Banks Are Freaking Out!

[thaigene2]

The other posts in this forum are all pointing to it.

I won't go into my own details here - but the banks have been told to shut down on the foreigners - this from a deputy of a major Thai branch of 'blue chip' clients. My advice is sit on the sidelines. Forget any transactions that aren't run-of-the-mill remittances. You can still transfer money in to buy a condo (or stupidly buy a leasehold, etc but why would you! I could never figure that one out). Anyway, it looks like it's going to get worse..

Better to transfer money out I reckon! Or not - I don't have crystal ball. So before the "official lurkers" panic - my advice to anyone reading this is "sit tight!" Don't do anything (but you "lurkers" should convince your bosses to lighten up on foreigners - you're on the verge of a bloody exodus!!!!) You want foreigners to come here? - then you tell them they can buy a place - but can't stay? What's that about anyway? No foreigner wants to take Thai land away from Thais. But isn't it "odd" that other non-farangs did exactly that over the last 200 years?? Hmm? Sound familiar? Do as I say - not as I do..Funny how nothing ever, ever, changes.

[george]

Yen, yen...

[Twin]

The other posts in this forum are all pointing to it.

I won't go into my own details here - but the banks have been told to shut down on the foreigners - this from a deputy of a major Thai branch of 'blue chip' clients. My advice is sit on the sidelines. Forget any transactions that aren't run-of-the-mill remittances. You can still transfer money in to buy a condo (or stupidly buy a leasehold, etc but why would you! I could never figure that one out). Anyway, it looks like it's going to get worse..

Better to transfer money out I reckon! Or not - I don't have crystal ball. So before the "official lurkers" panic - my advice to anyone reading this is "sit tight!" Don't do anything (but you "lurkers" should convince your bosses to lighten up on foreigners - you're on the verge of a bloody exodus!!!!) You want foreigners to come here? - then you tell them they can buy a place - but can't stay? What's that about anyway? No foreigner wants to take Thai land away from Thais. But isn't it "odd" that other non-farangs did exactly that over the last 200 years?? Hmm? Sound familiar? Do as I say - not as I do..Funny how nothing ever, ever, changes.

Better to transfer money out I reckon! Or not ?????

Thanks for that.

Edited October 5, 2006 by Twin

[fxm88]

...Freaking Out...

...shut down on the foreigners...

I appreciate that you're in a bit of a panic, but how exactly do you mean these terms? (If these are technical banking terms, I do apologise for my ignorance.)

Yen, yen...

Yen as in "Jai yen"? Or as in "Japanese yen"?

[Cyberstar]

The important term in OP is "sit tight" --- if (and that's a big IF), there's some sort of panic on the verge ... sit tight and watch what doors the panickers are rushing at ... then you can stroll peacefully down to one of those exits, the panickers didn't think of in their panic.

[desmond]

...Freaking Out...

...shut down on the foreigners...

I appreciate that you're in a bit of a panic, but how exactly do you mean these terms? (If these are technical banking terms, I do apologise for my ignorance.)

Yen, yen...

Yen as in "Jai yen"? Or as in "Japanese yen"?

I think he means "Jai Yen Yen" , be cool, certainly cannot be Japanese Yen, lol

[lukamar]

My take is the sh*t will really hit the fan when the banks figure out that the foreigners that are married to Thais and needed to keep 400,000 in a Thai bank to secure their visa no longer need to do that. That's a crap load of money we don't have to have sitting around in a Thai bank when you take everyone with that visa into account.

[midas]

" or stupidly buy a leasehold, etc but why would you! I could never figure that one out "

thaigene2 !!

I am interested to discover there is someone else out there who shares my cynical view

about the perceived value of leasehold condominiums ! Thai's and farangs seem

totally oblivious that there is no absolute guarantee that some of these ground leases

will always be renewed. In one ground lease it specifically said the improvements

would revert to the ground lessor ! I really don't think 70% of the buyers have a clue

of what the real issues are when buying leasehold

[my benny rai]

Midas,

What is a leasehold? I thought aliens were allowed to purchase condos and put them in their own names.

Thaigene2,

I won't go into my own details here - but the banks have been told to shut down on the foreigners - this from a deputy of a major Thai branch of 'blue chip' clients.

Why not go into details? Do tell this inside information if you do in fact have it.

[thaihome]

My take is the sh*t will really hit the fan when the banks figure out that the foreigners that are married to Thais and needed to keep 400,000 in a Thai bank to secure their visa no longer need to do that. That's a crap load of money we don't have to have sitting around in a Thai bank when you take everyone with that visa into account.

You don't have to leave the 400k in the bank. As a matter of fact, you are expected to draw it down over the year and then top it back up before renewing again.

As the major Thai banks have assets ranging from 15 to 30 billion USD each, I doubt deposits from farangs on married visa make a whole lot of difference to them.

Again, someone who is incorrectly convinced of their major impact to the Thai ecomony.

TH

[fruittbatt]

The other posts in this forum are all pointing to it.

I won't go into my own details here - but the banks have been told to shut down on the foreigners - this from a deputy of a major Thai branch of 'blue chip' clients. My advice is sit on the sidelines. Forget any transactions that aren't run-of-the-mill remittances. You can still transfer money in to buy a condo (or stupidly buy a leasehold, etc but why would you! I could never figure that one out). Anyway, it looks like it's going to get worse..

Better to transfer money out I reckon! Or not - I don't have crystal ball. So before the "official lurkers" panic - my advice to anyone reading this is "sit tight!" Don't do anything (but you "lurkers" should convince your bosses to lighten up on foreigners - you're on the verge of a bloody exodus!!!!) You want foreigners to come here? - then you tell them they can buy a place - but can't stay? What's that about anyway? No foreigner wants to take Thai land away from Thais. But isn't it "odd" that other non-farangs did exactly that over the last 200 years?? Hmm? Sound familiar? Do as I say - not as I do..Funny how nothing ever, ever, changes.

This sounds like "the sky is falling" all over again. In the absence of ANY supporting evidence, I can only agree with George's sane advice to CHILL.

[danone]

nothing changed. keep your cool, kick that tree. then call the bank again and you will find all's the same as always.

[Noel]

Better to transfer money out I reckon! Or not - I don't have crystal ball. So before the "official lurkers" panic - my advice to anyone reading this is "sit tight!" .

It strikes me that the OP was "sitting tight" when he posted.

Just as well that PUI (posting under the influence) is not a criminal offence...

[Nawtilus]

Midas,

What is a leasehold? I thought aliens were allowed to purchase condos and put them in their own names.

Thaigene2,

I won't go into my own details here - but the banks have been told to shut down on the foreigners - this from a deputy of a major Thai branch of 'blue chip' clients.

Why not go into details? Do tell this inside information if you do in fact have it.

Some condo buildings and whatever else is in the immediate area, office for example, are located on crown land, so the royal household leases out the land for 30 years, some build condos on it and sell them similar as freehold, in the fact that you pay for your 30 years of lease up front at a reduced price of course. But at the end of 30 years, anything can happen, usually you do your sums based only on having it for 30 years and walk away from it at the end.

I read somewhere that thais look at it as say buying the 30 year lease for 10million for the condo, lease it out for say 15 years at 55,000b and then you have got your 10mil back and the last 15 years income are yours.

This is a simple example and does not cover extra expenses of course and a realistic rental % return and vacancy periods etc etc.

But this is how it is supposed to work I believe and if you ask me....it is a stoooooopid stooooopid ferkin idea..but that is just me.

Oh and another thing, a lot of the condos in the Ratchadamri ?? area between silom and siam is on crown land and this leasehold deal. Next time you see a development advertised in bkk post in this area, in fact any development, read the fine print down below and you will see where they have to state the land owner or such and they mention the crown. This is then a leasehold development and deal with it as such.

[cclub75]

I won't go into my own details here - but the banks have been told to shut down on the foreigners - this from a deputy of a major Thai branch of 'blue chip' clients.

Well you should go into details, in order to enlight us.

Which foreigners are you talking about ? Individuals or businesses ?

[johnnyk]

"I won't go into my own details here - but the banks have been told to shut down on the foreigners - this from a deputy of a major Thai branch of 'blue chip' clients."

No substantive info at all here just rumours of rumours about someone's opinion....well, we get the picture.

Then another expert obviously 'in the know' adds in nonsense about condos and 30-year LHs obviously having no clue that falangs can own condos outrright in their own name, nothing whatsoever to do with LHs as land is not involved.

Again, serious overestimation about the importance of expat falangs to the Thai economy.

How many falangs live full-time in Thailand?

How many of them are married and subject to the 400K baht proviso?

Exactly, not very many.

And their 400K baht each divided among the big Thai banks with enormous assets amounts to tiddlywinks for each bank.

Some people need to get a grip on something other than beer bottles.

Edited October 6, 2006 by johnnyk

[Heng]

"I'm freaking out!" -Milhouse

[OlRedEyes]

Then another expert obviously 'in the know' adds in nonsense about condos and 30-year LHs obviously having no clue that falangs can own condos outrright in their own name, nothing whatsoever to do with LHs as land is not involved.

Castles in the air?

[IMA_FARANG]

The important term in OP is "sit tight" --- if (and that's a big IF), there's some sort of panic on the verge ... sit tight and watch what doors the panickers are rushing at ... then you can stroll peacefully down to one of those exits, the panickers didn't think of in their panic.

I just had a chat with one of the senior tellers from my Bangkok Bank branch (Soi 43 on Sukhumvit) regarding tranfering 800,000K baht equivalent to Thailand for retirement, and they were very nice and happy to cooperate in helping me do all the forms for transfer. They even told me that if my U.S. bank gave me any problems about tranferring that as a lump sum, I should please contact them and they would then contact my U.S. bank on official Bangkok Bank letterhead explaing the procedure and why it was required by Thai law. They couldn't have been more helpful.

[Thaiquila]

The important term in OP is "sit tight" --- if (and that's a big IF), there's some sort of panic on the verge ... sit tight and watch what doors the panickers are rushing at ... then you can stroll peacefully down to one of those exits, the panickers didn't think of in their panic.

I just had a chat with one of the senior tellers from my Bangkok Bank branch (Soi 43 on Sukhumvit) regarding tranfering 800,000K baht equivalent to Thailand for retirement, and they were very nice and happy to cooperate in helping me do all the forms for transfer. They even told me that if my U.S. bank gave me any problems about tranferring that as a lump sum, I should please contact them and they would then contact my U.S. bank on official Bangkok Bank letterhead explaing the procedure and why it was required by Thai law. They couldn't have been more helpful.

This doesn't make any sense to me at all.

Why would you need any form from your Thai bank to do a transfer from a US bank?

You need to have a previous arrangement with your US bank. Usually the Thai bank has nothing to do with the initiation of a transfer INTO Thailand (except perhaps supplying the SWIFT code and branch address).

Edited October 6, 2006 by Thaiquila

[pascharay]

I sold diamond for over 20 years. There were two prices when buying diamonds. Someone who wanted money right now got considerably less than someone who could wait for his price. panic selling results ina drop in price. Demand and supply. You want to leave the 'sinking ship' then you get a fraction of your cost. At this point no one has pulled the plug.

calm down and wait till the dust settles.

before the coup my friend said that all these changes were enacted by officials to make a mess.

Not only for farangs but thais as well who matter much more to the new leaders.

Edited October 6, 2006 by pascharay

[midas]

" Then another expert obviously 'in the know' adds in nonsense about condos and 30-year LHs obviously having no clue that falangs can own condos outrright in their own name, nothing whatsoever to do with LHs as land is not involved "

johnnyk your comments above disturb me because they confirm that there must be a number of

foreigners and maybe Thais's for that matter who don't understand the nature of buying a leasehold

condominium. Yes a foreigner can own the condo outright but if the building is sitting on leasehold land as Nawtilus correctly said " at the end of 30 years, anything can happen " and don't forget TIT

And when " you do your sums based only on having it for 30 years and walk away from it at the end " in my opinion mostly leasehold condominiums in Bangkok are overvalued and are an unattractive investment proposition. As I said earlier I definitely know of one very prestigious

condominium building in the CBD where there is a direct provision in the ground lease for the

" improvements " to revert to the landowner - quite a devious move in my opinion

[Noel]

The important term in OP is "sit tight" --- if (and that's a big IF), there's some sort of panic on the verge ... sit tight and watch what doors the panickers are rushing at ... then you can stroll peacefully down to one of those exits, the panickers didn't think of in their panic.

I just had a chat with one of the senior tellers from my Bangkok Bank branch (Soi 43 on Sukhumvit) regarding tranfering 800,000K baht equivalent to Thailand for retirement, and they were very nice and happy to cooperate in helping me do all the forms for transfer. They even told me that if my U.S. bank gave me any problems about tranferring that as a lump sum, I should please contact them and they would then contact my U.S. bank on official Bangkok Bank letterhead explaing the procedure and why it was required by Thai law. They couldn't have been more helpful.

This doesn't make any sense to me at all.

Why would you need any form from your Thai bank to do a transfer from a US bank?

You need to have a previous arrangement with your US bank. Usually the Thai bank has nothing to do with the initiation of a transfer INTO Thailand (except perhaps supplying the SWIFT code and branch address).

As far as I am aware, the receiving Thai bank should have nothing to do with the remitting foreign bank's procedures, although they may be able to help if the foreign bank is unaware of procedures (most unlikely).

The only possible point that I can imagine is that if the reason for which the funds are being transferred (eg. Purchase of Condo) is not stated, the receiving Thai Bank will code the receipt as they see fit (eg. General Expenses).

[Tolley]

I say bring the panic on and let's see a rush of panic selling....that would just create an opportunity for cashed up buyers to get in at the bottom of the market.....

[Firefan]

I still have no fracking clue what the OP wanted to say....

As to leasehold condos on crown land it is very true that those condos can not be/are not fully owned. 30 years typically, some times less. This should however be crystal clear in the papers/promotions, but I am sure some developers mention it only in the small print....

Cheers!

[backflip]

"before the coup my friend said that all these changes were enacted by officials to make a mess."

Ah, finally an insider's perspective!

[onlooker]

"before the coup my friend said that all these changes were enacted by officials to make a mess."

and if you cant beleive a guy you meet in a bar (ex-SAS of course) then who can you believe?

[boppia]

Well, if there's supposed to be dinero in the accounts for visa holders the banks certainly have to play a part in confirming its actually there. With the government trying to confiscate assets of corrupt members of the hasbeen government, the banks will also have to play a part. Some of those assets may be hidden in foreign accounts. I don't understand well but Thaksin and cohorts seem to have hidden transactions by using foreign companies in their dirty deals. As for the Thai economy going south it may be so to some extent because the world economy is still flopping around. China seems to be the place for investment in production at the moment. Which way will it all go? Will Thailand be ahead of the game?

[teej]

Nothing is happening. And to cry panic is rather uncalled for. Re: the attitude of "I'll take my 400K baht elsewhere, if Thailand doesn't want my money, then oh that's really bad news for the Thai economy" -- please. Seriously, do you think Thailand cares about the type of foreigners like this? 400K baht is 10K USD. That is a nice set of rims and tires for the rich here, nothing more.

I'm always amused when I hear comments like, "i'll take my money elsewhere" expecting that the Thai economy will all of a sudden collapse if Joe Schmoe takes his million baht life savings and his thai gf out of the economic equation. Foreigners that matter are foreign companies like Toyota, Ford and the like, not Mr. backpacker or Mr. whoremonger or Mr. Retiree in the Sticks. One rich Thai's wealth could pick up the slack if every single one of these guys left the country.... banks certainly could care less. The only people that would be affected would be the hooker in pattaya and the tuk tuk driver who wants to rip you off, or your local pub owner. Or maybe the bungalow owner who rents for 10usd/day in Samui. Nobody else cares.

Edited October 6, 2006 by teej

[johnnyk]

Indeed, many falangs who are nobody at home desperately need to believe they and their $10K are somebody in Thailand.