Thread: Thai mortgages - please say i'm right!!

Originally Posted by peterpan

then she is only permitted to buy a condo within the province her land is situated in.

My experience is that Trying to use land in the country as collateral seems to be futile, the banks seems only interested in land within city limits.

Might be because they repossess so much duff property that they don't want any more on their hands since it can be a hassle for them to off load quickly.

Originally Posted by Bruno

How true is that?

Probably quite true. Thai banks are hopeless- but so are their customers.

Most provincial Thai land is fundamentally illiquid- if you want to sell 'now', you sell at a considerable discount. Your lady doesn't seem to be a prized customer either- does she gave a 'black mark' on her credit rating? Many, many Thai do. Even when you pay back the debt in question, you are still black marked for a fair while. In terms of mortgage lending, they are much more interested in disposable income anyway. If you can do it at all, you will need a good deal more then 25% equity. I wouldn't advise it anyway- I think thats too high leverage for Thailand.

Originally Posted by Bruno

Please say i'm right

OK- I'm right. But I don't reckon you are.

Originally Posted by peterpan

then she is only permitted to buy a condo within the province her land is situated in.

My experience is that Trying to use land in the country as collateral seems to be futile, the banks seems only interested in land within city limits.

Have used both house and rice land in a village as collateral for cars and houses that where in a different province, no issue at all

Might be because they repossess so much duff property that they don't want any more on their hands since it can be a hassle for them to off load quickly.

My wife and I have been trying to acquire one of these repossessed, duff properties for 4 months now. It's a bargain at 1 million baht (detached, in good condition). Can the bank (Ayuthaya) be bothered to do the papers to sell it to us? Fcuk no - too much like hard work apparently. So that house remains on their list of 'repossessed, keen to sell' properties that they advertise on their web-site...

Simon

Originally Posted by Rigger

Originally Posted by peterpan Quote: then she is only permitted to buy a condo within the province her land is situated in. My experience is that Trying to use land in the country as collateral seems to be futile, the banks seems only interested in land within city limits. Have used both house and rice land in a village as collateral for cars and houses that where in a different province, no issue at all

Same, same my sister in law recently used her Chenote for land in the North as a guarantee with a bank in Bangkok to raise a mortgage on a new house in Bangkok, enjoy spending your 1,000 baht!

Originally Posted by Bruno

Does your GF really want her mother to live alone, especially if you are going back and forth to the UK ? Not really, but I certainly do...

You don't get on with mom do ya ?

So you have 3 choices

Leave her in the house in Isaan and buy her a buss pass

Or

Let her move in with you and listen to them gabbling on in a foreign language all day, whilst stinkin your house out with the stench of 3000 year fish

OR

Take a 5 iron (keep your eyes on the prize this time) and shove her under your new patioed Kennel area

Originally Posted by dirtydog

Thai banks like to give money on property, they don't like lending on land

I don't really see the logic in that seeing as though many claim these 'ghost moo baans' are becoming more and more pervasive and as consequence harder to shift. Land will always be, with an ever growing population a good investment in years to come.

Originally Posted by sabang

does she gave a 'black mark' on her credit rating? Many, many Thai do.

One of the questions I did ask to which I got back: "nope, I check already naa, am ok"

Originally Posted by Rigger

Have used both house and rice land in a village as collateral for cars and houses

That's more like it - still a conflict of interest though across to board. However, seeing as you have 'acquired property this way speaks volumes.

Originally Posted by The Bold Rodney

enjoy spending your 1,000 baht!

LOL, thank you she is still not convinced though saying that "not all bank same naa" but as least as Rigger has shown it 'is' possible and there might be hope for the old wench yet!

Originally Posted by sabaii sabaii

You don't get on with mom do ya ?

I will use the term 'mom' very loosely. Do I regard an uneducated M.I.L from the sticks who is an extortionator of all things white - namely me - whom has brought up my tgf up on complete fallacy's and bullshit beliefs (which has taken me the best part of 2 years to convince her that just because her 'mom' had a bad dream the night before is no reason to rush down to the temple for if she didn't it would be a bad omen) as likeable - Hell no !!

5 iron ? patio you say? if only....

Actually, thinking about it, I might tell my gf that I just had a 'really bad dream' and that her mom was being eaten by buffalos' and that she should vacate a land area that occupies these animals within a 10,000 mile radius as this is Buddha's will.

She how she likes it...

Most of us are in the same boat as you with the inlaws

I think your best bet will be to go the bank with your GF, they should talk English in there too

U think the banks here are bad! try france. Just back from brittany where i sold house and car and banks refused to close my account (credit agricole) and they are still paying house and car insurance from my account. Had to leave 1000 euros in account to cover cost. Arranged meeting with manager to finalise details refused to speak to me. re closing account. Contaced the world and his dog. embassy, head office, district head office, office in bangkok, all refused to discuss it, eventually had to get police to threaten them. In all took three weeks. Still paying 4 months later

Originally Posted by Bruno

"not all bank same naa"

This is probably the biggest gottcha.

Typical in Thailand in any bank or govt agency, it just depends on who you run into. Two different people in the same branch will probably have 2 different versions of the same rules.

Just because one person does it does not mean you can do it. The bank looks at the applicant, their assets, income, many things and if it is acceptable loans are no problem. (The old easy to get loans for the people that do not really need them). The value and the location does have a lot to do with the banks decision. Some land is worthwhile, near major highway etc. some it so far out there the bank knows they will get stuck with it.

If you are having to borrow money for everything, there is a good chance maybe you should stop shaking your head yes for everything your GF asks for and realize you cannot really afford it.

Sorry but sounds like she has you wrapped buying this and that, when you cannot afford to do it without borrowing the money

The way the country is going, the economy, the elections, etc. the last thing you want to be doing is going in debt until the situation settles down here.

If she cannot understand that the both of you shouldn't be buying everything on credit, there is some underlying issues there.

Originally Posted by liveinlos

If you are having to borrow money for everything, there is a good chance maybe you should stop shaking your head yes for everything your GF asks for and realize you cannot really afford it.

Agreed.

Originally Posted by superman

Quote: There are many different types of land titles in Thailand, the majority of which do not allow for the legal right to build on that land. Only 3 land titles are recommended; Nor Sor 3, Nor Sor 3 Gor, and Chanote. http://www.isaanlawonline.com/thaila...-deed-law.html

Thank you, that is a really informative link.. I will get back to her with regards to what deed she has..

In response to the other posters about upcoming elections in the Kingdom I am asking sincerely 'how would this have an impact on buying property' I am not as established as some of you perhaps but it is my understanding that the political situations in the past few years has had little impact on land values and ownership issues.

Originally Posted by jandajoy

Quote: Originally Posted by liveinlos If you are having to borrow money for everything, there is a good chance maybe you should stop shaking your head yes for everything your GF asks for and realize you cannot really afford it. Agreed.

I also agree, although I only require a small loan from the bank of around 275,000 baht, I wouldn't have any other debts after this and 'definitely' would not take on any more until that is paid off. At least this way the MIL will be able to move closer to my gf when I am not there and besides, it will always have the potential to be rented out in the distant future too.

Maybe I am convincing myself without even having approached the bank yet, but nevertheless, all the info has been really useful so far, so thanks

Wife is a big fan of borrowing money from banks, but I am not.

If she has a history of paying regularly and never defaults she can theoretically borrow as much as she likes.

Collateral has nothing to do with it, just a favourable repayment history.

I think collateral will have lot to do with the amount you can borrow as well as favourable payment history.

Originally Posted by Rigger

Originally Posted by peterpan

then she is only permitted to buy a condo within the province her land is situated in.

My experience is that Trying to use land in the country as collateral seems to be futile, the banks seems only interested in land within city limits.

Have used both house and rice land in a village as collateral for cars and houses that where in a different province, no issue at all

I have done the same thing several times. I think it really depends on the personal relationship with the bank.