Thai Mortgage Alternative: Build Slowly

[rcox81]

Thai Mortgage Alternative: Build Slowly

I have lived in Thailand for two years now. I am 33 with advanced degrees. I have a growing business but not many bank assets. I grew up a very poor American and inherited nothing.

I have asked numerous sources, but I can’t get a mortgage. But this is not a thread about complaints, its a thread about action. For my last two years in Thailand, I have generated more than enough money to sustain the rent payments that have paid my landlord’s mortgage (and even generated income for him). I have a longer history of generating sustainable revenue -- but not in this country. In America, I grew up in trailer parks but have a searchable resume that would make any Mom proud.

My BA degree is in history, and to me this sounds like a misplaced form of slavery. I think it is more than clear that I can pay my bills. So, my solution is this: Find a plot of gras -- hopefully with a view of some trees. And just start building.

I have moved to a new place. A bigger house with lower rent -- its a great deal. But I am willing to scale back and just start from where I was 10 years ago. Live in a studio apartment and build a home around it.

I realize this might mean I have to live in a 40sqm space for six months, and then hopefully later I get some more breathing room. As long as I am able to pump money into the building over time, I think I can grow the property. I think this is a viable method for many of the new guys in Thailand. We are all interested in what the old-timers think. But I do think that this is a fair and reputable way to build a home even when the “odds are stacked against you.”

[wayned]

I live in a remote farm area and that's exactly how the Thai's build. They put up poles and structure to hold a roof and run out of money. Once they get enough to put the roof on thy move in sometimes with feed bags and used roofing as walls and as they get money they finish a little more. some are finish as fast as the crops come in, some sit there for years unfinished and some are partly finished with a new pickup sitting in the yard which sometimes disappears after a few months because they can't make the payments. Good luck!

[trogers]

Willy-nilly is the word. You can tell the difference in the final result of built area when one project is created with numerous add-ons and another that was developed with a proper laidout plan.

Yes, you will still achieve the quantity of built area, but not the quality of living in it.

[wayned]

I've lived my life both ways and "willy-nilly" , at lest for me, is far better than the other,

[bankruatsteve]

As an 'old timer', I think you're nuts. But, go for it!

[Farma]

An alternative which I've seen Thais who are unable to obtain a bank loan do is similar to hire purchase. It's usually on established homes and allows the buyer to move in straight away.

The buyer and seller agree on a price and repayment terms. There's no interest charged as its already built into the purchase price.

A legal purchase agreement is registered where the buyer agrees to pay a deposit then X lump sum payments every 6 or so months for X years until the purchase is paid in full.

The property transfer is then completed at the land office on payment of the final installment.

Building as funds become available is also an option. It depends on what you require. Most of the Thai homes up in country areas are built this way with various add ons added over the years. FIL's house is built this way. The hardest part was finding matching tiles each time he added an extension. As a result you can see where each extension was added.

Edited January 5, 2014 by Farma

[Langsuan Man]

You don't make it clear on whether or not you have a Thai wife. If you do, then make her an employee, paying just enough for her to qualify for a loan, borrow the money in her name for the house

If you don't have a Thai wife then you had better keep in mind that you are going to have to buy your plot of gras using the company route and be prepared to pay around 15,000 THB annually to keep the company legal

[JusMe]

"Find a plot of gras -- hopefully with a view of some trees. And just start building."

You might find that plot, but you cannot buy it. You might be able to lease it, but only a Thai (or company) can actually own that land.

[Canada]

Where I live now, I see many people build this way. They usually set posts, build the second floor first. Floor, walls (wood) and roof. First floor is dirt. No walls, no nothing except stairs going up and some sort of cooking facility and a toilet separate from the house. It may take some time for them to complete the first floor; one year, two years before they brick it in and pour cement.

I wouldn't let people's negativity have much impact on your plans. Just get your girl, get your land and start building, knowing that it may all turn to dust in a heartbeat. But that's the fun part of it....the risk taking.

Have fun.

[simon43]

I've built this way four times over the past 12 years. My first 3 builds were commercial properties, small hotels that I built on land that I leased in my name. I just had to pay the rent every month. I would build a few guest rooms, then run out of money, but then continue to build more guest rooms at a slower pace using the letting income.

Now on my 4th build, the small hotel that I'm building is also where I'm going to live. I have permission to build 8 guest rooms, plus my own room. I've built 3 rooms to date and will open soon to gain the letting income.

If you're not in a hurry, it's a great way to build. I have a view of the trees, the beach in the distance, peace and quiet and daily guest bookings and income.

Simon