Investment property in Hua Hin : Condo or House ?

Ask here about the pleasures and pitfalls of buying, selling or renting property and real estate in Hua Hin. Building, design and construction topics welcome. Commercial or promotional posts for real estate companies or private properties are forbidden.
clayre
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Investment property in Hua Hin : Condo or House ?

Post by clayre »

Hi everyone,
Having spent a couple of holidays in Hua Hin, I am contemplating buying a property as an investment, primarily to rent out, and later on as a possible retirement home. (I shall be 50 in 2007, and could apply for a retirement visa.)From the point of view of maximizing the rental income, what would be a better bet, a house slightly out of town, or a condo near the beach ? Does anyone have a second property rented out , who could give me some advice ? I have been studying the websites with property for sale in Hua Hin, but am unsure about local market conditions. Many Thanks.
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Post by PJG »

Really depends upon your budget. If you are spending most of your time away from Thailand probably the best bet is a Condo. You can own a Condo as a Foreigner and also have security while you are away. Also generally the Condo Management can look after the rental for you. For any property it is always better to be near the Beach but then the budget becomes more important.
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Post by Norseman »

I agree with PJG on that.
There are so many houses for rent at the moment that the owners have to reduce their prices to match the renters willingness to pay.
6 months ago it was lessors market, now I think it's the renters market more and more.
At least in the part of town where I live.
A condo can be 100% owned by you, but you only own 49% of your house property.
I intend to live forever - so far so good.
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Post by tuktukmike »

Norseman

Not sure if you have read this months Observer, it says that the land department are insisting on only 39% ownership.

I have had dealings with the British Embassy over the last week and during our conversation asked them about their thoughts on land ownership.

They said as we all know that we are not allowed to own land and that by forming a company was in fact not considered the right way to own land out here.

I asked why they do not inform people on the Embassy web site of the regulations, They replied that it was up to the individual to check the regulations and that if someone is told to form a company to buy then they must already know that this is not really legal.

As for Thailand entering into the global market as others have suggested and relaxing the regs, I was told , dont hold your breath.

Personally i think over the next couple of years there will be rocky times ahead,

Mike.

PS, if anyone needs to know more then call the Embassy for advice on owning land. you will get a short answer.
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JimmyGreaves
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Post by JimmyGreaves »

How can the land department refuse?

If your company is buying land (49% companies are legal) with the view to doing business on the land?

Any proof of this?
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Post by tuktukmike »

Jimmy.

What business on the land you live on. I can only think of a handfull who conduct any type of business on their property.

Agree 49% companys are legal, but companys are set up to do business.

Read Hua Hin Observer, land registry are now asking for 39% farang ownership when buying land.

As anyone with an ounce of sense will realise, your Embassy will not help if you buy knowing that you have circumvented the law.

Why do so many stupid people think that their countries would be outraged if Thailand kept to the law and kicked out people who have sidestepped the constitution of Thailand.

Best advice, contact your Embassy and let them explain the law. then you will have all the facts so as to make the right decision.

Mike.
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Post by Norseman »

tuktukmike wrote: Read Hua Hin Observer, land registry are now asking for 39% farang ownership when buying land.
Hi Mike.
No, I have not read this month of the Observer Magazine, but is the question of 39% ownership officially fixed by law and includes all of LOS?
Or is it some local law for HH?
I intend to live forever - so far so good.
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Post by tuktukmike »

Hi Norseman

Not sure but it seems a new development.

I always thought it was 49% but maybe they are moving the goal posts.

Mike.
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Post by caller »

I've read the article and the bit about 39% reads as if its the authors knowledge? But we're not told who the author is?

Its pretty well documented that 49% has been acceptable to date so it would be useful to know if there has been a change in the law, as surely that is what would be required, to enforce the 39%?

Or doesn't it work like that?

What bothers me more and makes me worry about going down this route is the reference in the same paragraph, about needing to prove the Co. is not just acting as a "nominee" to enable the farang to buy land and how that may effect it being sold on if you can't. I don't think a few meaningless returns will count for much if they tighten up on this?

Anyone have experiences of selling after buying the land in this way?
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Post by Burger »

As I understand it, and someone please correct me if we've been mis-informed, you can legally set-up your company with either 49% or 39% ownership. Either way is legal under Thai law and the land office in Hua Hin is still effecting land transfers to foreign 49% ownership companies.
If it's the 49% ownership then the Central Land Office in Bangkok may look into the set-up of your company. However, we're informed that as long as you operate your company correctly ie: file and pay due taxes, then you are left alone.
If it's the 39% ownership then the Central Land Office are not interested in looking into your company.

The foreigner still has the majority voting rights whether it's a 49% or 39% company, and is therefore protected under Thai law.

The above is how numerous different lawyers (established Bangkok practices, rather than your shopping mall types) have explained the situation to us.

Burger
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39% Shares

Post by JimmyGreaves »

Interesting from thaivisa

'When my company bought my house I had a 39% holding.
Later this was changed to 49%, after the event, so to speak.'

Another far more intesting post 2005-10-27:

I have recently registered numerous transactions where companies with 49/51 splits have had land registered in their names at the Land Department. Sunbelt, PM me if you would like a copy of the land Department regulation abolishing the 40% rule. You may want to show this to provincial branches of the land Department if they have no caught up with the changes yet.

[ Edited by Moderator ]

If the above is true then it certainly puts the observer in a position of printing false or out of date information!

Mike I'm also talking about setting up a restuarant on the land and also living on it maybe, what's the problem with that? Many townhouses have shops at ground level. Or even if I split it 50/50 there are many permatations and it does not automatically mean you are trying to circumvent the law.

Maybe JW can enlighten us
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Post by buksida »

JG,
To be fair to the other guy that recently spat the dummy we no longer allow links to that forum as they have banned me and have suspended another moderator on here simply because we did the same on their forum.

A boycott of HHAD by them means we really can't link back, its only fair, hope you understand. As I said before, feel free to re-post what was on there here.
Last edited by buksida on Sat Mar 18, 2006 10:12 pm, edited 1 time in total.
Who is the happier man, he who has braved the storm of life and lived or he who has stayed securely on shore and merely existed? - Hunter S Thompson
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Post by lomuamart »

I'll go out on a limb to say that I was the other moderator who was initially banned for something stupid like 8 years.
What the mods on that forum didn't understand was that I'd changed from dial-up to ADSL. Therefore, I was not the only person in HH that was using the same IP address. After numerous PMs, I was reinstated, but it was a rash act by somone who didn't understand computers and IPs in the first place.
Buksida was put in the frame by another member on that forum posting a link to this one - with no malice on the poster's part at all. We personally know him. Naturally, Buksida is a little upset that he's been banned through no fault of his own.
Hence, NO links to that forum here please.
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Post by JimmyGreaves »

No problem guys, if I'd known about it then I would not have put the link in.

Would like to have some feedback however to what has been said regarding the so called 39% issue.

Cheers
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Post by JW »

As i am aware Burger hit it on the head. BUT, i am no lawyer and i would advise anyone to take advice themselves, if anyone wants the details of a good lawyer in Bkk send me a pm.
As far as the investment question goes, i think that a welll designed and constructed house in a good location within 8 or so km of town. (with a well established developer is the safest investment. The market is flooded in the 3.5 to 5 million market. These are struggling to sell, so look at something a little different and take a very good hard look at the quality of the house. Just my opinion btw.
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