subject: Is It A Good Time To Take A Position In Foreign Property? [print this page] Is It A Good Time To Take A Position In Foreign Property?
In recent times Bangkok Bank has had a loan programme for foreigners with qualification being very like that in the west. You finish an application, submit proof of income, tax statements and other paperwork. With this program, purchasers can finance up to seventy percent of the purchase cost of the home. The issue with this programme is that it hasn't been consistently offered, and as of this writing the programme has been suspended.
In some resort areas like Pattaya, local banks have started to design loan programs for foreigners who live and work in Thailand. Kasikorn Bank, for instance, allows foreigners who possess a work permit for 2 or more years to obtain home loan lending for at least half of the value of the subject property. This programme was just launched early 2010. With the present global financial situation you are best to explore your options at once with Kasikorn Bank, Bangkok Bank ( Singapore ) and other lending establishments to figure out the existing standing of any loan programs which might be available for foreigners.
you will also utilise a lease structure to make your required property affordable. Available structures include lease with the choice to buy and long-term leases. Any lease for a term of more than three years can be registered on the title deed at the land office, thus making a property right as well as a contractual right to take the house or condominium. Most local Thai lawyers can handle this exchange on your behalf for a tiny fee.Prior to moving to Thailand, Michael lived and worked in the Boston area as a flourishing business executive with over 20 years of finance management and management consulting experience. Roles included money Controller at Harvard university, CFO / Director of Finance for several Boston-area hospitals, and Consulting executive for a "huge 3" consulting firm.
An example of such a programme is The Meadows, a housing project in Pattaya. The developer offers 50% 3-year financing at 8% per annum. Although the loan duration for a number of programs is not so long as conventional mortgages in the USA and Europe, such programs are useful.Individual property owners have recently become more open to extending financing to buyers of Thailand houses and apartments as a means to excite interest in their resale property. Under such an arrangement, the purchaser and seller sign both a purchase and sale agreement and a promissory note.
contrary to what one might expect from a semi developed country, the Bangkok real estate market is a stable and low risk market to speculate in. This is principally due to the culture of Thai folks, and that many properties on the market are not the primary residence of the owner. Thais sometimes sit on their property till they can get the price that they need for it. This could be for years , for keeps and because a large amount of properties on the market are not the primary residence of the owner they are in no rush to sell. Also, pride plays a part. Because of these factors, you'll notice that the Bangkok real estate market is awfully tough during times of slow industrial expansion or recession, and prices infrequently fall. the Bangkok housing market is lowrisk. Of course, let's not forget the economy crises that arose in Thailand in 1997. With a developing country there is still risk, but as time passes the chances of a re-occurrence of such an industrial crises on this scale becomes quite tiny.
As with developer financing, barter the purchase price separate from the conditions of the loan. Vital to note is the undeniable fact that the vendor will continue to hold the title deed ( Chanote ) to the property till the loan repayment is made in full. Make sure your lawyer reviews your deal and makes sure that all documents are updated and correctly protected to protect your investment.There are often two other options available to foreigners to finance their Thailand house or condo purchase. Traditionally, many foreign customers had taken a mortgage against their property in their home nations. This is more difficult than ever given the economic crisis, yet still an option for some. Again, check with your local bank to determine what programs are open to you.
