Using Foreign Exchange Specialists To Transfier Money To Property Developer In Thailand For Condo Purchase

[jay1980]

Hi

I am buying a new condo in Jontiem with falang name. I am from the UK.

I have made the first payment direct from my UK bank account (Natwest) but I am not really happy with the exchange rate I was given.

Could anyone advise if setting up an account with a company such as hifx (www.hifx.co.uk) or similar companies that specialise in money transfers would still be OK under Thai condo law. (the money would come to Thailand from overseas just not my own account)

Also could anyone advise/recommend on the best UK banks for fair rates to transfer money to Thailand, or advise on any specialist companies that have given them good service.

I have 4 more payments over this year so any advice would be greatly appreciated.

Many thanks

[mpetersen]

nobody is happy with exchange rates they are getting right now. you have to send funds in a way to be issued an FET, or you won't be able to close the transaction. Just stick with the regular bank. No risk, guaranteed FET, less hassles. You might be out a few thousand baht, but you'll be able to sleep better. Usually the exchange rates booked upon transfers-in are very fair and reasonable.

[chiang mai]

It sounds like you need to open a Thai bank account ASAP, you're going to need it later anyway from the sounds of things. Personally I wouldn't use brokers for funds transfers unless you absolutely have no other option - my logic behind saying that is that brokers charge fees (as a part of the exchange rate margin) and you can get a better rate by transferring funds directly.

Standard Chartered and HSBC both have branches here in Thailand and perhaps you could check out whether you can open one here, from the UK, even if such an account is only an interim measure? Ultimately you need to end up in a situation where you have a Thai bank account (may not be a Thai bank) with Thai Baht and foreign currency deposit options. The best way to transfer funds is to make the transfer in Sterling, deposit it here and then chose the day (based on exchange rate fluctuations) when you want to convert Pounds to Baht.

Finally, you need to make sure you keep copies of the funds transfer paperwork since it will be needed to prove that the money you used to buy the condo came from outside of Thailand, the larger banks will provide you with copies of such if a using a Thai bank account, unsure about using UK paperwork for this so be careful.

Edited February 6, 2010 by chiang mai

[jay1980]

Thanks for the reply.. what is the FET ?

I was given the tourist rate (48.8 baht / £). I called HSBC and they quoted me the tourist rate only.

I with the 'spot' rate at 53'ish / £ I would be happy with about 51 / £, (I am realistic) but paying the tourist rate for all my transfiers will make my condo nearly £2000 more than I originally thought.

Also I cannot book a rate with Natwest for the amounts I am sending, yet the specialist companies offer this. The fee's are minimal.

If anyone can recomend a regular UK bank with a slightly better rate (say above 50 baht / £) for my transfiers I would be happy to use them.

Athough I will need a Thai bank account in the future I am not sure how it would help me now as I have contract to transfier the money into the developer's account. Also I have no real chance to visit Thailand until October due to my work contact here in the UK and there are 2 payments to make before this time. (is it possable to open a Thai account when outside Thailand?)

I have the transfier advise from Natwest and I know to keep all these records safe in case are needed to transfier the chanote to my name when that time comes.

Many thanks

[chiang mai]

Thanks for the reply.. what is the FET ?

I was given the tourist rate (48.8 baht / £). I called HSBC and they quoted me the tourist rate only.

I with the 'spot' rate at 53'ish / £ I would be happy with about 51 / £, (I am realistic) but paying the tourist rate for all my transfiers will make my condo nearly £2000 more than I originally thought.

Also I cannot book a rate with Natwest for the amounts I am sending, yet the specialist companies offer this. The fee's are minimal.

If anyone can recomend a regular UK bank with a slightly better rate (say above 50 baht / £) for my transfiers I would be happy to use them.

Athough I will need a Thai bank account in the future I am not sure how it would help me now as I have contract to transfier the money into the developer's account. Also I have no real chance to visit Thailand until October due to my work contact here in the UK and there are 2 payments to make before this time. (is it possable to open a Thai account when outside Thailand?)

I have the transfier advise from Natwest and I know to keep all these records safe in case are needed to transfier the chanote to my name when that time comes.

Many thanks

Pound/Baht is moving downwards currently, the Pound has lost around four Baht this past week and current spot is 51.20!

Ask HSBC UK to open your account for you in Thailand and do your transfers that way.

The exchange rates at bank in Asia are much more attractive than in the UK, margins in the UK run to several baht whilst in Thailand are generally less than one baht.

[jay1980]

will get back onto HSBC and see if they are more help now I know what to ask for.

Hoping the £ might recover abit before April when my next payment is due!

Many thanks for the advise

[nobody65]

will get back onto HSBC and see if they are more help now I know what to ask for.

Hoping the £ might recover abit before April when my next payment is due!

Many thanks for the advise

You should transfer the approx amount always in english pounds. This willautomatically exchanged into THB or open an account at a Thai bank as for instance SCB, transfer in english pounds and the Thai bank will exchange into THB. The exchange rate will be much better.

[MJo]

To register condo on foreigners name the first rule has always been that funds must come outside of thailand in foreign currency. Meaning the thai bank needs to convert it to baht and issue FET as a proof that the money came in as foreign currency.

So if you keep sending baht from UK you not only lose with the rates but might not be able to register the condo in your name. So please take a close look into this before sending any funds over.

There is lot of information if you search this forum and if all else fails just pay the few thousand baht to one of the legal firms that sponsor this forum. They tell you what you need to do to get the unit transferred to your own name.

[Barack]

As other posters have noted it is critical that the incoming money be received in Thailand in a foreign currency. I have recent experience in wiring money to Thailand for a property purchase. My bank in America always wanted to do the USD to THB conversion first. In one case, I had to go to my bank officer and insist the transfer be done the way I instructed. (Also, my American bank would have made about a 3 baht/USD profit on the exchange rate.) You also must specify on the wire transfer that the money is for a property or condo purchase. I always referenced the property details (name, address, contract number, etc.). I would transfer the money in pounds directly to your developer's Thai bank account.

[jay1980]

To register condo on foreigners name the first rule has always been that funds must come outside of thailand in foreign currency. Meaning the thai bank needs to convert it to baht and issue FET as a proof that the money came in as foreign currency.

So if you keep sending baht from UK you not only lose with the rates but might not be able to register the condo in your name. So please take a close look into this before sending any funds over.

There is lot of information if you search this forum and if all else fails just pay the few thousand baht to one of the legal firms that sponsor this forum. They tell you what you need to do to get the unit transferred to your own name.

Thanks for the advice...

the developer did not advise me of this, they just said it should come from outside Thailand, slightly worried about my first payment now. (already made via Natwest) I have a contact for them to put the condo in my name, they several completed projects so i hope they have in influence to do this, however the future payments i will make as suggested.

Anyway I have been on to HSBC to set up accounts. For anyone else the UK number for HSBC you need to set this up it is 08456076706. Don't use the regular helpline and they were no help at all, telling me the only way to transfer money was at to tourist rate and not as described by Chang mai.

cheers

[TheWalkingMan]

...

the developer did not advise me of this, they just said it should come from outside Thailand...

I would have expected the developer to send out a check list on how to transfer money into Thailand when buying a condo. Should just be part of taking care of their customers.

TheWalkingMan

[jay1980]

...

the developer did not advise me of this, they just said it should come from outside Thailand...

I would have expected the developer to send out a check list on how to transfer money into Thailand when buying a condo. Should just be part of taking care of their customers.

TheWalkingMan

working away from home now, will check all the paper work again on friday when i am back home if anything was advised. i may have just missed the advise.

cheers

[PJ28UK]

I am buying a condo in Satorn for ten million baht. I also wanted to try using a firm like www.hifx.co.uk but now I have read this post, I think its safer I keep using my UK bank and transfer in pound stirling each month, even if it is costing me £22 to do it. I would rather be safe than sorry.

[tangoll]

I am buying a condo in Satorn for ten million baht. I also wanted to try using a firm like www.hifx.co.uk but now I have read this post, I think its safer I keep using my UK bank and transfer in pound stirling each month, even if it is costing me £22 to do it. I would rather be safe than sorry.

PJ28UK, I saw your PM to me, but cannot figure out how to reply directly to your query. You can always email me directly pcmar at netvigator dot com if you wish. Generally my advice would be for you to control the entire transaction. That means, a local Thai bank account in your name (same name as you will use for property purchase), transfer only foreign currency (pounds sterling, USD, or Euro, for example), specify on transfer document that purpose is for purchase of condominium unit (no need to specify name or address of condo or even developer's name), upon receipt at your local Thai bank, this bank will convert to Thai baht at their rate, then you request Thai bank to issue you FETF (Foreign Exchange Transaction Form), and this original must be delivered to Land Dept office when the developer/you will do the transfer of ownership to your name. The total amount of transferred baht on FETF's (can be more than one) must exceed transaction amount of the condo unit being transferred. Unused excessive amount on FETF's will be lost and cannot be used for future transactions, so plan your transfers carefully. Each transfer should exceed equivalent of USD 20,000 for bank to issue FETF.

I would not transfer amount directly into developer's account. People here will tell you that retaining a copy of the FETF's is essential for when you sell the condo and wish to remit funds out of Thailand. When I did that, the Bangkok Bank had no interest in seeing copies of the FETF's used on import; the export of funds required a completely new and different set of documents. If you search you may find where I have listed such documents required by Bangkok Bank; I haven't done export by other banks so don't know about them.

[Lizard2010]

I have heard that the ANZ Bank has a branch in the UK and Bangkok.

[jay1980]

Hi, I went with HSBC in the end. It was a bit of a pain to set up the thai account from the UK, lots of forms and also I had to get my passport noterised, even my own solicitor could not do this and I had to pay another authorised law firm to get it done. Now I am all set up though and have an HSBC Thailand online secure id token I use to transfer money from my Thai account to the developer (or anyone else) or move money between my Thai biased sterling account and baht account depending on the exchange rates Also when you transfer from your UK HSBC account to your Thai one you must put 'purpose for buy condominium' in the details. This is controlled by you and also you can print the page from the HSBC UK online site showing you put this.If you need to set this up from UK at first call HSBC on 08456076706, all the other 'help' lines or branch staff have no idea about this international service and I had to 'go round the houses' to find who to talk to to get started Good luck, for 10M baht it must be a lovely place, hope you get a lot of enjoyment from it!

Edited June 30, 2010 by jay1980