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Torq
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Hi Guys,
I would really need apprciate you help and opinion. I am interested in exploring this idea over in Thailand. One of the things I've noticed lately that there are a lot of good deals to be had in LOS but it has got to be all cash at the moment for us.
The values are smaller than for homes here in the west but the legal structure presents the some challenges. If anyone has some pointers it would be helpful.
For example there was this place on the beach in Samui this June that was $48,000 USD and another one with a great view up in the hills for about $100,000 USD. A little off the beach close to Buddy Bar was a nice place for $25,000 USD owned by a Japanese couple (I am very tempted just send a check over to the Mrs. for that one if I don’t build in Kamphaeng Phet). These were all nice but to buy any one I would have had to pay cash...Yikers! 
Anyway this was driving me crazy. Then I see that Bangkok Bank is getting in on the action. Someone on this forum had some details I think it was Mr. Alan???
I'd like to put the question out there as follows:
What is the legal mechanism that Bangkok Bank is using? Is it the old Thai Corporation with the controlling members signing over rights to the buyer or is it something else?
Any help is appreciated.
Thanks!
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Thai Girls : Meet Sexy Thai Girls
Posted on: 1:16 pm on Oct. 14, 2005
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manowar
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I understand that the Singapore branch of the Bangkok Bank is doing the mortgage for farangs. The "funds" must come from abroad in accordance with the current Thai laws. So the local Thai banks must go through their foreign branch offices to make the loan. Best bet if to contact their Singapore branch directly and find out the details. Another good source for you will be to contact CBRE in Bangkok. Talk to the farang supervisors. They have pretty good handle on the Thai laws and the needs of farangs reg. real estate matters.
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Bangkok Women : Meet Sensual Bangkok Women
Posted on: 3:52 pm on Oct. 14, 2005
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thaiprivateeye
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Not too diificult if you trust the TG enough to put it through her name Torq.... or if you are married, I think local banks will cop joint names on a loan - as long as you have a little bit of bank history -
Good advice from torq, - I also did a couple of property deals for people with good assistance from a Singapore based firm in Asoke, Asiapacific I think the name.
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Thai Girls : Meet Sexy Thai Girls
Posted on: 1:38 pm on Oct. 16, 2005
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scobie
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Manowar is right. To purchase condos (houses with land is, of course, another issue) you have to show that the funds came in from overseas.
That makes getting a mortgage from local lender impossible for obvious reasons - the funds already exist in Thailand being the main one.
So Bangkok Bank are exploiting a small loophole by using their Singapore and HK offices to provide mortgages for farang. All they do is arrange the mortgage with you direct, then 'ship' the money into your account in Thailand.. problem sorted.
Downside is that there is a minimim amount to be borrowed of, I think, 4-5 million and that the interest rate is higher than that currently existing in Thailand.
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Bangkok Girls : Meet Sexy Bangkok Girls
Posted on: 10:47 pm on Oct. 16, 2005
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DaffyDuck
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Quote: from scobie on 11:15 am on Oct. 17, 2005
Downside is that there is a minimim amount to be borrowed of, I think, 4-5 million and that the interest rate is higher than that currently existing in Thailand.
Do you have any ideas as to the current interest rate, and what kind of percentage they expect in terms of down payment?
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Thai Women : Meet Matured Thai Women
Posted on: 3:55 am on Oct. 17, 2005
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Nickster
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I enquried about this to Bangkok Bank and was sent an application form and basic summary details. IMHO there are a number of drawbacks with what BB are offering:
Loan Currency: They prefer to lend in SGD (currently quoting 6%). They may lend in other currencies but they'll charge a premium (eg on USD they charge 1% over US Prime)
Loan Amount: Min $100,000 - Max $1,000,000, but assessed within that range to be the lower of:
- 70% of the purchase price based on the exchange rate in your choosen loan currency
- 90% of the value of the property based on a BB valuation
- the loan amount based on the approved limit.
Loan term: No more than 10 years
Type of loan: Floating rate, repayment mortgage.
Early repayment: Allowed but with 1.5% premium of amount repayed.
Processing fee: $5,000 on acceptance of loan offer. $2,000 repayed upon drawdown of loan.
Enquries: hl.sg@bbl.co.th
The main problems with this mortgage seem to be that you are exposed to currency risk:
1. TBH v whatever currency your mortgage.
2. Interest rate risk as you can't fix.
3. In addition unless you borrow in SGD they seem to be charging a pretty hefty premium.
4. Short repayment period of 10 years will probably make it hard to get a good return on equity if you're buying to let.
Having said that, if you need a loan to buy a property in Thailand, and you can't get a mortgage in THB then this would seem to be the only other option at the moment.
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Bangkok Girls : Meet Attractive Thai Girls
Posted on: 4:54 am on Oct. 17, 2005
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waxhead
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Actually I think the key thing is BBL are not really lending to farang; they are lending to Singaporeans who are buying upside in Phuket.
Mortgage broking relies on commission from the bank; in NZ we used to pay about 25-30% of the first year, and some brokers also got a few trailing points for the 2nd and 3rd year. Local banks don't need to pay that; for an apartment a foreigner can just go get a mortgage (with a decent papertrail) themselves on a condo; guarantor or company structure for house.
I work for the uncle of the BBL branch in Singapore, and even the family connection coludnt get me the mortgage with them; had local banks (3 I think) lined up to lend to me.... I don't think the BBL guys are that easy to get the money out of unless we are talking a big fancy condo.
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Thai Girls : Meet Active Thai Girls
Posted on: 5:55 am on Oct. 18, 2005
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bingo629
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Well this just gets more confusing I should have $100k end of next year I would gladly throw it down on a condo in Phuket if I could draw some income on it, (let it out). But it just sounds too complicated and risky has anyone done it successfully?
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Thai Women : Meet Matured Thai Women
Posted on: 7:25 am on Oct. 18, 2005
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Torq
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Quote: from waxhead on 6:23 pm on Oct. 18, 2005
Actually I think the key thing is BBL are not really lending to farang; they are lending to Singaporeans who are buying upside in Phuket.
Mortgage broking relies on commission from the bank; in NZ we used to pay about 25-30% of the first year, and some brokers also got a few trailing points for the 2nd and 3rd year. Local banks don't need to pay that; for an apartment a foreigner can just go get a mortgage (with a decent papertrail) themselves on a condo; guarantor or company structure for house.
I work for the uncle of the BBL branch in Singapore, and even the family connection coludnt get me the mortgage with them; had local banks (3 I think) lined up to lend to me.... I don't think the BBL guys are that easy to get the money out of unless we are talking a big fancy condo.
Hi Waxhead,
So are you saying that you had 3 local Thai banks offering to loan to you or 3 banks from somewhere else to loan to you in Thailand?
Thanks for the info!
I am talking some private funds groups here in California that have expressed some interest but I need to know more before I move further into this.
I am not a broker I am just a guy whose plans included real estate to fund my move to LOS eventually. In the process I am hoping that I've found a niche that can help.
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Bangkok Girls : Meet Attractive Thai Girls
Posted on: 12:53 pm on Oct. 20, 2005
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