Loans In Thailand

[muaythaifarang]

Hi people,

A friend of mine would like to sell their apartment which is located in Promthep Cape. I was thinking about getting a loan in Australia (my home country) and using it as a holiday apartment and renting it out through out the year through the company that managers the properties but the banks tell me unless i own proprty in Australia to borrow against then you will be hard pressed to borrow to buy an international property.

How does it work in Thailand. Could a tourist borrow from a Thai bank for a Thai Property or am i in Fairy land? I am coming to check out the proerty in 6 weeks and speak to a few borrowers.

If i earn a good wage in Australia and the proterty COULD be positive geared will any banks in Thailand touch a foreigner?

I look forward to your input.

[gusgorman]

Hi people,

A friend of mine would like to sell their apartment which is located in Promthep Cape. I was thinking about getting a loan in Australia (my home country) and using it as a holiday apartment and renting it out through out the year through the company that managers the properties but the banks tell me unless i own proprty in Australia to borrow against then you will be hard pressed to borrow to buy an international property.

How does it work in Thailand. Could a tourist borrow from a Thai bank for a Thai Property or am i in Fairy land? I am coming to check out the proerty in 6 weeks and speak to a few borrowers.

If i earn a good wage in Australia and the proterty COULD be positive geared will any banks in Thailand touch a foreigner?

I look forward to your input.

You will not get Thai bank to lend you the money as you do not work here. You may get an Aus bank to lend you money if you are credit worthy and if the property is what is known as a foreign freehold title. I suggest you ask your bank in Aus if they will loan on a Thai apartment assuming it is freehold.

[eljeque]

For all practical purposes, foreigners pay cash for property here. Only the rare case does a "foreigner" arrange for a loan in any manner.

One friend arranged a loan through his maid and her son, and another friend got a loan through a friend's wife.

It is not impossible for a foreigner to get a loan, if he has a work permit, great credit here, etc.

I wish you luck, and please report back with your findings.

[ShugNorris]

Yeah it's nigh on impossible to take out a loan in Thailand, the first advice is best, get a personal loan. I'm looking at building a house in Trang budgeted at about 3 million or so.

My wife to be in a week is from Trang though and can take out 50% of the value of the property as a mortgage but must front up the other half. Effectively I'll have to supply 1.5 million baht which is about £24 000. Have to personal loan it though, if my credits good enough.

If you do take a personal loan out though, try and take your cash through customs as opposed to transferring it. if you take cash you get a better rate. Just watch out for seizures etc.

I took £8000 through last week though and it was fine, saved about £700 quid by doing so.

60 baht in the uk, 65 in Thailand.

I'm 23, I'd get a mortgage in the UK for a house in Thailand if I could but think it's impossible.

Hope this kinda helps!

Edited July 30, 2008 by ShugInternational

[RAZZELL]

Yeah it's nigh on impossible to take out a loan in Thailand, the first advice is best, get a personal loan. I'm looking at building a house in Trang budgeted at about 3 million or so.

My wife to be in a week is from Trang though and can take out 50% of the value of the property as a mortgage but must front up the other half. Effectively I'll have to supply 1.5 million baht which is about £24 000. Have to personal loan it though, if my credits good enough.

If you do take a personal loan out though, try and take your cash through customs as opposed to transferring it. if you take cash you get a better rate. Just watch out for seizures etc.

I took £8000 through last week though and it was fine, saved about £700 quid by doing so.

60 baht in the uk, 65 in Thailand.

I'm 23, I'd get a mortgage in the UK for a house in Thailand if I could but think it's impossible.

Hope this kinda helps!

Apart from the fact that you need a FET form if you ever sell an apartment and want to take the money out of Thailand

RAZZ

[ShugNorris]

Ok, I never mentioned it but it's no big deal as long as you dont forget to do it.

[MojoJojo]

It is quite hard for foreigners to borrow in Thailand.

I've been working here for almost 4 years, my credit is good, my contract is open-ended and work permit is renewed every 2 years. i even have LTF/RMF here.

I reserved condo unit and final payment is due in january. tried to talk to every bank i can think of, big and small, (even used some Thai friends who have connections with the banks) and every bank said i cant borrow unless i'm married to a thai. putting the property under a friend's name is not a good idea IMO (although i guess this is the simplest way to get around it).

if anyone here finds a way, please do share. (btw, Bangkok Bank / UOB Singapore is not an option for me since the property i'm looking at is leasehold).

Thanks.

[quiksilva]

MojoJojo, hardly anyone will lend on leasehold condo's even to Thais. Your best bet, is to walk away and find yourself a project that you like which offers freehold units.

[saroq]

About one year ago I was told that the Bangkok Bank would arrange loans for foreigners to purchase property. The requirement was a 30% deposit and the loan was processed in Singapore so that Thailand got the desired foreign currency. I don't know if the purchaser had to be working here. Before everyone jumps down my throat I cannot vouch for the accuracy of this information. It was something I was told by a Thai citizen who invests in property. I offer it only as a possibility and think it would be worth your while to make some enquiries of the Bangkok Bank.