bank loan and ownership of property

[sweetguy17]

I need some advice from senior members here for below topic. Please kindly provide me your opinion or suggestion.

I am foreigner (divorcee) living in overseas and I have thai gf. We are going to marry end of this year. We would like to start some business and we are planning to take loan for purchase of commercial building. Here are my questions:

 

1) Do we need to apply bank loan under joint applicants? I don't think bank will loan me as I am foreigner with thai spouse only.

 

2) How about the ownership of property as I am foreigner there and foreigner cannot own the property under thai law. Joint ownership?

 

3) According to some thai bank websites, if the loan is approve, we can get up to 30 years terms. Let's say, some unforeseen situation and we divorce, who will own the property? Need to sell it off after bank loan payback?

     I have bad experience with my previous divorce case ( for property ownership) and I would like to prevent not to happen again.

 

I am really appreciate for all your kind response.

 

[TobiasML]

You will most likely not receive a loan.

i just went down that road and one of the basic requirements was my wife to have a job for at least one year with social and tax payments. 

Further i had to supply a work permit, credit rating in Thailand as well as proof of social and tax payments.

without those no bank wanted to loan any money.

if you consider opening a business, you would need to supply as well data for two years of income, tax payments, etc. otherwise you would not be approved for a commercial loan.

ther would be one way to go through MBK loan or Bangkok Bank Singapore. But not sure about their conditions as I only looked into it for house loan.

[meatboy]

if youve been bitten once WHY go through with what you are thinking about,marriage at the end of the yr.? dec 2017 thats a long way away.

it sounds like you do all the paying and loans are around 7% plus.i wouldnt think you have a cat in hell chance unless you have security 

[not her] she might get 50% of the building value plus land so you are goner be the milk cow.

so unless you can afford to loose whatever your thinking about,tread carefully.

[vukovar77]

Do not do it here as a foreigner!

You can not get bank loan in Thailand and it is better for You!!!

[RT85]

rent and be happy!

 

unless u thinking of having kids and handing down assets.. otherwise..

 

just live! you can move anytime. don't worry about ownership or taxes or paperwork...

[stgrhe]

Question 1

 

I really don't know but if the property is in Bangkok Metropolitan Area, Citi Bank could perhaps lend you some money.

 

Question 2

 

It is incorrect that foreigner cannot own 'property' in Thailand. What we, in most circumstances, can't own is land. If you start up a legimitate business the best way is for the company to purchase the property. You can 'own' 49% of the company but you could nevertheless control the company by voting rights. A solicitor can explaing the details for you. The board must comprice a minimum of three members so choising the right Thai partners is paramont.

 

Question 3

 

In Thailand, everyting you acquire during marrige is common property so you and you wife would own 50% each despite who brings the cash. Anything acquired before marrige continue to be each person's property.

 

Good luck

[metisdead]

A post offering non helpful advice has been removed. 

 

 

A post commenting on moderation has been removed. 

Edited January 7, 2017 by metisdead

[jacko45k]

If youy have hada bad past experience and want to prevent it happening again I would say forget about it.

[blackcab]

1) It is going to be next to impossible for you to get a loan in Thailand. As previously stated, you need a work permit to get a loan as a foreigner in Thailand. The rationale is the bank wants to know you are in a stable position where you can manage repayments. You might have more success applying for a loan in your home country.

 

2) When you say property, I assume you mean land and houses. You cannot own land except in the most exceptional of cases. You can own a house that is built on land, and you can own a condominium. As stated, you can also control a limited company that owns land.

 

3) At the time of divorce, the land would be owned by whoever purchased it. If your partner purchased it in her name before marriage, it would be hers 100 per cent, and after divorce it would stay that way. She would, of course, have to keep paying the mortgage on it. If it was purchased in her name during marriage, you could ask the Court for a settlement that included 50 per cent of the sale price of the asset. The problem is that it can take several years to sell the property and obtain your money if your (ex) wife doesn't want it to be sold. In addition, if she thought that divorce was on the cards she could take out a loan on the property before the matter went to Court, which would mean the debt would have to be repaid before the sale could happen. If she had no money then the best situation would be the loan was paid off at the same time as the sale of the property, which might not leave a lot left for you to get 50 per cent of. She could also potentially ask the Court to order that you help her pay the debts she accumulated during marriage (if the debts were for things like family support, etc).

 

If the property was owned in a company name, and you had preference shares that allowed you to control the company then you can get an agent to sell the property for you. The only question is how long would it take to sell and actually get hold of your money. Sometimes it can be quick, other times it can take years.

 

A lot of businesses lease their buildings. Is there any particular reason you have to buy the property to run the business? Could you rent or lease somewhere first and see how it goes? For a new business, would it make more sense to use your capital to cover your overheads and purchase stock, etc rather than paying interest to the bank?

 

Unless you are very certain about your business plan, your business partners and your business experience I would not advise buying real estate at the start of the project. In fact in most cases I would advise you to seriously reconsider your business concept.

[sweetguy17]

Dear Senior Members,  Many thanks for all your opinion and suggestions. I am really appreciated.