Housing Loan In Thailand

[ManOnTheRoad]

Greetings,

My Thai wife wanted to buy a brand new 2 bedroom condo in Bangkok for investment and to rent it out by taking home loans from a Thai Bank. Since she know the Bank Loan officer personally she said that she can get loan based on her Work Salary. According to the bank officer they can let her have 100% loan without down payment. .She have already reserve the condo she wanted.

Condo Price: 4 Million Thai Baht

Bank : TMB

Her current salary is around 60K Thai Baht Per month.

As i know if someone wants to loan 4 million baht for housing the basic salary should be around 75k Thb per month or more , But her friend the bank officer is convince that he could approve this loan. and even Pre Approved the loan.

So my question is can the Bank Loan officer infact approve the loan even though her salary is not up to the requirement ? According to the guy usually this is case by case matters , The bank usually look at the person work , family background in order to approve higher loan .

Thanks

MORT

Edited March 23, 2011 by ManOnTheRoad

[Mugg]

How long is the term for and at what interest rate ?

ex.

52860.29 Thb monthly will get you

4MB @ 10% for a 10 year term.

[ManOnTheRoad]

How long is the term for and at what interest rate ?

ex.

52860.29 Thb monthly will get you

4MB @ 10% for a 10 year term.

Hi the rate is around 7.5 %

30 years Loan Period

monthly payment: THB 27.968.50

Edited March 23, 2011 by ManOnTheRoad

[Mugg]

How long is the term for and at what interest rate ?

ex.

52860.29 Thb monthly will get you

4MB @ 10% for a 10 year term.

Hi the rate is around 7.5 %

30 years Loan Period

monthly payment: THB 27.968.50

http://www.hsbc.co.th/1/2/personal-en/loan/homeloan

Or Click Here

[Mugg]

Your wife making 60K .. that's a keeper for sure..

How much do condo's in the same complex/area rent for also?

Do you have to live in the condo for any period of time?

Is it your plan also to sell this property later ?

[ManOnTheRoad]

Your wife making 60K .. that's a keeper for sure..

How much do condo's in the same complex/area rent for also?

Do you have to live in the condo for any period of time?

Is it your plan also to sell this property later ?

The plan is to fully furnished the condo , stay for several month just to show to the bank that its our family homes,then after that we are going to rent it out. Monthly rental rate there is about 25k thb per month. fully furnished. depending on the size of the condo.

We are also thinking of selling it in the future.

[Mugg]

Your wife making 60K .. that's a keeper for sure..

How much do condo's in the same complex/area rent for also?

Do you have to live in the condo for any period of time?

Is it your plan also to sell this property later ?

The plan is to fully furnished the condo , stay for several month just to show to the bank that its our family homes,then after that we are going to rent it out. Monthly rental rate there is about 25k thb per month. fully furnished. depending on the size of the condo.

We are also thinking of selling it in the future.

Best of Luck .... and enjoy ..

[CWMcMurray]

Just want to make sure I understand this correctly.... you want to buy an investment property and spend money to fully furnish with the hopes that you can rent it out for less than the mortgage payment?

So even if you can maintain 100% residency rate, you are still losing money every month.

Wouldn't it make a bit more sense for your wife to invest her 28k per month in something else?

Monthly rental rate there is about 25k thb per month. fully furnished.

Hi the rate is around 7.5 %

30 years Loan Period

monthly payment: THB 27.968.50

[Shipwreck]

CWM has a very valid point. It seems like you (she) will be losing almost 3K a month for the next 30 years.

If she put that 28K into a mutual fund or some sort of investment vehicle - heck, a pillow case, you would be doing better than -36K a year...

[ManOnTheRoad]

Just want to make sure I understand this correctly.... you want to buy an investment property and spend money to fully furnish with the hopes that you can rent it out for less than the mortgage payment?

So even if you can maintain 100% residency rate, you are still losing money every month.

Wouldn't it make a bit more sense for your wife to invest her 28k per month in something else?

Monthly rental rate there is about 25k thb per month. fully furnished.

Hi the rate is around 7.5 %

30 years Loan Period

monthly payment: THB 27.968.50

We have other source of income too

[CWMcMurray]

I understand that you have the money to do it if you want to, but does it make sense?

[sirineou]

Just want to make sure I understand this correctly.... you want to buy an investment property and spend money to fully furnish with the hopes that you can rent it out for less than the mortgage payment?

So even if you can maintain 100% residency rate, you are still losing money every month.

Wouldn't it make a bit more sense for your wife to invest her 28k per month in something else?

Monthly rental rate there is about 25k thb per month. fully furnished.

Hi the rate is around 7.5 %

30 years Loan Period

monthly payment: THB 27.968.50

Yes there might be a short fall of a few Thousand bath per month. But the Op will be generating equity from paying the principal, Potential equity from any future increases in property values. and a hedge against inflation.

This investment would make sense,if the OP belives that the property will dramatically increase in Value in a few years.

What the OP must be careful, and guard against is, the maintenance fees of the condo, and any potential future assessments, for major maintenance and repairs.

.

[ManOnTheRoad]

Updated News

Just got everything done.

Afterweeks of bargaining, The cost of the house is now 3.3 Million Thai baht,

2 Story Single Home

3 Bed Room

2 Toilet

Kitchen Garden

etc

Actual Value : 4 Million THB

Promotion Value : 3.3 Million THB

Bank Loan : 4 Million THB

Seller Give us Cash back : 700K THB

Just signed everything and its done Happy and now just waiting to move in and cash in the cheque

[Jebhead]

What was the time frame on getting the loan from the bank, from submitting all paperwork until getting the cheque? What bank? what city?

JH

[ManOnTheRoad]

What was the time frame on getting the loan from the bank, from submitting all paperwork until getting the cheque? What bank? what city?

JH

Day 1 : Paid Booking Fee : 20k THB, Receive copy of housing documents and etc

Day 2 : Gave the bank my misus work documens Salary slip,Sign Loan Home Mort age Form and copy of intended house document which we want to buy

Day 3: ,Credit Beureu Check and Loan Pre Approved

Day 4 : Wait

Day 5: Bank Contact the work place to check details

Day 6 Wait

Day 7 : Wait

Day 8 : 100% Approved

Day 9 House Inspection

Day 10 Sign Housing Contract

Day 11 Housing Submit Contract to Bank

Day 12 Done and awaiting for next step

Collecting cheque in 3 days.

TMB Rangsit Area,

Days not included Saturday and Sundays

Edited April 3, 2011 by ManOnTheRoad

[Jebhead]

What was the time frame on getting the loan from the bank, from submitting all paperwork until getting the cheque? What bank? what city?

JH

Day 1 : Paid Booking Fee : 20k THB, Receive copy of housing documents and etc

Day 2 : Gave the bank my misus work documens Salary slip,Sign Loan Home Mort age Form and copy of intended house document which we want to buy

Day 3: ,Credit Beureu Check and Loan Pre Approved

Day 4 : Wait

Day 5: Bank Contact the work place to check details

Day 6 Wait

Day 7 : Wait

Day 8 : 100% Approved

Day 9 House Inspection

Day 10 Sign Housing Contract

Day 11 Housing Submit Contract to Bank

Day 12 Done and awaiting for next step

Collecting cheque in 3 days.

TMB Rangsit Area,

Days not included Saturday and Sundays

Many thanks

JH

[CWMcMurray]

Congratulations, looks like it all worked out very well

[ManOnTheRoad]

Thanks Well now need to get Wallpaper , Home Security system . Busy work ahead

[RAZZELL]

Congratulations

But surely if you paid 3.3m...it's a 3.3m house not a 4m one?

RAZZ