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WhatsNext

House lease via project company or girlfriend

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Posted (edited)

I have read up a lot before asking these questions, as there are still some big doubts in my mind :

 

There are a few projects in Hua Hin that (Falcon, Phu Thara, Aria and more) that sell houses via a lease contract of 30 years. The land is transferred to a Thai holding company and you lease from that company. The chanote will get the lease on the back and all is set. In an addendum the lease contract gives the option to extend after 30 years, to sell whenever you want to a Thai with transfer of the chanote or to a foreigner with a new 30 year lease. You can also renew the lease early if you like.

 

These addendums however is what i worry about, does anyone have any past experience with this sort of setup or is it too new to have any experience with ?

I worry about the holding company coming into new hands after a while and all the promises disappearing and you can't sell anymore just sit out the lease and lose the lot after the 30 years or even before if you pass away.

 

The second possibility is to trust my girlfriend with the chanote and lease/usefruct via her. The company option seems more safe. I know renting is more safe by far but the rents of the houses here are around 40.000 and to buy is only 6.5 to 7MB

Thanks for any ideas / thoughts 

 

Edit : some clarification ; The thai holding company is owned by the project, also 100% Thai and fully legal. 

 

  

Edited by WhatsNext

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Personally, I would rent. If you really insist on buying, I would trust a properly structured company, before I would trust a Thai girl.

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32 minutes ago, WhatsNext said:

The second possibility is to trust my girlfriend with the chanote and lease/usefruct via her.

Or have her get a mortgage which you pay the repayments...then she has an incentive to be nice and if you do break up you just walk away..then go rent somewhere else.

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No way of owning land in Thailand...all these weird and wonderful exotic get me rounds are geared towards the Thais, you own and have control of sweet FA...rent that's it...or buy a nice condo in your name.

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All these constructs are risky and a Thai GF has showed to be the most dangerous one, if she is not from a wealthy family. As owner of a Thai residence permit you may obtain a special permit to buy up to 1 rai. Best option is get Thai natinality as I did.

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4 hours ago, male expat said:

Best option is get Thai natinality as I did.

Yes that would be nice but takes about 14 years and requires work and taxes which I don't participate in..

 

The project companies seem safe but yes I agree with the posters here, there is no real guarantee apart from the first 30 years. My biggest worry is not being able to sell when I want to if there is anything fishy with the management of the Thai project company. All will be well the first say 5 years, but what after 10 or 15

 

7mb over 30 years is fine, but being forced to rent out and not get your money back (partly) with a sale is what made me ask here

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14 hours ago, WhatsNext said:

I know renting is more safe by far but the rents of the houses here are around 40.000 and to buy is only 6.5 to 7MB

 

Rent for 40K, and put the other 6.46-6.96M into interest bearing securities.  Then quit worrying about all the things you need to worry about related to Thai real estate.  Like that boom-box bar that will be opening up next door, the dodgy management company that screws you, the 14 Chinese neighbors who rent out their villas to buses full of partiers, the GF that's only in it until she can get the house away from you, etc.

 

Then, in 5 or 10 years when you get the lay of the land, you can make a better decision.

 

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There is no way that 6.5m house rents for 40,000 a month. 

 

No way even before covid. 

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Posted (edited)
1 hour ago, Pravda said:

There is no way that 6.5m house rents for 40,000 a month. 

Well i live in a 8 million house at the moment for 40.000 a month, this includes internet, pool maintenance, garden maintenance and project costs. The rent without those costs is around 33.000. This is on the low side of things in Hua Hin for a pool villa. The 6.5 is the same house, without furniture and a little less land. 

 

If you live in Pattaya i understand your remark, the situation there is different but there are no new pools villas for that price to be found. 

 

Quote

6.46-6.96M into interest bearing securities

Yeah i would like that, sadly the interest in the major currencies is zero or below zero as its in my case with the Euro. One of the reasons i wanted to buy a house, as the money in the bank is dead capital.

Edited by WhatsNext

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I think it is better to rent. We understand full well - purchase of a real property 🏡 is an important decision. 🙄

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On 8/10/2020 at 5:16 PM, WhatsNext said:

In an addendum the lease contract gives the option to extend after 30 years, to sell whenever you want to a Thai with transfer of the chanote or to a foreigner with a new 30 year lease. You can also renew the lease early if you like.

It is not 100% enforceable by Thai law.

 

You better to buy land on Thai company name, it would be more safe but also have to be careful because if you use this company only for own the land it could bring up the questions. 

 

 

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Thanks for the answers so far, i know its not a smart idea. The situation in Hua Hin makes the lease look normal as so many foreigners have done that already or are doing it. The Covid crisis makes the houses cheaper, the baht is down a bit to the Euro and it all seems like a great plan for some weird reason till you find that you need the signature of the thai project company if you ever want to sell again...

 

Lease property should be 50% of the own price, but sadly its the same.

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15 hours ago, WhatsNext said:

Well i live in a 8 million house at the moment for 40.000 a month, this includes internet, pool maintenance, garden maintenance and project costs. The rent without those costs is around 33.000. This is on the low side of things in Hua Hin for a pool villa. The 6.5 is the same house, without furniture and a little less land. 

 

If you live in Pattaya i understand your remark, the situation there is different but there are no new pools villas for that price to be found. 

 

Yeah i would like that, sadly the interest in the major currencies is zero or below zero as its in my case with the Euro. One of the reasons i wanted to buy a house, as the money in the bank is dead capital.

Project cost is a part of your rent? What a laugh.

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If you put it in your girlfriend's name you might as well give her 6.5m baht. A company is expensive to run and you only own 49% of the company. However up to 49% of condos in a block can be legally owned by a foreigner. 6.5m at the moment will buy a decent condo at auction from distressed property auctions. Technically nominee shareholders are breaking the law and so are you by allowing nominees in your company. 

 

Take a lawyers advice but I suggest that if you put it in a Thai name you take a Usurfract to live in the house and a mortgage on the land so the land can't be sold without paying you off first.

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