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AntRobertson

The Condominium Act 1979 has been amended recently. Basically (very) the effect is that it has reaffirmed the provision for the foreign ownership quota to 49% of the entire area in each condominium building.

It also seeks to make it easier for foreigners to register a condo unit it their name. Where previously a certificate of remittance of funds was required as proof of source of funds when purchasing condominium units you may now also provide any of the following:

1. Document showing the remittance of funds to Thailand for the purpose of purchasing a condominium unit (e.g. "Foreign Exchange Transaction Form");

2. Document showing the withdrawal of funds from a Thai Baht bank account of a non-resident (e.g. foreigners who purchase and acquire ownership of the condominium unit); and

3. Document showing the withdrawal of funds from a non-resident deposit bank account.

In all cases the amount of the funds remitted or withdrawn will have to be equal to or should exceed the total purchase price of the condominium unit.

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good2bhappy

So in other words you can now buy a condo from money in Thailand and have it in your name?
But you could do that before? I thought that you were unable to take the money back overseas if you did that. Can you now?

AntRobertson

Pretty much the sum of it, yep. Previously you had to show that the money had been brought in from overseas ("certificate of remittance of funds").

Sorry you've lost me there, you mean after you've sold the unit? There's no restriction on moving the money in any event that I'm aware of (other than exchange rate losses and the like which are par for the course anyways).

Loy Toy

All looking a little bit more positive and for the future ant.

Hope they change the rules and allow a foreigner, with the correct qualifications to buy no more than 1 rai of land and for the purpose to build one house.

Recession over, well in growth areas anyway and for me if it comes about.

AntRobertson

I agree mate. Another step in the right direction, albeit a baby step!

One other thing I left off is that they also tidied up the provisions relating to the '5yr exemption' some condos had on foreign ownership over 49% - effect is that the foreigner owners now have secure title regardless.

Norton

Makes a lot of economic sense to the country but for now I think a little too politically sensitive to introduce. Prevalent mind set in your average Thai is if allowed, foreigners would by up the whole country. Clearly an unrealistic assumption but that's the way they feel. Will take some more time but I believe limited land ownership will be allowed at some point in the future.

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Khun Custard

Yep, and just by coincidence, the BANK OF BANGKOK has closed it's Thai Mortgage office in Singapore and has now based it at the Silom Rd HO - well, the Trinity building to be precise.

A change to assist us - I think not!!

Now, the BoB will not loan less than Tb10,000,000 for mortgages to foreigners.
A 30% deposit required.
The repayment schedule is geared to 65 years of age and will certainly put the breaks on the 55yo + Thai romance retirees industry

Personally, I'm not and will never be after a Tb 10m Condo (unless the '97 crash occurs again) so it would appear BoB is doing a bit of social engineering based on wealth and perhaps age?????????????????? .

It was not that long ago on this forum there was reference to a newspaper article statement by an official of the BoB that basically stated foreigners were not welcome. Something along the lines of "the number of older foreigners marrying Thai's is turning the country's womanhood it prostitutes"

Guess who's' just closed all our BoB accounts

Any one know of a Thai bank who likes our money and genuinely wants to assist ???

AntRobertson

To be fair they're not alone in that, very much a similar sentiment in New Zealand. Foreign ownership was allowed some time back but in a lot of cases under very strict limitations.

That singer Shania Twain(sp?) recently purchased a high-country property and had to agree to a truckload of restrictions and caveats (things like no extra buildings, building a public access track etc).

Norton

The mindset is present in many countries. I well remember in the 80s when there was a big movement in the US to prevent the Japanese from "buying America". Just another case of the "common" man being mislead by the media reporting of a few high profile sales to Japanese companies.

AntRobertson

Exactly. Very much same scenario in NZ.

Loy Toy

Agree Norton 100%

The qualifications (and for for foreigners to buy land) could be tailored to keep the riff raff out and not see the sell off of Thailand and as follows;

For younger applicants>
1. Have a work permit (uninterrupted) here for at least 5 years.
2. Be married with at least one child with the child going to school here.
3. Buy the property outright and without any bank borrowings or mortgage.
4. Limit the number of permits per year and according to the permanent resident status application approvals system.
5. To apply for a permanent resident status.

For retiress>
1. Be financially secure.
2. Buy the property outright and without any finance.
3. Hold proper health insurances etc.
4. Apply for permanent resident status.

Just a few ideas that should not offend any Thai.

chitown

I would be happy with owning 50% of the house and being protected in the case of divorce. They could have a clause that as long as you are married, you can own 50% of the house. If you divorce, the house needs to be sold and the proceeds divided 50 -50.

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Norton

Sounds familiar!

Marmite the Dog

Why the hell should you have to breed to own a house? Ridiculous suggestion.

chitown

As many times as I have divided my assets, it is very familiar.

lysander

I thought that if you wanted to move the proceeds of a condo sale back out of the country you had to have ceritified that you'd used proceeds transferred from abroad to buy it originally? I thought that was the whole purpose of getting the certification in the first place.

AntRobertson

^ I'm not exactly sure on that one to be honest lysander, you've got me there.

Sounds a bit odd though; placing a restriction on funds transfer like that.

Loy Toy

Not quite sure mate but I believe these documents are called "Sarm Sor" documents. These are the documents awarded verifying that funds have been brought into the country and for the purpose of buying a condo.

EmperorTud

False hope.