Financing A Condo

[dgarmaise]

I am here on a tourist visa. I own a modest condo in Pattaya. If I want to purchase something fancier, and if I don't have the cash, is there a way that I can obtain a mortgage or loan in Thailand? How would that square with the need to demonstrate that the money for the purchase is coming from outside the country? I don't think I can borrow from a bank back home (in Canada) because (a) the property is not in Canada and ( I don't currently own property in Canada. Is there a way to make this work?

[sonthaya]

I'm not quite sure how it works now, I bought a condo in Phuket and made a down payment of 2000 $ the price for the condo 2,5 Mil bath and it was financed by Siam commercial bank.

The bank held the titledeed until I completed the payments, but mind you the interest was high, and I recall having to provide a letter from my employer stating my salary and lenght of service with the company, but I don't know if it's still the same rules.

[OldAsiaHand]

I am here on a tourist visa. I own a modest condo in Pattaya. If I want to purchase something fancier, and if I don't have the cash, is there a way that I can obtain a mortgage or loan in Thailand? Is there a way to make this work?

<{POST_SNAPBACK}>

No, I doubt it.

Unlike in North America, Thai mortage lenders don't really lend on a project basis in property transactions -- i.e. based primarily on the value of the property. They lend to an individual based on his income and see the property as secondary collateral. It is difficult enough for a foreigner with a work permit and an employment history here to get a mortage. I doubt anyone here on a tourist visa has ever successfully applied for one.

However, the same exception applies here that applies to everything else in Thailand. If you know someone, the rules don't apply to you.

[dgarmaise]

I have another question (or three). (1) Presumably, one does not have to show that 100% of the purchase price was brought into the country from outside. For example, when I purchased the condo I am living in, the deposit was paid by a friend, and I reimbursed him later. The paper I got from the bank attested only to the fact that the rest of the purchase price came from outside the country. (2) What happens if I sell the unit I am living in when I buy the new one? Can I "apply" the proceeds to my new unit without moving that money out and back in again? (3) Can I even move that money out?