Financing?

[jasonc]

I've searched this forum a lot and read all the previous posts of financing of condos and autos. I understand the concepts and the regulations of which I've read the pages linked from the helpful posts.

Since all the money for a condo need to come documented from overseas then am I to assume all ExPats have simply saved enough cash to buy a place outright? I am not married to a Thai and have no intentions of placing it in the name of my girlfriend nor any other Thai friends. I am self employed and have great credit and am debt free. A loan for 10 times the price of a condo would be easy to secure in the States (American but can't stand Bush). I can't imagine obtaining a mortgage from home. What security would they have? Is saving really the only way to do it entirely in my name?

Same goes for motorcycles? I am serious about getting a BMW and touring Thailand but do I also have to pay cash? Will BMW do a worldwide type of loan? (I don't really know what that means). If I buy at home I can finance for 4.9% but then I have to pay for shipping. It would be for personal use so will I have to pay import taxes? What if the bike stays in my possession in LOS forever?

[ProThaiExpat]

I agree there are no really positive posts regarding financing. I would agree that most, if not all farang, have purchased their homes outright.

Having done a great deal of house purchase financing for my personal use and for speculation in the U.S., I think that basic financing principles exist in Thailand. Prejudice is another thing.

As you increase your downpayment, the less risky the loan. Your ability to repay the loan is a factor, so if you can show a legal income stream that has a reasonable expectation of continuing for the length of the loan, you are in better shape. Likewise, large amounts of savings deposits at the same bank.

What has struck me as a major hurdle, is the short length of the loans spoken of. Five years!! Could that possibly be the standard Thai home loan?

Buying from a developer is usually the best way to obtain favorable financing, either through a pre-arranged loan arrangement with a lender or from the developer himself.

If it were me, I would visit a number of developer sales offices at "projects" and take the mattter up with them. They have the inside information regarding the purchase habits of the farang buying from them and they are motivated to help you, if you convince them you are eager to buy one of their units.

[mango]

I agree there are no really positive posts regarding financing. I would agree that most, if not all farang, have purchased their homes outright.

Absoloutly right, unless the Farang has a strong legit business here with a large asset value, another thing is many farang have a business in there wifes name and she owns the mortgage and so then the property

If you are a farang working here and have a work permit you will find that in most times you will only be able to get credit worked out that you can only work here for 1 year, as there is no guarantee you will be granted a new permit at the expiration of this one. yes this is a big problem for farang here who realy do want to do the right thing but dont have the up front cash to do it.

good luck though im sure there are ways if you look for them. like everything in life, where theres a will theres a way. just dont think it will be easy or straight forward, This Is Thailand.

[Thaicoon]

I have been told if you want to buy a condo on finance that one of the only banks that will do it is HSBC, as this bank is global, and they have branches in Bangkok, my friend has done this from the UK, but he has been a customer with them for a number of years, also sometimes the agent selling the condo may arrange a loan, as these days in Thailand you can buy a condo quite reasonable, compared to the western world, take a look at some websites property for sale most of these have info on this.