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imac man
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Hi everyone,
I have been to Thailand many times and on my next visit (2 weeks time) I will be looking for property in Koh Samui.
My question is, are foreigners able to get a mortgage/loan in Thailand?
The property will cost around £200,000 / THB 15,000 000 and I can get half the money myself, so I am looking to borrow the other half.
Because of the property laws involving ownership of land in Thailand I have found it difficult for any UK lenders to help.
Any ideas would be greatly appreciated,
Many thanks.
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Thai Girls : Meet Sexy Thai Girls
Posted on: 6:01 pm on July 11, 2004
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LivinLOS
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AFAIK you wont get a mortgage on property in thailand if you are a farang.. I did hear that a singapore company were going to start (at very high rates of interest) but it never got off the ground as far as I know..
You can however sometimes get a loan on the value of the land but again the bankers take 'book' value and then only lend a % of that.. as I guess you know book value is usually only a fraction of what the real value is now. I guess it would depend heavily on the legal structure upon which you are 'purchasing' eg a holding company or 30 x 3 leases.
However hard it may be to deal with your home country bankers I am told thats your only option.
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Bangkok Women : Meet Sensual Bangkok Women
Posted on: 2:51 am on July 12, 2004
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NaughtiusMaximus
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Unless you are buying it in say your wifes name, who must obviously be Thai, then you have your lease over the land etc. If she then owns half the land in real terms because you have paid for 50% of it, you can then get her to mortgage the balance. But this also depends on her situation, a bg with no job or formal means of support, is unlikely to get the mortgage.
It can and does happen, but your circumstance that you describe, has a fat chance of working.
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Thai Girls : Meet Sexy Thai Girls
Posted on: 10:35 am on July 12, 2004
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Smegma
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Incorporate a local company and have the company be the buyer.
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Bangkok Girls : Meet Sexy Bangkok Girls
Posted on: 10:54 am on July 12, 2004
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manowar
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I did extensive research on buying property in Phuket becaue I love that place and want to have a vacation villa there. But I found the Thai property market is really a mess. It's very risky for a farang to own real estate in Thailand because first of all, it is not legal to do so, so you have to do a corportion with your attorney finding some strangers ( thai nationals ) being the majority shareholders then they sign the shares over.....etc, etc..or you have to " marry " a thai girls and we all know too many sob stories about farang marrying thai girls for that purpose ( I personally know two farangs who had lost big fortune trying it that way ) Basically, it's not above board and needs a lot of legal manuvering and loopholes to get it done. On top of that, I found the building quality by thai construction company very questionable. And since getting a mortgage with all these other problems is practically impossible, you have no "leverage" because you are 100% invested with your own money. I am still interested in getting ( not buying ) some real estate in Phuket, but I think structuring as a " long term " leasehold estate is the best way to go. But of course, not all sellers would want to do that with you. Bottom line : You can make more $$ ( and much more secure in your ownership ) buying real estate elsewhere in the world. Bring your profit and then come to Thailand for a vacation ( a very long one if you wish, because $$$ goes a long way there). Let the other farangs take the risk of buying and then you lease or rent from them. It's too damn risky to buy even though the $$ for thai property is peanut compared with our farang propety market ( except for Phuket )
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Thai Women : Meet Matured Thai Women
Posted on: 1:59 pm on July 12, 2004
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ThaidUp
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Quote: from imac man on 6:01 am on July 12, 2004
My question is, are foreigners able to get a mortgage/loan in Thailand?
Yes if you work in Thailand with a valid work permit, no otherwise.
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Bangkok Women : Meet Beautiful Thai Girls
Posted on: 2:29 pm on July 12, 2004
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artful dodger
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can't u buy property thru an offshore company that owns the building,where the appartments are situated?
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Bangkok Girls : Meet Attractive Thai Girls
Posted on: 3:43 pm on July 12, 2004
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imac man
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Thanks for the replies.
I have spoken to a few people and it seems the easiest way of buying property is to lease the land on 3x 30 year leases which are re-newable. You can also put in the contract that when/if the law changes and foreigners are aloud to own land, it will automatically be signed over to you.
Therefore, the worst that can happen is in 90 years time if the Thai government wants to take the land back, they have to pay you full market value for the land and property.
Looking at the potential rental income against a 50% loan I should make a reasonable return, plus the benefit of holidaying in my favourite place as much as I wanted.
I have seen over the last 7 or 8 years property prices and hotel costs double in Phuket. I'm thinking the same could happen in Samui, especially with the new golf course. Now could be the perfect time to invest.
I have found an English estate agent who now runs his business on Samui who I will see while I'm out there.
Any further coments from you all are greatly appreciated,
Thanks....
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Thai Girls : Meet Active Thai Girls
Posted on: 5:09 pm on July 12, 2004
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buxeda
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manowar,
i absolutely agree with you. let the others take the risk (for which I see no return premium) and just rent a place for your holidays.
buying a condo in bkk or pattaya as an investment is a different story, because you can own a appartment in your name. no marriage, no companies...
cheers
buxeda
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Thai Women : Meet Matured Thai Women
Posted on: 5:22 pm on July 12, 2004
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LivinLOS
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Some of the things you stated in the post above either did not come accross correctly or you missunderstand.
Re 3x 30 leases.. Yes this is a valid option however while you are able to legally secure that first 30 years, there is no basis in law to guarantee that the renewal will be honoured.. So if in 30 years time the land owner decides to contest the extention they can and then its court time.. who knows what Thailand will be like in 30 years but right now I would not want to be in a Farang v Thai land rights court case !!!
Secondly you state that in 90 years the government would need to pay you full price on the land.. Why ?? The land owner (not the government usually) would simply then own the land. You would own any structures on it and they would be yours to move elsewhere !!!
Personally the only way I would do this is to structure a corporation and hold it myself. it is relatively trivial to structure a company where you hold <50% of the shares but hold the only voting shares. This way you still retain control of the company even though you have sub 50% ownership.
Lastly overseas offshore companies cannot own land.
BTW anyone looking for property on Phuket I have access to some lovely villas Euro contructed at moderate prices. Alternatively Villas can be built to your spec (thats Euro / US quality contruction).
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Bangkok Girls : Meet Attractive Thai Girls
Posted on: 11:52 pm on July 12, 2004
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