Rent To Buy

[husskydog]

This may be a daft question but i cant find any examples of the term RENT TO BUY in Los.

I was looking at putting say 3/4 cost down on an off plan house when i move over to Los shortly, i dont mean usual short term installments on off plan houses, i mean like the balance paid like a rental sum over say 6 years...Ok please dont laugh to loud.....

[johnnyk]

Because developers/owners are not interested in "rent to buy". They want the money and not ongoing hassles with "rent to buyers".

Rent to buy is also known as a mortgage, not available to falangs in Thailand except through convoluted stuff involving Thai banks in Singapore.

[bob4you]

I did the equivalent of it by doing a contract for sale, putting 60% down, (to the sellers loan) then had the seller sign over the transfer papers to me or my corporation or whomever I assign at the end of the contract when the loan is paid up in full.

Edited March 20, 2008 by bob4you

[zorro1]

I did the equivalent of it by doing a contract for sale, putting 60% down, (to the sellers loan) then had the seller sign over the transfer papers to me or my corporation or whomever I assign at the end of the contract when the loan is paid up in full.

Common practise in oz however extremely risky. landlords love this scenario because if its a standard vendor finance agreement there will be a clause saying if you default the contract becomes null and void, in other words your screwed you lose the lot, your deposit and any payments you have made.

[johnnyk]

This is also known as a "vendor take back".

Its a mortgage held by the seller rather than a financial institution and is not uncommon in the west.

Good luck finding it in Thailand.

[Farma]

We’ve done something similar in a private sale. The private seller agreed to partial payments every 6 months. 20% deposit with 4 x 20% payments. The contract was written by a lawyer and the deal went through. At final payment the ownership was transferred to us.

[bob4you]

I did the equivalent of it by doing a contract for sale, putting 60% down, (to the sellers loan) then had the seller sign over the transfer papers to me or my corporation or whomever I assign at the end of the contract when the loan is paid up in full.

Common practise in oz however extremely risky. landlords love this scenario because if its a standard vendor finance agreement there will be a clause saying if you default the contract becomes null and void, in other words your screwed you lose the lot, your deposit and any payments you have made.

Very true, but if you default on a mortgage same, same. But foreigner cannot qualify for a mortgage without work permit or high income from abroad.

[zorro1]

I did the equivalent of it by doing a contract for sale, putting 60% down, (to the sellers loan) then had the seller sign over the transfer papers to me or my corporation or whomever I assign at the end of the contract when the loan is paid up in full.

Common practise in oz however extremely risky. landlords love this scenario because if its a standard vendor finance agreement there will be a clause saying if you default the contract becomes null and void, in other words your screwed you lose the lot, your deposit and any payments you have made.

Very true, but if you default on a mortgage same, same. But foreigner cannot qualify for a mortgage without work permit or high income from abroad.

Not really. Usually in the west vendor finance is offered to the desperate, you know the ones that are duds and cant get finance(why else would you do it) The vendor holds all the cards and usually charges over the top interest and you default and that's it no second chances. With a bank you can refinance, sell for the equity etc etc

[egg6447]

This is also known as a "vendor take back".

Its a mortgage held by the seller rather than a financial institution and is not uncommon in the west.

Good luck finding it in Thailand.

hey hansum man, where in the west is this so???. of course ive heard of it and am considering this very scenareo for a family member. never known anyone with this type of mortgage.

[husskydog]

Will have enough for a good down payment and regular pension (company) payments, i just dont want to waste standard monthly rentals eating away at my income when they could be used to pay back the balance....surely there is some option.

Would it be best to stand as reference for my tee rak and try and get the mortgagae through her, she`s only 20years old (little sweety) and has a low payed job and no real money status...and i worry about putting it all in her name of course....what you think..ta

[johnnyk]

This is also known as a "vendor take back".

Its a mortgage held by the seller rather than a financial institution and is not uncommon in the west.

Good luck finding it in Thailand.

hey hansum man, where in the west is this so???. of course ive heard of it and am considering this very scenareo for a family member. never known anyone with this type of mortgage.

Certainly in the US and Canada the vendor can offer it and its not uncommon at all. This doesn't mean its widespread because most buyers are not familiar with it and find it more convenient to go to a lending institution. Second, it requires more paperwork on the part of the seller and real estate paperwork = $ + lawyers.

A good friend retired in SEA was a successful estate agent in Long Beach, CA and he holds several mortgages quite successfully in this way back in the US.

Basically, you have to find a seller willing to do it. But the buyer can always suggest it and some sellers will do it for a few points above market rate others will do it for a few points less to make it attractive. They feel they can do this as they hold the cards - miss a payment or three and you're gone minus your downpayment. Before the subprime crisis, if the mortgage holder needed cash h could sell the mortgage to lending institutions at a slight discount. Probably pretty hard to do this now though.

Anyway, if you're living in North America, ask around you'll find its out there.

[zorro1]

There is also a bank in Singapore that lends money to farang to buy in Thailand but cant think of their name. There the only ones who do it.