Finance for a house

[erniebyrne 0]

i've lived in Thailand for about 4 yrs and work for a thai company, at the present i'm trying to buy a house around the Pattaya area the real problem is the finance! i can come up with approximatley half of the total sale price in cash but need to finance the rest, can i do this through any Thai Banks? i have heard that due to a law change we farangs cannot borrow money anymore......... if this is the case anyone got any other ideas on financing?

 

before you ask yes i do have a thai girlfreind and she probably could borrow the money with me as guarantor but i would rather not....

 

if u can help many thanks

[Papa 0]

Ernie,

 

Tell me if I'm wrong about this. Here's the mortgage situation for those intereseted.

 

Thai banks will not approve a mortgage for foreigners. I was told the main problem is that a foreigner can do a runner. If there a problem, the foreigner can hop a plane and leave his problems in Thailand.

 

Thai banks are in a difficult position on mortgages since, unlike most western nations, they can not take possession of the house if a debtor stops payment. And since the 1997 financial debacle banks policies lean heavily toward avoiding risky loans.

 

Papa Tom

[erniebyrne 0]

Papa tom

 

i aint sure but thai banks dont want to lend us money even if we work in a decent job, banks can definatley reposess houses but what good is it if the house is worth less than the outstanding money??

[antbear 0]

I am doing this at present, so here is my euros worth.

 

I am building a house and paying for the building work over an 8 month period by monthly deposits. This will apparently buy the land and pay for the construction.

When finished the present house value will be approx 2.4 million baht and I am paying about 40% of this as deposit.

 

I can then go the bank, lodge the deeds of the house against a mortgage to pay the rest of the money by monthly installments to the developer.

 

So, for example, on a loan of 1.4 million, I think the repayments are about 15,000 baht per month.

 

One word of caution. As far as I know, government banks are much cheaper to borrow money about 4.5% whereas private banks are far more expensive ( up to 18%).

Government banks tend to lend smaller amounts of money whereas private banks will chance larger amounts.

 

So yes you can borrow money from banks. I got my wan jai to check this for me. I could get the mortgage. But she is fronting the mortgage to show her good intentions.

 

Hope this helps

 

antbear