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It is a good time to buy property in Thailand. Banks are lending and houses are and land are now realistically priced in 2006.A good time to buy.
LAND AREAS: 1 rai = 4 ngarn = 400 wah2 = 1600 m2; 1 talang wah = wah2 = 4 m2; 1 acre = 2.53 rai & 1 ha = 6.25 rai
NEW LEASE LAWS IN THAILAND:
The government is looking into changing the leasing laws to increase foreign investment. This may mean leasing land held in Trust by the Land Dept guaranteeing the foreigner right to tenancy. Leases would be 99 year. The occupant would be able to sell the lease to another foreigner before it expired but if sold to a Thai then they would get the title as the Land Dept would give the title back to the original owners before the transaction proceeded. Whether this is a good idea is yet to be seen. Current requirements allow foreigners who bring in 40m baht to buy 1 Rai of land for residential purposes. They can lease 100 Rai for approx 50 years. Longer lease requires permission from the Land Dept.
Foreign businesses can feel relaxed now as the Act Governing the Lease of Immovable Property for Commercial & Industrial Purposes has increased from 30-50 years & allowed lease rights to be mortgaged as security. For investors this means: a longer lease can accommodate long term business planning & the right to mortgage the lease as security in order to receive finance. Financial institutions can benefit because they can take a lease right as security.
Regulations: 50 yrs now. Only applies to immovable property for commercial & industrial reasons. Only the owner can lease it. Lease must be in writing & registered.
The Government Gazette Aug 2000: says the business must have one of the following.
1/. Commercial business with at least 20m baht in investment
2/. Industrial businesses qualify for promotion under the Investment Promotion Act.
3/.Other commercial or industrial businesses beneficial to the economy. property leased must be located in industrial are as set out in the City Planning Act or the Industrial Estate Authority of Thailand. Land Dept must approve leases over 100 rai. Foreign leases must comply as well with the Foreign Business Act. Leases can be renewed after 50 years for another 50 years. If the lessee dies the inheritor can take over. The lessee can sub lease or transfer lease rights, either wholly or in part, to a third party.
MORTGAGE OF LEASE RIGHT:
Since a lease right can be mortgaged, if the debtor defaults on payments the lease may be seized & sold at a public auction. Mortgagee may claim: 1/. The debtor has failed to pay interest for 5 years; 2/. Mortgagor hasn't satisfied the court that the value of the property is greater than the amount due & 3/. There's no other registered mortgages or preferential rights on the same property.
TO LEASE A HOUSE & TO LEASE LAND
We firstly check the title Deed & check any liens on the said property. Then we take the lease to the Amphur together with the nor sor sam or Kanut and have it registered. It is then stamped & the land cannot then be sold unless the lease is cancelled. A lease without doing this is useless. The first lease should be done properly by a reliable lawyer. (We charge 10,000 baht ). Our lawyer takes the title deed to the Amphur and gets it legalized. The wife or owner should then sign another 30 year lease dated from the end of the first one. Most wives would agree to these procedures by explaining to them that if they died, they would not want their husbands thrown out! At the end of the thirty year lease, all you have to do is get a lawyer to take it to the Amphur again. It is really simple. A virtual 60 year lease should cover most peoples lifetime and the wife can leave the property in her will to the children and if you die the lease could be terminated and the property go to your children. You can also sell a lease.
DOING IT YOURSELF: You can register a 30 years lease at the land department yourself and amend it but most times you may be better to use a lawyer as the lease will be in Thai. If you cannot read Thai then you do not know what you are signing. Your name will appear in the title and no one can cancel your lease.
LEASING AS AGAINST USING A COMPANY:
It depends on ones circumstances whether you should lease rather than form a Thai company to secure ownership. In some cases when married to a Thai, leasing is the better option or for pensioners or when in a relationship but if one decides they may start a business later or during, then a Company may be the way to go. Remember you can only own 49% land in Thailand regardless. A US Amity Treaty company gives no more clout---its 49% foreign ownership. But also remember if you start a company you must use the company for business not just as a convenience to own the property. Taxes will be levied and you will need audited yearly accounts. Condos are the only allowance for 100% ownership. If you are using someone's company then that is fine as normally you will have contracts to assist both parties. Charges would be: pay all taxes per year; maintenance payment; pay tax on profits if sold; yearly audit contribution so expect to pay the company for this service; in & out fees and payments.
LEASING VIA A LOAN TO YOUR COMPANY:
This is an excellent way to lease if you have a company. An owner takes a lease out on a particular piece of land he wants to own with his own money? he loans his company money to buy the land and the lease in effect is owned by the company via the buyer. This then becomes an asset of the company and can be depreciated from his or her share registration & paid back at the buyer's pleasure. You must have audited books to access a loan from a Bank.
WHAT WE ARRANGE:
Our company can setup your company using our Thai lawyer or formulate leases, agreements etc that suit your situation. If wanting to purchase or lease land do not sign any forms until you talk to us, but please obtain a Title Deed and have it searched. We initiate an investigation of your Title Deed for you and we give you a full Court/lien & ownership report for your situation, in English.
. If you want a company or work permit we give you a step by step English translation guide on all the steps we take for you, ensuring full confidence in our services. There are no hidden costs. Remember you do not need a work permit if you are not going to work or are only coming to Thailand to retire in your house otherwise you need a 2 million baht company min. Total costs for this is 35,000 baht including VAT for a standard 2m baht company. However you will need an "O" non immigrant visa or "B" non immigrant visa if working in Thailand which you can obtain after your company is formed. After one year in business we can then assist you to obtain a 1 year visa in Thailand.
We arrange a 30 year lease & assist with renewal and prenuptial agreements to cover you while you are alive. This is sometimes preferable then buying a house and condo using a company. Again we arrange with our Thai lawyer all the work for you.
WHY USE OUR SERVICES:
If you have a property to rent, sell or lease in Thailand then WRITE TO US as we can advertise for you in our hardcopy news in Pattaya & Chiangmai .[ THAI LAW HELP SERVICE ]: We have many more properties. Just ask us. Let us broker your business or property. If we don't sell we don't charge you. Selling or wanting to Buy a Guest House, Restaurant, Business, Bar or Office then just ask us. We do not charge you to find your business. We even guide you to the best deal & help you form a company, partnership, year visa, agreements, leases, accounting services, taxation etc right to offering you FREE hardcopy promotions if you use our services. We offer what no other Thai company can do: FREE hardcopy advertising promotions.
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