BBL Offering Condo Mortgages To Foreigners

[thaigene2]

I don't think this is correct. While I would agree that in most cases foreigners buying condos in Thailand will need to bring money in, I think the current law states:

"(5) Aliens or juristic persons regarded by law as an alien who bring in foreign currency into the Kingdom or withdraw money from the Baht account of a non-resident or withdraw money from a foreign currency account."

Source: Apartment Building Act (No.3) B.E. 2542 (1999), as published in Ministerial Information Bulletin No. 9060 as of 21st June 1999.

<{POST_SNAPBACK}>

Sumitr Man..

For a moment you raised my hopes..but

I think this refers to the way the transaction is carried out. So yes you may have a Baht account here, but enough of the money IN THE BAHT ACCOUNT must have originally been transferred from abroad . That's what the Tor Tor 3 is for (or whatever the new name of the form). So you make the payment to the developer, then take the Tor Tor 3s (duly signed as they were by the bank over the various transfers-in through the previous months or years) down to the Registry - along with the bill of sale - and you get legally registered.

So my interpretation of parapgraph 5 is:

1. Bring the foreign currency (cash) into the country and pay for it that way (there will still be a transaction in foreign currency into baht to buy the place so there's your proof)

2. OR..withdraw money from a baht non-res account (as long as you have the Tor Tor 3's to show that the money in the non-res account came from abroad)

3. OR..withdraw money from a foreign currency account (which Thais aren't able to own..) and therefore is self evident 100% foreing currency

They want hard currency entering thailand..that's the quid-pro-quo for letting a foreigner buy a condo..

The other comments about transferring the money out of Thailand is another big question..Many people have bought houses (I'd much prefer to a condo) through formation of an LTD company. But what happnes when you sell it?? Or the company sells it..but what about the 51% thai shareholders? The farang may hold 'controlling' interest..but the sharteholders 'own' the company's assets right??

[think_too_mut]

My 400,000 baht shack Though must admit built large 5metre x 5 metre kitchen extension on rear(not in picture) for 120,000 baht fully fitted. 3 bedrooms, 2 showers.

<{POST_SNAPBACK}>

"Mine" was 350K baht but did not include the pickup truck.

Only 1 full western bathroom, 2 bedrooms and a 8x6m living area + kitchen 3x3.

[Sumitr Man]

thaigene2 :

That's a shame. I don't usually deal with condos; but I had heard that provided you had a work permit and could evidence your Baht account money was from income earnt in Thailand (on which you have duly paid tax), this would suffice for para 5.

As I say though, not my field and only what I had heard (over a beer )

SM

[think_too_mut]

Back to the topic...

What BBL is offering is, IMO, for more expensive properties and for a few who would want to enter such a contract.

For BBL's "minimum loan amount" or even double or triple that, I would not bother going thru any bank and pay interest for 10 years.

That much initial cash many farangs would have in the stock.

If one wanted a top notch place and got tired of it or of the city after 5 years, the interest paid over the time could be almost equal to the rent.

Without the morgage, one can walk out free, no worries about regaining the deposit and dealing with agencies and their fees to take it back to the market. With a risk of lingering on the market for who knows how long. It's not what we farangs know as "property market". It's a "grab bag" exercise.

Even if one has served his term and paid back the loan, what would the resale value be and would any byer want a "second hand place" while many new developments are available.

IMO, just a Mickey Mouse initiative in an attempt to capture blindfolded foreigners.