Steps in purchasing condo under foreign quota?

[omnipresent]

On 5/19/2022 at 12:47 AM, Peterw42 said:

the money can always be used later for a different purchase, or spent elsewhere. And the bank would be able to generate FET/letter at a later date.

This is very good to know, especially when you want to prepare funds before deciding on an actual place to buy.

 

Instead of a huge lump sum transfer, I want to do multiple small funds transfers (e.g. 10k USD / week) from Wise (setting Purpose = "Purchase of Property") to my SCB account. When I've finally found a place to buy, I'd get the bank to create a letter based on a selection of those transfers whose total is or exceeds the purchase price. Is this possible?

 

[scubascuba3]

52 minutes ago, omnipresent said:

This is very good to know, especially when you want to prepare funds before deciding on an actual place to buy.

 

Instead of a huge lump sum transfer, I want to do multiple small funds transfers (e.g. 10k USD / week) from Wise (setting Purpose = "Purchase of Property") to my SCB account. When I've finally found a place to buy, I'd get the bank to create a letter based on a selection of those transfers whose total is or exceeds the purchase price. Is this possible?

 

With SCB, Wise reason for transfers don't work so won't be shown as International

[omnipresent]

27 minutes ago, scubascuba3 said:

With SCB, Wise reason for transfers don't work so won't be shown as International

That's strange as SCB is one of the Thai banks that are explicitly listed on their THB transfer guide, which mentions property purchase: https://wise.com/help/articles/2932335/guide-to-thb-transfers

 

If that's the case then I could open a Kasikorn account.

 

After receiving THB, would it be OK to move it out to other banks? I have high interest accounts at other banks, so want to be earning as much interest as possible whilst I spend some months looking for property. Would Kasikorn still create the letter at a later date even though the account that received the international transfers had been emptied long ago?

[scubascuba3]

15 minutes ago, omnipresent said:

That's strange as SCB is one of the Thai banks that are explicitly listed on their THB transfer guide, which mentions property purchase: https://wise.com/help/articles/2932335/guide-to-thb-transfers

 

If that's the case then I could open a Kasikorn account.

 

After receiving THB, would it be OK to move it out to other banks? I have high interest accounts at other banks, so want to be earning as much interest as possible whilst I spend some months looking for property. Would Kasikorn still create the letter at a later date even though the account that received the international transfers had been emptied long ago?

Similar problem with Kasikorn, the Wise reason for transfers only applies to Bangkok Bank, with Kasikorn you'll need to check with your branch whether they recognise Wise transfers as "International" and can produce a letter based on that, or you can supply to them Wise credit advices. I just checked my Kasikorn transfer for yesterday and it says Wise but no reference to International as expected

[Peterw42]

1 hour ago, omnipresent said:

This is very good to know, especially when you want to prepare funds before deciding on an actual place to buy.

 

Instead of a huge lump sum transfer, I want to do multiple small funds transfers (e.g. 10k USD / week) from Wise (setting Purpose = "Purchase of Property") to my SCB account. When I've finally found a place to buy, I'd get the bank to create a letter based on a selection of those transfers whose total is or exceeds the purchase price. Is this possible?

 

Yes, you can, in theory, do multiple transfers and the bank can make one FET. But why confuse the issue, just do one transfer a week before you are ready to buy. 

Also, for large amounts it works out better just to do one SWIFT transfer (a one off low fee no matter the amount) rather than the wise percentage fee multiple times. the one off fee is lower than any difference in exchange rates over time. 

Also swift transfers are international transfers, so no drama chasing up FETs for wise domestic transfers.

 

[omnipresent]

8 hours ago, scubascuba3 said:

I just checked my Kasikorn transfer for yesterday and it says Wise but no reference to International as expected

Do you mean the transaction history in internet / mobile banking doesn't show it as "International"? Maybe in their backend they see it as international, and would then produce a letter. Have you attempted to get a letter from Kasikorn in the past?

[omnipresent]

8 hours ago, Peterw42 said:

Yes, you can, in theory, do multiple transfers and the bank can make one FET. But why confuse the issue, just do one transfer a week before you are ready to buy. 

I'd only be ready to buy when I've found a place that I want, but I don't know when that'd happen. When it does happen I may not be able to send e.g. 200k USD quickly. So I'd rather gradually build up the chest in Thai bank accounts so that it'd be ready when I've found a place.

 

Can there be multiple FETs / letters for a property transaction to show to the Land Department (e.g. from different banks), or must there only be 1?

[omnipresent]

Does the Land Department really check for the "Purchase of Property" description? I had brought in funds via SWIFT in the past for extension of stay purpose, but was thinking of including them now for property purchase.

[scubascuba3]

3 hours ago, omnipresent said:

Do you mean the transaction history in internet / mobile banking doesn't show it as "International"? Maybe in their backend they see it as international, and would then produce a letter. Have you attempted to get a letter from Kasikorn in the past?

I checked the app, Kasikorn are meant to recognise the Wise transfers so they can produce the letter, but it depends on branch and staff. Best thing to do is ask your branch, usually its the International desk

[Xanthe]

On 5/18/2022 at 6:15 PM, BonMot said:

Could my Thai wife buy the condo with Thai baht and then just place my name on the chanote?

Why not just buy it in your Thai wife's name? No need for all the quota and money issue. The only issue is to check the quality of the condo. 

[Peterw42]

4 hours ago, omnipresent said:

Does the Land Department really check for the "Purchase of Property" description? I had brought in funds via SWIFT in the past for extension of stay purpose, but was thinking of including them now for property purchase.

No, the land office doesn't check the "Purchase of Property" description. I have used the 800k retire funds to get an FET in the past. The land office just wants to see a letter/FET saying X amount of foreign currency entered Thailand, in the name of foreigner etc.

The land office isn't looking at the entry on your bank statement, they look at the FET the bank produces, and the bank will usually ask the condo details and include it in the letter/FET.

[Capitalist]

On 5/28/2022 at 10:07 AM, Peterw42 said:

Yes, I sold a condo a month ago, and the buyer used wise for the transfer, bangkok bank produced a FET.

If you explore the wise website, they have section/FAQ covering how to do it.

Just out of curioisity. How long did your condo take to sell? From listing to finalization. And where was it? Any more info appreciated, as I’m currently thinking of buying one, and considering the long term scenarios.

[treetops]

On 2/16/2023 at 10:04 AM, scubascuba3 said:

I just checked my Kasikorn transfer for yesterday and it says Wise but no reference to International as expected

Kasikorn should mark international transfers as "Trade Finance Deposit" according to Wise.  Do you see that?

[scubascuba3]

5 hours ago, treetops said:

Kasikorn should mark international transfers as "Trade Finance Deposit" according to Wise.  Do you see that?

Shown as Trade Finance Deposit but that doesn't guarantee Kasikorn recognise it as International

[Mike Teavee]

21 hours ago, Peterw42 said:

No, the land office doesn't check the "Purchase of Property" description. I have used the 800k retire funds to get an FET in the past. The land office just wants to see a letter/FET saying X amount of foreign currency entered Thailand, in the name of foreigner etc.

The land office isn't looking at the entry on your bank statement, they look at the FET the bank produces, and the bank will usually ask the condo details and include it in the letter/FET.

So if I've understood correctly, I've been transferring money over for years (past few years using the "Funds for Long Term Stay in Thailand" reason to ensure it shows up in my Bangkok Bank account as a foreign transfer - FTT) so can just go into the Bank and ask them for a letter confirming how much I've transferred into Thailand and use this for a Condo Purchase?

 

 

 

Will the fact that all my money comes into my Savings Account but I've transferred the majority of it into a Fixed Deposit account (Both Bangkok Bank) change anything?

 

E.g. Lets say over the years I've transferred 8Million from UK/SG (all FTTs), spent 3Million on living costs, moved 4Million into an FD account & have 1Million in my savings account will the bank give me a letter saying

1. I've transferred 8Million 
2. I've transferred 5Million (The amount of money across both accounts)
3. I've transferred 1Million (The amount of money left in the account that I made the transfers to)

NB... These are all made up numbers, I'm just trying to understand my position as I was thinking that I had to send all of the money back to the UK & then bringing it back in again as a single transaction for the purchase of property but if I can use the money already here that would save a lot of hassle (& FX charges/losses). 

 

 

TIA

 

 

MTV 

 

 

 

 

 

 

 

 

 

[Peterw42]

9 hours ago, Capitalist said:

Just out of curioisity. How long did your condo take to sell? From listing to finalization. And where was it? Any more info appreciated, as I’m currently thinking of buying one, and considering the long term scenarios.

The condo was in Jomtien, I sold it to a neighbor, I sold it for the same amount I paid for it 8 years ago, mentioned I wanted to sell on a Monday, and we were at the land office the next Monday completing the sale. The actual sale/ title transfer can be done in a few days.

Finding a buyer may be different, but everything sells quickly with the right asking price. If a property takes time to sell, its because the seller isn't being realistic about the price.

[Peterw42]

1 hour ago, Mike Teavee said:

So if I've understood correctly, I've been transferring money over for years (past few years using the "Funds for Long Term Stay in Thailand" reason to ensure it shows up in my Bangkok Bank account as a foreign transfer - FTT) so can just go into the Bank and ask them for a letter confirming how much I've transferred into Thailand and use this for a Condo Purchase?

 

 

 

Will the fact that all my money comes into my Savings Account but I've transferred the majority of it into a Fixed Deposit account (Both Bangkok Bank) change anything?

 

E.g. Lets say over the years I've transferred 8Million from UK/SG (all FTTs), spent 3Million on living costs, moved 4Million into an FD account & have 1Million in my savings account will the bank give me a letter saying

1. I've transferred 8Million 
2. I've transferred 5Million (The amount of money across both accounts)
3. I've transferred 1Million (The amount of money left in the account that I made the transfers to)

NB... These are all made up numbers, I'm just trying to understand my position as I was thinking that I had to send all of the money back to the UK & then bringing it back in again as a single transaction for the purchase of property but if I can use the money already here that would save a lot of hassle (& FX charges/losses). 

 

 

TIA

 

 

MTV 

 

 

 

 

 

 

 

 

 

Yes, the bank should be able to use any of those past transfers to do an FET.

[nigelforbes]

1 minute ago, Peterw42 said:

Yes, the bank should be able to use any of those past transfers to do an FET.

I'm not too sure about that. 

 

If the stated purpose of the transfer was Living Expenses, that money is presumed to have been spent. I don't think it's possible to gather 10 years of living expense transfers and then demand an FET for a similar value and claim the money wasn't spent.

[Peterw42]

1 minute ago, nigelforbes said:

I'm not too sure about that. 

 

If the stated purpose of the transfer was Living Expenses, that money is presumed to have been spent. I don't think it's possible to gather 10 years of living expense transfers and then demand an FET for a similar value and claim the money wasn't spent.

The stated purpose of a money transfer is a Bank of Thailand, anti money laundering requirement, as it is with most countries central banks. There is no law that says you can only spend money on what reason you said at time of transfer. That reason usually doesn't even appear on your bank statements.

The land office just want proof of foreign currency, they dont insist on a statement of intent.

I have purchased 3 condos and never put "buy a condo" on any transfers.

[nigelforbes]

2 minutes ago, Peterw42 said:

The stated purpose of a money transfer is a Bank of Thailand, anti money laundering requirement, as it is with most countries central banks. There is no law that says you can only spend money on what reason you said at time of transfer. That reason usually doesn't even appear on your bank statements.

The land office just want proof of foreign currency, they dont insist on a statement of intent.

I have purchased 3 condos and never put "buy a condo" on any transfers.

I hear what you say but the banks are agents of the BOT, the banks have to decide if they are able to issue the FET or not. There is also a test of reasonability involved and asking for an FET to buy a condo using money that was previously declared as living expenses doesn't pass the sniff test! At a minimum, such an action will likely generate an investigation or a review of how that money was used, it may also raise money laundering concerns, it certainly would with me.

[Mickeymaus]

On 2/17/2023 at 5:28 AM, Xanthe said:

Why not just buy it in your Thai wife's name? No need for all the quota and money issue. The only issue is to check the quality of the condo. 

There are some reasons - you will give her the money for free in the end. You don't have a right to live there. Now there are options that grant you this right. But don't forget to use them. 

 

Another one is if you can buy the condo as foreigner it has often a higher price than one that can be bought in Thai name only. So you pay a higher price for a condo that a farang could buy and devalue it by buying it in Thai name. Then better look for one that only can be bought in Thai name.

 

[Mike Teavee]

21 minutes ago, nigelforbes said:

I'm not too sure about that. 

 

If the stated purpose of the transfer was Living Expenses, that money is presumed to have been spent. I don't think it's possible to gather 10 years of living expense transfers and then demand an FET for a similar value and claim the money wasn't spent.

I believe putting the reason "Funds for Long Term Living in Thailand" is just a Wise hack to ensure they route the transaction such that it shows as an FTT in your account (Transactions do seem to take longer when you use this reason). 

 

Besides, a condo purchase could be argued as part of "Long Term Living in Thailand" ???? 

 

I need to go into the branch to get a letter for my tax refund claim at some point next week so will ask about getting a Foreign Transfer Letter & see what they give me. 

[Mickeymaus]

3 minutes ago, Mike Teavee said:

I believe putting the reason "Funds for Long Term Living in Thailand" is just a Wise hack to ensure they route the transaction such that it shows as an FTT in your account (Transactions do seem to take longer when you use this reason). 

 

Besides, a condo purchase could be argued as part of "Long Term Living in Thailand" ???? 

 

I need to go into the branch to get a letter for my tax refund claim at some point next week so will ask about getting a Foreign Transfer Letter & see what they give me. 

When I bought my condo I was advised to clearly write at the transfer that this money is for purchasing a condo, 

[nigelforbes]

3 minutes ago, Mickeymaus said:

When I bought my condo I was advised to clearly write at the transfer that this money is for purchasing a condo, 

Me too!

 

This may vary from province to province or area to area, as does everything else in this country.

[Peterw42]

12 minutes ago, nigelforbes said:

I hear what you say but the banks are agents of the BOT, the banks have to decide if they are able to issue the FET or not. There is also a test of reasonability involved and asking for an FET to buy a condo using money that was previously declared as living expenses doesn't pass the sniff test! At a minimum, such an action will likely generate an investigation or a review of how that money was used, it may also raise money laundering concerns, it certainly would with me.

As I said, I have purchased 3 condos, and never specifically written any property buying statement on any transfers, and never had a problem getting FETs.

In fact, I couldn't write a statement even if I wanted to, when I transfer my bank gives the option to choose 3-4 choices from a pull down menu and thats it, no choice to write your own reason.

If I recall correctly, the bank actually asks and then adds the condo details when the produce the letter/FET. ie: (condo 123, acme condos). They dont get it from the original transfer record.

[nigelforbes]

2 minutes ago, Peterw42 said:

As I said, I have purchased 3 condos, and never specifically written any property buying statement on any transfers, and never had a problem getting FETs.

In fact, I couldn't write a statement even if I wanted to, when I transfer my bank gives the option to choose 3-4 choices from a pull down menu and thats it, no choice to write your own reason.

If I recall correctly, the bank actually asks and then adds the condo details when the produce the letter/FET. ie: (condo 123, acme condos). They dont get it from the original transfer record.

Once again, experiences will vary based on location in Thailand, bank used to transfer from and bank used to issue the FET, there probably is no one size fits all on this.

[Peterw42]

12 minutes ago, Mickeymaus said:

When I bought my condo I was advised to clearly write at the transfer that this money is for purchasing a condo, 

How and where did you write that reason ? My bank doesnt even give an option to write your own reason, they just allow to choose a reason from a pull down menu, (wages, tax, gift etc)

[Mickeymaus]

14 minutes ago, Peterw42 said:

How and where did you write that reason ? My bank doesnt even give an option to write your own reason, they just allow to choose a reason from a pull down menu, (wages, tax, gift etc)

I gave the order to the European bank and they did it accordingly. I understand your problem. But normally you can enter the text yourself for what it is. 

 

My transfer at this time was coordinated via email. There was no option to make online transfers at this time at this (very big) bank. 

 

[nigelforbes]

29 minutes ago, Peterw42 said:

How and where did you write that reason ? My bank doesnt even give an option to write your own reason, they just allow to choose a reason from a pull down menu, (wages, tax, gift etc)

HSBC UK allows you to write your own reason for the transfer.

[Mike Teavee]

1 hour ago, Mickeymaus said:

When I bought my condo I was advised to clearly write at the transfer that this money is for purchasing a condo, 

 

1 hour ago, nigelforbes said:

Me too!

 

This may vary from province to province or area to area, as does everything else in this country.

This is how I thought it was but Wise advised to use the "Funds for Long Term Stay in Thailand" reason if you wanted it to show as an FTT & the only reason I can think of for wanting to make sure it shows as a Foreign Transfer is to use for property purchases (Dee Money doesn't check where you got the THB from when sending it overseas so don't need it there).

 

There is an option on there for "Living Expenses which won't necessarily show as FTT (and will almost certainly arrive quicker) and there is also an option for "Property Purchase" (Which I've never seen mentioned by Wise and am pretty sure it wasn't there when they initially added the Reason field) that will also ensure it shows up as an FTT... 

https://wise.com/help/articles/2932335/guide-to-thb-transfers

 

If your recipient Bank is Kasikorn Bank or Bangkok Bank:

1. Set transfer amount and currency to THB

2. Add recipient details

3. Choose Kasikorn Bank or Bangkok Bank Public Company as the recipient bank

4. Enter account number

5. On Transfer Purpose: Select Funds for long term stay in Thailand or Purchase of Property

 

 

 

Will find out when I go into the bank, worse comes to the worse I'll send it all back to the UK and then bring it back in for "Property Purchase" or buy the condo in the GF's name... 

 

Related to the 2nd option, if a Condo is advertised in the Foreign Quota it tends to come with a premium so can I expect a discount if I buy it in a Thai Name and if not can I be sure to be able to sell it as "Foreign Quota" should we sell it to a Non-Thai... I suspect the answer to both of these is NO, but worth checking.