Do you rent, own or are buying a house in HH?

[malcolminthemiddle]

Just read on a website -


A popular misconception which causes foreigners unneccessary concern is that such companies are owned by foreigners and could be exposed to imagined special (future) legislation by an imagined (future) extreme nationalist government with the intention of robbing foreigners of their real estate investments in Thailand. The fact is, however, that Limited Companies are owned by the shareholders, not their directors, the foreigners. As such, Limited Companies are Thai juristic entities subject to Thai commercial law, and any changes to legislation must apply to all Limited Companies, not only those whose directors happen to be foreigners. Thai law, both commercial and personal, is not so very different from legislation in most other countries, and it applies to all juristic entities in Thailand, foreign or Thai.

Yes, but they are Thai Juristic entities controlled by foreigners.

That is where the potential problem lies as the new "Owners" of Shin Corp are waiting to discover.

[lomuamart]

It's a really complex issue, this one. On the one hand, "xenophobia" from the Thais ( and for that they are well renowned when it comes to non-Thias owning a chunk of their land in whatever form) and payment of taxes from the "loophole".
Interestingly, my landlord called earlier this week asking us to claim that my wife was a cousin if the Tessabahn happened to call round. Therefore we are living here for free.
These twats have no sense of obligation to their fellow Thais in the sense of parting with money through tax, so why should we? Other than helping to "close" the company loophole.
Another poster posited that as there are so many farangs owning in HH now, it would be detrimental to repossess the land. How so? It's actually in Thailand's favour do exactly that. The owners have had their piece of the action and the authorities will get theirs'. The owners move back in to a nice house and wait for the cycle to happen again.
That's cynical, I know, but as I've got problems with my tenants in London, I'll be as cynical as I want now.
I thought it unusual that the local authorities were looking at a Thai person, tax wise.
And as a PS, if the Tessabahn come round, will my wife claim family ties to suit the owners. They could simply ask to see a Tabien Bahn to clear that up quickly. Not a bit of blood in them at all.

[gaijin]

An old thread resurfaced. The fact of the matter is that if you follow the rules, there is not a problem in buying and selling property in thailand. As to problems with properties being in a spouse's name, this is going to be a problem wherever you are - again get advice and think before you act. As to possible after the event changes to the law, the trend globally is towards freedom of capital movements. Thailand is clearly aiming at being a part of the expected Asian century of economic growth and power. Indeed it is well placed to share from the growth of China and India, as well as the economic emergence of the Info China economies. The sort of backward capital restriction that some is this thread have speculted upon, would significanty hurt thailand or any country that introduced such rules. the thais strike me as striving towards economic success and legal restrictions on capital movements will reflect the integration of the thai economy into the broader Asian and world economies.

What is apparent is that with the growth and development of HH, many of those farangs who can afford to buy today are unlikely to be able to afford to buy the same accomadation in say 5 years. HH is changing and will hopefully always retain its charm. But just look at some of the changes over the last year: HH now has a huge Index store, a Home Pro, SB Furniture, Tesco Lotus and cinemas. This is in addition to many other furniture and electrical stores that have opened up over the last 2 or 3 years. Let's not forget the top golf courses, the beach, and the abundance of top (cheap) food, massages and on the list goes.

[Limey711]

When we bought our house, the word investment, never crossed our minds.
I am lucky enough to have a decent pension, although I did work hard for it, so I have no need to earn a living.
We can retire early and we intend to live out the rest of our days in this beautifull counrty and town of Hua Hin. The U.K. tends to go from bad to worse, with all these new laws and legislation and everything being taxed to the hilt, so we believe we have made the right choice.

To a long and happy life.

Russ

[Michael]

Just a question from a "tourist". How many farangs a living in and around Hua-Hin ?

[Jaime]

Yes, that would be interesting to know. Also, what is the 'mix' in terms of nationalities and their relative percentages?

[johnnyk]

When we bought our house, the word investment, never crossed our minds.
I am lucky enough to have a decent pension, although I did work hard for it, so I have no need to earn a living.
We can retire early and we intend to live out the rest of our days in this beautifull counrty and town of Hua Hin. The U.K. tends to go from bad to worse, with all these new laws and legislation and everything being taxed to the hilt, so we believe we have made the right choice.

To a long and happy life.

Russ

Agree with you Russ. I have owned 5 houses (building #6 in HH) and bought each one of them to make a home and live in it. If you see it as a home then you get a place to live at the very least.
See it as a commodity and it can suffer the same fate as any other investment made simply to make money.

[lomuamart]

I'm playing devil's advocate here a bit and whilst I agree in part with johnnyk's post above, there just seems to me huge differences between Thailand and the UK.
I bought my property in London years ago as a place to live and as an investment also. The fact that I don't live in it now is just the way things turned out. However, in a couple of years time, that property will be mine - 100%. The building society will have been repaid, the title deeds released by them to me and they'll be safely tucked away in a bank vault with the necessary documents lodged at The Land Registry. After 25 years, I will own that property and land lock, stock and barrel.
Over here, I can never own the land. The best that can happen at the moment is that my name appears on a company document stating that I'm a director of that company. Other shareholders' names will also appear. I know that I'd have control of the company, that in effect the property is "mine", that it would be best to file some trading returns to make it look like an properly operating, rather than shell, company etc etc, but the fact of the matter is that I don't "own" it in the sense that I will do back home.
I'd also agree with gaijin's post that Thailand can ill-afford to be seen as an economic pariah, so the loopholes that exist at the moment are unlikely to be closed. The fact is that they could be though. This rears its head in Parliament from time to time and then slowly dies out. But the threat is still there.
Finally, I agree about viewing the property as a home, not an investment. Thing is, a home, in the sense of a roof over your head, could be all you've got - for now anyway. Just like me. The owners of my rented property could turn around tomorrow and say they want the place back for themselves. I then need to fine another roof.
Take these comments as scribed by the devil's advocate as I said initially. I'm sure none of you who have bought houses here will have any future problems with ownership. I suppose in my growing old age, I'm just becoming a bit more conservative and the old lawyer in me says to stay away for the time being from buying here.

[johnnyk]

lomu, your points are well-taken and I would certainly never advise anyone to put huge, or all, financial eggs in the Thai basket as there are uncertainties.
I own my home in Canada free and clear and one day will rent it out in order to spend time away. I have put a small 1-bed flat in the basement which my wife and I can use as a pied-a-terre at any time.
No matter where you are or what your situation its always wise to be prudent, its your money!

[Mr Jame!]

Thailand has managed to stay Thailand because it hasnt allowed too many people to come and buy the whole place, which has happened to alot of countries where land prices are relatively cheap compared to immigrants native countries. I hope they dont ever relax the laws too much.Thailand has done well to maintain its cultural integrity.

[buksida]

I hope they dont ever relax the laws too much.Thailand has done well to maintain its cultural integrity.

I agree with your first sentiment but not the one above.

If Thailand is ever going to move out of the dark ages and compete economically with its Asian neigbbours (Malaysia, Singapore, Taiwan) it has to stop being so xenophobic and open its doors to foreign investment, and yes, that includes land.

On a more personal note, would you be happy living, working and paying taxes in a country year after year and still not being allowed to legally settle there and buy yourself a small plot of land to live on without giving an obscene amout of money to their fascist government? (and before anybody jumps on me I know I can form a company or put it in the mrs name but that wasn't my point - if we have given to the country we deserve a little back IMO).

[Mr Jame!]

Yes sure its frustrating you just want a plot of land and a comfortable life. Shame they cant make different rules for us honest folk.

[johnnyk]

I hope they dont ever relax the laws too much.Thailand has done well to maintain its cultural integrity.

I agree with your first sentiment but not the one above.

If Thailand is ever going to move out of the dark ages and compete economically with its Asian neigbbours (Malaysia, Singapore, Taiwan) it has to stop being so xenophobic and open its doors to foreign investment, and yes, that includes land.

On a more personal note, would you be happy living, working and paying taxes in a country year after year and still not being allowed to legally settle there and buy yourself a small plot of land to live on without giving an obscene amout of money to their fascist government? (and before anybody jumps on me I know I can form a company or put it in the mrs name but that wasn't my point - if we have given to the country we deserve a little back IMO).

buks,
i'm not in agreement with you on this.
multi-nationals have no pompem investing and are welcomed, including buying land for factories, hotels etc. they aren't holding back their investments.
thailand needs to remake its education system if its going to compete with the others in any realistic fashion beyond cheap labour costs.

[Jaime]

Let's face it, the reason they don't allow us to 'integrate' more effectively is that we are a threat! Immigrants are OK so long as they are your social/economic inferior but people the world over get scared and angry when immigrants have the best jobs (or no need to work), best houses, best cars, best food, best lifestyle etc. Christ, we all know that if they gave us more employment and land rights Mr. Falang would take over the place in a matter of months! Any Thai with a modicum of sense knows it and that's why they shut us out. It ain't gonna change for that reason.

[buksida]

multi-nationals have no pompem investing and are welcomed, including buying land for factories, hotels etc. they aren't holding back their investments.
thailand needs to remake its education system if its going to compete with the others in any realistic fashion beyond cheap labour costs.

You missed my point, I was speaking on a personal level, having lived and worked here for several years, paying more tax than most Thais do and I'm still treated like a Nigerian drug smuggler.

As Mr Jame! said why can't they distinguish between honest folk who work here spending all of their income back into the country and the element that they're trying to eradicate.

Foreign investment in Thailand is way lower than that in other countries on the Pacific Rim simply because Thailand makes it harder.

Thailand will never "remake its education system" because all the time people are kept uneducated they will continue to keep the corrupt politicians in power, why do you think TRT are only campaigning in Issan?

Anyway, don't want to de-rail this thread and turn it political.