Buying condo in Thai or foreign name

**Jesper** · 23-09-2013, 07:52 PM

So i stumbled on a very cheap condo that I am thinking about buying. I can either buy it in my name or in my TGFs name, I am thinking if there are any extra costs or fixed costs when buying a condo as a foreigner instead of a Thai?

Since it is so cheap I am worried that any fixed costs would add a disproportionate percentage to the cost of the apartment if it was in my name. So any help would be appreciated?

ps. since I know it will come comments about "never buy in TGFs name" etc, it is not so much money that it would be a disaster in any way.

Thanks for the help if anyone knows

**charleyboy** · 23-09-2013, 08:47 PM

Why wouldn't you buy it in your name?

Just buy the fookin' thing if you want too...

**jamescollister** · 23-09-2013, 09:27 PM

Have to agree with CB, as long as the condo falls under the rules of alien ownership, buy it in your name.
Taxes and transfers of titles are the same for Thais and aliens as far as I know. Jim

**Jesper** · 23-09-2013, 10:48 PM

I was gonna buy it to rent it out, it only costs 380k baht, so if there is another unnecessary cost on top of that, say 50k baht or whatever it would feel like such a unnecessary percentage cost , so thats why I am asking, but as far as anyone knows, the fees and costs with the government dealings and such are all the same?

**jamescollister** · 23-09-2013, 10:56 PM

Originally Posted by Jesper

I was gonna buy it to rent it out, it only costs 380k baht, so if there is another unnecessary cost on top of that, say 50k baht or whatever it would feel like such a unnecessary percentage cost , so thats why I am asking, but as far as anyone knows, the fees and costs with the government dealings and such are all the same?

Seems very cheap for at condo, but go for it.
Anymore for sale at that price or is it a no go area. Jim

**Bettyboo** · 23-09-2013, 10:56 PM

^^the tax/transfer cost (when you sell?) might be about 30,000, but not sure of any costs upfront? My missus bought our (her...) 2 condos...

There are many condos in Bkk in that price range. Not the best areas, not the best build quality, worst of all is the quality of neighbours...

(don't buy on the ground floor or near the entrance!). Rent will only be about 3,000 or 3,500 per month...

^Jim, the bank sites have loads of repos at that price. My missus bought 2, and might buy another soon; with the bts being built in Bkk rents could go up.

**Jesper** · 23-09-2013, 11:27 PM

Not looking to flip it, but to rent it out to thais for about 3000 per month and I will be happy. Thanks for the tip about bank sites for repos, will have to check that out.

**jamescollister** · 24-09-2013, 10:51 AM

Originally Posted by Bettyboo

^^the tax/transfer cost (when you sell?) might be about 30,000, but not sure of any costs upfront? My missus bought our (her...) 2 condos...

There are many condos in Bkk in that price range. Not the best areas, not the best build quality, worst of all is the quality of neighbours...

(don't buy on the ground floor or near the entrance!). Rent will only be about 3,000 or 3,500 per month...

^Jim, the bank sites have loads of repos at that price. My missus bought 2, and might buy another soon; with the bts being built in Bkk rents could go up.

Thanks for that, will have to have a look, been looking around for a place in a city, Ubon first choice, but BKK is fine.
In no hurry and have no money right now, but we just wanted a place near better schools for the kids when they get older and a place for us to escape the village at times. Jim

**slackula** · 24-09-2013, 06:45 PM

Do your homework first:

Make sure the seller has the right to sell the unit and there is not lien on it
If you want it in your name make sure the foreign ownership percentage has not been crossed
Investigate the structure of the Juristic Body (if it exists)
Check the hidden charges for maintenance of common areas, if they are going to surcharge electricity prices etc

Those are the basics and can be done by anybody who can find their way around the relevant gov't depts and read a contract.

Yes, it's not much money for the unit you talked about but with a little preparation you can have some more peace of mind before you make a decision.

**jamescollister** · 24-09-2013, 08:23 PM

Here's a question, can an alien own more than one condo and can you rent one out legally, or is that then a business.
Not going to effect me, but have have friends thinking of buying condos to rent out. Jim

**stickmansucks** · 25-09-2013, 07:28 PM

As many as you want and no need to pay any tax, this is why we like it <3

**jamescollister** · 25-09-2013, 07:55 PM

Originally Posted by stickmansucks

As many as you want and no need to pay any tax, this is why we like it <3

Interesting, will have to look into it a bit more, that word no tax always gets my attention. Can't see how income can be tax free, but will have a look at the laws. Jim

**slackula** · 25-09-2013, 09:03 PM

Originally Posted by jamescollister

Interesting, will have to look into it a bit more, that word no tax always gets my attention. Can't see how income can be tax free, but will have a look at the laws. Jim

If it is rented out via the corporation of the Juristic Body then tax will be due on the money made by the body and any sales or rentals if they declare correctly.

If you rent it privately then you may get away with it, but it would only take one other owner letting out through the condo company to complain to get you into a mess.

You could claim that you were only loaning it to a friend but depending on the wording of the purchase contract that could also create problems. Do your homework before handing over any money.

That is my understanding, but I stand to be corrected.

**jamescollister** · 25-09-2013, 09:19 PM

Originally Posted by quimbian corholla

Originally Posted by jamescollister

Interesting, will have to look into it a bit more, that word no tax always gets my attention. Can't see how income can be tax free, but will have a look at the laws. Jim

If it is rented out via the corporation of the Juristic Body then tax will be due on the money made by the body and any sales or rentals if they declare correctly.

If you rent it privately then you may get away with it, but it would only take one other owner letting out through the condo company to complain to get you into a mess.

You could claim that you were only loaning it to a friend but depending on the wording of the purchase contract that could also create problems. Do your homework before handing over any money.

That is my understanding, but I stand to be corrected.

Would think you are more than likely right, have a limited partnership company and we pay tax and VAT, no way out.
Would have thought that whether Alien owned, through the company or in the wife's name, the tax man would come looking. Jim

**toddaniels** · 28-09-2013, 05:51 PM

I know a group of foreign guys who collectively have 50+ condos in Bangkok which they rent out to foreigners & thais alike... Now I'm sure they follow the rules concerning reporting foreigners living in their units, paying appropriate VAT and taxes, CAM fees, title transfer fees, etc. I've never heard a single instance of them running amuck. Not even when some busy body thai wanna-b-rental-agent who hung around the front office of one building tried to stir the pot because they wouldn't let her advertise their vacant unit.

I also agree you need to do due diligence on the property, instead of taking anyone's word for it, (thai or foreigner). If you're the foreigner who tips the balance past the 49% foreign owned threshold; you could be up a creek w/out a paddle or at least between a rock and a hard place.

I'd hafta weigh in with other posters that buying it in your significant thai others name will provide no benefit in any CAM (common area maintenance) fees, title transfer or other such miscellaneous stuff.

However, down the road, it could be more of a headache than you could ever imagine..

While everything might be comin' up roses now, no one knows what the future holds. If it's in your name, it's yours plain and simple.. If it's in her name it's hers, and there's nothing you could do if she wanted to kick you out, borrow against it or sell it.

I've found the more aspects of your life which you have total control over, the less likely a thai can run your train off the rails when things go side-ways (as they can do).. Then again that's just my experience.

While off-topic;

Way back when I bought my first new car here, a thai I was close to urged me to put it in their name, under the guise that insurance, etc was "easier if you're Thai". I didn't heed their advice and instead had it titled in my name..

I was at the dealership paying for my car at the same time another foreigner was buying the exact model car I was. We talked exchanged numbers and stayed in touch for a few months.

Incredibly, a year down the road, he showed up at the police station where I volunteer as a translator. He wanted to file a police report because his gurlfriend sold the car without his permission.. I looked at the copy he had of the car book and it was in her name NOT his. I told him, doesn't matter if you paid every last baht of the cost of the car, in thai eyes, it's hers to do with what she wants, NOT yours. He was to say the least miffed at that revelation...

Now if you were buying a house, you'd be screwed as it's tough as nails to buy here in your own name without having a corporation buy it and rent it back to you. Apartments and condos ain't like that, and as long as they're NOT on the ground floor, or as long as you buying it doesn't tip the foreigner ownership past 49% in the building, you can put it in your name easily.

P/S: those bank sites with the repos are an excellent way to see what's going for what where especially in the Bangkok Metro area. . ..

**Bettyboo** · 28-09-2013, 07:52 PM

Originally Posted by jamescollister

Interesting, will have to look into it a bit more, that word no tax always gets my attention.

What about when you sell - is the tax 5-10%?

Originally Posted by toddaniels

P/S: those bank sites with the repos are an excellent way to see what's going for what where especially in the Bangkok Metro area. . ..

Interesting to see how cheap some are; they do auctions too. I saw several run down townhouses with shop units at the bottom, around 350 sqM, going for 600,000 in Bangkok. So, once done up, for a million baht or so, you get a property that'd cost you close to 3 million if you bought it new. That's gotta be good. You don't even have to worry too much about location, buy somewhere that you're happy to live then leave the missus to run a business from the ground floor, not for profit, but to keep her busy. Put your own office in, maybe do a little business yourself too.

Great value really. Even if you made it really nice, you can buy one and have it sorted for 1.5 million, that's 30,000 pound, in Bangkok for 350 sqM of living and business space...

**stickmansucks** · 29-09-2013, 06:01 PM

I do not believe so much the 600 k townhouse story...

**DrAndy** · 10-10-2013, 09:02 AM

Originally Posted by quimbian corholla

If you rent it privately then you may get away with it, but it would only take one other owner letting out through the condo company to complain to get you into a mess.

pay the tax, it is not much

but you can undervalue the amount you are getting in rent

**jamescollister** · 10-10-2013, 11:32 PM

Originally Posted by DrAndy

Originally Posted by quimbian corholla

If you rent it privately then you may get away with it, but it would only take one other owner letting out through the condo company to complain to get you into a mess.

pay the tax, it is not much

but you can undervalue the amount you are getting in rent

Very true pay your taxes, I and wife have to front then on Tuesday, 2000 Baht fine, late payment.
Accountant failed to tell us the company tax was due,
New accountant next week, probably the wife or husband of one of the tax department people. Jim

**Bettyboo** · 11-10-2013, 02:07 AM

Originally Posted by stickmansucks

I do not believe so much the 600 k townhouse story...

Go onto the bank repo sites - Kaisikorn bank is the one we used, I think - and have a butcher's.

**toddaniels** · 22-10-2013, 05:50 PM

Here, "stickmansucks" I'll make it a little easier for you to believe;

Property 4 Sale Kasikorn Bank

Hope you have a spare native thai reader hanging about the house. .

**charleyboy** · 22-10-2013, 10:20 PM

Look no fookin' further...

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