Financing For Foreigners In Thailand-Asset Rich But Cash Poor

[Canada]

I was considering a loan of 4 mill against land of around 9-12mill value. 14.9% pa roling up. All total to pay at end of the 6year term.

I forgot the answer now to this question: is it possible to raise multiple loans against the same land?

I was considering a loan of 4 mill against land of around 9-12mill value. 14.9% pa roling up. All total to pay at end of the 6year term.

I forgot the answer now to this question: is it possible to raise multiple loans against the same

land?

14.9% p.a.?

4000000*1.149^6 = 9,204,075

Yes; it's not too bad is it ? (I am the banker on this one)

Concern is recovering the land or money costs and time but the land should be rising in value I think over this time and more than cover it.

Good to be the banker

[Sharp]

Your not from Nigeria r u ..

Sent from my iPad using ThaiVisa app

[Sharp]

I was considering a loan of 4 mill against land of around 9-12mill value. 14.9% pa roling up. All total to pay at end of the 6year term.

I forgot the answer now to this question: is it possible to raise multiple loans against the same land?

Yes

Sent from my iPad using ThaiVisa app

[Canada]

Can anyone tell me how banks in Thailand calculate their interest on loans? Big difference between an amortized loan repayment schedule and the way most Thais calculate interest on loans.

A one million baht loan at 11% for five years ( the Thai way) adds up to a total of 50% interest over the term of the loan. Amortized it works out to a couple hundred thousand less. (closer to 30% over the term.

We haven't had this conversation at the bank yet.

[Canada]

I was considering a loan of 4 mill against land of around 9-12mill value. 14.9% pa roling up. All total to pay at end of the 6year term.

I forgot the answer now to this question: is it possible to raise multiple loans against the same land?

I think that if you have the take the chanote to the land title office and have your mortgage registered on the back of the chanote and then you keep the chanote they would have a hard time getting another loan on it. In the event that they reported the chanote lost or stolen to get another one, it would still have the mortgage registered on it and they would be committing fraud in doing so. You have to register it in your wife's name.

[jbrain]

Can anyone tell me how banks in Thailand calculate their interest on loans? Big difference between an amortized loan repayment schedule and the way most Thais calculate interest on loans.

A one million baht loan at 11% for five years ( the Thai way) adds up to a total of 50% interest over the term of the loan. Amortized it works out to a couple hundred thousand less. (closer to 30% over the term.

We haven't had this conversation at the bank yet.

Amortization is amortization all over the world. Easy to find calculators on the web.

However I find it strange that they need 6-8 weeks for a decision.

[Canada]

Can anyone tell me how banks in Thailand calculate their interest on loans? Big difference between an amortized loan repayment schedule and the way most Thais calculate interest on loans.

A one million baht loan at 11% for five years ( the Thai way) adds up to a total of 50% interest over the term of the loan. Amortized it works out to a couple hundred thousand less. (closer to 30% over the term.

We haven't had this conversation at the bank yet.

Amortization is amortization all over the world. Easy to find calculators on the web.

However I find it strange that they need 6-8 weeks for a decision.

Seems like a long time, yup.

[worldtraveller]

Money is available, I don't know where you are in Thailand, I am aware in BKK or Chiang Mai areas. It's generally from fairly wealthy Chinese Thai families or companies, the rates vary depending on the security. They can be a few percent per month but some will offer 1% per month, they transfer the deeds into their names at your cost and again transfer back at your cost, many people have got very rich doing that over here, from what I understand 1 % is the maximum by law per month unless you do not pay, then it goes up to 2% per month. They are usually short term 6 or 12 months, they can be renewed but many many of the people end up loosing their land or property. It's a dangerous place to go, if you ask your wife she ill probably point out signs in Thai all over the place offering money for and you could take your chances. They generally will give less than half of what you consider the land value.

[Canada]

Money is available, I don't know where you are in Thailand, I am aware in BKK or Chiang Mai areas. It's generally from fairly wealthy Chinese Thai families or companies, the rates vary depending on the security. They can be a few percent per month but some will offer 1% per month, they transfer the deeds into their names at your cost and again transfer back at your cost, many people have got very rich doing that over here, from what I understand 1 % is the maximum by law per month unless you do not pay, then it goes up to 2% per month. They are usually short term 6 or 12 months, they can be renewed but many many of the people end up loosing their land or property. It's a dangerous place to go, if you ask your wife she ill probably point out signs in Thai all over the place offering money for and you could take your chances. They generally will give less than half of what you consider the land value.

Yeah, the signs generally say "Easy Money" or Quick Money" or something to that effect. Loan sharking is alive and well here in Thailand. The banking/loaning system fails to help people less educated or less smart.....they simply don't have the wherewithall to jump through the hoops that a bank sets out. This creates a nice profit (prey) for the predators out there.

[mccw]

Money is available, I don't know where you are in Thailand, I am aware in BKK or Chiang Mai areas. It's generally from fairly wealthy Chinese Thai families or companies, the rates vary depending on the security. They can be a few percent per month but some will offer 1% per month, they transfer the deeds into their names at your cost and again transfer back at your cost, many people have got very rich doing that over here, from what I understand 1 % is the maximum by law per month unless you do not pay, then it goes up to 2% per month. They are usually short term 6 or 12 months, they can be renewed but many many of the people end up loosing their land or property. It's a dangerous place to go, if you ask your wife she ill probably point out signs in Thai all over the place offering money for and you could take your chances. They generally will give less than half of what you consider the land value.

Yeah, the signs generally say "Easy Money" or Quick Money" or something to that effect. Loan sharking is alive and well here in Thailand. The banking/loaning system fails to help people less educated or less smart.....they simply don't have the wherewithall to jump through the hoops that a bank sets out. This creates a nice profit (prey) for the predators out there.

I have paid 1.1% per month on a UK bridging loan. Secured LTV not more than 50% is standard. Sure its a bit expensive but its a risk worth taking in certain circumstances and what you gain is fast cash and little or no income conditions. Its a higher risk for them so higher fees; I don't brand them parasite, its just the natural market of risk and reward, covering of backs, no one would lend at too much chance of a loss. If people's plans gone wrong by bad luck or poor management its not the fault of the lender, its quite fair enough they should take over the property, the borrower entered in to agreement of own free will after all. Especially justified in case of existing capital being used such as private money lenders like the Chinese example; banks on the other hand "creating" the money that's loaned out on the other hand seems like a total con- I mean they had no money and now I must pay them with interest on something they never had until the flick of s pen; That has got to be the most amazing racket ever! I know it oils the wheels of commerce and bla bla bla, it has facilitated the modern world; but common, that is quite an amazing trick they got people to swallow with out question.

[mccw]

Money is available, I don't know where you are in Thailand, I am aware in BKK or Chiang Mai areas. It's generally from fairly wealthy Chinese Thai families or companies, the rates vary depending on the security. They can be a few percent per month but some will offer 1% per month, they transfer the deeds into their names at your cost and again transfer back at your cost, many people have got very rich doing that over here, from what I understand 1 % is the maximum by law per month unless you do not pay, then it goes up to 2% per month. They are usually short term 6 or 12 months, they can be renewed but many many of the people end up loosing their land or property. It's a dangerous place to go, if you ask your wife she ill probably point out signs in Thai all over the place offering money for and you could take your chances. They generally will give less than half of what you consider the land value.

Yeah, the signs generally say "Easy Money" or Quick Money" or something to that effect. Loan sharking is alive and well here in Thailand. The banking/loaning system fails to help people less educated or less smart.....they simply don't have the wherewithall to jump through the hoops that a bank sets out. This creates a nice profit (prey) for the predators out there.

I have paid 1.1% per month on a UK bridging loan. Secured LTV not more than 50% is standard. Sure its a bit expensive but its a risk worth taking in certain circumstances and what you gain is fast cash and little or no income conditions. Its a higher risk for them so higher fees; I don't brand them parasite, its just the natural market of risk and reward, covering of backs, no one would lend at too much chance of a loss. If people's plans gone wrong by bad luck or poor management its not the fault of the lender, its quite fair enough they should take over the property, the borrower entered in to agreement of own free will after all. Especially justified in case of existing capital being used such as private money lenders like the Chinese example; banks on the other hand "creating" the money that's loaned out on the other hand seems like a total con- I mean they had no money and now I must pay them with interest on something they never had until the flick of s pen; That has got to be the most amazing racket ever! I know it oils the wheels of commerce and bla bla bla, it has facilitated the modern world; but common, that is quite an amazing trick they got people to swallow with out question.

[mccw]

If you want to see some real gangsta rates then google "pay day loans UK"

Talking over a thousand % if worked out at PA !

[Canada]

Can anyone tell me how banks in Thailand calculate their interest on loans? Big difference between an amortized loan repayment schedule and the way most Thais calculate interest on loans.

A one million baht loan at 11% for five years ( the Thai way) adds up to a total of 50% interest over the term of the loan. Amortized it works out to a couple hundred thousand less. (closer to 30% over the term.

We haven't had this conversation at the bank yet.

Amortization is amortization all over the world. Easy to find calculators on the web.

However I find it strange that they need 6-8 weeks for a decision.

You'd be surprised. Finance companies here do not amortise. They calculate the interest on the whole principal borrowed for the entire term of the loan, add that to the principal borrowed and divide by the # of months in the term. Simple "f_uck you over" mathematics. Just wondering if the banks do it the same way. In any case, I'll get this question answered myself at the bank this week.

[itchybum]

Well, isn't Thailand a great finance hub.

Bank interest rates at what 2% or less.

a loan LVR of 1/10.

And an interest rate of 11%.

By golly, makes my last refinance of the end of last year near criminal.

circa 18mil baht at around 4% with an LVR of 40%

My offer was real by the way until you started to renegotiate.

It was negotiate, not renegotiate. And yours was the one I was referring to.

Glad to see you got it sorted Canada, sorry we could not do a deal in the end Sir.

Side note question for you Itchybum if I may - are you aware of legal interest rates within the Kingdom of Thailand? I'd be interested to know if he could of defaulted on you legally based on your illegal offer? If you know something please do share Sir? By the way I'm not a do good type picking holes, I am interested.Cheers.

Thank you. Apologies. It was your offer that I considered a serious offer. 20 % interest...I wouldn't call that a serious offer. A serious offer would be one that is attractive to both parties.

What was not attractive was you changing the conditions.

Upping the amount you wanted, doubling the term, your rate and title held with your lawyer was the real kicker.

Anyway, best of luck with the bank.

[mccw]

Would any one be interested to lend £300,000 secured against a £1,250,000 UK property, interest at 1% roling up monthly. Paid back in one lump sum upon this properties sale or if sooner there is another property for sale that could cover it (a site with planning granted with an agreed sale price of £420,000 on an "option to buy contract" due to expire in October, if this is not honoured it can be sold in auction in November). So two ways to repay; both likely before the end of the year.

If preferred we are open to a fixed rate 1year term with interest paid monthly or in a lump sum at the end. Interest rate negotiable.

This is a serious offer.

The money is needed by mid July.

PM me for further details.

Thanks

[Naam]

how does one secure a loan on a UK property without both parties being present in UK for the relevant procedure?

[mccw]

how does one secure a loan on a UK property without both parties being present in UK for the relevant procedure?

My UK lawyer informs me that lawyers of both parties could be given power of attorney for the specific mater at hand in the same way they can for a property purchase; or the documents can be couriered and signed in the presences of / witnessed by a lawyer in another country; but if it is a worry and a real deal breaker then I'd be prepared to cover the air fare (eg premium economy eva air direct flight from BKK to LHR return) for both parties to sign in person in England (paid to the lender immediately after signing had taken place)