As the title of this video suggests, we are discussing long-term leases and Thai property rights. 

I started thinking about this topic after reading a recent article in the South China Morning Post, that is scmp.com, the article is titled: Can Thailand beat Malaysia and Singapore in the Race to Lure Wealthy Foreigners. There is a lot going on in this article. I urge those who are watching this video to go check out that article, a lot of insight in there. I am going to citing one specific except that I thought was interesting. Quoting directly: "While the final details are being polished, the scheme has brought doubts as well as hopes. Some see the longer lease terms as a threat to Thais' right to own property. Others see the program as a fillip for the real estate sector, which has been under strain due to a reduction in foreign visitors since the beginning of last year." When they say the final details, they are talking about and we have discussed this rather at length on this channel thus far, the Cabinet resolution which approved in principle, in principle. Essentially what they are talking about is four new Visa categories for so called wealthy retirees, wealthy expats, digital nomad types but basically it is for high net worth individuals. They are trying to lure wealthy retirees, lure wealthy expats and part and parcel of this what has been discussed has been possible new enjoyment of property; benefits to enjoy Thai property. A real question that came up initially was it appeared that there were going to be provisions that would allow foreign ownership of certain types of property. Most notably it seem to be discussed or bandied about a lot the notion of being able to own a house in what is called a Moo Baan or a subdivision here in Thailand. We have done another video on that; that seems to have been sidelined. It doesn't look like that is going to be possible but what they also discussed was long-term leases like 90/99 year leases. To be clear, where we have seen the issue of 90 year leases pop up especially in so called 30 + 30 + 30 leases where it is implied or not even implied, it is explicitly stated in the provisions of a lease, upon expiration it automatically renews in 30 + 30 + 30 year increments. Thai Courts have found that this effectively is a 90 year lease and in a sense and the opinions where this has come down in the negative, they have said that "look this effectively results in a de facto ownership" and Thai Law prohibits foreign nationals owning real estate in Thailand.

So it remains to be seen how this is going to play out but it is interesting how long-term leases are what are being discussed in the context of these possible new visas. I will be curious to see exactly what we are looking at if the laws change and I don't think this can be done under Immigration regulations. I mean this is major property law. So perhaps, we may actually see a law pass that changes things in order to create this new scheme whereby foreign nationals can enjoy property rights, long-term leases, longer than the current leases currently allowed under Thai Law.