Job Discussion Forums

[Volodiya]

One of Thailand's largest banks has started offering mortgages, to non-residents, for 50% of the purchase price of a condo in Thailand, through two of their foreign branches.

http://www.phuketgazette.com/news/index.asp?id=4484

[Welshguy]

AIG Finance whhich is listed on NY stock exchange is currently becoming a chartered bank in Thailand and will be able to offer those products shortly. There are freehold issues to be considered though. The Thai gment is unwillling to sell 'the land to the foreigner' so leasehold is the way to go. Leases in UK are 70 years plus a life in being. The Thai legal system is a hybrid of german law and Thai caselaw and is amenable to a 90 year renewable leasehold mortgage structure. This means that the lease can be devolved/sold/willed in a testementary capacity etc etc.

BTW I have a legal qualification but am not in any way touting for AIG, I just taught a good few students who work for this group and the best advice is of course to research the market thoroughly and be bloody careful who you commit with. Blokes in cheap suits in copy sunglasses who are 'financial advisers' are to be avoided at all costs as it would be hard to find one who knows jack shit about the subject matter,they are basically commission sharks and dont give a toss what they sell to whom as long as they get a piece. There are a few reputable law firms who you can deal with. This will cost you a bit more in fees at the outset but you generally will have the security of knowing who to come back to in case of any future problems. Another issue is with issue of title, its a little more shall we say flexible than would be allowed in the EU. I.E if you buy a bit of land which an influential person wants then your title can quickly become an 'unfortunate misunderstanding'. the classic is the island of Koh Chang where the Taksin family and cronies made huge land purchases and then voted billions of baht into tax payer funded infrastructure development on that very island. Good titles held by others have simply been disregarded.

Take it slowly and carefully and best of luck to you.

W

[Volodiya]

HSBC in Bangkok is also making loans for the purchase of condominiums, if anyone is interested. They offer fixed rate interest loans, on a case-by-case basis.