Buying A Condo

[karl2009]

Hello,

I have been living and working in Thailand and would like to buy a condo.

The condo I want to buy will cost 2.1 million baht. At the moment I can only afford 50% of this, so that other 50% will be a loan from a bank. I am wondering can I own 100% of this condo?

I have a Thai girlfriend for the last 2 years. If she lives with me will she be entitled to any percentage of this condo? I trust her, but in the future you never know what will happen.

If I get married to her after I have bought the condo, would she be entitled to any percentage?

Thanks for any advice,

Edited December 9, 2009 by karl2009

[InterestedObserver]

1. If purchasing a condo in your name (foreign quote) the money usually has to be remitted from outside Thailand as foreign currency.

2. A live-in girlfriend would not be entitled to anything upon the demise of the relationship.

3. Buy the condo before you get married. That way the condo will not be marital property subject to 50/50 split in the future.

Edited December 9, 2009 by InterestedObserver

[karl2009]

1. If purchasing a condo in your name (foreign quote) the money usually has to be remitted from outside Thailand as foreign currency.

2. A live-in girlfriend would not be entitled to anything upon the demise of the relationship.

3. Buy the condo before you get married. That way the condo will not be marital property subject to 50/50 split in the future.

I am clear with points 2 and 3.

However, I work in Thailand and the money that will use to pay for the 50% will be money that I have earned since I have been working in Thailand. I have some money that I can transfer from my foreign bank. But that will only cover about 15%

If I can't use the money I have in my Thai bank. Does that mean I cannot own this Condo?

Many thanks

[InterestedObserver]

1. If purchasing a condo in your name (foreign quote) the money usually has to be remitted from outside Thailand as foreign currency.

2. A live-in girlfriend would not be entitled to anything upon the demise of the relationship.

3. Buy the condo before you get married. That way the condo will not be marital property subject to 50/50 split in the future.

I am clear with points 2 and 3.

However, I work in Thailand and the money that will use to pay for the 50% will be money that I have earned since I have been working in Thailand. I have some money that I can transfer from my foreign bank. But that will only cover about 15%

If I can't use the money I have in my Thai bank. Does that mean I cannot own this Condo?

Many thanks

From the Condominium Act:

"(5) Aliens or juristic persons deemed by Thai law to be aliens, who have brought into the Kingdom foreign exchange or withdrawn the money from the non-resident Baht account or withdrawn the money from the foreign currency deposit account."

If you cannot meet the above requirement the answer is 'no'.

Edited December 9, 2009 by InterestedObserver

[PattayaParent]

However, I work in Thailand and the money that will use to pay for the 50% will be money that I have earned since I have been working in Thailand. I have some money that I can transfer from my foreign bank. But that will only cover about 15%

If I can't use the money I have in my Thai bank. Does that mean I cannot own this Condo?

Many thanks

NO, it doesn't mean you can't own the condo, it just means that you have to transfer out the money in your Thai bank account to your foreign bank account and then transfer it back in.

[Jingthing]

In the case of a live in unmarried Thai companion, couldn't that person attempt to seize the condo in Thai court upon the death of the farang in the case where the farang has no will in Thailand? It seems to me a reasonable case could be made to do just that. OK, this may be a separate issue than a mere breakup, it is something condo owners should consider. Make sure to draft a Thai will for your Thai assets.

Edited December 9, 2009 by Jingthing

[karl2009]

However, I work in Thailand and the money that will use to pay for the 50% will be money that I have earned since I have been working in Thailand. I have some money that I can transfer from my foreign bank. But that will only cover about 15%

If I can't use the money I have in my Thai bank. Does that mean I cannot own this Condo?

Many thanks

NO, it doesn't mean you can't own the condo, it just means that you have to transfer out the money in your Thai bank account to your foreign bank account and then transfer it back in.

However, 50% of the money will come from a loan, so I would have to transfer that money as well. This seems too complicated. Also I would lose money in the transfer on the x-change rate. Why does the money have to come from a foreign bank?

[InterestedObserver]

However, I work in Thailand and the money that will use to pay for the 50% will be money that I have earned since I have been working in Thailand. I have some money that I can transfer from my foreign bank. But that will only cover about 15%

If I can't use the money I have in my Thai bank. Does that mean I cannot own this Condo?

Many thanks

NO, it doesn't mean you can't own the condo, it just means that you have to transfer out the money in your Thai bank account to your foreign bank account and then transfer it back in.

And what about the money from the bank mortgage, how does the OP get that converted into foreign currency?

[InterestedObserver]

Why does the money have to come from a foreign bank?

Because the Condominium Act says so!

[PattayaParent]

However, I work in Thailand and the money that will use to pay for the 50% will be money that I have earned since I have been working in Thailand. I have some money that I can transfer from my foreign bank. But that will only cover about 15%

If I can't use the money I have in my Thai bank. Does that mean I cannot own this Condo?

Many thanks

NO, it doesn't mean you can't own the condo, it just means that you have to transfer out the money in your Thai bank account to your foreign bank account and then transfer it back in.

And what about the money from the bank mortgage, how does the OP get that converted into foreign currency?

Well he could transfer it out and back in again IF the Thai bank will grant a mortgage knowing that the Condiminium Act requires the money to come from overseas.

[InterestedObserver]

NO, it doesn't mean you can't own the condo, it just means that you have to transfer out the money in your Thai bank account to your foreign bank account and then transfer it back in.

And what about the money from the bank mortgage, how does the OP get that converted into foreign currency?

Well he could transfer it out and back in again IF the Thai bank will grant a mortgage knowing that the Condiminium Act requires the money to come from overseas.

Bangkok Bank, Singapore Branch used to handle these type of transactions, but I think the service has been discontinued.

[karl2009]

I think it is very strange that I have been working in an IT company all these years in Bangkok. And can't buy a condo with the money I have saved from my job. I have a work permit but cannot buy a condo without this transfer.

I don't really want to transfer over 2 million baht into my account overseas, just to transfer it back again. It seems too much trouble and could cost me in the transfer, and that is money I can't really afford.

[InterestedObserver]

Have you tried asking a bank. Can you even qualify for a mortgage?

[trogers]

I think it is very strange that I have been working in an IT company all these years in Bangkok. And can't buy a condo with the money I have saved from my job. I have a work permit but cannot buy a condo without this transfer.

I don't really want to transfer over 2 million baht into my account overseas, just to transfer it back again. It seems too much trouble and could cost me in the transfer, and that is money I can't really afford.

There are actually 2 requirements to be fulfilled by a foreigner with regards to money used to buy a condo:

- It has to be foreign funds, which can be either money TT from a foreign bank to your local bank account in foreign currency and converted into Thai Baht by the local bank, or it can be money earned by you while working in Thailand (with income tax properly paid) and kept in a non-resident account, this latter can be certified by your local bank.

- The purchase of the condo must be 100% cash, ie. no local mortgage allowed.

A friend of mine was in a similar situation as you. He borrowed the balance from his overseas boss, got the money transferred into his account and got the certificate for his money here. Combine them together to effect the title transfer. Then mortgaged the condo and return the loan to his boss.

[PattayaProperty]

Karl,

A few things which might help you.

You do not want to have a mortgage on your wife/girlfriend for the simple reason that then also the title deed will be in her name. All the issues about trusting your partner yes or not are not important here as the main thing is that you want to have the unit in your own name. You really do want this as the same unit in your name is later on probably worth 25% more then in a Thai name.

In other words a mortage is not the way to do it.

The best way of doing it is to ask the owner for a finance. The market is still under preasure and a lot of owners will consider it now. If this owner does not want it I know for a fact that you will find another owner who will.

When you do it like this you also buy yourself time to get the required documents in order (tor tor 3) to get the unit transferred in you name as believe me there are more roads leading to Rome.