Condo Buying In Bangkok

[afx]

Just started looking into this. I read some not too recent articles stating that mortgages for foreigners looking to buy a condo are hard to come by. Is this still true, is it still difficult to get a mortgage even if you're putting down 50 or 60 % ? of property purchase price.

I read that a work permit is also needed. Is this the case 100% of the time of just when using local lenders ? I had in mind just trying with HSBC and not using any local lenders. I'll give HSBC a call and see what they say.

In the mean time and tips and advice much appreciated.

Thanks,.

[tpthai2]

Almost 18 years in the Kingdom now. In that time I have seen that this economy, historically, is boom and bust.

I stand on my porch every night looking at all the recently opened condo towers in the Tong Lor and upper-mid Sukhumvit area and wonder "why are there only a dozen or so lights on in the new units, even after a year+ of completion.

In the light of day I can see the sky-hooks continuing to build new towers everywhere.

I see pricing starting at 7 million+ for 65 SQM units and up in the prime areas and wonder, "who is buying? "The newly rich Chinese? other Asian boomers?"

I see the adverts: Guaranteed 12% return and think, "7+ million for a 65 SQM two bedroom and 12% return? That would require about bt.65 or 70,000 a month rental? Great!"

But why are there no lights on in the units at night?

Then I think, "what do I know, TIT."

Edited December 28, 2010 by tpthai2

[afx]

Almost 18 years in the Kingdom now. In that time I have seen that this economy, historically, is boom and bust.

I stand on my porch every night looking at all the recently opened condo towers in the Tong Lor and upper-mid Sukhumvit area and wonder "why are there only a dozen or so lights on in the new units, even after a year+ of completion.

In the light of day I can see the sky-hooks continuing to build new towers everywhere.

I see pricing starting at 7 million+ for 65 SQM units and up in the prime areas and wonder, "who is buying? "The newly rich Chinese? other Asian boomers?"

I see the adverts: Guaranteed 12% return and think, "7+ million for a 65 SQM two bedroom and 12% return? That would require about bt.65 or 70,000 a month rental? Great!"

But why are there no lights on in the units at night?

Then I think, "what do I know, TIT."

Everything you say I can well believe to be true. I would also say the whole world is boom and bust not just Asia, the recent global financial crisis and the one before that and the one before that and the one coming next is unequivocal proof of that. Why ? Because us humans as a collective are essentially stupid, that and the fact most of these crashes are engineered to make trillions for a select few. I actually see what you say as a positive. I hope many have the lights off, meaning there are desperate builders / sellers meaning good prices and Thong lor is exactly where I want a condo, so all good, nice and quiet lights off and nobody home ;-).

I'm not interested in it as an investment, very likely to be a turd in that respect, if it happens it's a nice thing, if it doesn't no drama, that still doesn't make it a bad investment when compared to renting. I've paid five figures sterling in rent in the last 1.5 years alone in rent. 7 Million bht to buy is a mathematical no brainer. I don't really care if it's worth a dime which is all it will be worth when the city is relocated in a hundred years time or so. That said I'd still like to be half in (50% down) than all in.

Back on topic - anyone else got an idea on mortgages ???

[jonclark]

Almost 18 years in the Kingdom now. In that time I have seen that this economy, historically, is boom and bust.

I stand on my porch every night looking at all the recently opened condo towers in the Tong Lor and upper-mid Sukhumvit area and wonder "why are there only a dozen or so lights on in the new units, even after a year+ of completion.

In the light of day I can see the sky-hooks continuing to build new towers everywhere.

I see pricing starting at 7 million+ for 65 SQM units and up in the prime areas and wonder, "who is buying? "The newly rich Chinese? other Asian boomers?"

I see the adverts: Guaranteed 12% return and think, "7+ million for a 65 SQM two bedroom and 12% return? That would require about bt.65 or 70,000 a month rental? Great!"

But why are there no lights on in the units at night?

Then I think, "what do I know, TIT."

Everything you say I can well believe to be true. I would also say the whole world is boom and bust not just Asia, the recent global financial crisis and the one before that and the one before that and the one coming next is unequivocal proof of that. Why ? Because us humans as a collective are essentially stupid, that and the fact most of these crashes are engineered to make trillions for a select few. I actually see what you say as a positive. I hope many have the lights off, meaning there are desperate builders / sellers meaning good prices and Thong lor is exactly where I want a condo, so all good, nice and quiet lights off and nobody home ;-).

I'm not interested in it as an investment, very likely to be a turd in that respect, if it happens it's a nice thing, if it doesn't no drama, that still doesn't make it a bad investment when compared to renting. I've paid five figures sterling in rent in the last 1.5 years alone in rent. 7 Million bht to buy is a mathematical no brainer. I don't really care if it's worth a dime which is all it will be worth when the city is relocated in a hundred years time or so. That said I'd still like to be half in (50% down) than all in.

Back on topic - anyone else got an idea on mortgages ???

A mortgage for a single foreigner is hard if not impossible to get. But both Bangkok Bank and UOB offer mortgages for foreigners in Thailand from heir Singaporean offices, i think in dollars. Not sure of the details but it is the only mortgage I've heard of for foreigners in Thailand.

[tpthai2]

Almost 18 years in the Kingdom now. In that time I have seen that this economy, historically, is boom and bust.

I stand on my porch every night looking at all the recently opened condo towers in the Tong Lor and upper-mid Sukhumvit area and wonder "why are there only a dozen or so lights on in the new units, even after a year+ of completion.

In the light of day I can see the sky-hooks continuing to build new towers everywhere.

I see pricing starting at 7 million+ for 65 SQM units and up in the prime areas and wonder, "who is buying? "The newly rich Chinese? other Asian boomers?"

I see the adverts: Guaranteed 12% return and think, "7+ million for a 65 SQM two bedroom and 12% return? That would require about bt.65 or 70,000 a month rental? Great!"

But why are there no lights on in the units at night?

Then I think, "what do I know, TIT."

Everything you say I can well believe to be true. I would also say the whole world is boom and bust not just Asia, the recent global financial crisis and the one before that and the one before that and the one coming next is unequivocal proof of that. Why ? Because us humans as a collective are essentially stupid, that and the fact most of these crashes are engineered to make trillions for a select few. I actually see what you say as a positive. I hope many have the lights off, meaning there are desperate builders / sellers meaning good prices and Thong lor is exactly where I want a condo, so all good, nice and quiet lights off and nobody home ;-).

I'm not interested in it as an investment, very likely to be a turd in that respect, if it happens it's a nice thing, if it doesn't no drama, that still doesn't make it a bad investment when compared to renting. I've paid five figures sterling in rent in the last 1.5 years alone in rent. 7 Million bht to buy is a mathematical no brainer. I don't really care if it's worth a dime which is all it will be worth when the city is relocated in a hundred years time or so. That said I'd still like to be half in (50% down) than all in.

Back on topic - anyone else got an idea on mortgages ???

AFX is correct. Your only opportunity is going off shore with one of the Thai Banks that provide this service. However, they will tack another two points on the app. That puts the loan rate quite high.

If you were married with a working Thai wife and 50% down the process would most probably be relatively easy.

Wish I could provide more options, I am in the same boat.

In your search, please post any information you may uncover. Rgs.

[dddave]

When I first came here eight years ago and the skyline was still littered with dozens of "Ghost Buildings", partially completed and abandoned after the crash of '97, the prevailing thought among westerners was: "Don't buy a condo, they're overbuilt and will never appreciate!"

Four or five years ago, as the skyline started growing like a weed patch; among westerners again: doom and gloom..."Overbuilt! You'll never get your money back!"

Now, almost 2011 and you still hear the same thing; meanwhile guys who bought back then have seen their values double and even triple. Thais don't trust banks and investment institutions, they trust gold and they trust property. There is an emerging middle class and they are buying. Wealthy families are buying whole blocks of condos and holding on to them; thus the dark windows. There is also a tremendous amount of middle eastern money coming in to the market.

The Thai economy is much stronger than most local ex-pats want to believe. They have the worlds 10th largest cash reserve and a double digit positive trade balance. Even during the social upheaval last spring, the industrial estates kept pumping out manufactured goods and the rice barges kept coming down the river. That is why the Baht is so strong and will probably remain so for a long time, not because of a cabal of currency manipulators in Hong Kong and Zurich as many want to believe.

For sure, the past does not guarantee the future but if you do your homework and buy quality, there's a pretty fair chance you'll be one of the happy one's a few years down the road.

[hhgz]

dddave,

Unlike some posters, that have been predicting a hosing crash for a decade, you know what you are talking about. However, trying to convince someone who has his mind made up already is impossible. TVers who have bought a condo are generally happy with their decision, and those that haven't bought a condo are generally happy with their decision. I'm just saying.

[afx]

Almost 18 years in the Kingdom now. In that time I have seen that this economy, historically, is boom and bust.

I stand on my porch every night looking at all the recently opened condo towers in the Tong Lor and upper-mid Sukhumvit area and wonder "why are there only a dozen or so lights on in the new units, even after a year+ of completion.

In the light of day I can see the sky-hooks continuing to build new towers everywhere.

I see pricing starting at 7 million+ for 65 SQM units and up in the prime areas and wonder, "who is buying? "The newly rich Chinese? other Asian boomers?"

I see the adverts: Guaranteed 12% return and think, "7+ million for a 65 SQM two bedroom and 12% return? That would require about bt.65 or 70,000 a month rental? Great!"

But why are there no lights on in the units at night?

Then I think, "what do I know, TIT."

Everything you say I can well believe to be true. I would also say the whole world is boom and bust not just Asia, the recent global financial crisis and the one before that and the one before that and the one coming next is unequivocal proof of that. Why ? Because us humans as a collective are essentially stupid, that and the fact most of these crashes are engineered to make trillions for a select few. I actually see what you say as a positive. I hope many have the lights off, meaning there are desperate builders / sellers meaning good prices and Thong lor is exactly where I want a condo, so all good, nice and quiet lights off and nobody home ;-).

I'm not interested in it as an investment, very likely to be a turd in that respect, if it happens it's a nice thing, if it doesn't no drama, that still doesn't make it a bad investment when compared to renting. I've paid five figures sterling in rent in the last 1.5 years alone in rent. 7 Million bht to buy is a mathematical no brainer. I don't really care if it's worth a dime which is all it will be worth when the city is relocated in a hundred years time or so. That said I'd still like to be half in (50% down) than all in.

Back on topic - anyone else got an idea on mortgages ???

A mortgage for a single foreigner is hard if not impossible to get. But both Bangkok Bank and UOB offer mortgages for foreigners in Thailand from heir Singaporean offices, i think in dollars. Not sure of the details but it is the only mortgage I've heard of for foreigners in Thailand.

Cheers, will look into UOB Singapore and give HSBC a call and post back.

[MontrealFarang]

***delete****

Edited January 13, 2011 by MontrealFarang

[yeno]

I cannot help but just wish to write that I read somewhere about someone saying that all his friends who bought apartments, houses, land etc. in Th are regretting this. Don't know the reasons why...

[SGD]

My guess is that those who don't buy are either somewhat transient or simply don't have that amount of cash available. At the top end, people are rich enough to not worry about continually renting. You see a lot more posts about cheap accommodation than Bt30k and upwards and I guess those posters can't buy or they'd be looking at higher rents.

Borrowing in Thailand is rather difficult but could the OP not just borrow in his home country and purchase outright, perhaps also setting up a cross currency swap / interest rate swap or both to remove FX and interest rate risk ?