Home Purchase

[pibill]

Just wondering if anyone could clarify the changes made regarding the purchase of a house in Thailand. My wife is currently in LOS and attempted to apply for a mortgage for a home in Phuket. Originally, the bank told her she needed to put down 20% and show proof of employment/assets, etc. She provided the bank with papers showing ownership of our house in Ban Pong and proof of employment, which included pay stubs and a letter of employment showing the length of time at the company, salary etc. When the bank noticed that she worked in the US and was married to a foreigner, they said she would need to put 50% down and have me sign papers as well (the original intent was to have my wife do a sole purchase). I offered to fax whatever papers they needed and was told that I had to either sign in person at the bank in Phuket or go Washington and have everything validated at the Thai Embassy (neither of which is an option at this time).

Three years ago we purchased the place in Ban Pong and I wasn't asked to sign anything at the Ampur (we didn't go to the bank for financing); it was a sole purchase by my wife, which is how we wanted it done this time. During that same time period a friend in Phuket did make a purchase with financing and was only required to put 25% down and show proof of employment (by the Thai wife). The bank stipulated that the house had to be in the Thai National's name, but he was not required to sign any papers. So it appears that either the government or the banks have made some policy changes, not sure by whom. So, as it stands now it looks as though we can't go ahead with the place in Phuket, which may be a blessing in disguise what with the devalued dollar. In either case I would appreciate any info on the current mortgage/ownership requirements by either bank or government policy changes.

Thanks in advance

[dominique355]

This is odd, because we just bought land here in Bangkok (one month ago) and I (farang husband) had to sign a document at the Land Office as her husband. Same thing happened four years ago when we bought a house here.

So the question is if you or your wife did everything correct. Did she inform the Land Office that she is married (and does she bear your family name) ?

3 years ago we also applied for a mortgage at a local bank. We had to put down 25 % and I had to confirm I had a job. Funny thing was, the bank wanted to know what Credit Cards I have. Things went quite smoothly and the mortgage was granted within 3 weeks. I had to sign all the papers together with my wife.

I just read in today's Thai newspaper (The Nation) that SMEs have problems getting a bank loan for real estate projects and many projects are stopped (http://www.nationmultimedia.com/2007/04/30/business/business_30032995.php).

[soundman]

I think you will find that the banks are just adjusting their lending focus to the current political & economic environment.

Anything to do with foreigners living in LOS, the banks are taking the postion of "skating on thin ice" these days. Also, the banks can see the economy & the property market going down the drain, even though the current regime won't admit it.

Therefore, to lessen their exposure, the banks are tightening their lending policies, & asking for much high deposits, on what they currently perceive to be over-valued & inflated selling prices.

Five years ago, where I live, banks were lending up to 90% of the land departments property valuation on un-devolped blocks. These days they are lending about 50% of the land departments property valuation on un-devolped blocks, & also having a really good look at your repayment ability.

As to counter-signing the loan, that is normal procedure for any married couple, whether it be thai-thai or thai-falang.

Cheers,

Soundman.

[gregchambers]

sigming at the land office, I think, is confirmation that all the dosh is coming from the wife and not you...