safely as possible. Can someone indicate that to me, together with the costs for the purchase including administrative procedures, taxes and lawyer costs (estimation is allowed).
My horizon is 10 years, with the current rental income of the house from the past period that I own, Corona left there, and a pessimistic view of this from myself, I have made a financial plan that looks great.
It is located next to a quiet large resort on a mountain slope, it is built in the same style as the resort, the architect lived in this house. No other resort comes close, but I'll check, certainly not a highway 🙂
Indeed, the rental period Nov-Dec-Jan-March is the time that the house is most rented out and that would later be the period that we would like to be there. That's one thing and thanks for this realistic look at hosting.
@ Jan S I really need to learn more about the ruling of the Thai Supreme Court regarding having a Thai company. I don't want to take any risk and do it in a legal way. If it gives too many snags, we will rent or look elsewhere.
I will also look into the Company's books to see if there are any debts in them.
I wanted to add: never fall in love (with a house), but it's too late.
Forget the company: illegal and you depend on Thai co-owners. Never do.
In fact, you are not the owner at all.
Forget renting: tourism had already collapsed before the corona crisis and will continue to do so.
Don't believe anyone from the council: Thailand is one of the most corrupt countries in the world, top to bottom.
Every court decision can be different tomorrow.
You can rent incredibly beautiful villas with swimming pool and enjoy your vacations and later your old age carefree.
Given the huge surplus (again: everything is empty) that is much cheaper and you are free.
A house for sale is a block to your leg and a millstone around your neck.
No, I'm not in love with the house.
I try to look at the possibilities and thus create a realistic picture of whether it is feasible.
I can also imagine that there are many advantages to renting for a longer period.
Who knows, travel behavior will change in such a way that renting out will become an issue later on.
In summary; Taking over a Thai company is illegal, due to corruption you cannot rely on court rulings.
It is necessary to hire a good lawyer.
My advice is to hire a good lawyer. You get good reactions through this medium, but you have to do something with it yourself. I see that you are very interested, and wish you continued success.
I see there are a lot of comments that have little to do with the question. I've been renting for 30 years, it has its pros and cons. It often happens that there is something in the environment that was not noticeable at first and that is becoming very disturbing. When renting, it is easy to move, although it can sometimes be painful. With ownership you first have to sell your house and that has turned out to be quite difficult lately. Not far from me is a Resort project where you lease the land for 30 years, so you do not become the owner of the land, but you do become the owner of the lease contract. You buy the house. The resort has a service office and will arrange everything for you. The lease contract is also transferable at notary costs and can also be renewed. The owner lets you know which period of the year he wants to spend there himself. The resort rents it out (if they can) during the owner's absence. They guarantee the condition of the house and furnishings, also for the environment such as the general swimming pool and garden. Income from rental is reduced by pre-agreed service costs. The Resort management is responsible for cleaning and maintenance. Discuss the possibility of leasing the land and purchasing the house I would say.