#  >  > Living And Legal Affairs In Thailand >  >  > Doing Things Legally >  >  Financing A House Through A Thai Wife

## rickschoppers

Is there a legal way to finance a house in Thailand through my Thai wife? We already own a large house near Udon Thani free and clear and I am considering a second house along the coast. My wife does not work, but we have a pretty good monthly retirement income. Would she be able to take out a loan in her name to purchase a 3.5 million baht house? If so, what are the steps? Has anyone ever financed a house here in Thailand through a Thai your Thai wife?

I am not interested in owning or having my name on the house. The owner had a lawyer create a business so he could own the house since he is a foreigner. I do not worry about ownership since everything we own here in Thailand will go to my wife and son when I am gone, and I understood the risks involved. I always have a plan B.

Does anyone know bank requirements to secure such a loan such as down payments, interest rates and length of loan? Your assistance is appreciated.

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## Jesus Jones

A friend of mine did the same.  I guarantor was required.  That being said, i think things are a little more difficult to obtain than they were 10 years ago.  Which is when he bought.  All went tits-up btw!

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## rickschoppers

I know things have gotten tighter with banks when purchasing motorcycles and cars and expect they are now tighter whenever wanting to purchase real estate. I can always buy a condo in my name, but unless you pay cash, financing is tough.

Could always rent a beach house, but just thinking about making an investment near the water.

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## AndyCap

I've done it several times and encourage the wife to reinvest as much as possible.

You need a contact at a bank to help your wife, without this it's difficult , once you have a decent contact vouching for you its a matter of providing neumourous documents as they want.

Interest is high, so borrowing for a "summer" house should be done with a view to long term value increase.

Send the wife down to the bank to see if she can establish a "friend"

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## rickschoppers

Which bank did you use Andy? My understanding is that Kasikorn bank might be easier than others, but she has an account with Bangkok Bank. That is where I was thinking about starting with pre qualification.

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## rebbu

I've done it twice before using Siam commercial bank. I had to show proof of income a copy of my contract from work and bank statements. I bank with Kasikorn and they would only lend one quarter of the price of the property over seven years. I got fifty per cent from scb over fifteen years.

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## rickschoppers

Rebbu, I have an account with SCB, but plan to finance things through my Thai wife and I typically funnel all my  money through her account since the US has stupid laws about residents having more than  $10,000 in a foreign bank account. Funny, since I was able to transfer $50,000 to my wife's account in two bank transfers without any questions. I also transfer my monthly money into her account, so she definitely looks good on paper.

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## AndyCap

We've done this with different banks, I used UOB when I got a loan many years ago, was paying tax in Thailand and had a work permit, etc. UOB was my bank at the time in Singapore and a lot of the discussions were done there.

The wife has then had loans with SCB and others, in my opinion it really is about knowing somebody, we just changed bank in Bangsean for the latest venture due to "relationship".

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## Norton

> UOB


Yes. Try them. They will lend money to non working Thai wife with foriegn husband as guarantor.

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## thaimeme

> We've done this with different banks, I used UOB when I got a loan many years ago, was paying tax in Thailand and had a work permit, etc. UOB was my bank at the time in Singapore and a lot of the discussions were done there.
> 
> The wife has then had loans with SCB and others, in my opinion it really is about knowing somebody, we just changed bank in Bangsean for the latest venture due to "relationship".


I've been down this road a couple times myself, and correctly stated it's to one's advantage to have developed a solid contact/relationship with a bank insider......as it is for most everything here, it's who you know not what you know.

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## Bower

What is the interest charge for a Thai when taking on a mortgage ?

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## rickschoppers

Depends a lot on the bank and how much they put as a down payment. In the US it can also depend on the individuals credit score, but not exactly sure what formula Thailand uses.

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## Auroria

> What is the interest charge for a Thai when taking on a mortgage ?


Don't government works get near 0% mortgages and loans?

Teachers do. It's why they're riddled with debt.  :Smile: 

I thought that government workers became government workers as it was a guaranteed pension, medical care for their parents, and interest free mortgages and car finance. Where otherwise they would be a 7-11 clerk or massage girl.

Plus the opportunity to sell contracts etc.  :Smile:

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## Pragmatic

If your present house is on 'Chanote' titled land then I'd assume it would be piss easy to use that paper to secure a bank loan in her own right. I think she'd find it very easy to do, with that title paper.

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## Luigi

Should be able to do it without a backhander or favour required.  :Smile:

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## Seekingasylum

A typical secured loan rate would attract up to 12.5% APR interest charges. 

Still, anyone looking to buy a coastal property for a second home yet lives en famille in  some ghastly Northern dystopia must be away with the pixies and is probably stupid enough to saddle himself with debt for nothing other than ill-thought out whimsy.

Who on earth is going to look after your house in Hua Hun/Prachuap/Pattaya/ Phuket when you and the family are up in shitkickersville?

Compound security ain't worth shit, usually. 

Which if course is why folk looking for a place next to the sea as a second, holiday home always go for a condo - assured amenities, excellent security, good maintenance etc., and if it is front rank and actually adjacent to a beach then the investment is sound.

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## AndyCap

Wise words Mr. Gent.

We've only ever purchased to let, student accommodation is not bad at the moment. Years ago started with the smaller houses in Phuket, all good.

No point in saddling yourself with debt with rental options so low.

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## wanderer555

Good day,

Following the thread and as my wife and I will be looking at financing a house, I am wondering if any here have done so with the wife as primary on the loan and the husband as income source if he is on a retirement extension.

She has a good government job, fully owns a 3 million baht home, (it has a clear chanote in her name) where her parents live, I live here full-time, and my overseas income is most ample for a loan in the west, so just try to get a feel for things.

I am well aware of the pitfalls of 'purchasing' through the wife etc, so do not need advice on that, just have others in my situation done the same.

Cheers!

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## AndyCap

Down payment is a discussion point,messier from 30% upwards

Security

Type of property planned, value, location.

Still all easier with a contact on your side in the bank, not difficult, when you get there sound the people out, my ball and chain always manages to find somebody from her Ho,e area, related to her uncle sids dog, etc.

It's a process similar to the West or Oz.

You will be asked for all sorts of documents, don't ever try to understand any logic in this part...stay calm copy and sign, years ago I had to make 10 copies of every page in my passport, then sign them all...it's got better, but can still be a little trying.

Good luck with it

Parky

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## AndyCap

Should say "easier from 30% upwards"

But that could also be messier, sorry I'm on a Chinese motorway...

 :Roll Eyes (Sarcastic):

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## rickschoppers

After looking around the condo market for several years, I will be seeing about financing a beachfront condo in Rawai for 5.5M. The development  is over half complete with an expected finish day of the end of next year. My friend and I went with an agent yesterday to see the site and look at a couple of completed models. It has excellent rental potential and includes all I need for a vacation unit.

Now it is a matter of taking all my wife's information to the bank and see what they say. Any tips for completing this type of transaction would be appreciated.

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## PAG

I would be wary about Rawai, and it's 'rental potential'.   There are already so many units available at the moment either for sale or for rent.   What are the monthly/yearly maintenance charges?  Rawai beach itself is not a beach for either swimming or sunbathing.   Nearest beach for that would be Yannui, the other side of Laem Promthep.

For 5.5m, it must be a very good size, say 100m2?   There are pool villas for around that price in Rawai.

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## AndyCap

And once everything is agreed and has gone through you will get a call from the developer / supposed owner / whoever, stating that there has been a mistake in the calculation and the new price is 500,000 / 750,000 / 1,000,000 more expensive, with the new monthly payment already calculated for you (bless em). There will be very plausible arguments, Mickey Mouse documents, etc.

A quick Fcuk off ! Normally gets you to next base, but they will probably try it on.  :Smile: 

For my 2 cents worth

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## Bogon

> Any tips for completing this type of transaction would be appreciated.


The developer will be tied in/affiliated with a bank.

Go to the sales office and they will set up a meeting with the manager of said bank and he/she will hold your hand through the process.

This how my wife purchased a house in Bangkok about 5 years or so years back.

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## rickschoppers

The Beachfront » Phuket Thai Real Estate

This is the development and I am looking at the 1 bedroom.

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## Bogon

Had a quick peep, but after a basic search, I cannot find the developer.

If you know who are building it (for example, Sansiri, Land and House etc), then you can ask which bank they are working with and go from there.

Not the best information, I know, but it's all I've got. :Smile:

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## rickschoppers

Blue Horizon is the developer and Best Western has contacted to manage rental. Both are very large companies.

Blue Horizon is working with Bank of Bangkok which is my wife's bank.

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## wanderer555

> Down payment is a discussion point,messier from 30% upwards
> 
> Security
> 
> Type of property planned, value, location.
> 
> Still all easier with a contact on your side in the bank, not difficult, when you get there sound the people out, my ball and chain always manages to find somebody from her Ho,e area, related to her uncle sids dog, etc.
> 
> It's a process similar to the West or Oz.
> ...


Thanks! Yes we are looking at 50% down payment, so no worries there.  

Been there, done that on the copies for a vehicle, LOL. I now have scan all documents, overlay them with a box with the disclaimer of purpose and my signature and print the required number of copies in color. 
Cheers!

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## david44

Financing a Thai wife via house?

I hope no silly bugga sends her a Monopoly board I told her I got 4 houses and a Hotel , lucky I got my get of jail cash in Zimbabwe dollars :Confused:

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## justme2017

> Financing a Thai wife via house?
> 
> I hope no silly bugga sends her a Monopoly board I told her I got 4 houses and a Hotel , lucky I got my get of jail cash in Zimbabwe dollars



Financing through a Thai wife is perfect. That way other than the down payment the bank holds the risk if things go wrong. If things go right you pay interest obviously but should you get kicked out your wife has a big debt to pay without you. The debt is almost like property insurance.

If the loan runs past your current life expectancy all the better.

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## BobR

Financing would be a great way to buy a house with a Thai girlfriend.  Put the minimum down possible and make sure it's solely in her name.  (It's hers anyway regardless if you're included.)  So long as the relationship goes well you make the payment.  If it turns bad you split and only lose your down payment. 

Also a great way to look after a faithful Thai companion who is obviously going to long outlive a retired foreigner.

I can't understand why Thai banks are so willing to lend on cars which depreciate and are often destroyed, compared to a security in a house that usually appreciates and is seldom destroyed.

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## Jack meoff

Can any financial savvy members explain the 7% return on rentals here?

In addition to making the perfect holiday home, The Beachfront offers exceptional opportunities for any investor looking to maximize their earning potential from their investment on Phuket.  Prime, absolute beachfront locations such as the one occupied by The Beachfront are becoming increasingly rare on Phuket, which means constant capital growth is guaranteed.  Those looking for a regular rental income will benefit from the fact that The Beachfront will be a fully-featured holiday resort operated under the Best Western brand – the biggest chain of hotels in the world, with over 4,000 hotels operating under their banner.  Due to this fact, the developers are offering a Guaranteed Rental Scheme offering a choice of either 7% per annum for a period of four years, or a 6% return for a period of five years.  After this period, owners can still benefit from excellent rental returns from a revenue split with the hotel chain.  Investors wishing to stay at their apartments can take up to 14 days personal usage at any time between May and October.

So no matter whether you are looking for a beautiful holiday home right on the beach, or a risk-free investment guaranteed by the strength of the largest hotel brand in the world, The Beachfront is sure to be an ideal option.

 Type m2   Price/THB    Start Date         June 2014 
 Studio – Min     28.7      3,063,223         Closing Costs            4.4% 
 Studio – Max     35.0      4,915,312         Payment Plan  
 One-Bed – Min     44.6      4,509,729      Reservation Fee     THB 100,000 
 One Bed – Max     54.0      7,007,250      Deposit Payment              35% 
 Two-Bed – Min     70.0      7,471,275       Interim Payments              60% 
 Two-Bed – Max   110.1    15,647,715      Handover               5%

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## Digby Fantona

> Which if course is why folk looking for a place next to the sea as a second, holiday home always go for a condo - assured amenities, excellent security, good maintenance etc., and if it is front rank and actually adjacent to a beach then the investment is sound.


You have to be slightly mental to buy a condominium in Thailand. As a farang, you will never sell it unless you meet a farang who is more mental than you are.

Who the hell needs a condo to have the occasional paddle ? Absolutely silly thing to do.

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## PAG

> Can any financial savvy members explain the 7% return on rentals here?
> 
> In addition to making the perfect holiday home, The Beachfront offers exceptional opportunities for any investor looking to maximize their earning potential from their investment on Phuket.  Prime, absolute beachfront locations such as the one occupied by The Beachfront are becoming increasingly rare on Phuket, which means constant capital growth is guaranteed.  Those looking for a regular rental income will benefit from the fact that The Beachfront will be a fully-featured holiday resort operated under the Best Western brand  the biggest chain of hotels in the world, with over 4,000 hotels operating under their banner.  Due to this fact, the developers are offering a Guaranteed Rental Scheme offering a choice of either 7% per annum for a period of four years, or a 6% return for a period of five years.  After this period, owners can still benefit from excellent rental returns from a revenue split with the hotel chain.  Investors wishing to stay at their apartments can take up to 14 days personal usage at any time between May and October.
> 
> So no matter whether you are looking for a beautiful holiday home right on the beach, or a risk-free investment guaranteed by the strength of the largest hotel brand in the world, The Beachfront is sure to be an ideal option.
> 
>  Type m2   Price/THB    Start Date         June 2014 
>  Studio  Min     28.7      3,063,223         Closing Costs            4.4% 
>  Studio  Max     35.0      4,915,312         Payment Plan  
> ...


So, essentially timeshare.   As with any of these types of deals, one has to look at the annual service charges.   Security, housekeeping, pool and garden maintenance don't come cheap.   Certainly for year round occupation they don't make sense, and you can get great bargains renting for a week or so.

The condo market is very much gearing towards the Chinese market, not the Western.   Prices are much lower for cashed up Chinese, with Chinese banks offering favourable rates and loan ratios.

Other tip for Phuket.   Do not buy off plan.   Too many projects have failed to materialise, and are only monuments to the durability of rebar and concrete to exposure to a tropical environment.

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