Watch This Before Buying a House in Thailand
ฝัง
- เผยแพร่เมื่อ 15 พ.ค. 2024
- Mr Sirichot is a licensed Thai lawyer with more than 14 years of legal experience including property law.
Need a lawyer? Get in contact here 👉 ventureinbold.com/legal-service/
00:00 Preview
00:26 Foreign ownership of Thai property - the law vs reality
01:39 Owning via a company & the risks involved
04:47 Four perfectly legal ownership options
06:29 Which ownership option to use?
07:59 When buying a house from a property developer
10:21 When buying a house from an individual seller
12:06 Which lease type is more popular?
12:51 What rights do I have when I lease a property long term?
13:46 What are the payment terms for a property lease?
14:53 Owning vs leasing long term
17:01 Can my lessor rights be wrongfully disrupted?
18:47 The advantage of leasing long term
19:30 What if the lessor sells the property?
21:26 What if the property is confiscated from the lessor?
23:39 How to renew the lease
25:39 What happens to the house I own when the lease on land expires?
Long story short, don't buy a house as a foreigner in Thailand.
Jett, you're truly awesome buddy. Your contents are extremely informative and enjoyable.
KEEP UP THE EXCELLENT WORK 👏 👍 👌 🙌 😎 😀❤🙏
Thank you so much!
Great information Jett, thanks for putting this amazing video.
One of your best videos ever. This one SHOULD get 20,000 views.
Very good interview Jett!!
Fantastic
Thank you.
Very informative and comprehensive
One of the best explanations ive ever seen
K. Sirichot is a great reliable lawyer.
Nice to get good solutions to a crucial questions on property ownership
Nice approach, including pace. You are real, deep, sharp and passionate.
Glad you enjoyed it!
Very good in depth video, always wanted to know more about this. It's unfortunate you can't really protect your lease better after the 30 years have passed.
Isnt there a Superficies Agreement agreement where u can agree with the landlord that you lease the land till your death? As long as u register it with the land office with lawyers and witnesses on both side?
Surely, the ideal way, is to have genuine thai investors in your company.
Fantastic video this is much needed by confused people.
I know Mr Sirichot now for more than 3 years and he always advice me verry well in al sort of possible problems. He is a good honest men that realy think with you. Also important his hour rate is normale, remember, good advice can save you a lot of money.
I was a single guy when I retired here. I really wanted to own a house but found it impossible. I hated the idea of starting a Thai company mainly because of having to have an accountant and a lawyer and filing tax returns. I quickly ruled that illegal option out. I found the safest way was a thirty year lease. A lease is only legal for a maximum of thirty years. I knew that I would eventually get married and at the end of thirty years, she would have nothing. I bought a condo in my name and owned it to do with it whatever I wanted. After owning it for twenty years, I finally sold it with no problems. There is NO way for a foreigner to own property in their names. Buy a condo.
Thank you for sharing your story. Great first-hand insight 😊
Thanks, Jett. I miss these in-depth interviews that you do. It's always informative.
Excellent video Jett- thank you, a couple of questions not asked, can you answer?
1) You own a property on a 30 yr agreed lease and you die during the lease period, does the person inheriting your property have the lease transferred to them or is it cancelled upon the original purchasers death and a new term negotiated?
2) should laws change during an agreed lease period and a farang can legally own landed property (let’s say providing its over a certain price for example £1 million so that local people are not priced out of the market on lower cost homes) can it be written in the original lease agreement that should this happen the land can be bought at market rate minus the remaining lease years paid up?
Hope that makes sense
Thanks for your excellent videos
Thank you to both of you. Very interesting content
Glad you enjoyed it
if you can't own 'Freehold' and own the house & land, don't waste your money on buying!! better off just renting longterm and getting to know your landlord..
Thanks for doing these interviews Jett! Great questions and really helps to educate us farang before making the leap to move! Knowledge is power to understand what our options are. Many thanks!
The lawyer has done a good job of outlining a variety of pathways of controlling property, but most of the options are not buying a house but LONG TERM renting.
A holding company is not gymnastics. It is the safest way to own a house. I have had about a dozen houses and six condos in the past 36 years.
I have learned of only one person who has been cheated by their accountant from their holding company. The accounting office had not seen the owner in three years and thought he had died. They sold the house. I have known a hundred people who have owned houses through the company route.
The general business that is performed by the company is to rent the house to the director of the company. I have never heard of one company investigated by the government.
Lease -- NO It is not ownership. Try to sell it in the middle of the 30 years. Not going to happen.
Usufruct -- NO Use of fruits. Try to sell it. Not going to happen.
Lease land and own house - NO Why pay for a house and forfeit it when your lease is expired. Try to sell the lease. Not going to happen.
Superficies ---No This not ownership, but only usage. Try to sell it. Not going to happen.
Put the house in a company name, and ten, twenty or thirty years later you can sell it for more. This is the safest and most common way this has been done in Pattaya and Phuket, where the majority of the foreigners buy houses for decades.
Or simply rent a house for one year at a time. Leave your money invested in your home country, and move whenever you want to.
@@sirichotchaiyachot7693 I am happy about the rule in which foreigners cannot own land. More countries should introduce it, other than those who are grandfathered in.
Thank you for this advice I'll choose to go the company route. Any advice on choosing that 51% ownership party?
@@YasukeNakamoto The other shareholders are usually the employees of the accounting firm which forms your company. If you are in Pattaya, I can suggest my accounting firm. I have used this firm since the late 80s, as have dozens of friends.
@ds I see, so basically, you delegate the 51% to the accounting firm. I would love their information, thanks very much. I'm a 26 year old American entrepreneur, and Thailand is my next destination!
Would you consider rental properties in pattaya and Bangkok to be relatively easy to find tenants for and have a property management company manage?
I would like a villa for myself but of course would like to actually own that land but want renral condos to have under my own name or separate company from the villa.
@@YasukeNakamoto Owning property for rental return here is not a great investment. If you have property in the USA, you will get a better return on investment from the rental rate and the increase in price over many years. I have bought pre-build, starting in 1987, auctions, taking property on loans from defaults, etc.
Maybe it is not acceptable, proper etiquette for me to send contact details of the accountant here. Can you send me a message through my youtube channel? I do not have Thailand or Property info on the channel.
Great video! The one question i would ask is options for selling the house to a farang or a Thai national before the 30 year deadline
You would sell the lease contract as-is with the remaining lease term duration. It’ll be a name transfer.
Great video Jett learned a lot. clears thing up. thanks
Glad it helped!
Very interesting video, but the option of using an usufruct is not explained. Usufruct also referred to as ‘Sidhi-kep-kin’ in the Thai language, means the temporary transfer of ownership rights from one person to another for the use and enjoyment of the property. Can you make a separate video only on a usufruct construction for buying land and a house in Thailand?
See 6:29 on why he doesn’t recommend it
@@JettGunther This lawyer doesn’t recommend an usufruct construction because foreigners are not familiar with this option. Please contact Brian Ramsden of Lawyers for expats Thailand. He can explain in a video a watertight construction using usufruct for buying land and house in Thailand.
He doesn’t recommend it because you will have less protection in a court of law compared to a lease. You can rewatch the timestamp I mentioned.
Buy an option on the lease, extending it at a set price 30 years forward. Do the same for another 30 years, 60 years forward. 10 THB for each option. Make sure they are American not European options, or make them automatically exercise in if in the money.
Can you do a video on a Foreigner owning a Prefab house and putting it on your Thai wife's land? I don't think it's realistic to expect to get the house back in case of Divorce but I am interested to see if this is possible.
Very Very good video on who can own a house in Thailand but as of this year 2023 there is a Government scheem that one with a certain amount of investment can own a property no larger than i think one rai... i think i would just rent or own a condo that has worked all these years...L.A Rob
It’ll take quite a few more years to pass
Please keep inviting Experts in the Housing Fields, these advises are life saving especially for people who want to retire in Thailand
You'll love the very next one then :)
It would be a good idea to specify in the lease what will happen with the house after 30 years or if the lease is terminated early. If the lease is not renewed for whatever reason, the owner or new leasee should pay the previous leasee the market value of the house. It might be a mote point as a 30 year old house probably needs a major renovation or replacement anyway.
That can be discussed with your lawyer
Hi Jett, I am new to your channel and would like to say that I enjoyed watching your content. I was thinking do foreigners can apply for home loans to purchase a house in Thailand? Thanks!
I think not easy and there is also often a requirement that the money to purchase must be transferred from an overseas account
also probably not a great idea anyway
Thanks Jett. Can I please ask a question? Is it possible (via a Thai Lawyer ) to have multiple Thai Landowners that don't know each other. And structure it so that their ownership would tally up to 51% therefore eliminating the possibility of being ripped off. i.e. They only own 25.5% each (x2) or similar and don't know who the building owner is. Clearly you may have to provide the finance for said Thai landowners to purchase the land but essentially your buying it but in their names! You could take this a step further and agree that the interest on the loan could be the same amount as the lease on the land! Perhaps. Food for thought!...
That….you should consult a lawyer
Is any foreigner can by house in yhailand?
Can you do a video on the benefits or negatives of buying a "KnockDown" or Prefab house in Thailand? There are some amazing Prefab housing options now. These types of houses might be very useful for people on Leased land.
Working on a case study involving a condo. Will need to wait for it to finish though
Thanks for the interview,,, but in short it’s complicated to own a land house so just rent don’t buy ,,, u r more free and have more options to move around Thailand rather than staying in one place and one city.
great information, just one question, what will happen with the lease contract of the landlord dies? Do you have any info on this?
The successor will need to honor the contract
If someone wanted to get a 60 - 90 year lease on land from a private landlord/lessor (not a developer); maybe it would be possible to have written in the first 30-year lease contract; a clause that gives the lessee the right/option the extend the lease for 2 further terms of 30 years for the continued payment of the lease fee/land rent. I am assuming this is what the developers do when selling their properties with a 90-year lease.
You can write it in as an informal agreement but the Land Office will only officially recognize lease contracts up to 30 years, which means there is no real legal recourse if the lessor decided not to honor their promise.
Very cheap land lease agreement in return for giving the landlord the house at the end seems like a reasonable option for some people for sure.
You can also buy a PreFab or Knockdown house as they are called here and take the house with you
@@beautyofthailand7393 ok, yes that is a reasonable option if that's what you are happy to live in for sure.
So what if the developer goes bankrupt or just stops paying the taxes on the the property? Can you set up a escrow account where the taxes and expenses are paid for the next 30 years?
See 21:26
What happens if u want to Sell the house to another foreigner? Can u sell ur house and remaining lease time? What is the resale value like normally?
So many questions! I think the bottom line is, if you purchase a house outright, be prepared to walk away from it in 30 years with nothing? This has been very useful.
Please list the questions in case we do a follow up video
@@JettGunther Thanks - That was really my most pressing question. Ive been looking at 16-20m THB properties on the pretence that I would be able to keep leasing the land on a 30 + 30 + 30 year basis....but all looks very risky and if after the first 30 years the landlord decides not to renew, I would have to walk away with nothing...after setting fire to it of course! Renting maybe the answer
Follow up question: how about buying a condo and leasing nearby detached gardening space. Any options there?
Thumbs up 👍 Jett….. I do have a question though, as an American 🇺🇸 I am entitled to own a Thai company (US-Thai Amity Treaty Act)100%, if I were to start a legitimate business and build a house and land purchased through my Thai company, how long would I need to keep my business alive to keep my ownership rights?
You’ll need to keep your company running the whole time
@@JettGunther well that’s a bummer, thank you 🙏
Bummer yes, but completely in line with all other rules
Company? Put a massive lien on the property to an external company you own. Make sure that lien is registered and senior to other debts.
Allow me an observation : a developper who intends to BUILD a resort of more than 8 houses must get a LICENCE from a provincial authority that in each Province is in charge of house constructions and developments.
Any development that does not respect this Thai law is illegal.
At the reverse of the chanote of the land dedicated to the development project the Land Office inscribe the license number the developper got from the Commission.
If not, ran away !
Gunter, I failed to grasp the difference between renting and lease . If you have a long term rental , isn’t it better than a lease since you are Not giving the landlord one lump sum alap eventual after 30 years , you walk away from the property since you do not own it. Why buy then via the lease method ? I failed to understand but via the leased method versus long term rental ( perhaps you cannot enforce a rental agreement and cannot register to the land department that will hold up in court . Please comment
If I understand correctly it’s because you probably won’t find anyone who will want to do this with you. Also Jett is looking to enjoy long term worry free.
If you're going with a yearly lease, there's no assurance or legal obligation for the owner to renew it the following year. People sign 30 years upfront exactly because they want the assurance that they can call this place their home for that duration.
Realistically at 60 or 65 yrs of age retired in Thailand, how long do you have left in term of longevity, I say with good health, 18 to 20 yrs is the max before you ended up dead. Buying is such headache and up keep with maintenence, taxes and other fees come alone with it.
The up to 30 years was not picked haphazardly... retire at 60. 30 year lease is amazing.
Spend $100k on a house, that money is gone.
Spend $100k on a condo, you get the $100k back one day.
That's the biggest difference.
I'd say I'd modify that to be:
Spend $100k on a house: whether you get that money back is up to the person you put the house's name under.
Spend $100k on a condo: whether you get that money back is up to you.
Cheers!
Not one question on what happens when you the owner of house (and leasor of the land ) try to SELL the house BEFORE the 30 year lease is up ? And this is by far the most likely scenario. What happens when you sell before the 30 year lease expired ?
Who would want to buy from you with a 30 year lease that is half expired ? Owner of land is not lilley to agree to renew a full 30 years with whoever you decide to sell YOUR house to ? What typically happens in this scenario ? To me ...the seller..the foreigner is going to take a big financial hit when he goes to sell his "owned house...leased land " ....What am I missing here ?
It's definitely a good point and I'm sure we've covered that in one of our videos. Selling before the lease expires means you transfer the lease. The person buying the lease assumes the role of the predecessor and the terms of the lease must be honored until its completion.
You'll rarely be in a situation where the owner of the property is an individual Thai person who may refuse to renew a subsequent lease, since most Thai people selling property would just want to sell it off and not have the headache of being a leaseholder. So leasing a property would usually be done with a developer who has a reputation to uphold, who would continue to lease the land to any buyer.
OK....thanks for explaining that. Still sounds sketchy and opens up more issues ...like how is it that the developer can do this and not the normal Thai land owner ? And moreover..at what point does Thai government or authorities decide to make developer play by the same rules...and register the land just as all the rest of landowners do ? and then ..once that happens...what do you do since you leased it already ? Mexico has a similar game with this 30 lease..and I have played it. But unlike Thailand..the Mexicans DO allow for legal renwewal of the 30 year lease . ..and make no secret about it. Why this matters is clearly in the predicting the ultimate value of the house...verse a condo. If you cannot do that..then why bother buying a house ?
@@ristainoj There is no shady business. Anyone, developer or individual owner, can legally lease the land they own for up to 30 years at a time. The lease is then registered at the government's Land Office, so it's not some sort of secret dealing. It’s just that most individual landowners don’t want to do it and would rather sell it off. Developers want to accommodate to foreign buyers and so they offer leasing.
It is also in the developer’s interest to fulfill their promise of agreeing to renew the lease. If they surprised someone by refusing to renew it, they’d lose their customers as no buyer would trust them anymore. No one gains from breaking that promise.
What about using a Trust?
@@polupopus5836Thank you krub. You are absolutely right.
Take care of yourself Harish Ji..
Is it possible to set up a thai company such that the 51% thai interest has 0% voting rights and 0% rights to any profits?
It is an option but to be able to “loop” through the “hole” you need to really know what you’re doing, hence I didn’t mention it in this video with this title. Based on this and your other comment, it seems like you’re looking for a solution to a perhaps unique and complex problem. If you’d like to talk to my Thai lawyer, you can go to JETTGUNTHER.com
@@JettGunther Thank you for your comment.
Why not own the house and buy the land through a business company? Are you aware if this structure has been used?
Of course. It’s a grey area method we don’t want to talk about publicly.
@@JettGunther why is it a grey area? What are the pitfalls of this structure?
@@tinmyaingthein4971 01:39 explains the risks involved.
So from what I gather if your buying a house it’s only really renting for 30 yrs. then also if u want to stay in it after 30 yrs what about if they try to raise the land rent so much that it doesn’t make sense to keep the house cause they gouge you and then they stay with the house you bought. So net net buying a house unless it’s your wife or trusted Thai for life Thai person is a risky proposition and the conclusion of the 30yrs. Although i would love to buy something house wise without property land rights it’s just a difficult pill to swallow unless your cool with just using it for 30 yrs and then “hope” things go well after. I hope they amend the laws cause it’s to risky from the start for after 30 yrs leaving to many questions and in 30 years when you’ll be most vulnerable cause you’ll prob be elderly and on a tighter budget
Can just buy large older condo for a good price, fix it up, make it your home.
What if you own the villa, but you leased the land, what happens to all the money you invested by buying the villa?
Check out this section 25:39
Can anyone tell me the benefit of owning land or a home in Thailand.
18:47
How about getting Thai citizenship , then can you then own property?
Can but it’s a very difficult and lengthy process
I hear that any house you build in Thailand with your Thai wife is basically a gift to your wife and foreigners rarely get compensated in case of separation. Is this common?
Yes
Rent is easier
I currently live in Thailand me and my husbando live in a house 'we' own but it's all in my significant others name so technically I have no real rights to it and obviously there could be issues with this but I still understand the governments fears of allowing foreigners to own thai land, my biggest issue with living here is actually more geared to the visa system still hate how non progressive the government is to non-heterosexual unions and also living long-term in Thailand without being super wealthy or at retirement age, I'm actually going to have to get an Elite Visa at the current rate of my options since I've tried so many options even currently being on an educational visa. I've watched your videos on elite visas and guess that will be my route next year after current visa. Just wish government would get around to more visa options especially more progressive options would be ideal eventually.
big risk
How? We just outlined how to do it with perfect legal safety
I do not see how this leasehold can help the foreign buyers at all long term. How one owns the house but not the land there is no win-win for the investors. It is always lose-lose on the foreigners in my opinion. I would rather rent long term or go to another SEA countries which you can own land maybe this is just me.
Still a pain. I understand they don't want too much foreign ownership but their economy is dependent on tourism and income from foreigners so they must get rid of all the hassle and make it freehold. Maybe put a limit on amount of land, most won't want more than say 1000sqmt.
No, the economy is NOT dependent on tourism. You might have that impression if you only know the tourist areas. Thailand is very very smart protecting their land from direct foreign ownership.
@@davidwilliams7552 Oh really. In 2016, tourism revenue, 2.53 trillion baht, accounted for 17.7 percent of Thailand's GDP, up from 16.7 percent in 2015. I would estimate it to be around 20% now. That's 1/5 of the economy. So don't talk rubbish.
There's no such thing as freehold
Land. Try not paying taxes.
@@fgafootball exactly, the economy is hardly dependent on tourism with such a low percentage. I am well versed in both economics and mathematics having taught both for decades. The tourist areas like ao nang, sure are 90% tourism but most of the country has little to no tourism. I encourage you to learn more about maths and economics.
@@fgafootball exactly, as you say ONLY around 17-20% of of Thai GDP comes from tourism which proves my point This is a significant percentage but Thailand is hardly dependent on that sector of the economy. Outisde of the tourist spots, the rest of Thailand was economically largely unaffected by the lockdown which illustrates this fact.
Can I buy a property in my Thai wife’s name and then have her as the owner sign a 30 year lease to me?
Ok thank you for the advice
Or just don’t spend your life fortune knowing you’re buying a gift in the form of a house for your partner
Instead of a lease, have one of your friends or family members make a mortgage on paper to her when she buys the house. This way if she wants you out, the mortgage lender can sue for the loan to be repaid. She will lose in court, and the house will go to auction. You would get back about 70% of your money. Or you could work out an agreement that she would receive 20% of the sale price and you would receive the rest in order for your friend to sign off on the mortgage at the land office during the sale.
Hi @JettGunther Did you read my mail? Thanks!