Thailand Expats

Nicke · #1 13-03-2008, 05:56

What is your experience about this? I know some developments offer 3% interest rates on loans with a partner bank. When I asked around little bit 2-3 years ago it was more like 6-9 %, without a developer partner.

Also recall that some banks dont offer any loans at all inside Thailand, but people said that the same bank had branches in Singapore who did offer loans for purchases inside Thailand.

I would like to buy land/house soon, somewhere, what is your tip to get the best loan? (Lets say its a 5m baht house, I pay 1m cash).

K2 · #2 13-03-2008, 06:12

Read thru this Nicke - most of your questions are answered here:

Questions and Answers

MLR (interest rate for mortgages) is 6.875%, but some projects offer discounted loans ~ 3% for an initial period.

Normal requirement is a 20% deposit, so on 5 mil , you are right in assuming a 1mil down payment.

Dingo's · #3 17-03-2008, 17:58

Correct, we're in the middle of this same situation right now. 4% for the first year and then 6% there after. 20% down is normal depending on loan to value.

Nicke · #4 17-03-2008, 20:57

We havent talked to any banks yet, how is your experience so far Dingo?

I have found a house I like, so will try to do more research on loans.

Quote:

Originally Posted by Dingo's

Correct, we're in the middle of this same situation right now. 4% for the first year and then 6% there after. 20% down is normal depending on loan to value.

Dingo's · #5 18-03-2008, 11:20

Nicke, if you are going to get a loan in your name, you will get a loan at much less than 80% as I believe it is up to 50% in Thailand for a farang for loan % value of the house.

You should be fine though if you are purchasing it in your company name.....

I'm still learning more about it before we move forward however we're waiting for the Chanote Title to come through from Australia and then we'll be getting the house valued.

MrDK · #6 18-03-2008, 11:32

These type of loans are common in the US, they especially were when the interest rate was a bit higher. They are referred to as buy-down loans.

In the nineties I was looking for a house in a development. The interest rate was 9% (I think). The developer offered a 3-2-1 buy down, so the interest for the first year would be 9-3=6%, 9-2=7% for the second, 9-1=8% for the third, there 9% there after.

This type of loan served two purposes, in addition to being a marketing strategy.
1. You would qualify for the loan base on the initial payments (1st year).
2. Most have higher expenses the first couple of years as thy also are buying furniture, plus most assumed that they would be making more 1, 2 and 3 years later.

ATMwalking · #7 18-03-2008, 11:42

I heard that there are a lot of fees as you get deeper into the process. You might want to get costs end-to-end before you get too much deeper. Also the only time I've heard of farang getting loans (outside of condos or developer financed) with was with established companies with financials and even then there was a lot of jumping through hoops.

MrDK · #8 18-03-2008, 11:47

The buy-down loans can have huge fees ... or added loan origination fees (points), however if the developer pays it can be a viable incentive.

LivinLOS · #9 18-03-2008, 12:05

Agree with ATM, get it fully looked over..

For example when you buy a car on finance here they dont average down the debt. Eg if you see an advert finance 3 years for 5% they just go value of car = 500k, 5% = 25k, 25 x 3 = 75k.. So you pay 575k over 3 years.. Basically simple interest and not taking into account that your paying the debt off over time.

To me thats a total scam... Interest on the outstanding debt is how interest is calculated but Thais dont seem to be able to perform anything except the most simple of calculations.

Evilbaz · #10 18-03-2008, 14:25

Lil - Sounds like TIT - dumb like a fox!

Nicke · #11 29-03-2008, 03:26

I have found a house in Kathu I like, family friendly gated community with about 200 houses (If I remember correctly, when I think about it I dont think its that big). We will try to get a loan through the developer bank partner. Its entirely in Ead's name as they told us if I get involved, its a lot worse conditions and maybe just 50% you can borrow.

So it looks like getting a Thai borrow the money is better.

I paid the booking fee for the house and they said they will give it back if we dont get the loan.

So I am now just in the stage to provide all the papers they ask for, moved money to Eads account etc.

Thanks K2 for the link you provided, very informative.

As for the scam LivInLos mentioned, I dont know about that until I get the numbers from the bank and can calculate myself to see if they offer a scam or not.

crazy_gman · #12 29-03-2008, 03:41

Hey Nicke, I hope it all works out for you!

It was good seeing you a couple of weeks ago when I past thru..

Crazy_Gman

K2 · #13 29-03-2008, 07:24

This seems a busy period for long term BM's moving....

Wish you and Ead all the best - makes sense for you to move out of Patong with your second baby on the way.

Hope your move went well too Sefton.

ATMwalking · #14 29-03-2008, 09:51

Seems Kathu is rivaling Kamala as the new hot spot

Nicke, I think I know the area you are talking about. Is it out close to the waterfall road?

Masterwoodsman · #15 29-03-2008, 10:31

Sounds like the housing estate Nicke is talking about in Kathu is 'Phanason', quite popular with expats because you can get a decent sized 2 story house with garden for around 6 Mil and pay on a plan through the developer.

At present Kathu is just lacking farang orientated bars and eateries.... seems to be the opinion of a lot of expats staying in Kathu..... for me its perfect plenty of quirky little thai food joints and noodle soup stalls makes me feel like i'm really living in Thailand..... i'd hate to see Kathu get too westernised but due to current climates i think the writing is on the wall.....

ATMwalking · #16 29-03-2008, 10:35

Ya, i've always had mixed feelings about Kathu. You are close to everything but nothing is really there.

Masterwoodsman · #17 29-03-2008, 10:43

Quote:

Originally Posted by ATMwalking

Ya, i've always had mixed feelings about Kathu. You are close to everything but nothing is really there.

Thats the beauty of it Chris in my mind.... a quiet place to live without the "in yer face" attitude that many of Phuket's towns and villages have, but only 10 mins to just about anything you'd ever need...... Perfect

Although i do seem to be spending a lot of evenings in Kamalalala lately..... but even that is only 20 mins !!

Nicke · #18 29-03-2008, 12:18

I always looked at Kathu as an option to Patong because its between Patong and Phuket Town and thus close to everything. Nathalie go to school now and is located in Phuket Town.

I would still prefer to live in Patong but finding a decent 3 or 4 bedroom house to an affordable price is not easy.

Quote:

Originally Posted by ATMwalking

Ya, i've always had mixed feelings about Kathu. You are close to everything but nothing is really there.

Nautilus · #19 29-03-2008, 16:34

Hey Nicke, hope you get the place you like, all the best !!

Nicke · #20 29-03-2008, 16:50

Yes, its Phanason Parkvill 1 next to Loch Palm and Kathu Waterfall road.

Here is the website info;

Phanason Project - Give yourself a complete lifestyle with Phanason Project

I saw a broschure today they are developing Parkvill 3 in Thalang with houses around 2m baht aswell. The house I want to buy cost 4.3m (3 bed rooms and 3 bath rooms) with 60 sqw land. The price differs between the houses depending of the land plot size.

Application form and papers finished today, they said the bank will contact Ead in 1-2 weeks. Just hope for the best.

LivinLOS · #21 29-03-2008, 16:59

Theres a not bad place with a pool just over Kathu hill, suspect you would secure it for around 5m..

Also was told of a house plus pool for 25k rent just into Kathu.. If I wasnt already into my deal I would be all over that.

kiro · #22 30-03-2008, 00:30

Quote:

Originally Posted by LivinLOS

Theres a not bad place with a pool just over Kathu hill, suspect you would secure it for around 5m..

Also was told of a house plus pool for 25k rent just into Kathu.. If I wasnt already into my deal I would be all over that.

LiL - how much you think house plus pool would go for in Rawai/Nai Harn?

cheers

LivinLOS · #23 30-03-2008, 01:09

At the lowest end.. I have seen recent adverts for 25k - 35k for house + pool in that region.. Tho I think by the time you start at 40 - 50 you get really nice places to live.. Certainly a place I saw that rented for 50 down there was really really desirable and would have been 75+ up near patong.

Its always a sliding scale but I dont think you would find a pool less than 25 ish unless very lucky.

I relly like Nai Harn, if I was older, or didnt like Patong nights out as much, thats probably where I would be.

sishow · #24 30-03-2008, 01:31

Quote:

Originally Posted by LivinLOS

At the lowest end.. I have seen recent adverts for 25k - 35k for house + pool in that region.. Tho I think by the time you start at 40 - 50 you get really nice places to live.. Certainly a place I saw that rented for 50 down there was really really desirable and would have been 75+ up near patong.

Its always a sliding scale but I dont think you would find a pool less than 25 ish unless very lucky.

I relly like Nai Harn, if I was older, or didnt like Patong nights out as much, thats probably where I would be.

You actually go out?

In all the times I have been in Patong, I have only ever seen you 4 or 5 times.

That website you put up looks nice. Fancy a neighbour Nicke?