Borrowing Money To Buy Land

[whitevan73]

We have been offered 6 rie on a main rd that we do not want to let slip away. The problem is, we live in the UK and don`t have the capital. The land is approximatley 700,000 bht. The current owner has two debts to pay off, one is for 200,000 bht on this land and the other is for 100,000 bht on another peace of land they owe. Both of these debts are with `Bank of Agricuture and Agricultural Co-Operatives`. They say if we can pay them the 300,000 bht, in order for them to pay their debts, we can drip the rest of the money owed.

We don`t use a Thai bank in LOS and can not borrow money in the UK but we own a building plot in KK worth 3.1 million which we could possibly use as an asset to secure a loan of the 300 k or even the 700 k. My wife has spoken to Bangkok bank and to a farmers bank but they want business plans and other bits which don`t realy suit us.

Can anybody recomend a suitable lender or give any addvice on this matter?

Sorry about my terrable spelling.

Paul

Edited May 14, 2010 by whitevan73

[nakachalet]

hi paul

just a bit of info on buying in thailand as well as other 3rd world....

irrespectively of the attractiveness of whatever....

pls ascertain that the seller does possess the title and UNDIVIDED ownership rights to sell or lease....

many chinese and japanese et al smart person have been taken to the cleaner over and over.... because the deal looks and sounds attractive and profitable....

but the seller has no complete nor absolute ownership rights to sell.... because of grantor's will restriction et al....

buyer beware.... ok?

good luck and good fortune paul....

[whitevan73]

hi paul

just a bit of info on buying in thailand as well as other 3rd world....

irrespectively of the attractiveness of whatever....

pls ascertain that the seller does possess the title and UNDIVIDED ownership rights to sell or lease....

many chinese and japanese et al smart person have been taken to the cleaner over and over.... because the deal looks and sounds attractive and profitable....

but the seller has no complete nor absolute ownership rights to sell.... because of grantor's will restriction et al....

buyer beware.... ok?

good luck and good fortune paul....

Thanks for your addvice. This land is owned by close relatives of my wifes, sisters husband and is close to where all the family lives but I will take it onboard if the deal gets down to more detail. I have known the family for eight years now and do know them very well. The reason they are selling is due to family debt and a business venture that went wrong.

thanks Paul

[Soutpeel]

hi paul

just a bit of info on buying in thailand as well as other 3rd world....

irrespectively of the attractiveness of whatever....

pls ascertain that the seller does possess the title and UNDIVIDED ownership rights to sell or lease....

many chinese and japanese et al smart person have been taken to the cleaner over and over.... because the deal looks and sounds attractive and profitable....

but the seller has no complete nor absolute ownership rights to sell.... because of grantor's will restriction et al....

buyer beware.... ok?

good luck and good fortune paul....

Thanks for your addvice. This land is owned by close relatives of my wifes, sisters husband and is close to where all the family lives but I will take it onboard if the deal gets down to more detail. I have known the family for eight years now and do know them very well. The reason they are selling is due to family debt and a business venture that went wrong.

thanks Paul

Ok....back to your original question...based on the info given to date....highly unlikely you will be granted a loan at any bank, Wife has approached bank(s), they have asked for you to provide some documentation and this "doesnt suit us".....therefore if you can't be bothered, either can the banks, also you/wife are not resident in Thailand and you dont even have a bank account in Thailand..in the banks eyes a very low risk, yes.... they will be beating down your door to give you cash... ..... so IMHO are your possible options:

1. Take out a loan in the UK, to finance this purchase

2. Dont buy it, you cant afford it..

[BWPattaya]

If the family own it already why buy it? It would continue to be managed and owned by the family. They would have a lot of money to pay off their debts and some left over to spend. You personally would own nothing and be poorer to boot.

Not only poorer but have a debt to pay off.

Leave it alone.

[Mr.Mr.]

What land titel has the plot? It should be "chanod" or "nor bor 3" (I am not sure if I remember the 2nd one right).

Because this titel is secure and you (or better your wife) can realy owne it.

For me it sounds like that it is agriculture land, this mean you can only owne it when you also cultivate something and you can't build a house on it.

[GuestHouse]

You already have Bht3.1 million tied up in Thailand and are unable to raise Bht300,000 to buy an option on this (Bargain) or Bht700,000 to buy it out right.

This surely is an indication that you have already tied up all your money in Thailand. Now you want to tie up debt in Thailand.

And worse still, the debt you want to take on is to transfer your wife's family debt to you while leaving the assets with your wife's family.

It doesn't take a lot of thinking about does it?!

[lonewolf99]

To use an old expression "just listen to your self" or in this case read what you have written.

This is Thailand you are talking about. The land of scams and rip offs backed up with inane grins deluding you into thinking they are smiling ?

I hear so many stories about "friends being the last to tell you" when you have a problem.

Well I am not a friend but here is some good advise. Steer well clear of this land nonsense. The family you think you know so well are about to screw you.

Here is another brutal fact. ALL foreigners in Thailand count for nothing. The bottom line is we are Kee Nok, Bird Poop.

Test the water. Tell your wife you are having nothing to do with this land. Check her reaction. That will tell you all you want to know.

Enjoy the place for what it is. A benign tropical climate, fairly cheap to live in and for a small investment of "house keeping" money you might get a submissive partner to keep you amused into your dotage.

So far in 5 years I have not fallen into the "Honey Trap". I even have a girlfriend who figured out what her relatives were upto when they wanted her to ask me to buy land.

I am not saying they are all crooks - but you have had fair warning here already from others posting comments. BEST OF LUCK - You will need it. Chok Dee

[ESB7]

If you aint got the money, you cant afford it. Wait till you are in a better position to purchase and am sure another 'real bargain' will await you. Also if it is a 'real bargain' the brother in law will sell it easily to pay off his debts. There are many plots of land I would like to purchase now but with the current exchange rate I just aint gonna bring anymore Sterling here and know something else WILL be there in the future.

[whitevan73]

to provide some documentation and this "doesnt suit us".....therefore if you can't be bothered, either can the banks,

This does not suit us because the bank was asking for business plans ect, not because we can`t be bothered.

When I posted the original question on this subject I received a pm sugesting that I do a search on the subject because the question has been raised many times before and that people would probably not bother to reply. I realise now that you might as well have not bothered to reply, due to the negative undertones pointed towards Thai people and even my wife. You do not know me or my wife, you do not know my wifes family or my relationship with them. I was not asking for your opinion about doing a deal with Thai People, I was asking for advice on raising capital to purchase some investment land in a great location that will benifit my family in the future. I did not say the land was a bargin in my post, yet posters here seem to think I did.

I find it quite offensive that posters automaticly think that my wife and her family are gold diggers and just want to rip off the farang! If you think that Thai people think of you as bird poo, then I feel sorry for you. I know 100 % that my Thai inlaws respect me as an equal in the family and do not look upon me in negative way.

Advice on checking the details is most wellcome but presuming All Thai people want to rip you off is just negative steriotyping.

Paul

Edited May 16, 2010 by whitevan73

[GuestHouse]

Once again we have the definition of good advice here on TV.

"Advice that the person asking for advice agrees with"

Bad advice being advice that the person asking for advice does not agree with.

------

If transferring the family debt to the Farang Husband while holding the asset is not gold digging I don't know what is?

And which ever way it's painted that is exactly what is being proposed.

[whitevan73]

Once again we have the definition of good advice here on TV.

"Advice that the person asking for advice agrees with"

Bad advice being advice that the person asking for advice does not agree with.

------

If transferring the family debt to the Farang Husband while holding the asset is not gold digging I don't know what is?

And which ever way it's painted that is exactly what is being proposed.

I`m sorry but which part of my post says that the family holds the asset? The land will then belong to my wife, not the current deed holder. If you think my wife is a gold digger, just go on and say it!

Paul

[Skint]

Looking at it i take it that this land has already been pawned to the bank in the past and repayments are falling behind so much so they need to sell or lose it. I am pretty sure you can pawn (Im unsure if this is correct term) the 3.1m plot you have for the 700k needed and repay the bank back providing your Mrs has the title chanot on it. One thing for sure is you will be best to pay the whole lot and secure the title in your Mrs name, i would not pay the 300k then pay the family back every month etc this can cause problems as with if doing this anywhere in the world not just Thailand. Just cover your back as much as possible.

Don't worry about getting screwed your married anyway and living in home country so losing 700k isn't much to fret about lol

[ESB7]

Chineese money lenders will lend you the money and hold the Chanote title from your other land 3.1 million. They currently charge about 6 points although it depends on where you are. You could ask in the morning and get the cash to purchase the land by midday. I would strongly advise not to borrow money from them but in your current situation and being determined to purchase this is a way for you to achieve your objective. Anyone in the village/town where your family live will know how to contact them Good Luck

[Soutpeel]

I`m sorry but which part of my post says that the family holds the asset? The land will then belong to my wife, not the current deed holder. If you think my wife is a gold digger, just go on and say it!

Paul

You are missing GH's point, irrespective of who holds the deed in family, its still in the family and the debt has been passed onto someone else.....always remember blood is thicker than water..

If you dont have the free cash for this land, then I would strongly recommend you dont get yourslf in debt to buy it..take that advice anyway you wish..

[whitevan73]

Looking at it i take it that this land has already been pawned to the bank in the past and repayments are falling behind so much so they need to sell or lose it. I am pretty sure you can pawn (Im unsure if this is correct term) the 3.1m plot you have for the 700k needed and repay the bank back providing your Mrs has the title chanot on it. One thing for sure is you will be best to pay the whole lot and secure the title in your Mrs name, i would not pay the 300k then pay the family back every month etc this can cause problems as with if doing this anywhere in the world not just Thailand. Just cover your back as much as possible.

Don't worry about getting screwed your married anyway and living in home country so losing 700k isn't much to fret about lol

I understand what you are saying and agree that paying the full amount in one lump is the best way to go, this is why I was asking about different money lenders that would release some of the assests from our plot in KK (which of course is Chanote) and we hold the deeds for that land here in the UK.

I have no money at the moment due to being stranded in LOS for two extra weeks due to the volcano eruption, this cost me £2500 in extra spends and lost earnings. This has just set me back for a month or two. I can pay large monthlys once my work is back on top.

We already own a small patch of land on this main rd which connects to this six rie, this would mean that our current plot could be the access rd. The sellers do not know we own this plot. These people that are family are not close family and the land is owned by two seperate people, brother and sister. The brother ows the sister the 300k, so it is the sister we are talking to.

Like I have said before, Anti scamming advice is welcome and I am sorry if I get deffensive about my wife and her family, its just that they are a good family, maybe its because its just sisters and no brothers. ATM, I am not.

Chineese lenders, NO THANKS.

Paul

[ESB7]

Capitol one are doing credit cards although the interest rate can go as high as 34.9%. You already got the plot next to this, then your 3.1 million which in KK must be 10 rai or so costing that much. Do you really need anymore land.