Investment property in Hua Hin : Condo or House ?
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JimmyGreaves
- Legend
- Posts: 2913
- Joined: Mon Oct 17, 2005 5:06 am
- Location: HuaEireHin
Reputable lawyer in Bangkok
Dear JW,
I would be very grateful if you could recommend a reputable lawyer in Bankok. I am considering purchasing a property in Hua Hin, and, following the discussion in the forum, am becoming more confused by the week ! While I am at it, could anyone advise me re the situation if a farang who buys property in Hua Hin, and later decides to sell it .I am thinking of buying a condo, but later on might move there myself & sell the condo to buy a house.I assume tax is payable , but have no idea at what rate ?Finally, if I decided that it wasn't the retirement destination of my dreams, how easy would it be to take the money from the sale of the property out of Thailand ?
What seemed like a simple idea is obviously a lot more complicated. However, there are a few of you guys who have managed to do it, so I will give it a go......
Thanks,
Clayre
I would be very grateful if you could recommend a reputable lawyer in Bankok. I am considering purchasing a property in Hua Hin, and, following the discussion in the forum, am becoming more confused by the week ! While I am at it, could anyone advise me re the situation if a farang who buys property in Hua Hin, and later decides to sell it .I am thinking of buying a condo, but later on might move there myself & sell the condo to buy a house.I assume tax is payable , but have no idea at what rate ?Finally, if I decided that it wasn't the retirement destination of my dreams, how easy would it be to take the money from the sale of the property out of Thailand ?
What seemed like a simple idea is obviously a lot more complicated. However, there are a few of you guys who have managed to do it, so I will give it a go......
Thanks,
Clayre
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malcolminthemiddle
- Guru
- Posts: 591
- Joined: Sat Mar 05, 2005 1:56 pm
- Location: Here,there and everywhere
I wonder just how many new companies over the past couple of years have been established by foreigners for the purpose of buying land within the Hua Hin municipality, must be in the 100s?
If there was ever an opportunity for the authorities to revisit the land ownership laws including the 49/39% rule and tax revenues from such companies, this is it.
But they will probably wait under the boom is over in order to suck as many in as possible.
PS My understanding is that all Land Registry Departments country wide had been obliged to report any company buying land with a foreign share holding of more than 39% to head office in BKK. For this reason lawyers often advise the initial foreign share holding at company registration is limited to 39% and increased to the maximum 49% after the land transfer has been completed.
Whether this remains the case is open to confirmation.
If there was ever an opportunity for the authorities to revisit the land ownership laws including the 49/39% rule and tax revenues from such companies, this is it.
But they will probably wait under the boom is over in order to suck as many in as possible.
PS My understanding is that all Land Registry Departments country wide had been obliged to report any company buying land with a foreign share holding of more than 39% to head office in BKK. For this reason lawyers often advise the initial foreign share holding at company registration is limited to 39% and increased to the maximum 49% after the land transfer has been completed.
Whether this remains the case is open to confirmation.
Just read this on the tinternet -
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
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
You asked for a guru?aggy wrote:While I agree that condo/sea view is a safe bet, I have wondered why the expensive villas took off in phuket but not here, even though the hotel prices here are even more expensive. Is it lacking good supply of great houses or demand of rich people? Any guru?
My guess, and that is all it is, is that if the development on which we have bought is anything to go by there is a high proportion of Thai (Bangkokian & Thai ex-pat) investors in the Hua Hin holiday/weekend home market who simply want a small getaway near the beach and not too far from Bangkok. From what I can gather, the Phuket investment market is aimed squarely at foreign investors.
Thank you guru.
I agree but continue to find contradictions about the prices. Perhaps because of marketing hype. In my last trip to Phuket I looked at various properties and conclusions were villas very expensive, condo ok, land cheap (even beach front or water edge).
In Hua Hin houses are cheap (relatively), condo ok, beach land hugely expensive.
Does anyone know any beachfront (or very near with great seaviews) house/villa development in HH?
I agree but continue to find contradictions about the prices. Perhaps because of marketing hype. In my last trip to Phuket I looked at various properties and conclusions were villas very expensive, condo ok, land cheap (even beach front or water edge).
In Hua Hin houses are cheap (relatively), condo ok, beach land hugely expensive.
Does anyone know any beachfront (or very near with great seaviews) house/villa development in HH?
A few weeks ago I read an article in the property section of one of the Sunday papers in the UK where a guy was talking about his 2-bed property investment in an unpmarket sea front apartment block in Phuket that had set him back 249,000 sterling.
He saw it as a sound investment, I saw it as a different world.
He saw it as a sound investment, I saw it as a different world.
Talk is cheap
Its their country to do with as they please
The fact is guys that we foreigners are distorting the whole property market. We have considerably more money that the average Thai and are making it impossible for them to buy in their own resort. As guests in their land we have to accept their terms and even on that basis where better would you like to live?
As a Thai (though not sure if I am representative), we love having the melting culture pot. And if it pushes up the price of the area a little bit, there are still many other nice areas for us to consider. Local people who sell out often takes the capital and build their small businesses for a good cause. People will complaint if it turns away people like Pattaya or the basic cost of living gets so high like Phuket. We have a good situation in Hua Hin. Pls enjoy!
condos
I feel fears about condos will prove groundless and somewhat up in the air, what the storey will be in future I do not know. Buying a condo might give a lift to your property portfolio but remember, that can then go up or down.