Will banks give a Thai a loan for a house that's sold with a company?

[jakow]

My wife will be getting a loan to purchase a home. I've noticed that many of the homes we're interested in are sold with a company, which I'm assuming is so that a foreigner can purchase it. Will banks give a Thai person a home loan in this situation?

[baansgr]

Have the property transferred to your wife's name...the current owner still controls the company and can disolve it if they wish to. They may insist you pay the relevent transfer fees but you can negotiate on that.

[Matzzon]

Yes, they will as long as the company is transferred to your wife name as the person holding all the A-shares and the majority of the company as well as have full controll of and ownership of the assets in the company.

 

Alternatively you can dissolve the company as above already mentioned.

The only thing the bank is interested in is the credit capacity of the legal entity that pays the loan as well as the real value of the property.

[Delight]

  I think that the foreigner ,who controls the votes, can transfer the house to your wife's name.

This will mean that the foreigner controls  a company with no assets.

He has the problem of dissolving the company

 

[Matzzon]

11 hours ago, Delight said:

  I think that the foreigner ,who controls the votes, can transfer the house to your wife's name.

This will mean that the foreigner controls  a company with no assets.

He has the problem of dissolving the company

 

Sure it´s a good idea and a good advice. However, you are missing the point. The person selling the house, advertise it with the sale of a company where the assets in the company is the house. They are doing that because they do not want the cost not the problem with dissolving the company. If not it would have been much easier for them to sell the house without the company.

[Langsuan Man]

Just because they advertise it with the company there is nothing requiring the buyer to take the company also

 

As stated above, the Land Office will accept the transfer from the company so long as the company is "up-to-date" and the relevant paperwork is filed with the Land Office

 

Most times, buyers and sellers agree to split the transfer fees, if the seller in this case will not, then walk away, there are plenty of houses for sale here 

 

The company route is only advantageous to the seller in this case, since selling the company with the house will save them any land transfer fees, the whole reason for Thais to own companies, not so that foreigners can control property as most believe 

[phantomfiddler]

Yes the bank will load the money, it used to be up to 60%, but the ownership of the property is put in the bank,s name until the loan is completely paid off, at which point they will transfer to the wife,s name, or if you don,t trust her 100%, into a company name with you as a director. Tried and tested, no problems ????

[LukKrueng]

16 hours ago, jakow said:

My wife will be getting a loan to purchase a home. I've noticed that many of the homes we're interested in are sold with a company, which I'm assuming is so that a foreigner can purchase it. Will banks give a Thai person a home loan in this situation?

A bank will give a house loan for buying a house, not a company. The way you described the situation is not correct. It is NOT a house sold with a company. It is actually a company sold, and part of the company's assets is a house. The bank won't give a house loan for the purpose of buying a company

[sencelebi]

That will be considered as  a  bussiness loan not a house loan.You are buying a company not a house. real estate is company's asset. If the real estate is not used as an income property the answer is no you cant get a bussiness loan either. Bank will want to see P&L statements. If company is not generating profit then you can't get a bussiness loan.

Edited June 16, 2020 by sencelebi

[david555]

Remember the end user of the company is responsible for all before in case of dissolving it….. better agree to buy in her Thai name , and let the owner end the company form  as he knows the history of it (if he started the company …., or worse if he took already over from others and don't know former history before him ... )….then it may give surprises...!

compare it  with buying a dog with flies ….55555

 

Let owner clear it up ,he may count himself be happy some one wish to buy his property in this bad economic times !

 

(many "company form owners" like to sell because the responsibility & so risks they took on their shoulders ) 

Edited June 16, 2020 by david555

[baansgr]

26 minutes ago, david555 said:

Remember the end user of the company is responsible for all before in case of dissolving it….. better agree to buy in her Thai name , and let the owner end the company form  as he knows the history of it (if he started the company …., or worse if he took already over from others and don't know former history before him ... )….then it may give surprises...!

compare it  with buying a dog with flies ….55555

 

Let owner clear it up ,he may count himself be happy some one wish to buy his property in this bad economic times !

 

(many "company form owners" like to sell because the responsibility & so risks they took on their shoulders ) 

A simple check at DBD can  can find any issues regarding companies.

[david555]

14 minutes ago, baansgr said:

A simple check at DBD can  can find any issues regarding companies.

I am still not convinced , if really she like a company form for whatever reason , she could make her own starting one for a 40 000 baht , so a  all virgin company 

Edited June 16, 2020 by david555

[finnishmen]

only idiot buy house foreign price 3-13 million because same house can buy thai 1 million or less. and cheapen have build diy same house. cost lot less, 500 000 B can build big house in thailand, but foreign not need bank loan if wanbt little house to thailand, wife have .ALL normal thai woman have own land, its tradition father buy ewery daughter own land, rice land or house land. if marry good thai you have sure wife land were can build house. 4000 $ can build little 2 room,1 bathroom,kitchen house to land , all europe better guality,elektric,tiles,painted,handmade build aluminium windows, big bathroom,hot water, wery cheap if can do diy or whit wife brother build all diy,easy job, no need brains lot or power lot, only buy parts and install to concrete lap. wall,windows,all. easy work. ewery normal men can build house. i has build 200 house my job. super simple job. only big idiot waste money 5-20 million in thailand house, ower price lot sell stupid falang many cheap house ower price, if thai build house 400-700 000B him sell this foreign 5 million, if in city thai build 1,2 million 2 store house him sell this foreign 3-7 million B this is true. only center city have expensive byu house because land cost more than all houses. normal today have city land cost 3 million and thats top house cost 500 000 B same build countryside land cost 100 000 and house thats diy build 200 000 B lot cheapen ,better, silent live out of city.

writer has build 4 house in thailand own and customer and know sure what all have.

Edited June 16, 2020 by finnishmen

[Delight]

11 hours ago, phantomfiddler said:

Yes the bank will load the money, it used to be up to 60%, but the ownership of the property is put in the bank,s name until-details as per the loan is completely paid off, at which point they will transfer to the wife,s name, or if you don,t trust her 100%, into a company name with you as a director. Tried and tested, no problems ????

The bank buying the house is ,I think, the only solution-details as per phantomfiddler

[crazykopite]

I don’t think so if it’s in your wife’s name the seller will have to sell without the company which means the seller would have to pay a lot more in taxes I experienced this a few years back when I was selling and although the property I was selling met the valuation of the bank it fell trough due to the wife’s income they told her she would have to pay a higher deposit and as I had dropped it considerably I wasn’t prepared to drop it any further so the deal was off which saved me a bundle of cash I sold it 6 months later with the company to a foreign cash buyer.

 

[crazykopite]

On 6/16/2020 at 6:31 AM, Matzzon said:

Sure it´s a good idea and a good advice. However, you are missing the point. The person selling the house, advertise it with the sale of a company where the assets in the company is the house. They are doing that because they do not want the cost not the problem with dissolving the company. If not it would have been much easier for them to sell the house without the company.

Having sold property by way of a company transfer I have never had any problems if your company is up to date and you have 5 years of audited accounts to satisfy the seller I don’t see an issue and even though I have sold the company / property I have never done a disappearing act I have kept contact with the buyer just in case he/she needs to ask further questions. There is nothing to worry about if your upfront with the buyer every property I have had I always make a self contained apartment so if you want to run a business you can. My current property is also done in the same way indeed the apartment has its own house registered blue book in other words my company has two properties in a courtyard style with a swimming pool between them so in theory it could be run as a business one for guests and the other for the company directors please note I am not married to a Thai if I was there would be no need to go down the company route however most houses owned by foreigners are far better designed than Thai houses and most of these houses are by company ownership or the 30+30/lease.

Edited June 17, 2020 by crazykopite

[Matzzon]

4 hours ago, crazykopite said:

Having sold property by way of a company transfer I have never had any problems if your company is up to date and you have 5 years of audited accounts to satisfy the seller I don’t see an issue and even though I have sold the company / property I have never done a disappearing act I have kept contact with the buyer just in case he/she needs to ask further questions. There is nothing to worry about if your upfront with the buyer every property I have had I always make a self contained apartment so if you want to run a business you can. My current property is also done in the same way indeed the apartment has its own house registered blue book in other words my company has two properties in a courtyard style with a swimming pool between them so in theory it could be run as a business one for guests and the other for the company directors please note I am not married to a Thai if I was there would be no need to go down the company route however most houses owned by foreigners are far better designed than Thai houses and most of these houses are by company ownership or the 30+30/lease.

Never said anything about good or bad with a company together with the house. I just posted about the reason why they sell it with the company. and that is because they do not want the costs of transfer as well as dissolving an empty company.

[crazykopite]

15 hours ago, Matzzon said:

Never said anything about good or bad with a company together with the house. I just posted about the reason why they sell it with the company. and that is because they do not want the costs of transfer as well as dissolving an empty company.

I wasn’t having a go at you I was just giving my experience with selling properties I have owned by way of a company set up in order to give the individual who asked the question my experiences , a lot of the time you get key board warriors who spew out verbal diarrhoea even though they have never owned a property by a company set up . 

[Matzzon]

1 hour ago, crazykopite said:

I wasn’t having a go at you I was just giving my experience with selling properties I have owned by way of a company set up in order to give the individual who asked the question my experiences , a lot of the time you get key board warriors who spew out verbal diarrhoea even though they have never owned a property by a company set up . 

Sure, but there is a little bit more to it than just buy a house and have the possibility to run a business. You can not work with anything in the company if you do not employ 3-4 thai nationals.