Foreigners can no longer buy houses in Thailand via company.

[JW]

Hi Burger,

I heard the same, after the holiday the land office are supposed to get clarification of what is deemed to be "real estate business".
Got everything crossed myself!

[tuktukmike]

So what happened at the meetings that we were told were due to take place last month?.

It would seem that there is always yet another meeting and of course more clarification.

I think it is easy to own land, pay yer 40mil and be happy.

Mike.

[JW]

Hi Burger,

Heard the same, apparently te land office will get clarification on transfers that are deemed to "real estate business".
Sooner the better for all concerned.
There was a note in the Observer magazine that people with existing companies have nothing to worry about (new issue).

[Burger]

Regarding meetings, what may come out shortly is obviously the result of these meetings/discussions/clarification with central government etc. Something as complicated and important as this was never going to get resolved overnight.

I heard the same, after the holiday the land office are supposed to get clarification of what is deemed to be "real estate business

Regarding this JW, I understand the Land Office have clarification of what is deemed 'real estate business' and now just have to implement that and seperate them from the average couple buying their retirement/holiday home.

The government did make it quite clear in their 15th May statement that they were targetting property developers.

Burger

[2dandan]

Just to throw this into the mix.

What would happen if the "average couple buying their retirement/holiday home" just happened to be buying their house from one of the so called "real estate business/property developers" being targetted.

Many developments in Hua Hin are partially completed and the above scenario could turn out to be a nightmare for all concerned, particularly if the crackdown originated in Hua Hin as reported elsewhere.

There must be some developers in Hua Hin who fall into the targetted bracket, so lets hope that this sorts itself out with as few casualties as possible and everyone can go back to enjoying a fantastic town.

[caller]

The last few posts are interesting as they echo what someone on the ground (seemingly) in HH has been saying on the forum that shall not be named.

Namely, that from 12 July, one farang per Co. will be allowed? Who knows - but I hope so!

Yes, yes, I know thats no different to what happens now, but I get the impression this is to do with private sales, maybe not the same for developers?

But as a way of reverting to the status quo without losing face, it has a lot of merit!

It will certainly send an indiciation to this farang that I can proceed with my plans.

[red dwarf]

just to remind you of the plan from the guy who is about to vacate office


The Thai prime minister hopes that eventually 200,000 wealthy visitors will each pay $25,000 to join the 'Thailand Elite' club.
By Simon Montlake | Correspondent of The Christian Science Monitor
BANGKOK, THAILAND – Long a haven for scruffy backpackers seeking a beach paradise on the cheap, Thailand is shifting its focus to a more rarefied breed: luxury tourists.

The Thai government's sales pitch is simple. Pay $25,000 now for a lifetime of fawning service and members-only privileges. It's an offer that promoters say has lured more than 100 takers since its launch last month, mostly jet-setting executives based in Asia, along with some Americans, Europeans, and Australians.

http://csmonitor.com/2003/1230/p10s01-woap.html


and
BBC
http://news.bbc.co.uk/2/hi/asia-pacific/3280755.stm

judge for your selves
Circa 2003

[Burger]

What would happen if the "average couple buying their retirement/holiday home" just happened to be buying their house from one of the so called "real estate business/property developers" being targetted.

Dan, this situation has been about new registering of land, there has been no restriction at all lately about a foreign controlled company selling their land.
So basically the foreign controlled developers can sell their existing plots but will experience restriction when they try to register their next large land area.
Should the government start investigating these existing foreign controlled developers for other reasons (ie: not at the land office), then that may affect the situation you describe.

Burger

[JW]

Just saw this on a website -
Between June 15 and July 6 this year, there was great concern among foreign property owners and buyers because the Ministry of the Interior had rendered Land Offices unable to transfer land to companies with foreign shareholders by demanding company paperwork which was virtually impossible to produce. This move had been made, it was said, to curtail suspected money laundering activities involving land on Koh Samui. However, at a meeting in Prachuabkhirikhan, the capital of the province in which Hua Hin resides, on July 6, the situation was resolved - at least for Hua Hin and this province - with the introduction of the following new rules:

It is now such that one foreigner may have one company only, and that company can own no more than one rai (1,600m²) of land and only one house can be reigistered on that land.

This means that, for the buyers of single homes, the scenario has not changed at all (see Option #2 below). Foreign property developers, however, are hard hit by this move since they are now not permitted to buy enough land. In Hua Hin there are a handful of foreign property developers conducting their affairs entirely legally with correctly registered companies and work permits - it is these who will now suffer. There are many more foreigners in Hua Hin developing property with no legal status at all - they do everything in the names of their wives or girlfriends, and this practise will undoubtedly continue unhindered.

[karenjuice]

Just saw this on a website -
Between June 15 and July 6 this year, there was great concern among foreign property owners and buyers because the Ministry of the Interior had rendered Land Offices unable to transfer land to companies with foreign shareholders by demanding company paperwork which was virtually impossible to produce. This move had been made, it was said, to curtail suspected money laundering activities involving land on Koh Samui. However, at a meeting in Prachuabkhirikhan, the capital of the province in which Hua Hin resides, on July 6, the situation was resolved - at least for Hua Hin and this province - with the introduction of the following new rules:

It is now such that one foreigner may have one company only, and that company can own no more than one rai (1,600m²) of land and only one house can be reigistered on that land.

This means that, for the buyers of single homes, the scenario has not changed at all (see Option #2 below). Foreign property developers, however, are hard hit by this move since they are now not permitted to buy enough land. In Hua Hin there are a handful of foreign property developers conducting their affairs entirely legally with correctly registered companies and work permits - it is these who will now suffer. There are many more foreigners in Hua Hin developing property with no legal status at all - they do everything in the names of their wives or girlfriends, and this practise will undoubtedly continue unhindered.

Where did you see this information as if its true we want to continue with our purchase. Is there anything in writing.

[malcolminthemiddle]

What would happen if the "average couple buying their retirement/holiday home" just happened to be buying their house from one of the so called "real estate business/property developers" being targetted.

Dan, this situation has been about new registering of land, there has been no restriction at all lately about a foreign controlled company selling their land.So basically the foreign controlled developers can sell their existing plots but will experience restriction when they try to register their next large land area.
Should the government start investigating these existing foreign controlled developers for other reasons (ie: not at the land office), then that may affect the situation you describe.

Burger

Unless of course the buyer is another "foreign controlled company".

[caller]

I think MIM's reply has been dealt with above.

A bigger concern to me is JW's post about developers. If, in effect, this is the end of the road for foriegn developers, as this suggests:

"Foreign property developers, however, are hard hit by this move since they are now not permitted to buy enough land. In Hua Hin there are a handful of foreign property developers conducting their affairs entirely legally with correctly registered companies and work permits - it is these who will now suffer".

Whats to stop them just cutting and running?

Whats the guarentee that current develoments will be completed, especially, as on another thread on this forum, they have already bought other plots of land to develop - therefore need turnaround to keep the money rolling in to presumably meet their outgoings?

Or have I got this wrong?

[Burger]

Unless of course the buyer is another "foreign controlled company".

Exactly Malcolm, that's what has been discussed here over the last 11 pages!!

Burger

[Jaime]

Funny how it goes. Over the last couple of years I've had plenty of people saying to me "Jaime, you're an architect, why don't you get involved in the property and construction business in Hua Hin - they really need decent architects and you'd be coining it in!?"

Now, instead of loftily explaining that I could not work in an environment infected with amoral, unprofessional chancers, plagiarists and charlatans with no interest in anything other than making a quickfire profit I need only point them in the direction of this thread and its most recent development as posted by JW.

[caller]

Going back to JW's post - who is the author? As it reads, the legit companies have no-where to go, but no-one is to crack down on the illegals? Which makes little sense if true? So I guess it has to be a "legit" developer?