G'day,

We are going to buy a house and want to structure it in such a way that I will lease the house from my wife. I would like to know if we want to take a loan in the US to buy a house there later (and I can use the house as collateral), will :

1) The "lease" work against or for me? I don't want it to be seen as having a debt elsewhere.

2) Can the wife's ownership of the house/land be used with my application of the loan? If so, then I don't need the lease at all.

thanks

Matt

If you are asking if you can mortgage your wife's Thai property in the US, then I would say no you cannot. Best ask the US bank.

G'day,

We are going to buy a house and want to structure it in such a way that I will lease the house from my wife. I would like to know if we want to take a loan in the US to buy a house there later (and I can use the house as collateral), will :

1) The "lease" work against or for me? I don't want it to be seen as having a debt elsewhere.

2) Can the wife's ownership of the house/land be used with my application of the loan? If so, then I don't need the lease at all.

thanks

Matt

US banks will not accept foreign real estate assets as collateral for a loan.

A compelling reason to consider the simple, inexpensive and hopefully effective process of USUFRUCT, rather than a "lease" is the MAJOR difference in cost at the respective Thailand Government office. If you look on this forum at actual members experiences of successfully registering a Usufruct including the nominal posted Government costs, then COMPARE the actual cost of registering a 20 year or 30 year lease in mandated government fees (based on your declared lease basis) you will see a real difference. Then the subject of paying Thailand income tax on "Lease Income" raises it's confusing head. Many people who have a house built have a usufruct with the Thai wife on the LAND, since she owns the land as a general rule, and the husband can OWN the house since the building permit is in his name only. Other members of Thai visa might have better more experienced opinions on how a usufruct could be registered on a house/land bought together already owned by a previous party OR from a housing developer. I hope this gives you some avenues to investigate.

A compelling reason to consider the simple, inexpensive and hopefully effective process of USUFRUCT, rather than a "lease" is the MAJOR difference in cost at the respective Thailand Government office. If you look on this forum at actual members experiences of successfully registering a Usufruct including the nominal posted Government costs, then COMPARE the actual cost of registering a 20 year or 30 year lease in mandated government fees (based on your declared lease basis) you will see a real difference. Then the subject of paying Thailand income tax on "Lease Income" raises it's confusing head. Many people who have a house built have a usufruct with the Thai wife on the LAND, since she owns the land as a general rule, and the husband can OWN the house since the building permit is in his name only. Other members of Thai visa might have better more experienced opinions on how a usufruct could be registered on a house/land bought together already owned by a previous party OR from a housing developer. I hope this gives you some avenues to investigate.

I agree with you that a usufruct is a better way to go than a land lease although there are advantages and disadvantages with both alternatives. A usufruct may also be complemented with a land lease or a superficies. When buying an already built home the land and the house can be divided although the process is a bit complicated.

Thanks for your thoughts.

If the US banks will not let me use the Thai property as collateral, then there is less push for me to organize the usufruct. Unless it makes my application for non-O in the future "easier" by saying I have a house in Thailand, than saying I have funds in an overseas bank.

Matt

Nobody has ever reported that it is easier to get a visa when owning a house as opposed to having cold, hard cash in a Thai bank. All the visa regulations speak of cash and not property value.

G'day,

We are going to buy a house and want to structure it in such a way that I will lease the house from my wife. I would like to know if we want to take a loan in the US to buy a house there later (and I can use the house as collateral), will :

1) The "lease" work against or for me? I don't want it to be seen as having a debt elsewhere.

2) Can the wife's ownership of the house/land be used with my application of the loan? If so, then I don't need the lease at all.

thanks

Matt

I would say that superficies might be a much better way, maybe also usage rights all depends on your needs of security as I understand you are not going to pay rent to your wife in reality. The banks in the US might use the property as collateral, but this is unlikely if you have any encumbrances (usufruct, superficies, lease or usage rights) registered against the property, surely a Thai bank would not accept such at all, but US banks might be different. You will really have to check in the US for such issue.