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Crackdown on Phuket condo owners confirmed


webfact

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This is another nail in the coffin of the Thai property market. Most people who buy condos in Phuket buy for investment purposes if you are not allowed to rent them out why would you buy. Lets face it 90 percent of condo owners are farang so its just another slap on the face for farangs.

You can still rent out a condo monthly, just not daily.

Given that farang cannot own more than 49% of any condo block, Not sure were the 90% comes from.

you are correct about the 49 51% rule however in Phuket they have circumvented this by the 51 % being bought in a thai company name or leased instead of freehold when I say 90% farang owned I am refering to Phuket only some maybe in girlfriends name etc but in the end its farang money that purchased the property.

Its not only phuket, thai company or girlfriend ownership is all over thailand. In Phuket its mainly Russians isnt it ?

No matter the ownership, All condos "can" be rented out monthly, and the rental return is often very good, 5%-10% return on purchase price.

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Been going on for years. Wonder why the crackdown now?

Many wrongs have been going on for years and even decades that past elected governments did not fix.

But this government has started fixing issues since two years ago.

Fixing issues that are more in their and other hiso's interests you mean?

No it's very much in the interests of condo owning farangs not to have their homes used as a cheap rate hotel.

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This is another nail in the coffin of the Thai property market. Most people who buy condos in Phuket buy for investment purposes if you are not allowed to rent them out why would you buy. Lets face it 90 percent of condo owners are farang so its just another slap on the face for farangs.

You can still rent out a condo monthly, just not daily.

Given that farang cannot own more than 49% of any condo block, Not sure were the 90% comes from.

you are correct about the 49 51% rule however in Phuket they have circumvented this by the 51 % being bought in a thai company name or leased instead of freehold when I say 90% farang owned I am refering to Phuket only some maybe in girlfriends name etc but in the end its farang money that purchased the property.

Its not only phuket, thai company or girlfriend ownership is all over thailand. In Phuket its mainly Russians isnt it ?

No matter the ownership, All condos "can" be rented out monthly, and the rental return is often very good, 5%-10% return on purchase price.

I suppose you could rent the property out for a month even if the customer only stays there for 2 weeks I suppose the contract is important not the price
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I had this idea of renting a few condos in Bangkok on AirBnB.

I went to see a few nice condos and before I entered to inquire about the price there was a notice from the management at the front door warning potential AirBnB "guests" that this is a condo and not a hotel and by Thai law guests and owners could be fined, arrested and prosecuted by entering the premises illegally.

Yes, a bit harsh, but then again if I bought myself a condo to live in, I wouldn't want different bums making noise and using the facilities I paid for.

So, bring on the crackdown.

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This is another nail in the coffin of the Thai property market. Most people who buy condos in Phuket buy for investment purposes if you are not allowed to rent them out why would you buy. Lets face it 90 percent of condo owners are farang so its just another slap on the face for farangs.

Seeing as a condo building can only be 49% owned by foreigners, your 90% claim sounds like a bit of an exaggeration.

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This is another nail in the coffin of the Thai property market. Most people who buy condos in Phuket buy for investment purposes if you are not allowed to rent them out why would you buy. Lets face it 90 percent of condo owners are farang so its just another slap on the face for farangs.

I believe the foreign quota is 49%. Are you suggesting further crackdowns?

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This is the smile of " now we're going to screw you well and proper farangs " on this man's face.....

Owning a property in LOS is like owning a music CD.....You paid for it but it's technically not yours to use as you wish!

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I had this idea of renting a few condos in Bangkok on AirBnB.

I went to see a few nice condos and before I entered to inquire about the price there was a notice from the management at the front door warning potential AirBnB "guests" that this is a condo and not a hotel and by Thai law guests and owners could be fined, arrested and prosecuted by entering the premises illegally.

Yes, a bit harsh, but then again if I bought myself a condo to live in, I wouldn't want different bums making noise and using the facilities I paid for.

So, bring on the crackdown.

I have heard stories of the police going door to door in Bangkok condos checking if the people are renting and how long for etc great if you are on holiday and get arrested or fined
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This is another nail in the coffin of the Thai property market. Most people who buy condos in Phuket buy for investment purposes if you are not allowed to rent them out why would you buy. Lets face it 90 percent of condo owners are farang so its just another slap on the face for farangs.

agree with you there. renting out property is one of the few ways of making an income in thailand. i bought 2 houses and chopped them into apartments to rent out short term. what a head ache. then tried monthly rental, slightly better but still not worth the small returns. sold up in the end and now only buy property back in nz. management company does the work for me and i get my rents out of my atm card here in thailand. not sure if this crack down will really make much difference here however as it will most probably be short lived.

What you mention, is exactly what they are trying to stop. Dividing a house into rooms and doing short term rentals.

A 1m baht condo can be rented for 10k a month. thats well over a 10% return.

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Been going on for years. Wonder why the crackdown now?

Many wrongs have been going on for years and even decades that past elected governments did not fix.

But this government has started fixing issues since two years ago.

This is not a government. Its a military junta. This country is still under military rule.

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This is another nail in the coffin of the Thai property market. Most people who buy condos in Phuket buy for investment purposes if you are not allowed to rent them out why would you buy. Lets face it 90 percent of condo owners are farang so its just another slap on the face for farangs.

You can still rent out a condo monthly, just not daily.

Given that farang cannot own more than 49% of any condo block, Not sure were the 90% comes from.

you are correct about the 49 51% rule however in Phuket they have circumvented this by the 51 % being bought in a thai company name or leased instead of freehold when I say 90% farang owned I am refering to Phuket only some maybe in girlfriends name etc but in the end its farang money that purchased the property.

Its not only phuket, thai company or girlfriend ownership is all over thailand. In Phuket its mainly Russians isnt it ?

No matter the ownership, All condos "can" be rented out monthly, and the rental return is often very good, 5%-10% return on purchase price.

that is if you can rent it out. Have a friend who has a house and condo which he rents out, both vacant for months now.
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So, bring on the crackdown.

I have heard stories of the police going door to door in Bangkok condos checking if the people are renting and how long for etc great if you are on holiday and get arrested or fined

I'm not saying it hasn't happened. It may even be real police, and not some fake scamsters.

But without a link to a published story, I believe about 25% of the stories I hear making the rounds in Thailand. And I don't claim to know which 25%...

Still, I'd be reluctant to believe the popo are arresting and fining the guests themselves. Unless they're doing something else to draw scrutiny, like brewing up meth, printing up credit cards, or experimenting with explosives. Plenty of those stories can be searched up.

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This is another nail in the coffin of the Thai property market. Most people who buy condos in Phuket buy for investment purposes if you are not allowed to rent them out why would you buy. Lets face it 90 percent of condo owners are farang so its just another slap on the face for farangs.

You can still rent out a condo monthly, just not daily.

Given that farang cannot own more than 49% of any condo block, Not sure were the 90% comes from.

you are correct about the 49 51% rule however in Phuket they have circumvented this by the 51 % being bought in a thai company name or leased instead of freehold when I say 90% farang owned I am refering to Phuket only some maybe in girlfriends name etc but in the end its farang money that purchased the property.

Its not only phuket, thai company or girlfriend ownership is all over thailand. In Phuket its mainly Russians isnt it ?

No matter the ownership, All condos "can" be rented out monthly, and the rental return is often very good, 5%-10% return on purchase price.

that is if you can rent it out. Have a friend who has a house and condo which he rents out, both vacant for months now.
your correct this enforcement leaves an already shallow market dry.
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This is another nail in the coffin of the Thai property market. Most people who buy condos in Phuket buy for investment purposes if you are not allowed to rent them out why would you buy. Lets face it 90 percent of condo owners are farang so its just another slap on the face for farangs.

My understanding was that it does not stop you renting it only means you need to be properly licensed. That means the renters will need to actually pay taxes and follow safety regulations.

Happy days! But that is a multi barbed hook in Thailand if one looks at another official procedure. Firstly, the second you raise your hand to do the right thing and register will be the day you are investigated and your application rejected for any number of reasons (invented if need be) placing you squarely in their cross hairs and now sitting with a property that is neither saleable (virtually nothing is in Phuket) and now not able to generate any form of income from the dead weight hanging around your shoulders. If they clarified for people what was needed and made the process fair open and completely transparent I am sure many many owners would be more than happy to comply. However as many have already guessed, this is not about that, its about shutting these units down so that Hotels have free reign to charge what they like to guests without any form of competition. I would love to here from anyone who has been able to successfully register their units as a Hotel and the process and costs involved.

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