Loans For Buying A Condo

[TeacherMali]

I am a Canadian, interested in buying a condo here in Thailand.

I have been working in Thailand for over 2 years and I have a valid work permit and VISA, but apparently this doesn't matter.

From what I found out today, the banks are no longer allowed to lend foreigners any money at all. Foreigners cannot get loans or mortgages.

Can anyone recommend how else I could try to get the money?

Does anyone know anything about off-shore loans?

Thanks

[eljeque]

I know an agnt in Pattaa who has become friendly with a bank in Pattaya who has been able to get foreigners financed who have :

work permits

money in the bank

stable jobs for an extended period of time

good credit here

PM me and I will be happy to put you in touch with him

[puuchai299]

I have seen quite a few condo owners offering to finance there condo themselves,maybe you can advertise in local paper saying your looking to buy from owner financed.

[Ungabunga]

I know an agnt in Pattaa who has become friendly with a bank in Pattaya who has been able to get foreigners financed who have :

work permits

money in the bank

stable jobs for an extended period of time

good credit here

PM me and I will be happy to put you in touch with him

With these criteria you can go to the bank yourself and ask the manager. For your first port of call try Kasikorn Bank as I understand that they're currently offering this service. SCB amongst others are really tough and are not extending credit to foreigners until the government or BOT gives the nod. Bangkok Bank branch in Singapore will allow you to 'mortgage' or have leverage on any existing property within Thailand.

[thaigene2]

I am a Canadian, interested in buying a condo here in Thailand.

I have been working in Thailand for over 2 years and I have a valid work permit and VISA, but apparently this doesn't matter.

From what I found out today, the banks are no longer allowed to lend foreigners any money at all. Foreigners cannot get loans or mortgages.

Can anyone recommend how else I could try to get the money?

Does anyone know anything about off-shore loans?

Thanks

In short. No - you've found out the bottom line already. Many of us are waiting to see if this will change, but it seems unlikely at present anyway. Even if you did get a Thai loan that wouldn't sort out the issue of registering the title in your own name at the Land Office. You can't use Thai baht to purchase a condo - even if a Thai bank would lend it to you.

You need to bring 100% of the purchase price into the country (in foreign currency, CAD$ or whatever) and prove this by getting Foreign Exchange Certificates (FEC's) from the Thai receiving bank that totals the amount of the purchase. Otherwise the Land Office won;t register the property - in other words - catch22 - you've paid, received the keys, but don't legagly own it. There are several people in this boat.

That's why the Bangkok Bank branch in Singapore was the only real option before - but it was expensive and restrictive. That loophole closed too. I don;t believe the posts that say it's working again, but check it yourself. Just phone them and ask - that's the best way.

The way I see it, Thailand doesn't want foreigners here except well-healed rich people who are content with buying and then only spending a couple of months a year here.

You need to consider your long-term visa viability too..Will you really be able to stay here long-term? It's not up to you it's up the ever-changing whims of the Thai authorities. Stick around a while and think about it.

[trajan]

I am a Canadian, interested in buying a condo here in Thailand.

I have been working in Thailand for over 2 years and I have a valid work permit and VISA, but apparently this doesn't matter.

From what I found out today, the banks are no longer allowed to lend foreigners any money at all. Foreigners cannot get loans or mortgages.

Can anyone recommend how else I could try to get the money?

Does anyone know anything about off-shore loans?

Thanks

I think there is some hope for you....

I just received in the mail (in Bangkok) a brochure/loan application form from UOB Bank Thailand entitled "Own Your Dream Condo in Thailand!" this is obviously targeted at expats in Thailand (and Singaporeans)...

it encloses a name card "Yupadee Boonchawal" head office at 191 South Sathorn Road (I think thats the Robot building?) 02-2343-4747

(P.S. Im not recommending or endorsing them, just passing along information I received)

[andy1308]

On the issue of Thai money for buying condos, I've been told twice in the last couple of weeks that because I live here, work here earning Thai baht and have nothing in the way of accounts outside Thailand then I can use Thai baht to purchase a condo. I'm not saying that's correct - just passing on what I have been told by two seperate developers.

[Prakanong]

I have seen UOB advertising here in Singapore to lend to expats fopr property purchase in Thailand

Earning over 100K Sing a year (Most will be) and up to 70% of purchase price.

[trajan]

yup, the conditions state (among other things):

minimum income USD65,000 per yr (SGD100,000)

up to 70% loan on purchase price or valuation (whichever is lower)

loan term: 3 years up to 20 years (but you must be 65 years or younger at the end of laon term)...

loan amount: Baht2.5 up to Baht25 million

loan currency USD or SGD...

loan processing fee of USD2K upon accepting bank offer....

sounds very doable for working expats right?

[trajan]

On the issue of Thai money for buying condos, I've been told twice in the last couple of weeks that because I live here, work here earning Thai baht and have nothing in the way of accounts outside Thailand then I can use Thai baht to purchase a condo. I'm not saying that's correct - just passing on what I have been told by two seperate developers.

sorry, but I dont think thats right.....if you are a foreigner (without a "residence permit") and plan on having the condo title deed in your own name, you must have the "foreign exchange certificates" evidencing inward remittance of money into Thailand for the purpose of buying the condo....I know of a few expats (without liquid funds outside Thailand) actually sending Baht out and then remitting same back in, but the FX and fee expense is sometimes brutal...

at the condo title deed transfer at the Land Office, they will ask to see these foreign exchange certificates... maybe the developers are able to arrange these FECs if you give them Baht?? not sure, but I would be a bit careful on this point...

[andy1308]

Trajan - I don't doubt what you're saying is the truth (and that truth seems to vary almost daily here depending on who you talk to).

Just my explanation from two seperate sources was that evidence of money earned here (such as WP, tax receipts, bank account, pay slips, etc) would negate the need for the 'funds from overseas'.

Perhaps this is new, perhaps this is just someone trying to get a quick sale from an uneducted farang? I don't know ... and I guess I won't know until I decide to actually buy something. That's not going to be soon though ... so I can't prove either way.

[Prakanong]

yup, the conditions state (among other things):

minimum income USD65,000 per yr (SGD100,000)

up to 70% loan on purchase price or valuation (whichever is lower)

loan term: 3 years up to 20 years (but you must be 65 years or younger at the end of laon term)...

loan amount: Baht2.5 up to Baht25 million

loan currency USD or SGD...

loan processing fee of USD2K upon accepting bank offer....

sounds very doable for working expats right?

It does sound doable - a year ago I would have done it but changing personal circumstances are making me hold off - I do have a pal considering it right now. It might be cheaper for him to buy somewhere up there.

I am looking at a car crash in slow motion with him and his Thai GF though so hope he does not install her there ;-)

[trajan]

Trajan - I don't doubt what you're saying is the truth (and that truth seems to vary almost daily here depending on who you talk to).

Just my explanation from two seperate sources was that evidence of money earned here (such as WP, tax receipts, bank account, pay slips, etc) would negate the need for the 'funds from overseas'.

Perhaps this is new, perhaps this is just someone trying to get a quick sale from an uneducted farang? I don't know ... and I guess I won't know until I decide to actually buy something. That's not going to be soon though ... so I can't prove either way.

which developers are giving out this info? perhaps there is a misunderstanding/mis translation?....

Edited July 9, 2007 by trajan

[andy1308]

Trajan - I don't doubt what you're saying is the truth (and that truth seems to vary almost daily here depending on who you talk to).

Just my explanation from two seperate sources was that evidence of money earned here (such as WP, tax receipts, bank account, pay slips, etc) would negate the need for the 'funds from overseas'.

Perhaps this is new, perhaps this is just someone trying to get a quick sale from an uneducted farang? I don't know ... and I guess I won't know until I decide to actually buy something. That's not going to be soon though ... so I can't prove either way.

which developers are giving out this info? perhaps there is a misunderstanding/mis translation?....

AP and Fragrant Group were the two developers in question - and my Thai girlfriend (a qualified lawyer) was with me and double-checked what they were telling me in Thai. It was purely verbal and I don't have anything in writing - but perhaps it's worth trying to get something in writing for the benefit of others.

[TheChiefJustice]

AP and Fragrant Group were the two developers in question - and my Thai girlfriend (a qualified lawyer) was with me and double-checked what they were telling me in Thai. It was purely verbal and I don't have anything in writing - but perhaps it's worth trying to get something in writing for the benefit of others.

Unfortunately, it does not matter whether they confirm their advice to you in writing or not. They are wrong. Unless a foreigner has a Certificate of Residence (more commonly known as PR) the Land Department will not register the condominium in the foreigner's name without proof that the funds used to purchase the property came from abroad.

[trajan]

Trajan - I don't doubt what you're saying is the truth (and that truth seems to vary almost daily here depending on who you talk to).

Just my explanation from two seperate sources was that evidence of money earned here (such as WP, tax receipts, bank account, pay slips, etc) would negate the need for the 'funds from overseas'.

Perhaps this is new, perhaps this is just someone trying to get a quick sale from an uneducted farang? I don't know ... and I guess I won't know until I decide to actually buy something. That's not going to be soon though ... so I can't prove either way.

which developers are giving out this info? perhaps there is a misunderstanding/mis translation?....

AP and Fragrant Group were the two developers in question - and my Thai girlfriend (a qualified lawyer) was with me and double-checked what they were telling me in Thai. It was purely verbal and I don't have anything in writing - but perhaps it's worth trying to get something in writing for the benefit of others.

OK probably not a mis-translation, just wrong in substance....

[Fred Sanford]

On the issue of Thai money for buying condos, I've been told twice in the last couple of weeks that because I live here, work here earning Thai baht and have nothing in the way of accounts outside Thailand then I can use Thai baht to purchase a condo. I'm not saying that's correct - just passing on what I have been told by two seperate developers.

Never trust someone trying to sell you something. My experience with those guys is they will tell you anything to make a sale

[thaigene2]

AP and Fragrant Group were the two developers in question - and my Thai girlfriend (a qualified lawyer) was with me and double-checked what they were telling me in Thai. It was purely verbal and I don't have anything in writing - but perhaps it's worth trying to get something in writing for the benefit of others.

Unfortunately, it does not matter whether they confirm their advice to you in writing or not. They are wrong. Unless a foreigner has a Certificate of Residence (more commonly known as PR) the Land Department will not register the condominium in the foreigner's name without proof that the funds used to purchase the property came from abroad.

Yes this is the case. Forget what the salesperson (developer) tells you ffor rather obvious reasons. Seems self-evident to me but whatever..delude yourself if you wish..caveat emptor. The law is crystal clear on this point. 100% of the purchase price must be remitted to Thailand from abroad for a foreigner to register the purchase of a condo. That was Bangkok Bank's (singapore branch's) selling point - lend you money by a thai bank in foreign currency - from abroad to buy a condo in their country. Now defunct as far as I know.

Edited July 9, 2007 by thaigene2