Foreigners generally can not get a mortgage with local Thai banks to finance the purchase of your property investment in Thailand. Most financial institutions offer loans in Thailand for Thai property purchases and Thai companies.
In recent years Bangkok Bank (Singapore) has a loan program for foreigners with very similar qualifications to that of the West. You fill out an application, proof of income, tax returns and other documents. With this program, buyers can finance up to 70% of the purchase price of the home. The problem with this program is that ithas not always offered, and as of this writing, the program has been suspended.
In some tourist areas like Pattaya, local banks have begun to design loan programs for foreigners living and working in Thailand. Kasikorn Bank, for example, allowsforeigners with work permits for two years or more to obtain mortgage financing up to 50% of the value of the property in question. This program was launched in early 2010.
With the current global financial situation are best to explore your options directly with Kasikorn Bank, Bangkok Bank (Singapore) and other credit institutions to determine the current status of loan programs that may be available to foreigners.
If you can not get a mortgage in Thailand to buy your dream home in Thailand, do not worry. There are several options available to you.
developer financing
Developer financing has become more prevalent in Thailand in the last two years.Offers ranging from two years for 10 years are available for buyers of new homes and condominiums in Thailand. These financing deals are available direct from the developers. Accordingly, the structure of each transaction varies.
An example of this type of program is The Meadows, a housing project in Pattaya.The developer offers a 50% funding for three years at 8% per year. Although the loan term for this and other programs is not as conventional mortgages in the UnitedStates and Europe, these programs are useful.
Beware of offers of "free financing" or "0% interest". Evidently, the purchase priceunder these scenarios is inflated to cover the cost of capital for the developer. The best is to negotiate the best price possible purchase, then negotiate the price ofseparate funding agreement. Make sure you have a clear indication of the market price and the market before accepting a funding agreement.
Seller financing
Individual owners have become more open to the expansion of financing to purchasers of homes and condos in Thailand as a way to stimulate interest in its resale property. Under such an agreement, the buyer and seller both sign apurchase and sale agreement and promissory note.
If you work with a real estate agent let them know that you need financing. You probably have some inventory of properties in which suppliers extend payment terms. If you deal directly with the seller, just ask if they are willing to accept the conditions of payment for a period and the interest rate defined.
As with the developer of financing, negotiate the purchase price of the separate terms of the loan. Important to note is the fact that the seller will continue to hold the title (Chanote) to the property until the loan is made in full. Make sure your attorney review your agreement and ensure that all documents are updated and the necessary safeguards to protect your investment.
other options
In general, there are two other options available to foreigners to finance your homeor purchase condominiums in Thailand. Historically, many foreign buyers took a mortgage on their property in their home country. It's harder than ever given theeconomic crisis, however, remains an option for some. Again, check with your local bank to determine what programs are available.
In some cases, the Thai spouse of a foreigner can get a mortgage. In this case, the sales contract (and pay) would be executed by the Thai spouse. If the foreignfinance a substantial part of the costs, the alien must register a lease in his / her name (with spouse Thai as the "owner" and abroad as the "Lessee"). Consult your attorney to minimize the tax consequences of an investment of this type ofstructure.
You can also use a lease structure for its affordable desired property. Facilitiesavailable include leasing and long term rentals. Any lease for a period of more than three years can be registered on title to the office of the earth, creating a property right and a contractual right to occupy the house or condominium. Most local Thailawyers can handle this transaction on your behalf for a small fee.
So do not worry if you can not get a mortgage of Thailand for the purchase of yourproperty. There are options available to you. Working with a real estate professionalto help find the best property and the financing structure for you.
Barricelli Michael has traveled and lived and worked in Thailand for more than ten years. He founded and opened a business of real estate, the land of smiles property in the seaside resort of Pattaya in 2005. His company has helped hundreds of expatriates purchase or rental condos, houses, villas and land Pattaya and Bangkok.
Before moving to Thailand, Michael has lived and worked in the Boston area as asuccessful business leader with over twenty years of experience in financial management and management consulting. Controller included roles at Harvard University, CFO / Finance Director of several hospitals in the Boston area andCouncil Manager for a consulting company "Big 3".
For more helpful information on reinstalling Thailand, foreign ownership of property in Thailand, and offers a property in Pattaya, visit the website owned Land of Smiles:
In recent years Bangkok Bank (Singapore) has a loan program for foreigners with very similar qualifications to that of the West. You fill out an application, proof of income, tax returns and other documents. With this program, buyers can finance up to 70% of the purchase price of the home. The problem with this program is that ithas not always offered, and as of this writing, the program has been suspended.
In some tourist areas like Pattaya, local banks have begun to design loan programs for foreigners living and working in Thailand. Kasikorn Bank, for example, allowsforeigners with work permits for two years or more to obtain mortgage financing up to 50% of the value of the property in question. This program was launched in early 2010.
With the current global financial situation are best to explore your options directly with Kasikorn Bank, Bangkok Bank (Singapore) and other credit institutions to determine the current status of loan programs that may be available to foreigners.
If you can not get a mortgage in Thailand to buy your dream home in Thailand, do not worry. There are several options available to you.
developer financing
Developer financing has become more prevalent in Thailand in the last two years.Offers ranging from two years for 10 years are available for buyers of new homes and condominiums in Thailand. These financing deals are available direct from the developers. Accordingly, the structure of each transaction varies.
An example of this type of program is The Meadows, a housing project in Pattaya.The developer offers a 50% funding for three years at 8% per year. Although the loan term for this and other programs is not as conventional mortgages in the UnitedStates and Europe, these programs are useful.
Beware of offers of "free financing" or "0% interest". Evidently, the purchase priceunder these scenarios is inflated to cover the cost of capital for the developer. The best is to negotiate the best price possible purchase, then negotiate the price ofseparate funding agreement. Make sure you have a clear indication of the market price and the market before accepting a funding agreement.
Seller financing
Individual owners have become more open to the expansion of financing to purchasers of homes and condos in Thailand as a way to stimulate interest in its resale property. Under such an agreement, the buyer and seller both sign apurchase and sale agreement and promissory note.
If you work with a real estate agent let them know that you need financing. You probably have some inventory of properties in which suppliers extend payment terms. If you deal directly with the seller, just ask if they are willing to accept the conditions of payment for a period and the interest rate defined.
As with the developer of financing, negotiate the purchase price of the separate terms of the loan. Important to note is the fact that the seller will continue to hold the title (Chanote) to the property until the loan is made in full. Make sure your attorney review your agreement and ensure that all documents are updated and the necessary safeguards to protect your investment.
other options
In general, there are two other options available to foreigners to finance your homeor purchase condominiums in Thailand. Historically, many foreign buyers took a mortgage on their property in their home country. It's harder than ever given theeconomic crisis, however, remains an option for some. Again, check with your local bank to determine what programs are available.
In some cases, the Thai spouse of a foreigner can get a mortgage. In this case, the sales contract (and pay) would be executed by the Thai spouse. If the foreignfinance a substantial part of the costs, the alien must register a lease in his / her name (with spouse Thai as the "owner" and abroad as the "Lessee"). Consult your attorney to minimize the tax consequences of an investment of this type ofstructure.
You can also use a lease structure for its affordable desired property. Facilitiesavailable include leasing and long term rentals. Any lease for a period of more than three years can be registered on title to the office of the earth, creating a property right and a contractual right to occupy the house or condominium. Most local Thailawyers can handle this transaction on your behalf for a small fee.
So do not worry if you can not get a mortgage of Thailand for the purchase of yourproperty. There are options available to you. Working with a real estate professionalto help find the best property and the financing structure for you.
Barricelli Michael has traveled and lived and worked in Thailand for more than ten years. He founded and opened a business of real estate, the land of smiles property in the seaside resort of Pattaya in 2005. His company has helped hundreds of expatriates purchase or rental condos, houses, villas and land Pattaya and Bangkok.
Before moving to Thailand, Michael has lived and worked in the Boston area as asuccessful business leader with over twenty years of experience in financial management and management consulting. Controller included roles at Harvard University, CFO / Finance Director of several hospitals in the Boston area andCouncil Manager for a consulting company "Big 3".
For more helpful information on reinstalling Thailand, foreign ownership of property in Thailand, and offers a property in Pattaya, visit the website owned Land of Smiles:
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