Mortgage Your Land

[bdenner]

Up here in Isaan it is becoming more attractive for Thai males to seek work overseas, Taiwan, Japan, Israel etc. Actually I wonder who is going to work the rice fields this year. The Thais are employed through agencies who want upwards of 200K Baht (up front) and to get the money they borrow from the banks. Depending on the job the they can earn between 20K to 40K a month with the contract period normally being 2 years. Usually the family get about 5000 Baht a month and the bank gets the rest until the debt has been paid. I believe there is a cooling off period where thru home sickness or other reason the guy reneges and has to come home they only have to pay costs (visas, airfares etc.) about 50K Baht and get the rest back.

As most properties are in mortgage because of this or other reasons freehold titles are at a premium. We have been offered 25K Baht each (up front) for the use of both of ours by close family members. I agreed in principal to one but these two guys want to go together, hence two loans. I’m not getting pressure from TW to sign the papers, the decision is mine with no repercussions. Another brother has a few weeks to go on his first contract and is going to go another round, these two have seen the dramatic change in his financial circumstances and want a piece of the action so I think they will stick it out but one can never tell. I don’t know if they will be covered by any sort of insurance whilst away.

I guess it is like me loaning them the money without actually doing it and it’s not a bad return. TW will be wearing the repercussions if things go belly up. I have written off my investment as one does when buying property in Isaan but suggested that we would sell the 2nd place to recover the debts and half of her family will be out in the cold, as well as that her daughter will not have a property as it is our intention to transfer that title into her name when she is of age.

I still have a few weeks to make the final decision, what are your thoughts?

[chownah]

Up here in Isaan it is becoming more attractive for Thai males to seek work overseas, Taiwan, Japan, Israel etc. Actually I wonder who is going to work the rice fields this year. The Thais are employed through agencies who want upwards of 200K Baht (up front) and to get the money they borrow from the banks. Depending on the job the they can earn between 20K to 40K a month with the contract period normally being 2 years. Usually the family get about 5000 Baht a month and the bank gets the rest until the debt has been paid. I believe there is a cooling off period where thru home sickness or other reason the guy reneges and has to come home they only have to pay costs (visas, airfares etc.) about 50K Baht and get the rest back.

As most properties are in mortgage because of this or other reasons freehold titles are at a premium. We have been offered 25K Baht each (up front) for the use of both of ours by close family members. I agreed in principal to one but these two guys want to go together, hence two loans. I’m not getting pressure from TW to sign the papers, the decision is mine with no repercussions. Another brother has a few weeks to go on his first contract and is going to go another round, these two have seen the dramatic change in his financial circumstances and want a piece of the action so I think they will stick it out but one can never tell. I don’t know if they will be covered by any sort of insurance whilst away.

I guess it is like me loaning them the money without actually doing it and it’s not a bad return. TW will be wearing the repercussions if things go belly up. I have written off my investment as one does when buying property in Isaan but suggested that we would sell the 2nd place to recover the debts and half of her family will be out in the cold, as well as that her daughter will not have a property as it is our intention to transfer that title into her name when she is of age.

I still have a few weeks to make the final decision, what are your thoughts?

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Are you a gambling man? If so remember never gamble more than you can afford to lose.