News Forum - Foreigners might be able to own land in Thailand, but there’s a few catches

[Thaiger]

Foreigners might be able to own land in Thailand. The proposal is being drafted by the Thai Interior Ministry which would allow foreigners to own up to 1 rai of land (around 1,600 square metres, .16 hectare or .4 acre). But, yes, there’s a catch. Foreign buyers would be required to invest 40 million baht in Thailand for a period of 3 years in order to be eligible for land ownership. Despite the up-front barrier, Thai politicians believe the proposal will help stimulate foreign ownership of property in Thailand. The other catch is the limitation of the size of land […]

The story Foreigners might be able to own land in Thailand, but there’s a few catches as seen on Thaiger News.

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[longwood50]

 

 

The Parable Of The Camel

 

 

A traveler set up a tent in the wilderness. He snuggled under his covers for his night’s sleep. The night became cold and his camel poked his nose into the tent. The owner asked the camel, “What are you doing?” The camel replied, “It’s cold outside. If I could only put my nose inside the tent, I will warm up and then spend the rest of the night outside.” The owner agreed to allow the camel to place his nose inside the tent because, after all, the camel’s request made sense and it was only his nose inside the tent. There was still plenty of room for the traveler.

Soon the camel asked, “I’m still cold. Could I please place my head inside your tent? I will warm up soon, and then spend the rest of the night outside.” The traveler considered the request. He didn’t want his camel to be cold so, once again, he granted the camel’s wish because, after all, it was only his head and there was still room for the traveler inside the tent.

After several minutes, the camel said, “May I please place my front feet inside your tent? They are so cold out here. If only I can warm my feet for a few minutes, then I promise I will spend the rest of the night outside.”

The traveler thought about it. There would be less room in the tent, but it was cold and he believed the camel’s promise to spend the rest of the night outside as long as he could warm his feet. The traveler allowed the camel to place his feet inside the tent.

Not long after, the camel asked, “Can I take just a few steps inside? I’m sure I’ll warm up and then I’ll definitely spend the rest of the night outside.” By now the traveler was feeling crowded inside the tent, but he consented to the camel’s request.

After 30 minutes, the camel took a few more steps inside the tent. Before the traveler realized it, the camel had entered completely inside the tent and the traveler’s only option was to go outside and leave the camel inside the tent. So the owner spent the night outside in the cold, filled with regret that he had allowed the camel to first place his nose inside the tent.

I am a foreigner from the USA and can tell you that while it "seems" great to prop up housing prices, soon Thailand will find it is a renter in its own country.  This "small step" towards opening foreigners to own real estate will soon be "enlightened" to even more properties. 

One only has to look at Hawaii where the Chinese and Japanese drove the prices to the point that certainly the native residents of Hawaii can't afford them and only the wealthiest American citizens can.  Same with California

 

[Cabra]

Another non-starter from the hub of non-starters. 

[Fortuner]

What about in case you want to sale the property to a foreigner after a period of ownership does the buyer need 40M investment as well?

[longwood50]

1 minute ago, Fortuner said:

What about in case you want to sale the property to a foreigner after a period of ownership does the buyer need 40M investment as well?

It would certainly seem reasonble that the new buyer would have to meet whatever the requirements are at that time.  So they would have to be Thai, or a company owned property, or meet the new 40 million baht minimum.  One way or another the number of available buyers eligible to sell to would be small and as such the person would likely experience the same depressed prices trying to liquidate it.  If he owner dies and it is passed to a non-thai, that person would have to likewise meet the new requirements or dispose of the property. 

There is no shartage of propeties to rent in Thailand.  A person would have to be foolish to invest in a country where there is no absolute guarantee they can enter, and reside on a long term basis and where they would face great difficulty in selling the property in the future. 

 

[Guest1]

24 minutes ago, Fortuner said:

What about in case you want to sale the property to a foreigner after a period of ownership does the buyer need 40M investment as well?

Of course. It is another foreign buyer, isn't it?

Foreign buyers would be required to invest 40 million baht in Thailand for a period of 3 years in order to be eligible for land ownership

[Mazz11]

So, an Australian would need to invest approximately 1.63m AUD over three years to be eligible to own 1600sq/m of land in Thailand.

Doesn't sound like a very good deal to me. 

[HolyCowCm]

Perhaps until they rescind the initiative after the 3 yrs is up and give a mandated time of having to relinquish the rights or lose everything. 

[Janneman]

There might be another catch. With each new government laws in Thailand tend to be changed. So what if in 10 years they will turn everything back? You know, 'we dont want those dirty farangs taking over our country'. You might be forced to sell. At rock bottom prices since they all know you must sell.

The risk of this happening might be small. But the amount of money involved is huge. 

[Disenfranchised]

1 rai = ~0.4 an acre, for which you pay around 800,000 baht per rai for agricultural land with no access, 2,000,000 baht for development land and if it is in a plum area such as near the proposed Chiang Mai airport, landowners are asking upwards of 5,000,000 baht.

Not so cheap. Throw in Chinese looking to get money out of China then the skies the limit. This in fact was happening before Covid descended on us all.

It would be nice though, in the event of the premature death of a Thai spouse that land could pass to the farang spouse until he/she either dies or sells up.

Edited July 13, 2022 by Disenfranchised

[TheDirtyDurian]

7 minutes ago, Disenfranchised said:

1 rai = ~0.4 an acre, for which you pay around 800,000 baht per rai for agricultural land with no access, 2,000,000 baht for development land and if it is in a plum area such as near the proposed Chiang Mai airport, landowners are asking upwards of 5,000,000 baht.

Not so cheap. Throw in Chinese looking to get money out of China then the skies the limit. This in fact was happening before Covid descended on us all.

It would be nice though, in the event of the premature death of a Thai spouse that land could pass to the farang spouse until he/she either dies or sells up.

800k for agricultural land?! They saw your coming....

Just a joke btw... If that's true that's some hefty price tag. 

About 200k round our way. 

[drkenchao]

interesting LTR visa make living long time easierand less bireaucratic, so.it imply other visa types are?

[drkenchao]

the key issue about investing so.much, what about possible future returns ROI and exchange rate fluctuation?

[Benroon]

15 hours ago, Janneman said:

There might be another catch. With each new government laws in Thailand tend to be changed. So what if in 10 years they will turn everything back? You know, 'we dont want those dirty farangs taking over our country'. You might be forced to sell. At rock bottom prices since they all know you must sell.

The risk of this happening might be small. But the amount of money involved is huge. 

Might might might - however they have courts for that stuff. 

[Benroon]

Where does the 40 million get invested ? Are there options ? 

[Faraday]

Just now, Benroon said:

Where does the 40 million get invested ? Are there options ? 

In a specially designated Caymans account.

[Tezza1971]

14 hours ago, TheDirtyDurian said:

800k for agricultural land?! They saw your coming....

Just a joke btw... If that's true that's some hefty price tag. 

About 200k round our way. 

And where would that be, just asking for a friend.

[livinlos]

Foreigners can already own land if they invest >40m thb into Thailand and its been that way since the Asian currency crisis. The entire chapter 8 of the land code specifies this investment route and the similar BOI option. 

Each of the media seem to be totally oblivious to this and keep repeating each others incorrect stories. 

The crucial part of this new option is that it may become open to the new 10 year high net worth visa holders. Thats whats new and being debated, something again the media seem to have totally missed. 

[livinlos]

22 minutes ago, Benroon said:

Where does the 40 million get invested ? Are there options ? 

Thai Stock market, Thai gov bonds, BOI approved investments or other 'ministry approved' (complex) inward investment that benefits Thai society.. 

[Jerry]

Once again the Falang that married his Thai wife 25 years ago, put money into the marital home and has endured 25 years of visa runs and all the other Ball and Chain conditions, but doesn't have 40 million baht to invest has to take it up the Tradesman's Entrance again?

[TheDirtyDurian]

1 hour ago, Tezza1971 said:

And where would that be, just asking for a friend.

Two places I'm familiar with, Buriram and Prechuap, would both have farming land available at that price. 

Kind of irrelevant though as we now know they have to invest 40m. 

Can't see too many millionaires buying up tapioca fields in Buriram! 

[TheDirtyDurian]

47 minutes ago, Jerry said:

Once again the Falang that married his Thai wife 25 years ago, put money into the marital home and has endured 25 years of visa runs and all the other Ball and Chain conditions, but doesn't have 40 million baht to invest has to take it up the Tradesman's Entrance again?

Of course. Why would you expect anything different. 

[Augratin]

How about just letting us retirees own the tiny parcel of land our house is on?  Would that be too much to ask?  I'll even bequeath it to a Thai national.

Since the answer appears to be "no", I have little choice but to sell it as I tick closer to my eventual demise and wire the proceeds back home or to friends in other countries.

[BIGGLES]

40 million baht!

I wouldn't pay that for the whole country!

if I did, when do I  get crowned? 

That's  approximately 1million sterling, tied up for three years, I don't think so.

 

[Donald]

Absolutely idiotic proposal. Do they really think that Thailand is such a paradise that it would merit such a huge investment just for the pleasure of owning a Mickey mouse size plot of land ? The Thais should get out from under their coconut shell. All legal residents, Thai and otherwise can legally acquire land in all the countries I have visited and lived in. At present I am staying in Georgia where there is a big Thai expat community that experience no discrimination in both the ownership of land or ability to work here. My Thai wife has tried to convince me to go and live in Thailand, but that is certainly not going to happen until the Thai government realize that they should be grateful for people willing to invest and spent money in Thailand without them making feel like just a tolerated alien with basically no rights whatsoever.