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Thursday, 20 Jun 2013

Posts Tagged ‘Pattaya’

How to set up a company to buy property in Thailand

Saturday, September 17th, 2011

Due to Thailand’s far from relaxed laws on buying property after the financial crash of the mid 1990s, there are only a limited number of ways to take advantage of the wealth of property for sale in Thailand. One of these is to set up a company in Thailand and then purchase the property. So, how is this done and what are the costs, issues and hassles involved?

 

One way to buy land in Thailand is to become the principal investor in a Thai export orientated business that is Board of Investment approves. This allows you to own up to 1600m2 of land. You can also own the same amount of land with investment of 40m baht for a minimum number of years or obtain Thai Residency.

 

A simpler and less costly way in Thailand that allows you to own land is to create a Thai company . To do this you will need three shareholders, you are inclusive. Some older versions of this have eight shareholders. In this scenario the buyer (now director) is the sole signatory for all things to do with the business. The director then gets documentation from a solicitor which gives them 100 per cent control of the company. There is a small tax payment each year, but the land is now owned by you but registered in a Thai Company name.

 

In Thailand transfer fees or land registration is 2 per cent of the total cost of the land purchased. Stamp duty is calculated at 0.5 per cent of the assessed worth or the sale price – whichever is higher is what you pay. A specific business tax is also calculated in the same way. This is assessed at 3.3 per cent of the highest value .

 

Buying a condo in Thailand can also be done in a Thai Company name, as explained above. It is also possible to purchase up to 49 per cent of the residential area in a condo block in a foreign name.. All that is needed is proof that the money used for purchasing originated as foreign currency and came from abroad. This is done as the receiving bank issues a Tor Tor 3, which will be required at the land office at time of transfer of ownership.

 

It is also very wise to appoint a lawyer or use a reputable agent to go through all these dealings, especially as purchasing property in Thailand can have its issues, especially if you purchase in the aforementioned company manner.

 

When you do find the perfect property for sale make sure you get a trusted solicitor or use an establishes agent who can read all the Thai and understand all the legal connotations of the contract as if you don’t you may end up with some serious issues. Remember that you are putting your trust in strangers to an extent and you should never purchase a property without the adequate amount of legal advice. Following the sensible and safe route is the best way and offers you the best way and form of protection of being hurt financially.

 

NT Realty are the longest established Real Estate Agent in Pattaya Thailand. We have hundreds of properties and condos for sale and rent. Please get in touch and let us help you find your dream home.

 

Buying a Home in Thailand: What you Need to Know

Monday, August 22nd, 2011

Thailand is a paradise; there is no doubt about that. The country is also moving away from being a backpacker’s haven to a more luxurious destination with 5 star resorts and all the treatments that go with them. This has led to large interest in the property sector in this wonderful country from people wishing to take advantage of the property and condos for sale and purchase a holiday home or even move there.

 

Thai property prices are much lower than that of the UK and so offer potential buyers the chance to not only live in a beautiful part of the world but also get excellent value for their money and a better quality of life. Property for sale in Pattaya offers much of the above as well as the chance to live with all the amenities of a city at hand and so is a great place for investment as well as a life.

 

With this in mind, there are still some things that need to be looked out for when purchasing property in the land of smiles.

 

Use a Reputable Real Estate Agent

When purchasing a property in the country offers are seldom made before you go through a number of legal loop holes. Consult a reputable real estate agent for details regarding any legal matters & they will be able to advise you correctly, often the legal formalities will be dealt with in-house.

 

Use your own Name

When this is all done you will need to get your name registered on the property. Do not use any other name then the one on your passport as this may cause issues in the long run. You are generally required to hand over around 10 per cent of the total property price as a deposit, this is refundable should the sale not go through and you are not the cause. You will be required to pay the full amount and all the taxes when the contract is signed. This means the deeds can be registered with the Thai Land Dept and makes the deal complete.

 

Thai Property Laws

There are a number of differences in Thai property law to that of UK law. Foreigners are not allowed to purchase land in for sale in Pattaya or anywhere Thailand, but are allowed property. This makes apartments and condos a more popular option than houses for buyers.It’s possible to purchase land by setting up a limited company. This means you can own up to 39 per cent of the land and the rest is owned by Thai nationals who sign over the rights to the property to you. This means you must pay associated costs to set up the company of around 30,000Baht initially and pay 20,000Baht each year in associated costs thereafter.

 

Other ways around Land Issues

You can also lease the land for 30 years with a right to automatic renewal and so can lease for up to 90 years. You may also own land if you are a foreign man and you marry a Thai woman. This gives you right to freehold land. However, this method does not work for a woman marrying a Thai national.These are many of the major things to look out for when purchasing a condo or property for sale in Pattaya or any other area in Thailand.

 

We hope you found our article useful. If you have any questions about buying your dream home in Pattaya, please get in touch with our team of experts who will be more than happy to help.

 

Work in a Bar? Why do They Do It?

Saturday, July 30th, 2011

Why are all these sweet lovable girls working in bars in places like Pattaya, Thailand and Angeles City, Philippines?   They may tell you that they do not like the local men, and they may tell you they have more fun in the bright cities than in their village.  They probably will tell you that they need to send money home, and that is the truth of the matter.  They do it for money!   Never forget that!

Picture yourself living in a Spartan house in the middle of nowhere, with no income, no welfare state or charity organization to help you and no food.  What are you going to do – starve? – beg? – steal?  Well millions of people face this dilemma every day in Asia.  No food, no free medical care, no insurance and no way out.  There is a welfare system here and it’s called having children.  When you bring kids into the world an unwritten contract is entered into.  You will nourish, care for, support and love your kids.  In return, when you are old they will take care of you.  Family is the key to survival in Asia and this unwritten contract is stronger than any legal document.  Young people in Asia who break the contract and desert their parents, (and there are a few) are on a very slippery slope indeed with suicide a likely outcome.

One of the few choices available to good-looking girls is to come and work in the big cities in the bars.  Not surprising then that many of the best looking girls choose cities like Pattaya and Angeles.  Although not considered the most desirable occupation, this kind of thing has been very common in Asia for hundreds of years.  As a profession it is not considered such a terrible thing.  Certainly, a bar girl is a few notches up the status ladder than her counterpart in the west.  There is a common saying in Asia- “as beautiful as a prostitute”.  I can’t see many westerners liking that particular compliment.

I don’t want to go on too much but please understand there is no great merit in getting one of these girls for free.  Yes they fall in love all the time, and yes they can feel shy to ask you for money.  If you have such a girl, do the decent thing and give her some cash.  Consider it a donation to her family’s welfare.

I believe most prostitutes back home choose the life as an easy way to make money and turn their back on society’s normal expectations.  Many are hard, unpleasant people.  Not so with the Asian girls.  They have made a hard choice but often the only viable one.  Please treat the girls with the respect they deserve.   I hate seeing drunken men taking extreme liberties with defenceless bar girls.   Generally they won’t complain if you grope and molest them at the bar, but this is very embarrassing for the girls.  They are naturally shy and public affection is frowned on in Asian society.  Hand holding is about as racy as it gets in public. These girls are kind, loving people so give them respect and a chance to earn a living.

 

by

Long Time Resident

 

A World Apart, Thinking of Relocating?

Saturday, July 30th, 2011

Anyone think of moving from a western country to South East Asia should research the place where they intend to reside so that they can fit into the culture.

When we think about  moving house in our own country, we check the neighbourhood, quality of house, location to schools and shops and a multitude of other things so that we will feel comfortable in our new home.

If you decide that you want to live in Asia, there are other topics that you will need to understand. Currency, Laws, Welfare Services, Taxation and Culture.

Culture is probably the greatest difference that you will face when moving from the west to set up home in Asia. Culture is probably the most misunderstood challenge faced by people that relocate.  Each foreigner will have their own views about the native cultural differences and unless you take the time to learn about the people that you are going to live amongst, you will have some surprises.

Asian culture is different to western culture and there are also huge differences in culture among the Asian countries.

The following observations are my own and they are meant to be only a guide. I do not profess to be an expert on the subject and I have spoken to long term residents of Asia who say that they will never understand the culture. Instead they live in their own microcosm trying to keep their own culture intact. For most of us, we absorb the language, the diet, the way of life and the culture to a greater or lesser extent.

 

Thailand

FACE
In Thailand for example, if you want to understand Thai culture you have to understand face.  This is all important to all Thais.  It is an end in itself, not a means to an end.  Thai society is very hierarchical.  When two Thais meet they will very quickly assess who is higher up the hierarchal ladder and the lower person will immediately adopt a more deferential attitude.  Moving up the ladder and getting high status is a very strong motivator.  Factors that influence your position in Thai society are family background, profession, friends and most importantly money.  The quickest way up the ladder is to make heaps of money.   It seems to me that the source of the money is irrelevant – if you have it, you are immediately moved up the ladder.  This is why you will see so many Mercedes Benz and BMW’s here.  Some Thai people will live in squalor and half starve themselves, to get the money to buy a Mercedes Benz.  This gives them an instant upgrade in status and never mind the hardship endured to get there.

When a lower person meets a higher person, the lower person will wai to the higher person to show respect.  (A wai consists of putting your hands together as if praying, raising them to a certain height and bowing your head).  The height that the hands are raised signifies the level of respect.  For example to a religious icon, a Thai might raise their hands above the top of the head, to a good customer, perhaps to nose level and to a casual acquaintance, chin level.  Two equals may well wai each other.  The point of this paragraph is to tell you, that as a foreigner, you should not wai to anyone and particularly not to a bar girl.  I see guys wai-ing bar girls all the time – trust me, in the eyes of a Thai you look ridiculous doing it and are making a fool of yourself.  Although there are occasions when it may be appropriate for you to wai someone, as a non Thai it is acceptable that you wai no one and that is your safest bet if you don’t want to appear a fool or cause offence.

When you argue with a Thai person, everyone starts losing face.   Thai’s hate it and will do just about anything to avoid a confrontation, including lying their heads off.  It is more morally correct in their minds to lie than to cause friction through confrontation.  This leads many westerners to think they have stumbled into a race of people who cannot tell the truth.  Not so, but a different moral principle is in operation here.  Visitors beware!  Most guidebooks say you should never raise your voice or directly confront a Thai with an unpleasant reality.   I have found though that sometimes it is the only way to get things done.  If applied selectively, shouting and table thumping can really get Thai’s jumping to make the source of your irritation go away and to return to the peaceful serenity they love so much.  Just be a little careful when trying this approach and don’t expect to make any friends.

Westerners sit outside their hierarchy and many Thai’s get confused about how to deal with us.  Generally, you will be treated as a higher class Thai in tourist areas but sometimes you will just be ignored as if you did not exist.  You just don’t fit into the system, except that as a westerner it is assumed that you have endless money and are therefore worthy of some respect.  Try not to break this illusion or you will be left without status and ignored.

Taking Care
Asian society is extremely sexist with the male appearing to be the dominant sex, yet underneath this veneer, women in fact wield most of the power.  On the face of it, women are treated as second-class citizens and expected to do all the daily chores without complaint.  Now this may not be politically correct, but as a guy it can certainly be pleasant.  Many guys are surprised when the girl they just met, starts cleaning the bathroom, folding his clothes, worrying about when he last ate etc.  My advice – enjoy the pampering.

The reality is that most working class Asian men cannot be bothered with these womanly things, and women run the household.  Women will also control the money, with most men giving their whole pay packet to the wife, who will then pay a small daily allowance back to the guy.  It really is a matriarchal society and the men have a pretty good lifestyle, but in return the women control the money and therefore really hold the power.  An Asian man would be horrified by the above statement, but I believe it to be true.

Falling in Love
Sorry to bring up the terrible “L” word but believe me it happens very frequently and is probably the largest cause of misunderstanding between an Asian girl and a foreigner.  What I have to tell you is that love as you understand it is a Western cultural thing.  Yes the west does have a culture, you were born into it, and some things you take to be universal truths are in fact cultural conditionings.  In Asia, the culture is very different and so is the meaning of love.  That does not make it any less fun; it just means you will be approaching the relationship from a very different point of view.  The chance that your girl fully understands the western concept of love is virtually nil, so you had better make an effort to understand the Asian concept.

Asian love is inextricably linked to money and family.  If you love an Asian girl, you will want to help her take care of her family.  If you do not want to help out, then you are not in love.  Simple!  When an Asian man marries an Asian woman, the man’s family will make a financial contribution to the woman’s family.  The amount paid signifies the depth of love and desire.  If the mans family are too poor to make a big enough contribution the marriage will more than likely be stopped by the girls family.  There may actually be a bidding match between two suitors, with the spoils (the girl) going to the highest bidder.  Girl children are highly valued by Asian parents as the major responsibility for caring for elderly people falls on the female children.  It is only right and proper that if you want to marry their highly valued daughter in whom they have made considerable financial investments, that they should be compensated.  Face also plays a part here.  It is not unknown for a poor family to make an arrangement with the girls family to pay perhaps double what they can afford and then later for the girls family to secretly return half the money.   This way both families gain face and no-one goes broke.

I know of one Foriegner who was all set to marry a Thai girl and went to meet the family.  When the family began inquiring how much he was prepared to pay for their daughter, he laughed it off as a joke.  On returning to the city, he was shocked and surprised when his true love called the whole thing off.

Many foreigners find the connection between love and money to be distasteful and yet to an Asian, the connection is obvious.  If you are not in a position to raise the living standard of your girl and her family, it is most unlikely that your love match will work out.  Remember, money first then friendship and lust. If you can cross the financial hurdle though, being in love and being loved by an Asian is hard to beat.   Excuse my sexism, but having a woman who respects you, considers it her role to ensure your happiness and comfort and who loves to do whatever you want, is quite pleasant.

Taking Her Home
I took my Asian girlfriend home to the UK for a holiday.  During that time, I watched her change from a bright, social fun girl into a withdrawn, anti-social stay at home type of girl.  Although she professed her happiness and willingness to stay, I could tell that she was very unhappy.  When we returned to Asia, her bright happy nature also returned.

This was my experience with one Asian girl. Your experience may be different but I am convinced that it is extremely difficult for a Thai or a Filipina to be truly happy away from Asia.  If you are thinking of moving an Asian permanently to the west, I believe it to be extremely important that you make contact with their country’s community in your area so your girl will have some Asian friends..  If there isn’t a Thai or Filipino community, she will be very lonely indeed.

Asian people in general have no great desire to travel.  I have asked hundreds of girls if they would like to see America – Europe, etc.  Although bar girls will generally lie, thinking there may be a dollar or two in it, if you get to the truth, the simple fact is that most Asians have no great interest in travelling outside of Asia and the thought of leaving permanently is abhorrent.  While financial considerations can outweigh this abhorrence, the money will not make them happy; they just endure the change in lifestyle for it.  I don’t know about you, but for me having a partner enduring life for the money is not my idea of fun!

Westerners have a more global understanding of the world and can adjust more easily to different cultures in my opinion.  If you really do love her and want her to be happy – move yourself to her country.  If you cannot afford or handle life in Asia, think very long and very carefully before asking her to do what you cannot.

 

by

Long Time Resident

 

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