Loan to buy land

[Sek Loso]

Hi,

 

Me and my Thai wife live in Australia where we both work.  We want to purchase a piece of land for 1.8 million baht back in Thailand for future retirement, however we only have 1 million downpayment.  

 

Is there anyway my wife could take a loan on the remaining 800k from a Thai bank, showing her employment history here?  For what it's worth, she just finished paying off a car loan in her name - been paying it from Australia for the last 4 years however not directly to the lender - she would transfer the repayments monthly to her brother who would pay at 7/11 or such.

 

Thanks for your time.

[ukrules]

Can't you just get a personal loan in Australia and wire it over to buy the land?

 

The 800k shortfall is well within normal unsecured loan ranges that many banks will offer.

[Sek Loso]

We can't get a personal loan in Australia unfortunately as we are on a Temporary Skilled Worker visa even though we've been here 4 years.

 

Can't even get a mobile phone contract if you're not a permanent resident.

 

 

[baansgr]

Without income in Thailand its very unlikely. Woukd the owner be prepared to sell with a down payment then payment terms?...easily done with a contract and loan attached to Chanote.. Do your due diligence on the land...is that the price from owner or with two or three "freelance brokers" wacking their percent on top...seen land priced by owner at 1.6 mil yet buyer paid over 2.5 as had there mom and pop shop agents all taking their mark up...be especially careful when buying here in absence.

[Sek Loso]

27 minutes ago, baansgr said:

Without income in Thailand its very unlikely. Woukd the owner be prepared to sell with a down payment then payment terms?...easily done with a contract and loan attached to Chanote.. Do your due diligence on the land...is that the price from owner or with two or three "freelance brokers" wacking their percent on top...seen land priced by owner at 1.6 mil yet buyer paid over 2.5 as had there mom and pop shop agents all taking their mark up...be especially careful when buying here in absence.

We dealt directly with the owner who wanted 2.6 million baht - we negotiated and settled on 1.8 million. it was a bit over budget as I'd had anticipated 1.5 million, but we had our heart set on it.   This was November 18 - we put 500k down, we saved another 500k which we have.  We have until November 2020 to get the other 800k, even though the owner and my father in law are acquaintances and both well respected members of the moo bahn so I reckon they would extend the timeframe for us if needed.

 

However, we would like to see if there's any other options in the meantime. 

 

When you say loan attached to chanote, what do you mean exactly?  Loan from the bank guaranteed by the chanote?  So the owner gets paid immediately and we pay the loan off to the bank? that would be ideal if possible.

[baansgr]

You would agree a payment plan with the owner. Contracts are drafted, land transferred to your wife with a charge on back of Cha note. Once final payment is made you then have the charge released with owners consent. Its becoming quite popular now this way due to the downturn in real estate and the general economy...also, its just the same as someone borrowing against their land.  Interest rates in Thailand are quite high, so the owner maybe interested as they would charge you interest for the period of the loan. Worth asking them

[Sek Loso]

I will, many thanks for your input.

 

What's a ballpark figure on interest % on something like this so I have an idea? 

 

Also if there are any links in English or even Thai you might share so I explain to my wife.

 

 

[Skallywag]

1 hour ago, Sek Loso said:

For what it's worth, she just finished paying off a car loan in her name - been paying it from Australia for the last 4 years however not directly to the lender

? Maybe sell the car and use that money to buy the land.  Is the car worth 800,000?  You are not using it if it is in Thailand and you are in Australia.  Then you get another car loan

[Sek Loso]

23 minutes ago, Skallywag said:

? Maybe sell the car and use that money to buy the land.  Is the car worth 800,000?  You are not using it if it is in Thailand and you are in Australia.  Then you get another car loan

We already thought of this as an option, however I'm not sure how much will it cover from the 800k.

 

It's a Ford Ranger 2014 2.2l HiRider - only about 30k on the clock and kept covered and sheltered.

 

I'd rather not sell it if I don't have to cause I'm sure I'll be giving it away

[4MyEgo]

17 minutes ago, Sek Loso said:

We already thought of this as an option, however I'm not sure how much will it cover from the 800k.

 

It's a Ford Ranger 2014 2.2l HiRider - only about 30k on the clock and kept covered and sheltered.

 

I'd rather not sell it if I don't have to cause I'm sure I'll be giving it away

Car values in Thailand hold their value, unlike in Australia where they are worth about 50% after 3 years.

 

I have the same car, although a 2016 model, paid 800k for it and after 3 years was offered 500k, dealer was wanting to do a trade in for 450k, kilometres at the time was around 90,000 on the dash, still have it and not looking to sell, but I would hazard a guess your car would be worth 500k baht with those low kilometres.

 

Regarding the land, respectfully, as long as you know if things went pear shape, you would end up with nothing, so only invest as much as your prepared to lose, that said, my wife of 13 years has never worked, only looking after me and the kids, which in itself is work, and would end up with the land and a 6 bedroom house, plus the car, that's all I would be prepared to lose, but she has earned it ????

 

[RAZZELL]

My wife got a Thai mortgage whilst working in the UK based on her UK job and earnings.

 

But she got a cousin to co-guarantee it.

 

RAZZ

Edited January 3, 2020 by RAZZELL

[LukKrueng]

AFAIK banks don't give mortgages for land purchases, only house/ condo. If you own a plot of land you can use it as guarantee for a loan to build a house or whatever

[phantomfiddler]

No problem at all ! I did it in 1983, and all that was required was a down deposit of at least 40%. I was working out of the country, and the bank owns the land until you pay off the complete loan, at which point the bank readily transfers the Chanote to a Thai citizen or a Thai company.

[sirineou]

 

On 1/2/2020 at 7:21 PM, Sek Loso said:

We already thought of this as an option, however I'm not sure how much will it cover from the 800k.

 

It's a Ford Ranger 2014 2.2l HiRider - only about 30k on the clock and kept covered and sheltered.

 

I'd rather not sell it if I don't have to cause I'm sure I'll be giving it away

The the suggestion made by baansgr is a very good one and it is one that it is often used between motivated buyers and sellers who trust each other, (the seller signs the property to you but  holds a lien until you finish paying the balance)

For instance , your shortfall is 800,000 bht . you make a contract with him that you will pay the balance in 60 monthly payments (5 years) of 13,333 bht (800,000/60=13,333) if needed you can negotiate  some  interest payments. If you can afford a bigger monthly payment , make it 36 months (3 years) @22,220  per month) 

You get the property, and the owner gets   1 million baht plus a nice income for five years"  a win , win situation, unless he need the full amount for whatever. 

 

Another option would be to offer him 1 million baht plus your truck.  How does he like your truck? 

Or he can hold your truck as collateral until you finish paying. 

Be creative. 

 

Edited January 9, 2020 by sirineou