Buying A Condo...

[properperson]

I'd read that if you transfer money over here to buy property, your bank needs to put "for property purchase" with the money transfer documents...

So what if you already have money here, and want to buy property ??

[PattayaParent]

You have to send it out of the country and bring it back in again unless you have Permanent Resident (PR) status.

[InterestedObserver]

You have to send it out of the country and bring it back in again unless you have Permanent Resident (PR) status.

Also, the money must come back into Thailand as foreign currency, not Thai baht.

[properperson]

thanks for the replies, one more question...

What if you transfer money from uk, lets say £100,000 and put on the transfer "for property purchase", with the intention of buying one or two properties, but then decide not to buy - can the Thai bank efuse to let you draw the money out as its not for "property purchace" ?

Might sound like a daft question, but have funds in the uk, may or may not want to invest, but bank charges in UK make me want to transfer money here...

Thanks in advance....

[InterestedObserver]

The answer is NO, the bank cannot withhold your funds.

[PattayaParent]

The answer is NO, the bank cannot withhold your funds.

My bank refused to credit the funds to my account until I showed them the purchase contract for the condo.

[brewsterbudgen]

You have to send it out of the country and bring it back in again unless you have Permanent Resident (PR) status.

Also, the money must come back into Thailand as foreign currency, not Thai baht.

When I bought my condo, my contact in the UK ticked the box for Thai baht on the money transfer document and the 62,000 GBP was converted and transferred into the country as Thai baht. I lost a lot of money on the offshore exchange rate, but was still able to buy the condo although I needed a special letter from my bank for the Land Department. Live and learn.

[edokhv]

When I bought my condo, my contact in the UK ticked the box for Thai baht on the money transfer document and the 62,000 GBP was converted and transferred into the country as Thai baht. I lost a lot of money on the offshore exchange rate, but was still able to buy the condo although I needed a special letter from my bank for the Land Department. Live and learn.

Hi, what was the name of that special letter in Thai?

I am after the format of the letter that would be acceptable by the Land Department.

Thanks

[PattayaParent]

^Bai rap rong?

is what the bank issues to confirm transfers of funds from overseas when the amount is less than that for which the FETF applies.

[brewsterbudgen]

Hi, what was the name of that special letter in Thai?

I am after the format of the letter that would be acceptable by the Land Department.

Thanks

PM replied to.

[eljeque]

You have to send it out of the country and bring it back in again unless you have Permanent Resident (PR) status.

Also, the money must come back into Thailand as foreign currency, not Thai baht.

When I bought my condo, my contact in the UK ticked the box for Thai baht on the money transfer document and the 62,000 GBP was converted and transferred into the country as Thai baht. I lost a lot of money on the offshore exchange rate, but was still able to buy the condo although I needed a special letter from my bank for the Land Department. Live and learn.

Years ago, a friend of mine asked his bank to send him XXX pounds to Thailand. They converted the XXX Pounds to baht and then set it to him. As you well know,t he exchange rate in the UK is a lot worse than it is in Thailand. He calledthe bank up and asked why they converted the Pounds to Baht in England after he asked for ounds to be sent.

They said, "That s what we do." He said, "That is not what I paid you to do, so now do what I paid you to do and send me (*&^%$ POUNDS!!!

He negotiated and did receive the difference owed to him

Go back to you bank and let them know in no uncertain terms that you did not tick the exchange bo and that you want the difference sent to you. It will take a little while, but you will win.

[vincentc]

You have to send it out of the country and bring it back in again unless you have Permanent Resident (PR) status.

Also, the money must come back into Thailand as foreign currency, not Thai baht.

Thanks for the tip. However if the money needs to come into Thailand as foreign currency, i dont understand the mechanism of payment;

Say you want to buy a 4M THB condo from the Thai owner.

I understand I cannot wire 4M THB from my European bank account (euros converted to THB then wired to Thailand).

Also, I cannot wire Euros to Thailand, because I would not know what the exact amount would be due to currency exchange fluctuations.

Should I instead wire Euros from European bank account into my Thai THB account and then pass on the exact THB amoount to the owner?

Thanks for your help!

[stgrhe]

 

Should I instead wire Euros from European bank account into my Thai THB account and then pass on the exact THB amount to the owner?

Yes and state reason for the transfer "buying a condominium xxx at yyy". You will then get a foreign exchange certificate which will be needed at the land office.

[trogers]

You will need extra money to furnish and get in a phone line and internet service, as well as cable TV. Why do you need exact amount of Thai Baht?

You have to send it out of the country and bring it back in again unless you have Permanent Resident (PR) status.

Also, the money must come back into Thailand as foreign currency, not Thai baht.

Thanks for the tip. However if the money needs to come into Thailand as foreign currency, i dont understand the mechanism of payment;

Say you want to buy a 4M THB condo from the Thai owner.

I understand I cannot wire 4M THB from my European bank account (euros converted to THB then wired to Thailand).

Also, I cannot wire Euros to Thailand, because I would not know what the exact amount would be due to currency exchange fluctuations.

Should I instead wire Euros from European bank account into my Thai THB account and then pass on the exact THB amoount to the owner?

Thanks for your help!

[jrbkk64]

If you pay income tax in Thailand you can use money earned in Thailand to buy property. No need for any money from abroad.

And yes I have done it myself.

[PattayaParent]

^property? Or specifically a condo?

[PattayaParent]

You will need extra money to furnish and get in a phone line and internet service, as well as cable TV. Why do you need exact amount of Thai Baht?

You have to send it out of the country and bring it back in again unless you have Permanent Resident (PR) status.

Also, the money must come back into Thailand as foreign currency, not Thai baht.

Thanks for the tip. However if the money needs to come into Thailand as foreign currency, i dont understand the mechanism of payment;

Say you want to buy a 4M THB condo from the Thai owner.

I understand I cannot wire 4M THB from my European bank account (euros converted to THB then wired to Thailand).

Also, I cannot wire Euros to Thailand, because I would not know what the exact amount would be due to currency exchange fluctuations.

Should I instead wire Euros from European bank account into my Thai THB account and then pass on the exact THB amoount to the owner?

Thanks for your help!

Edit: trogers - 'cos he already has money in his account in Thailand to cover those additional expenses.

It is usual for the amount that you pay for the condo to be in excess of the declared value at the land office and you only need to transfer in the amount that you need for the land office declaration.

So, for example, if you are paying 4 million and the declared value is 2 million, then you only need to bring in enough foreign currency for the 2 million and get your FETF to give to the land office. The other 2 million you can pay the owner frm funds that you already have in the bank.

Edited February 1, 2010 by PattayaParent

[jybkk]

Hi,

So, let me try to summarize.

To buy a condo, because I am not resident, i need to:

1. Transfer from oversea money for a value superior or equal to the declared value of the condo

2. Ask my bank to add the mention "FOR PROPERTY PURCHASE" on the transfer

3. Make sure my bank transfer the money as Foreign currency to my Thai bank account

4. Let the Thai Bank make the currency exchange into THB and edit a paper saying that this money comes from overseas and is meant for the purchase

Is this correct?

Then, once I have the money and the paper from the bank... what are the next steps?

Thanks for your help!

JY

[hhgz]

Your summary is essentially correct. When the money is transferred from your home country, the transfer paper have a statement that it is for a property purchase (there's no "editing" of a document). There are legal websites on the web that can give you a template of the statement. For example: "These funds are for the purpose of buying condo unit #123 in the Large Building Condominium, located at 1234 Sukhumvit, Bangkok". As mentioned earlier, funds not spent for the condo purchase can be used for any other expenses (electricity, food, sex).

Assuming you've found a place to buy and have negotiated a mutually agreed upon price, the sale needs to be recorded at the Land Department. You haven't mentioned if you are using a broker and/or an attorney, and they are instrumental in getting the paperwork completed and filed.

When I bought my condo, I purposely transferred in more money than I needed - and it was at a great exchange rate (40:1 USD). Some people prefer to receive money daily/weekly, and then pay ATM fees. There are many ways to pay for your life in BKK - take a pick.

[jybkk]

Your summary is essentially correct. When the money is transferred from your home country, the transfer paper have a statement that it is for a property purchase (there's no "editing" of a document)...

Thanks for your answer.

After I wrote this. A friend of mine recommended me a broker. I went to visit him and the guy confirmed all that.

The funny thing is that people actually declare the deal to the Land Department as something like half of what they really agreed. Less taxes are paid this way, and the money to transfer from oversea is based on this "value".

The document from the bank is simply the "foreign exchange transaction form". Seems this document is edited automatically by the banks anytime a transfer overseas exceeds 20,000USD.

The broker told me that, from his experience, Bangkok Bank is the one handling the best these kind of transfers.

[jrbkk64]

^property? Or specifically a condo?

Condo. I also "own" some other types of property and as we all know things are a bit different if land is involved. Also paid for with money earned inside Thailand by the way.

[kerr17]

I got some money coming over in the next few weeks (over 20k £) which I plan to use it on purchase a condo in the future (later this year or next year).

Should I let the sender add a note such as "to purchase a condo" or its not necessary considering I will not buy the condo now?

Is it advisable to have it anyway?

[Maestro]

Yes, and after the money is credited to your Thai bank account have the bank give you the Foreign Exchange Transaction Form (FETF) right away and keep in a safe place where you will find it again when you need it. Some bank employees know the FETF still by its old name of T.T.3.

FETF_Foreign_Exchange_Transaction_Form__formerly_T.T.3_.pdf

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Maestro

[PattayaParent]

^property? Or specifically a condo?

Condo. I also "own" some other types of property and as we all know things are a bit different if land is involved. Also paid for with money earned inside Thailand by the way.

Then a posting of how to go about buying a condo with money earned inside Thailand would be very beneficial to a lot of posters here I'm sure.

And any idea if you would be able to send it out when you sell the condo?

Edit: I'm assuming the condo is owned in your own name?

Edited February 4, 2010 by PattayaParent

[donx]

^property? Or specifically a condo?

Condo. I also "own" some other types of property and as we all know things are a bit different if land is involved. Also paid for with money earned inside Thailand by the way.

Then a posting of how to go about buying a condo with money earned inside Thailand would be very beneficial to a lot of posters here I'm sure.

And any idea if you would be able to send it out when you sell the condo?

Edit: I'm assuming the condo is owned in your own name?

Since jrbkk64 said "other types of property", I doubt he/she is referring to condos. And since he/she states "we all know things are a bit different if land is involved" I would assume the types of property include a house on land purchased most likely via a Thai company or in the name of a Thai partner. Those types of purchases don't require funds to be brought into the country. He/She can use funds earned within Thailand.

[PattayaParent]

^he/she specifically said condo which is why I asked, unless the condo is owned in a Thai company name.

Edited February 5, 2010 by PattayaParent

[hhgz]

"The funny thing is that people actually declare the deal to the Land Department as something like half of what they really agreed. Less taxes are paid this way, and the money to transfer from oversea is based on this 'value'".

Many people do this, and it is illegal. If you want to start out your stay by doing something illegal, that's up to you. The level of taxation is low, and declaring the wrong value doesn't save anyone a lot of money.

"The document from the bank is simply the 'foreign exchange transaction form'. Seems this document is edited automatically by the banks anytime a transfer overseas exceeds 20,000USD."

Yes, I know what the form is referred to. If you transfer in more than $20K US, the bank generally allows you to postpone the exchange transaction for a more favorable rate.

"The broker told me that, from his experience, Bangkok Bank is the one handling the best these kind of transfers."

I first tried K Bank and, after all of the personnel looked at me as if they were deer in headlights - they had no idea of what I was trying to do - I closed my account there and moved it to KT Bank. The SWIFT and FEX were done quickly and inexpensively.

[Maestro]

...The document from the bank is simply the "foreign exchange transaction form". Seems this document is edited automatically by the banks anytime a transfer overseas exceeds 20,000USD...

At a lot of bank branches even the manager does not know the Foreign Exchange Transaction Form (FETF). When I needed one I had to show my printout of the form to them and the manager then insisted that this was only for the bank, not to give to me. It took me 30 minutes to cajole her into calling head office and then I finally got the form, issued by head office, a few days later.

The Bank of Thailand had the form on its website as a PDF file but I could not find it when I looked for it again the other day, so I sent them an email and got the reply that the form is now available as a Microsoft Word document at this link:

www.bot.or.th/Thai/ForeignExchangeRegulations/Report%20Form/Report/FX_TranForm.doc

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Maestro

[ThaiBob]

Yes, and after the money is credited to your Thai bank account have the bank give you the Foreign Exchange Transaction Form (FETF) right away and keep in a safe place where you will find it again when you need it. Some bank employees know the FETF still by its old name of T.T.3.

FETF_Foreign_Exchange_Transaction_Form__formerly_T.T.3_.pdf

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Maestro

Thanks for link. This form is very familar to me. It caused me a lot of anxiety for a short time. My situation (buying a condo) got a little complicated. In short, I was dealing with two Thai banks. Years ago money was sent to Siam Commercial Bank (SCB) and later to the developer's account with Thai Military Bank (TMB). The details on first transactions with SCB were no longer available so I had a shortfall documenting fund transfers on the total sales price. TMB would only issue a Taw Taa Sam (T.T.3) for the amount of the foreign incoming funds AND outgoing funds to the developer. Consequently, I had a shortfall of about 1M baht. The "creative" solution was to go to a money exchanger and purchase the FETF for the amount of the shortfall for a fee (6,000 baht). The documents required were the sales contract and my passport. The completed FETF was available the next day. This FETF along with the a letter from TMB (equivalent to a T.T.3) made everyone at the Land Office happy, as the combined total was slightly greater than the sales contract price. There were no other hitches in recording the deed transfer.