Securing A Mortgage In Your Own Country?

[austallia_1980]

I find it very disappointing, and somewhat unusual that Farang are ineligable to recieve mortgages in Thailand. I do not understand why anyone in their right mind would pay 200K USD for a Condo in cash! Dont you guys realize how bad this is for the buyer?

So does anyone have any advice on to go about securing a loan from overseas(I am an Ameican posting on my friend's account)?

Thank You.

[eljeque]

To secure a mortgage from overseas, the overseas facility needs a guarantee for the funds lended. As only Thai companies and Thai people have the right to own property here, foreign banks and finance companies would have a hard time taking back a house from someone who does not make the payments.

In your case, 49% of the surface area of the condo building may be held in a foreign's name, but a foreign bank would still have to come here to take the property back from a buyer who does not make the payments. The foreign financer woud also need legal representation here and would have to travel here before the loan is made and after the final payment is completed. That would be a big headache and also a lot of expense.

I am from the USA. I would not dream of asking Bank of America in Los Angeles to make a loan to me to buy a condo in Costa Rica.

Remember, even though there is this little condo allowance, WE are not supposed to be able to own property here. It is not just in the laws, it is in the mindset of the populae that WE cannot have property. The system is set up so that we cannot access property. Yes, there are a few ways (companies which we own 49% of the shares, condos which we can buy 49% of the units, Bangkok Bank of Singapore offering loans which very few can get).

As I am sure you have read, retirees with Thai wives have been offered mortgages by the banks, and at the last moment, the price changed. A few foreigners with work permits and great credit have been able to get mortgages. That is all that I have heard.

I wish you the best of luck. Remember, Thailand does not want you or me to become investors here. They want you to bring cash and buy something so that they can invest the cash they have made from the profit of the sale.

I wish you the best of luck.

[Gary A]

You can easily get a mortgage from a US bank provided you have property there to mortgage. For a condo here you have as good a chance from a US bank as you have from a Thai bank NONE! If you have to borrow money you can't afford to buy anything here.

[backflip]

"49% of the surface area of the condo building may be held in a foreign's name...we can buy 49% of the units"

You are referring 2 two completely different things. The earlier statement is incorrect, the latter statement is correct.

[N47HAN]

A close freind of mine is a senior advisor for a LEGIT company in Bkk that arrange what your after.

If u want his details p.m m8 and ill pass the details to you so you can check them out first and then contact them directly if you wish.

[austallia_1980]

I have about 3x the amount of the condo i want to buy in cash. Would this be enough to get an American bank to give me a loan? the buttom line is that i feel that spending 200k USD in cash is just terrible financially. Nobody pays for a house in cash in the West, although in Thailand crazy monkey math that means you cant avoid it blah blah blah.

[austallia_1980]

Oh wait, I guess I should mention that I already own a house in the USA for $150K, already paid for. Does this mean that I can mortgage this house, use this money for the condo, and then pay the bank back once again? this is not a bad option. my folks currently reside in this house.

[astral]

I borrowed against a property I have in the Uk and then used the funds to buy our house in Thailand.

That was 8 years ago.

It is all paid off now.

[Gary A]

Oh wait, I guess I should mention that I already own a house in the USA for $150K, already paid for. Does this mean that I can mortgage this house, use this money for the condo, and then pay the bank back once again? this is not a bad option. my folks currently reside in this house.

I have no doubt that the interest rate in the US will be much better and you will easily understand the terms of the loan. IMHO getting a mortgage on your US house is the way to go.

[GuestHouse]

You already have a house in the US, rent it out for income (while it appreciates with the value of houses back home) then take the income to Thailand and....

RENT

Oh wait, I guess I should mention that I already own a house in the USA for $150K, already paid for. Does this mean that I can mortgage this house, use this money for the condo, and then pay the bank back once again? this is not a bad option. my folks currently reside in this house.

Isn't that an example of what you term 'Monkey Math', you will afterall be paying Cash in Thailand and worse, it is cash you have 'Borrowed'.

My view is buying property in Thailand should only be done with 'Spare Money', money you can afford to loose if it all goes to rat sh1t.

So if you have a house in the US AND you have cash spare to buy a place in Thailand, then by all means go ahead.

If the purchase in Thailand means selling up back home, or worse still borrowing back home - RENT in Thailand.

[migrant]

Oh wait, I guess I should mention that I already own a house in the USA for $150K, already paid for. Does this mean that I can mortgage this house, use this money for the condo, and then pay the bank back once again? this is not a bad option. my folks currently reside in this house.

If you own a house free and clear, here in the states, you can obtain a equity loan very easily. The proceeds can be used for anything.

You mention that you have a good cash supply. Any bank that you apply for a loan to buy the condo (if you can find one) will want 20-40% down.

So between the amount you gey from your equity loan, and your cash, you have achieved the same thing.

BTW, you don't state the amount of time you have spent in Thailand. If you are well experienced, or not. If you have not spent lots of time (years?) then I would recommend, like others, renting for a while to see where, and what, you like.

[eljeque]

"49% of the surface area of the condo building may be held in a foreign's name...we can buy 49% of the units"

You are referring 2 two completely different things. The earlier statement is incorrect, the latter statement is correct.

Double check on that. I believe it to be something like 49% of the area or 49% of the value of the area. A few foreigners could buy the largest of the units and then own 3/4 of all of the area.

Does anyone out there have immediate access to the law?

[Markinbkk]

I live in Thailand and have two mortgages here, one with HSBC and one with SCB. Both are quite reasonably priced as far as interest rates go compared to the mortgage I have on my house in the USA.

But I am married to a Thai. She works in a very good job but could not have obtained the size of mortgage we wanted on her salary alone so I "guaranteed" both. They considered both my domestic and international income (rental, etc). Both banks were very flexible and the hassle factor was about the same as my mortgage in the USA. One of my friends got a loan from SCB and his wife does not work.

If you don't want to go through your wife/girlfriend/other then you can apply with Bangkok Bank to get a mortgage through their Singapore branch for your Thai property, but the rates are not as good. See page 6 of

http://www.bangkokbank.com/download/BBL%20...egners_2006.pdf

Alternatively you can mortgage a property you have in another country and use the proceeds to buy your property here.

Or you can pay in cash.

Good luck.

[eljeque]

But I am married to a Thai. She works in a very good job but could not have obtained the size of mortgage we wanted on her salary alone so I "guaranteed" both.

Were the mortgages put in your name or your wife's name?

[Gary A]

I live in Thailand and have two mortgages here, one with HSBC and one with SCB. Both are quite reasonably priced as far as interest rates go compared to the mortgage I have on my house in the USA.

But I am married to a Thai. She works in a very good job but could not have obtained the size of mortgage we wanted on her salary alone so I "guaranteed" both. They considered both my domestic and international income (rental, etc). Both banks were very flexible and the hassle factor was about the same as my mortgage in the USA. One of my friends got a loan from SCB and his wife does not work.

If you don't want to go through your wife/girlfriend/other then you can apply with Bangkok Bank to get a mortgage through their Singapore branch for your Thai property, but the rates are not as good. See page 6 of

http://www.bangkokbank.com/download/BBL%20...egners_2006.pdf

Alternatively you can mortgage a property you have in another country and use the proceeds to buy your property here.

Or you can pay in cash.

Good luck.

When you say quite reasonable, could you elaborate? My Thai wife wanted to buy some land with a bank loan and the interest rate was about 10 percent.

[endure]

Remember, even though there is this little condo allowance, WE are not supposed to be able to own property here. It is not just in the laws, it is in the mindset of the populae that WE cannot have property. The system is set up so that we cannot access property. Yes, there are a few ways (companies which we own 49% of the shares, condos which we can buy 49% of the units, Bangkok Bank of Singapore offering loans which very few can get).

You can own as much property as you want in Thailand. You just can't own the land it sits on.