Want to buy "mortgaged" land

[Johnniey]

I bought some land for 700,000 baht 30 months ago and had a contract like a mortgage from the owner, who is a banker. The mortgage was agreed to be paid over 22 years starting with 7000 baht a month. I have paid 210,000 baht which I realize is mostly interest.

The owner is asking for 700,000 baht but I think that as I have already paid interest on the land for some of the 22 years, the land should be cheaper.

I'm going to offer him 600,000 and hope he takes this. Does this seem fair? Alternatively, I could say forget it and I'll stick with the original plan and start paying less per month soon. Any ideas?

[Thanyaburi Mac]

Topic moved to: http://www.thaivisa.com/forum/topic/898806-want-to-buy-mortgaged-land/

Mac

[Johnniey]

Now, I'm thinking that I'll offer 60,000 for 12 months which is a total of 720,000 but I'll be saving the 7,000 a month which would add up to 84,000 baht

[trogers]

You entered into a mortgage contract. Look at the terms of this contract regarding early discharge of the debt.

[Paul944]

I am trying to understand what you are telling.

You bought a piece of land 30 months ago and you did agree to pay 22 years 7000 baht a month? You say starting so will it become more or less a month after a certain time?

If you pay 7000 a month for 22 years the total is 1.848 million baht.

Anyway you have a contract so the numbers should be in there. Usually if you decide to pay more each year you have to pay a penalty for lost interest. In the Netherlands most mortgage contracts allow a 10% extra payment a year or more if the interest of the mortgage is lower as the market interest.

The offer of 60,000 I do not understand. You want to pay 60,000 a month for 12 months period?

Why did you get the mortgage in the first place? With the interest rates around 6% it is very expensive and only worthwhile if you can use it as a tax deduction.

[Johnniey]

I am trying to understand what you are telling.

You bought a piece of land 30 months ago and you did agree to pay 22 years 7000 baht a month? You say starting so will it become more or less a month after a certain time?

If you pay 7000 a month for 22 years the total is 1.848 million baht.

Anyway you have a contract so the numbers should be in there. Usually if you decide to pay more each year you have to pay a penalty for lost interest. In the Netherlands most mortgage contracts allow a 10% extra payment a year or more if the interest of the mortgage is lower as the market interest.

The offer of 60,000 I do not understand. You want to pay 60,000 a month for 12 months period?

Why did you get the mortgage in the first place? With the interest rates around 6% it is very expensive and only worthwhile if you can use it as a tax deduction.

The monthly payments go down every year.

I got a mortgage as I didn't have any money at the time.

[Johnniey]

I am trying to understand what you are telling.

You bought a piece of land 30 months ago and you did agree to pay 22 years 7000 baht a month? You say starting so will it become more or less a month after a certain time?

If you pay 7000 a month for 22 years the total is 1.848 million baht.

Anyway you have a contract so the numbers should be in there. Usually if you decide to pay more each year you have to pay a penalty for lost interest. In the Netherlands most mortgage contracts allow a 10% extra payment a year or more if the interest of the mortgage is lower as the market interest.

The offer of 60,000 I do not understand. You want to pay 60,000 a month for 12 months period?

Why did you get the mortgage in the first place? With the interest rates around 6% it is very expensive and only worthwhile if you can use it as a tax deduction.

The monthly payments go down every year.

I got a mortgage as I didn't have any money at the time.

I got a new contract drawn up. As it happened in 2 years we had paid 100k of the principal. So the contract is 12 payments(up to me but minimum 30k a month) We can pay the whole thing whenever we want. I am very happy with the deal.