Building a House

[Admin]

'CLARITY NEEDED' IN RULES ON FOREIGNERS
The Nation - 2 July 2012
KWANCHAI RUNGFAPAISARN

 Experts say there should be clear distinction between those for industrial use and residential purposes
 
Developers and other experts are urging the government to establish clear regulations on land ownership to lure a greater number of foreign investors amid the coming trade liberalisation under the Asean Economic Community.
 
Clayton Wade, managing director of Premier Homes Real Estate, who has been in Thailand for more than 20 years, said that with the AEC's full implementation in 2015 nearing, the government needed to act quickly on how it intends to handle foreign land and house ownership via Thai registered companies, as soon this issue would be dealt with by the Kingdom's neighbours.
 
"The government needs to differentiate between large foreign corporations seeking large pieces of land for industrial use versus foreigners simply seeking to retire in Thailand to live in a single detached house," Wade said at a seminar on the ownership of land and property projects in Thailand by foreigners, held recently by the Thai Appraisal Foundation in cooperation with the Thai Real Estate Business School.
 
Supin Mechuchep, managing director of property consulting firm Jones Lang LaSalle, said foreign investors were not significantly concerned about land ownership, but rather were interested on good returns on investment when doing business in Thailand.
 
"What we would like to see is clarity of local laws and regulations regarding land ownership for foreigners," Supin said.
 
She added that the transparency index on property trade in Thailand had been improving only slightly compared with other countries in Asean such as Vietnam and Indonesia, which have improved their processes significantly, such as for applying for property and business licences.
 
Foreigners have invested in many property and related businesses in Thailand, including the development of office buildings, shopping malls and hotels.
 
Supin said the AEC would lead to great business potential among Asean members, thanks to the huge size of the market with a combined population of more than 600 million and total gross domestic product of US$300 billion (Bt9.5 trillion).
 
The AEC will stimulate urbanisation and open up greater demand for new property projects, as well as the development of basic infrastructure such as logistics networks.
 
Compared with other markets in Asean, Thailand has advantages in the development of tourism destinations and health-related businesses, such as hospitals and beauty clinics.
 
"Regulations on foreign land ownership should not cause Thailand to lose its competitive advantage in property development to neighbouring markets," Supin said.
 
Athip Peechanon, managing director of leading real-estate developer Supalai, said the
 
authorities should not allow foreigners to own vacant land in Thailand or own any property in sensitive areas regarding national security.
 
"The government should also preserve agricultural business and property development for the Thai people because of larger financial power of foreign investors," Athip said.
 
He said the government could allow foreigners to own land in industrial estates.
 
Foreign investors should also be allowed to own hotel businesses in Thailand, which needs to promote itself as a regional tourism hub, and all tourism facilities should be upgraded.
 
"The government should allow foreigners doing business in Thailand longer property leases, from 30 years currently to 60 or 90 years, if they want to encourage foreigners businesses to use Thailand as their regional hubs," Athip said.
 
Ombudsman Sriracha Charoenpanich said the AEC would draw heavy investment capital into the country and many Thais who have economic limitations would need to sell their properties and assets to foreigners.
 
He said the government should arrange areas for optimal land use, as well as revise city zoning to be more systematic.

[Nobby]

I would like to know THE LEGAL side of ownership , from what i gather a falang CANNOT own the land but can own the building is this correct or not ?

Nearly. The land MUST be owned by a Thai individual or a Thai Company. Some legal firms can arrange for a Thai company to be established and run so that the main director can "sort off' own the Land.

As long as you can trust the paper its written on, a lease can be granted to a farang for premises but TB honest the best way to go is to get a Lawyer to draw up a Usafruct (type of Lease) and that is your safest bet.

Assuming you are legaly married, ensure the wife makes out a will leaving you the house, if you succeed her because Thai inheritance laws PLACE THE RIGHTS OF A HUSBAND AFTER THAT OF THE FAMILY DOG!

TB sure,TB sure!

[rufusredtail]

Interesting about having a will, separate issue , some of my questions have been answered, and i THANK YOU , for the advice , but can i legally own the building , house , as such ,and my wife owns the land , i understand about the land ,seems a bit of a minefield , so anyone out there , know the right answer in respects to the building .

[Various 57]

Interesting about having a will, separate issue , some of my questions have been answered, and i THANK YOU , for the advice , but can i legally own the building , house , as such ,and my wife owns the land , i understand about the land ,seems a bit of a minefield , so anyone out there , know the right answer in respects to the building .

I know I am new to this site but I have been doing lots of reading on the Internet because I was thinking of building a house here in Thailand .After reading this site 'Samui for sale' [which I found on Thaivisa] I think the best option for me is to rent.As retired man with no children you can rent a nice house for 20+ years for what it costs you to build,plus if you fall out with the wife or don't like the area you can just pack your bags and leave 

Even a Usufruct isn't as safe as you think      http://www.samuiforsale.com/family-law/usufruct-in-a-thai-marriage.html

[TBWG]

Hi

It's been said many times before but worth repeating ~~~ only spend what you are prepared to loose or walk away from!

If you have doubts about your relationship, well .........................................

As for a will I made an appointment with a BKK lawyer and his remarks were along the lines, what  do you need a will for you have b**ger all in your name, now your wife that is another matter.

In fact I have in my name a vehicle and a motor bike, bearing in mind the cost of a new car over here that is the eqivalent of a small house! Perhaps you are better off putting cash into a car and getting the house on tick?


TBWG

[Admin]

Hi

It's been said many times before but worth repeating ~~~ only spend what you are prepared to loose or walk away from!

If you have doubts about your relationship, well .........................................

As for a will I made an appointment with a BKK lawyer and his remarks were along the lines, what  do you need a will for you have b**ger all in your name, now your wife that is another matter.

In fact I have in my name a vehicle and a motor bike, bearing in mind the cost of a new car over here that is the eqivalent of a small house! Perhaps you are better off putting cash into a car and getting the house on tick?


TBWG

You can't compare a house to a car+motorbike on your name but that is your view, ok.

I think making a Will is necessary to be on the safe side, you never know the future and property value only go up (car value decrease).

[Nobby]

Interesting about having a will, separate issue ,

For the reasons quoted by TMWG. that is why a will for the land owner is NOT a seperate issue.

Consider this.....

You build and pay for a house 100% on land owned by another. That person dies and despite all your financial involvement, if any member of the land owners family want you out of 'your' home, YOU MUST GO! becaue they now own the land and building.

TB honest, I agree with the renting idea too! after all, we are all but visitors here, whether we like it or not.

[Various 57]

TB honest, I agree with the renting idea too! after all, we are all but visitors here, whether we like it or not.

I think for someone here to retire with a new wife or Girlfriend then renting is the way to go [ unless as TBWG has said " You only spend what you are prepared to loose or walk away from" ]. For the younger guys  with  Thai Children then building or buying is an option, after-all we all want the best for our Children 

Then there is always the Condo option ,rent in Isaan and have a bolt hole in Pattaya 

[TBWG]

Hi

It's been said many times before but worth repeating ~~~ only spend what you are prepared to loose or walk away from!

If you have doubts about your relationship, well .........................................

As for a will I made an appointment with a BKK lawyer and his remarks were along the lines, what  do you need a will for you have b**ger all in your name, now your wife that is another matter.

In fact I have in my name a vehicle and a motor bike, bearing in mind the cost of a new car over here that is the eqivalent of a small house! Perhaps you are better off putting cash into a car and getting the house on tick?


TBWG

You can't compare a house to a car+motorbike on your name but that is your view, ok.

I think making a Will is necessary to be on the safe side, you never know the future and property value only go up (car value decrease).

I agree entirely money is better off in property than in cars or motorcycles.

However, this is Thailand and say property prices increase which in my experience they have done over the last 10 years and I expect them to continue to do so for the immediate future.  But for a farang 150% of nothing is still nothing.

Whereas well looked after farang owned vehicles hold there value much more so than in Europe or the rest of the world, so 60-70% of purchase price is better than a kick in the butt!

As previously mentioned for wills it is very important to establish what happens to your right to tenure should your partner die first.  Once again this is Thailand and all depends on family, no matter what is in writing if they want you out they can make life pretty unbearable.

So I repeat ~~~~  only spend what you are prepared to loose.

 
TBWG

[Alan]

There is a solution here TBWG. Buy a motorhome!!!!!!!!!!!!!!!!

As for the guys who want to own a house on anothers persons land and worry about future ownership I would suggest you build a house that can be moved or sold. Thai  traditional houses can and do get moved or sold. With many modern type building methods now available a house no longer needs to be a permanant part of the land its occupying.   Technically all you would loose is the footings and services cost.
It would be interesting to know how some Thai partners and their families would react to the farang knowing that the house is only as permanant as the relationship!

[John the Traveller]

Good point Alan.
I have seriously thought about a traditional Thai home for not only its aesthetics but its portability.
As one day I would like to live in Satuk (TBWG country) I have also considered a house boat. Farang can own a boat 100% 
I still have a few years to ponder the problem.
Cheers,
JT

[rufusredtail]

Hi

It's been said many times before but worth repeating ~~~ only spend what you are prepared to loose or walk away from!

If you have doubts about your relationship, well .........................................

As for a will I made an appointment with a BKK lawyer and his remarks were along the lines, what  do you need a will for you have b**ger all in your name, now your wife that is another matter.

In fact I have in my name a vehicle and a motor bike, bearing in mind the cost of a new car over here that is the eqivalent of a small house! Perhaps you are better off putting cash into a car and getting the house on tick?


TBWG

You can't compare a house to a car+motorbike on your name but that is your view, ok.

I think making a Will is necessary to be on the safe side, you never know the future and property value only go up (car value decrease).

I did do that and you are right it cost me $26000.00 dollars for an imax but has been a good investment, dont have to get mini buses to buriram anymore

[Nobby]

Good point Alan.
I have seriously thought about a traditional Thai home for not only its aesthetics but its portability.
As one day I would like to live in Satuk (TBWG country) I have also considered a house boat. Farang can own a boat 100% 
I still have a few years to ponder the problem.
Cheers,
JT

I know what you mean. if I lived near him, I'd want to move too! 

Seriously though, I once viewed a property not on Thai land but over Thai water. It was on a jetty and very nice too. The farang owner (French, I think) also showed me his Tabien Baan (house book) IN HIS NAME.   

So JT you could always get a houseboat and float further down Moon River when David goes a bit crazy! 

[rufusredtail]

Well its been an eduacation, a few questions , are plaster sheets availiable , i have seen mant cement block , then coated with cement mix , but inside the house many are bare cement block walls , no ceiling , only rafters then corrigated iron straight on top , also walls here are 90x 35 pine , is that available there , bec i have heard that wood is delievered at night , restrictions on it , any help appreciated.

[TBWG]

A big vote of thanks to all the posters and I agree I would not like to live next to me!!!

As to the house book (Tabien Bahn) it all depends on the colour of the book, I have a yellow house book in my name, but all this does is note I live in the said property, it does not afford me any ownership rights.

With regard to building a property I think it is a mistake to try and impose western building methods on the Thai climate.  Thai ways of building have evolved over the centuries for a good reason as have the western building methods and all are driven by the climate.

To answer a few of RRTs questions. Yes, gyproc plaster board is readily available from most builders merchants. Not sure if pine is available over here because I think the termites would have eaten it before the supplier could deliver it. Hardwood is plentiful over here and readily available for delivery in daylight hours at a reasonable price compared with Europe.

So Thais build the way they do for a good reason and any deliveries of wood in the nightime is iffy and will get you in trouble with the Boys in Brown.

Good Luck

TBWG