What Banks Are Good For Loans To Buy Land?

[Gippy]

We are currently looking at buying some land which the wife (Thai) will be financing through a bank. She has just been quoted 8.4% over 10 years by the Bangkok Bank which seems a bit steep. Has anybody got any recent experience with a good bank for land purchase? What rate are you paying? Our favourite bank SCB just refused to consider it. We are looking to borrow around 70%.

[gamini]

most banks won't loan money unless you have a regular proven income to pay the loan back. Your income has to be proven by submitting income tax receipts

[Gippy]

most banks won't loan money unless you have a regular proven income to pay the loan back. Your income has to be proven by submitting income tax receipts

That part isn't the problem, the problem is finding a bank that will lend to buy empty land. The best we have found so far is Krung Thai bank at 6.6% and no problem loaning money for empty land as long as you have an existing income to repay the loan. SCB and Kasikorn flat out refused to consider loaning for empty land.

[Gippy]

I will answer my own question in case the information is useful for somebody in the future.

After much hunting around we found two banks that are willing to lend money to buy empty land. Bangkok Bank and Kasikorn. Other banks would lend for land but we had to provide a plan for how we would repay the loan using the land, for some reason they were not interested in income from other sources such as a business.

Both banks used the land office tax evaluation to decide how much they would lend us. Unfortunately this is out of date and less than we needed. Both banks were quite prepared to send a surveyor out to the land to value it, but could never actually be bothered to do so. Just plain laziness I guess.

In the end we went with Kasikorn and a cash secured loan. I deposited the exact amount we wanted to borrow into a fixed deposit account in my name which is then used to secure the loan in the wife's name. The interest on the loan is 3 times the interest they pay on the fixed deposit, by far the best deal we found. In the future if they can be bothered to value the land it's possible to use the title to secure the loan and get access to the fixed deposit, the interest rate would revert to the standard rate of around 8.5% though.

The land is ours now, it's been cleared and we have 3,000 rubber tree seedlings on order. Add those to the 900 that are ready for tapping later this year and part 1 of the retirement plan is well under way

[clinique]

A bit late i guess.

BUT my recent experience is that banks will give loans like this for SME, which isbasically waht you are doing is a SME business.

We did somethign similar recently and both Bank Ayutaha and UOB were helpful Went with UOB.

[Gippy]

A bit late i guess.

BUT my recent experience is that banks will give loans like this for SME, which isbasically waht you are doing is a SME business.

We did somethign similar recently and both Bank Ayutaha and UOB were helpful Went with UOB.

We did look into that but the interest rates they quoted us were much higher, around 15% I think. We are paying interest on the loan at 4.8% and they pay us 1.6% back into the fixed deposit.

[donx]

I will answer my own question in case the information is useful for somebody in the future.

After much hunting around we found two banks that are willing to lend money to buy empty land. Bangkok Bank and Kasikorn. Other banks would lend for land but we had to provide a plan for how we would repay the loan using the land, for some reason they were not interested in income from other sources such as a business.

Both banks used the land office tax evaluation to decide how much they would lend us. Unfortunately this is out of date and less than we needed. Both banks were quite prepared to send a surveyor out to the land to value it, but could never actually be bothered to do so. Just plain laziness I guess.

In the end we went with Kasikorn and a cash secured loan. I deposited the exact amount we wanted to borrow into a fixed deposit account in my name which is then used to secure the loan in the wife's name. The interest on the loan is 3 times the interest they pay on the fixed deposit, by far the best deal we found. In the future if they can be bothered to value the land it's possible to use the title to secure the loan and get access to the fixed deposit, the interest rate would revert to the standard rate of around 8.5% though.

The land is ours now, it's been cleared and we have 3,000 rubber tree seedlings on order. Add those to the 900 that are ready for tapping later this year and part 1 of the retirement plan is well under way

I don't understand the point of the loan. You deposit the exact amount you want to borrow into a fixed deposit account. Then you borrow it back. And pay interest. What is the point? Why not just use what you deposited into the fixed deposit account? Is it so if things go bad between you and the misses you just get your money out of the fixed deposit account?

[Gippy]

I will answer my own question in case the information is useful for somebody in the future.

After much hunting around we found two banks that are willing to lend money to buy empty land. Bangkok Bank and Kasikorn. Other banks would lend for land but we had to provide a plan for how we would repay the loan using the land, for some reason they were not interested in income from other sources such as a business.

Both banks used the land office tax evaluation to decide how much they would lend us. Unfortunately this is out of date and less than we needed. Both banks were quite prepared to send a surveyor out to the land to value it, but could never actually be bothered to do so. Just plain laziness I guess.

In the end we went with Kasikorn and a cash secured loan. I deposited the exact amount we wanted to borrow into a fixed deposit account in my name which is then used to secure the loan in the wife's name. The interest on the loan is 3 times the interest they pay on the fixed deposit, by far the best deal we found. In the future if they can be bothered to value the land it's possible to use the title to secure the loan and get access to the fixed deposit, the interest rate would revert to the standard rate of around 8.5% though.

The land is ours now, it's been cleared and we have 3,000 rubber tree seedlings on order. Add those to the 900 that are ready for tapping later this year and part 1 of the retirement plan is well under way

I don't understand the point of the loan. You deposit the exact amount you want to borrow into a fixed deposit account. Then you borrow it back. And pay interest. What is the point? Why not just use what you deposited into the fixed deposit account? Is it so if things go bad between you and the misses you just get your money out of the fixed deposit account?

Because the business that my wife runs is paying for the loan. In other words she is buying the land, not me. It does happen you know.

[donx]

Because the business that my wife runs is paying for the loan. In other words she is buying the land, not me. It does happen you know.

Ok, but why involve a third party? Why can't her business borrow directly from you? Are you concerned that she won't be able to pay back the loan?

I'm not trying to be a smart-ass. I'm really just trying to understand the reason for doing what you are doing.

[Gippy]

Because the business that my wife runs is paying for the loan. In other words she is buying the land, not me. It does happen you know.

Ok, but why involve a third party? Why can't her business borrow directly from you? Are you concerned that she won't be able to pay back the loan?

I'm not trying to be a smart-ass. I'm really just trying to understand the reason for doing what you are doing.

My wife will let me help her this way but won't take or borrow directly from me. She is an independent woman who has run her own business for years and bought land, rebuilt houses and 3 new cars using her own money.

[donx]

Because the business that my wife runs is paying for the loan. In other words she is buying the land, not me. It does happen you know.

Ok, but why involve a third party? Why can't her business borrow directly from you? Are you concerned that she won't be able to pay back the loan?

I'm not trying to be a smart-ass. I'm really just trying to understand the reason for doing what you are doing.

My wife will let me help her this way but won't take or borrow directly from me. She is an independent woman who has run her own business for years and bought land, rebuilt houses and 3 new cars using her own money.

Fair enough. Thank you for the explanation.

[flying]

The land is ours now, it's been cleared and we have 3,000 rubber tree seedlings on order. Add those to the 900 that are ready for tapping later this year and part 1 of the retirement plan is well under way

Congrats on the retirement plan.

May I ask how much land area is that to support all those trees?

[Gippy]

The land is ours now, it's been cleared and we have 3,000 rubber tree seedlings on order. Add those to the 900 that are ready for tapping later this year and part 1 of the retirement plan is well under way

Congrats on the retirement plan.

May I ask how much land area is that to support all those trees?

35 rai for 3,000 well spaced trees and leaving space for huts, fruit trees and a fish pond. We have 900 trees on 9 rai but they are closer together.

[flying]

The land is ours now, it's been cleared and we have 3,000 rubber tree seedlings on order. Add those to the 900 that are ready for tapping later this year and part 1 of the retirement plan is well under way

Congrats on the retirement plan.

May I ask how much land area is that to support all those trees?

35 rai for 3,000 well spaced trees and leaving space for huts, fruit trees and a fish pond. We have 900 trees on 9 rai but they are closer together.

Wow that is a nice sized chunk of land.

Over 10 acres by my rough caluclation

Very Nice!

Congrats & thanks