Put my condo as collateral for getting a loan.

[Henderson]

Hi all.

Is it possible to put my Baht 2,000,000 condo as a collateral in order to get a loan from the bank? if so, how much will the bank give based on my condo's value and what's the process/requirements?

If the purpose for the loan is important than it's for paying the Thai Elite visa as they don't offer installment plan and it's not easy for me to pay the whole amount at once but can definitely pay it year by year (or even 2-3 years in advance but not 20...)

 

Thank you.

[thaibeachlovers]

Other than thinking it would be a bad idea for any reason, just because your condo is supposedly worth 2 mil does not mean the bank will agree with that valuation, and the only way to find out would be to put it up for sale and see what people offer.

However, surely the people to ask would be at the bank? I have always found them helpful if I have to ask anything.

[Henderson]

4 hours ago, thaibeachlovers said:

Other than thinking it would be a bad idea for any reason, just because your condo is supposedly worth 2 mil does not mean the bank will agree with that valuation, and the only way to find out would be to put it up for sale and see what people offer.

However, surely the people to ask would be at the bank? I have always found them helpful if I have to ask anything.

Sorry for not being clear, my condo is worth over 3mil (I got offers for it but I'm not looking to sell it) but the land office value it at 2mil, I know this because I've bought it 6 months ago and went through the whole process.

As for the Visa, apparently for some reason Thai officials think that once a person reach the age of 50 he is retired and has sufficient funds to live in Thailand more so than a 35 year old person who might live on dividends, salary from abroad, owns an expensive apartment abroad etc.

I simply have no idea why their criteria  is based on age and not on the individual regardless of his/her age.

Therefore, my only option to live a quiet and hassle free life here is with the Thailand Elite Visa which now costs 50,000/year, a big improvement from the 100,000/year it used to cost, but again, it's not easy for me personally to get 1,000,000 cash and I'm trying to find a solution (which I assume others are looking for as well)

One of this options is using my condo as collateral.

Thank you.

 

 

[blackcab]

How are you going to repay the loan? Banks in Thailand tend to focus on earnings in Thailand.

 

Also, how long did you want the loan for?

[Hutch68]

If you have earnings from your home country and can show wage slips to show you have money coming in you should be able to get 75 percent of your condo value. I did it 5 years ago and have almost finished paying it off and I wont be doing it again.

[elgenon]

Just wondering: Did you pay $3 million in cash or got loan somehow? 50,000 seems so small compared to 3 million.

[al007]

Easy go to money lenders they will help you with alacrity  as they will take it when you renege on their extortionate interest rates

 

I think you will find it almost impossible to refinance with a reputable bank unless you are buying it, and then very difficult, generally only those who do not need to borrow can borrow

[mcfish]

Without an income it's highly unlikely you would get a bean from a bank. They are not into repossessing condos from failed loans. They are into interest. So they absolutely need to see you have the capacity to pay the loan back.
It's never a good idea to refinance anyway unless you are completely desperate

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[greenchair]

You can get a loan of 80 percent of the bank valuation on the property, that is regardless of your income. Though it does help to show an income. I have found some banks to be extremely difficult for a foreigner to get any type of loan. 

They do not want the paper work or they believe all sorts of myths about foreigners and loan eligibility. 

I have found kasikorn bank to be very foreigner friendly. I went to 6 banks to get a loan for my house. 

At kasikorn I was in and out the door all signed up in a jiffy. We have never missed a payment. 

[Sharp]

Greenchair... u must of been very lucky or know someone in the bank... My girlfriend works for SCB and has just said without proof of income it makes no sense and they wouldn't offer a loan based on collateral only as the banks wouldn't want the asset really its just a last resort... So welldone if true..

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[cheechee]

4 minutes ago, Sharp said:

Greenchair... u must of been very lucky or know someone in the bank... My girlfriend works for SCB and has just said without proof of income it makes no sense and they wouldn't offer a loan based on collateral only as the banks wouldn't want the asset really its just a last resort... So welldone if true..

Sent from my SM-P555 using Thaivisa Connect mobile app
 

you got a financially wise gf.

[Sharp]

'Policy of the bank' her words cheechee... Still can act like 5 year old if she doesn't get her way... Lol.. Merry Christmas..

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[Savilesghost]

On 24/12/2016 at 7:59 PM, Henderson said:

Sorry for not being clear, my condo is worth over 3mil (I got offers for it but I'm not looking to sell it) but the land office value it at 2mil, I know this because I've bought it 6 months ago and went through the whole process.

As for the Visa, apparently for some reason Thai officials think that once a person reach the age of 50 he is retired and has sufficient funds to live in Thailand more so than a 35 year old person who might live on dividends, salary from abroad, owns an expensive apartment abroad etc.

I simply have no idea why their criteria  is based on age and not on the individual regardless of his/her age.

Therefore, my only option to live a quiet and hassle free life here is with the Thailand Elite Visa which now costs 50,000/year, a big improvement from the 100,000/year it used to cost, but again, it's not easy for me personally to get 1,000,000 cash and I'm trying to find a solution (which I assume others are looking for as well)

One of this options is using my condo as collateral.

Thank you.

 

 

 

Most reaching 50 dont have sufficent fund to retire and either to do given your looking for a loan to purchase a visa, if your receiving dividends and salary from abroad why dont you raise a personal loan in your country, should be easy to do for such a high flyer as yourself 

 

Instead of springing the Thb 2.0 million all at once why dont you buy the 5 year TE visa its only Thb 500k, surely you have the cash for that ? 

 

Without a job in Thailand or credit history highly unlikely a bank will give you a loan on a property they dont really want 

 

No bank will give THB 2.0 million loan on an asset valued a THB 2.0 million as it will cost them money if default, ie it will cost them more than 2.0 million to get their 2.0 million back 

[Henderson]

1 hour ago, Savilesghost said:

 

Most reaching 50 dont have sufficent fund to retire and either to do given your looking for a loan to purchase a visa, if your receiving dividends and salary from abroad why dont you raise a personal loan in your country, should be easy to do for such a high flyer as yourself 

 

Instead of springing the Thb 2.0 million all at once why dont you buy the 5 year TE visa its only Thb 500k, surely you have the cash for that ? 

 

Without a job in Thailand or credit history highly unlikely a bank will give you a loan on a property they dont really want 

 

No bank will give THB 2.0 million loan on an asset valued a THB 2.0 million as it will cost them money if default, ie it will cost them more than 2.0 million to get their 2.0 million back 

Hi,

The cost of Thailand Elite for 20 years is now Baht 1,000,000, not 2,000,000, fair price to pay but unfortunately I personally can't get it at once, simply not possible at this point.

Therefore the loan I'm hoping to get is for 1mil and I think that that's a reasonable as the condo value (in the land office) is 2mil.

If I could do anything else, I would, trust me :)

Again, thx for your help.

 

[Savilesghost]

21 hours ago, Henderson said:

Hi,

The cost of Thailand Elite for 20 years is now Baht 1,000,000, not 2,000,000, fair price to pay but unfortunately I personally can't get it at once, simply not possible at this point.

Therefore the loan I'm hoping to get is for 1mil and I think that that's a reasonable as the condo value (in the land office) is 2mil.

If I could do anything else, I would, trust me :)

Again, thx for your help.

 

According to the TE website the cost of the 20 yeaf visa is thb 2 million not  thb 1 million, when it was first lauched it used to be Thb  1.0  but as they were not selling and utilising Thai economics 101 they doubled the price to boost sales 

 

Only 2 visas appear to be on offer namely

 

5 years 500k

20 year thb 2.0 million 

 

So if the website is correct a true elite should be able to front at least USD 14k at the very least and for the 5 year visa