Money To Buy A Condo - To Exchange Or Not?

[Knowsitlike]

.."In addition, a foreigner who has Thai baht in his non-resident bank account or foreign currency bank account in Thailand may withdraw his money from such account for the payment of the condominium unit. In this case, a withdrawal slip and certificate issued by the bank would be required for the transfer of the condominium unit. If the foreign purchaser has Permanent Residence or has a Thai baht in his non-resident bank account in Thailand, they can purchase the condominium in Thai Baht (no need to use the “Foreign Exchange Transaction Form”)."

The above comes from a CBRE document "foreign ownership of condominium". (http://www.cbre.co.th/cbrecontent/bangkok/transaction_services/residential_sales.htm#) However reading on TV and other sources it seems that foreigners have moved large amounts of money out of Thailand and then back in just to obtain a 'foreign exchange transaction form' for a condo purchase, any experience of doing this simply from a Thai bank account?

Thanks,

Knowsit

[backflip]

I have no idea why you'd purchase a condo with multiple transfers in and out of Thailand. Of course, with the associated fees, the banks would love it. Using SWIFT codes, money can be transferred within hours, and you can certainly do it as you've described.

[thaigene2]

.."In addition, a foreigner who has Thai baht in his non-resident bank account or foreign currency bank account in Thailand may withdraw his money from such account for the payment of the condominium unit. In this case, a withdrawal slip and certificate issued by the bank would be required for the transfer of the condominium unit. If the foreign purchaser has Permanent Residence or has a Thai baht in his non-resident bank account in Thailand, they can purchase the condominium in Thai Baht (no need to use the “Foreign Exchange Transaction Form”)."

The above comes from a CBRE document "foreign ownership of condominium". (http://www.cbre.co.th/cbrecontent/bangkok/transaction_services/residential_sales.htm#) However reading on TV and other sources it seems that foreigners have moved large amounts of money out of Thailand and then back in just to obtain a 'foreign exchange transaction form' for a condo purchase, any experience of doing this simply from a Thai bank account?

Thanks,

Knowsit

I believe the CBRE information you refer to is just poorly worded. the 'certificate issued by the bank' almost certainly refers to Foreign Exchange Transaction Form (used to be called Thor Thor 3). This FET form from the bank confirms you transferred the money into you account from abroad. Needs to be a value of more than $20,000 USD each transfer to get the FET form.

People who work here and earn Thai baht here need to transfer that money oversees and then back again to show the money for their condo purchase 'came from abroad'. They are not supposed to use their Thai earnings to buy a condo. The only reason they allowed foreigners to buy condos in the first place was to bring in more hard currency and let Thai developers sell off some excess units during a slump. Notice you can't borrow money from Thai banks anymore either. They don't want you - just your foreign cash. You know 'Thai money for Thai people' etc..

If you're a permanent resident however you can use your Thai baht without the need to import the cash from abroad.

Hope this helps.

[wpcoe]

I have no idea why you'd purchase a condo with multiple transfers in and out of Thailand. Of course, with the associated fees, the banks would love it. Using SWIFT codes, money can be transferred within hours, and you can certainly do it as you've described.

What *is* the proper and/or preferred way to recycle proceeds from a condo sale to buy a new one?

A somewhat "akamai" (streetwise) real estate agent once told me he used a bank where for something like a B6,000 fee, they would issue a Tor Tor 3 for any amount of money you presented them, no questions asked. To me, that sounded slighltly illegal.

[edited to add:] Another part of his deal was to get the proceeds of the condo sale in cash, LITERALLY haul the suitcase of baht cash to a money changer, and then haul that suitcase of dollars (again LITERALLY a suitcase full of dollars) to the above-mentioned bank. I really would need to reconsider that kind of transaction about a dozen times and then still probalby not do it. He said he'd done it several times for falang customers before.

Can you just read the headline now: "American retiree robbed of B4,000,000 cash on Jomtien street"

Edited December 6, 2006 by wpcoe

[Knowsitlike]

If the foreign purchaser has Permanent Residence or has a Thai baht in his non-resident bank account in Thailand, they can purchase the condominium in Thai Baht (no need to use the “Foreign Exchange Transaction Form”)."....

Thaigene, Is this really just poorly worded????? Looks clear to me, 'No need to use Foreign Exchange Transaction Form'.. If you wait a few months i will tell you for sure as i will try it and see. But i am kind of surprised that no-one here has done this.

[redwood13]

A somewhat "akamai" (streetwise) real estate agent once told me he used a bank where for something like a B6,000 fee, they would issue a Tor Tor 3 for any amount of money you presented them, no questions asked. To me, that sounded slighltly illegal.

A friend who'd had some money in his Thai bank account for a few years recently decided to buy a condo. When he asked the bank about obtaining the FET form he was told "cannot". Reason -"money can only be in account a maximum of 2 months to issue form".

OK, so he decided to sent the money back to his home country and re-import it to get the FET.

"Not necessary" says his friendly banker. "Here's what you do......................".

And he does as advised. Withdraws the baht from his account. Meets a guy in a car wash car park and exchanges the baht for foreign currency. Returns to bank and deposits the foreign currency into his account. Receives FET and buys condo

(Total costs were about 8,000 baht and of course there is no "2 month" limitation to the issuing of an FET.)

-redwood