The 'bubble' pops in Pattaya
About a year ago, Issue #107 here, I sounded an alarm regarding regarding Pattaya's increasingly expensive real estate market.
And the 'hissing' sound you hear is air from the bubble--which will get louder in the future as prices FALL!
MANY farangs have been duped, especially the past few years as evidenced by RAPIDLY escalating prices, that buying property in
Thailand was 'simple' using a Thai corporation.
Thousands purchased homes and condos with these 'shell' corporations whose sole purpose was to own property--thus evading the
Kingdom's strict laws prohibiting foreigners from owning land and condos (unless certain conditions have been met).
On May 15, though, the property market was thrown into turmoil with the Interior Ministry implementing tighter regulations
regarding the ownership and funding of such corporations.
"Provincial officials are ordered 'as protection against bypassing the law', to examine limited companies, limited
partnerships and general partnerships 'having the aim of carrying out business in immovable property'.
If you want the full regulation text, check a posting at http://www.thaivisa.com.
So, what does this all mean?
Buying property in Thailand has become A LOT riskier. And if you're trying to sell, MUCH more difficult!
If you insist upon buying property here follow these rules:
1-Consider ONLY condos with 49% maximum foreigner ownership. Some older buildings have 'grandfathered' units when the laws
changed but use this guideline.
FORGET owning land, houses, etc.
2-Do NOT invest in Thai real estate. Buy it, hold it, live in it. PERIOD.
Money is SPENT in Thailand NOT invested.