Loan money for which house?

[CNXexpat]

We have a paid house in Chiang Mai, worth 5.5 to 6 million baht, which we want to sell.

 

We want to buy a house in Huay Yai near Pattaya. There are various to choose from between 3.5 and 4.5 million (there are nice bargains right now).

 

Now, however, I have no 4 to 5 million lying around in Thailand (there are still transmission, moving and conversion costs). Before I now sell shares in Germany, transfer the money here, buy the house, sell the other house months later, transfer the money back to Germany and buy the shares back, I would like (via my wife) take a loan in Thailand for the time between buy the house and sell the other one.

 

What do you think makes more sense: take out a loan without a fixed term now with the existing house as security or decide on one of the houses to visit and go to the banks with the Chanot in Huay Yai to take a loan there over a year (then the other house should be sold)?

 

How long does such a credit check take? It would be awkward if we have to fly many time between Chiang Mai and Pattaya for it.

 

If someone wonders why I want to move out of beautiful Chiang Mai - see picture from this morning (the days before were not so much better).

 

[bwpage3]

In Thailand there is NO guarantee you can sell a used house

 

Ask around.

[CNXexpat]

Just now, bwpage3 said:

In Thailand there is NO guarantee you can sell a used house

 

Ask around.

It´s all a question of the price and the time I am willing to wait. But that´s not my question.

[treetops]

Sell before you buy?

[baansgr]

You could get a personal loan based on CM property but interest rates are high plus a large upfront insurance premium is required. Mortgage on a new property would be cheaper, of course both ways your wife would need to show an income with tax payments or you with WP and the same. Try to find a property from either a developer or an owner that will take staged payments...Many many properties in Pattaya, especially Hua Yai area that are desperate to sell and offering large discounts with payments over up to 5 years

[Vascoda]

21 minutes ago, bwpage3 said:

In Thailand there is NO guarantee you can sell a used house

I think Thai people don't prefer to buy used house for the fear of ghost in the house as they don't know if someone died there or not. When I was buying a house for my GF, she said she would live in rented place but won't buy a used house. Of course, with the maount of new construction and easy bank loan, I wonder why somebody would buy a used house.

[ivor bigun]

23 minutes ago, bwpage3 said:

In Thailand there is NO guarantee you can sell a used house

 

Ask around.

my wife was in the trade for years ,sold 1 house ,loads of condo's ,Thais only seem to want a brand new house .

[KhaoNiaw]

10 minutes ago, ivor bigun said:

my wife was in the trade for years ,sold 1 house ,loads of condo's ,Thais only seem to want a brand new house .

I think this is one of the great ThaiVisa myths. We sold both our previous houses within a few weeks of posting on the property websites. No need for an agent either. 

[CGW]

i would try to finance houses within Thailand without bringing any more money in. Selling shares that are? earning money then transferring etc is going to cost in commissions and loss of revenue from shares, then there will be a repeat if you buy shares back, more commissions to pay & if the shares are good enough to buy back they will have increased in price, probably not unreasonable to think the Baht will drop in value also (wouldn't bet on that given history)

[CGW]

3 minutes ago, KhaoNiaw said:

I think this is one of the great ThaiVisa myths. We sold both our previous houses within a few weeks of posting on the property websites. No need for an agent either. 

I would have to agree with you there, I have sold three houses here with no issues..

[Thomas J]

2 hours ago, CNXexpat said:

Before I now sell shares in Germany, transfer the money here, buy the house, sell the other house months later, transfer the money back to Germany and buy the shares back, I would like (via my wife) take a loan in Thailand for the time between buy the house and sell the other one.

Not sure I understand your thoughts on transferring money from Germany.  If you transfer to THB and then back to Euro you will lose conversion fees two ways.  Euro to THB and then back to Euro.  If you borrow against the home you are selling, you will pay the loan back when the home is sold from the proceeds.  You could take a loan against the new home as well and pay off from the proceeds once the other home is sold. 

[CNXexpat]

1 hour ago, treetops said:

Sell before you buy?

I have the choice between 3 very good houses NOW and I want to leave Chiang Mai soon as possible. No idea how much time I need to sell the house (for a good price, not cheap and quick).

[CNXexpat]

1 hour ago, baansgr said:

You could get a personal loan based on CM property but interest rates are high plus a large upfront insurance premium is required. Mortgage on a new property would be cheaper, of course both ways your wife would need to show an income with tax payments or you with WP and the same. Try to find a property from either a developer or an owner that will take staged payments...Many many properties in Pattaya, especially Hua Yai area that are desperate to sell and offering large discounts with payments over up to 5 years

Thanks. The problem is, my wife has no income, same as me. The sellers are private people. I haven´t asked them so far, but I guess they want their money soon as possible.

 

1 hour ago, Thomas J said:

Not sure I understand your thoughts on transferring money from Germany.  If you transfer to THB and then back to Euro you will lose conversion fees two ways.  Euro to THB and then back to Euro.  If you borrow against the home you are selling, you will pay the loan back when the home is sold from the proceeds.  You could take a loan against the new home as well and pay off from the proceeds once the other home is sold. 

Yes, you understand me right. My question is now, if it´s better to make a loan on the Chiang Mai or the Huay Yai house - if possible. If neither nor is possible, I have to sell some shares and transfer the money to Thailand and after selling the house to transfer the money back to Germany - where I will lose money.

[baansgr]

You could rent in Huay Yai until your house in CM is sold...rental payments will offset any interest/loan payments. Also you get to see what Huay Yai is like to live befor commiting to a purhase.

[yankee99]

I doubt your wife will get a bank loan with no income. You can not own the house so you will never get a bank loan. 

[1FinickyOne]

On 2/9/2020 at 11:08 PM, CNXexpat said:

The problem is, my wife has no income, same as me

this is really a problem... why would anyone lend money to someone w/no income? The first thing a lender looks at is ability to re-pay. There is tons of home surplus inventory in CM... mostly priced well above an uncertain market value... unless your home is very special, or very cheap, selling is becoming increasingly difficult. 

 

I think prices in CM will continue downward, but the good news is that will happen in Pattaya too.. 

 

When I was looking I called signs in front of houses and the owners had been trying to sell for so long with so few inquiries that they forgot about the house entirely,  

[legend49]

On 2/9/2020 at 8:54 PM, CNXexpat said:

It´s all a question of the price and the time I am willing to wait. But that´s not my question.

The French man who sold his house to us in CNX waited 6 years before someone bought it, and its done out in a luxurious style. Thais only like buying new stuff, houses could have bad spirits.

[Aussiepeter]

We (the missus) had our beautiful 2 storey air-con 4br 2bath with solid teak doors house on big land with lumyai (longan) orchard in Saraphi (built it 2008) on the market for nearly a year for 2.5 mill baht. It was built to cyclone/typhoon safety standards and had high grade electrics too. Had many Thai lookers, but most were just tyre-kickers who wanted to see how a farang lives, or dreamers who had no money and could never get a loan, as they were already in debt to their eyeballs. We ended up taking 1.53 mill cash in 2013, which was a bargain for the Chinese-Thai lady manager of Singha brewery CM who bought it. (We had to sell, as I needed urgent cancer treatment in Oz). We still made about 100k baht profit, but it hurt to let it go so cheap. The lady re-sold it 4 years later for 2.4 mill baht. I went to look at it last year whilst in CM - the new owner had sold off the orchard which was now 6 tiny townhouses and, had repainted it bright red with gold trim - it looked butt ugly, almost like a temple. Beauty is in the eye of the beholder, it seems. Best of luck with your sale and move south. Cheers !

[sammieuk1]

Advertise a swap maybe someone is looking to come the other way for some bizarre reason????

[JWRC]

If you decide to go with the second thought, i.e. a bank loan, then I  wouldn't put a time limit on it, I have known 2 people who have done this thinking (or hoping) there current house would sell and in both cases they couldn't get a sale in the time required which caused a heap of problems.

[Caine]

Leaving Chang Mai. For bad air quality and substituting it for foul smelling drains of Pattaya why ?

[JustAnotherHun]

On 2/9/2020 at 11:56 PM, baansgr said:

You could rent in Huay Yai until your house in CM is sold...rental payments will offset any interest/loan payments. Also you get to see what Huay Yai is like to live befor commiting to a purhase.

Good advice!

The market for homes in the Pattaya area is overflooded. There will good occasions on any price level any time you want to buy in the nearer future.

You don't have to worry if you miss a good opportunity now.

[BritManToo]

On 2/9/2020 at 6:58 PM, CNXexpat said:

What do you think makes more sense: take out a loan without a fixed term now with the existing house as security or decide on one of the houses to visit and go to the banks with the Chanot in Huay Yai to take a loan there over a year (then the other house should be sold)?

No bank will give a loan to a foreigner with an old house as collateral.

You need a Thai wage earner who can show the income to repay the loan on the new property.

 

[BritManToo]

On 2/9/2020 at 9:18 PM, Vascoda said:

I think Thai people don't prefer to buy used house for the fear of ghost in the house as they don't know if someone died there or not.

I think Thai people don't buy old houses because they can't get a loan to buy them.

Developers selling new houses have friends in the banks that will fix that small credit problem.

[Elkski]

Rent and let the housing market go down more.   Not many people can afford a 5 million  baht  house.  

[CNXexpat]

1 hour ago, Caine said:

Leaving Chang Mai. For bad air quality and substituting it for foul smelling drains of Pattaya why ?

Pattaya area, what means 20 - 30 km around, not in the middle of the city.

[mikecha]

banks in Holland and i think Germany maybe would give u a short term loan on your stocks a garantee  

 

the rent rate is very cheap better than thinking a yes i  buy new maybe sell old one 

 

others say same sell first then buy  

selling a home especialy in the north is not easy many for sale and many years empty  

 

[CNXexpat]

1 hour ago, mikecha said:

selling a home especialy in the north is not easy many for sale and many years empty

In my moo baan are 3 houses sold during the last 3 months between 7 and 11 million Baht. They were on the market for around 3 months.

[ThomasThBKK]

4 hours ago, mikecha said:

banks in Holland and i think Germany maybe would give u a short term loan on your stocks a garantee  

 

the rent rate is very cheap better than thinking a yes i  buy new maybe sell old one 

 

others say same sell first then buy  

selling a home especialy in the north is not easy many for sale and many years empty  

 

Asian banks too, as long as you use their internal broker you can loan against that as a collateral. 

[CNXexpat]

8 minutes ago, ThomasThBKK said:

Asian banks too, as long as you use their internal broker you can loan against that as a collateral. 

Perhaps Asian banks - but not Thai banks. They all want to see a regular salary. Not possible in my case . Also it´s not possible to get a loan with the collateral on one house to buy another one, sell the first one and pay the loan back - without regular salary.