Mortgages now also for farang!
The bullet is finally through the church, although I'm not really cheering yet. Have been criticizing the unjust policy that farangs cannot get mortgages for years, and have sent various emails to the government and banks.
Was always told that foreigners were not allowed to own land, now I really wonder if they are that naive. Hundreds of thousands of farangs own a house in a company which is legal. I also own 100% of my land and my shares through a share transfer construction and am sole director and authorized to sign through a preference share. This means that my vote counts for ten, so no one can overrule me in a shareholders' meeting of my own company. Before 3 years ago they had to have 6 Thai shareholders, but now there are only 2, so whatever they decide with their 51% it is always 10-2 for me. Any good lawyer will also ensure that the farang director is safe from a possible coup by his staff by having a share transfer signed, which you should keep with your chanud (yellow title deed) in a safe preferably outside the home.
Then asked the banks to provide mortgages to farangs on a condo that could be bought by name. Never got an answer to that, because apparently that was too difficult to respond to. Also asked the embassies to do something about this at EU level because this is pure discrimination, because a Thai in the Netherlands has the same rights as us. Here we are without rights in many areas, and today we have a conversation with a compatriot who has been unjustly imprisoned in a Thai cell for 5 months without any form of trial or charge. A compatriot has also been removed from here before, who has even been there for 8 months innocently and without any form of trial or charge. That is possible if you only pay, but this is too crazy to run wild.
The HSBC Bank, one of the largest banks in the world, wants to give mortgages for up to 20 years for farangs abroad, but this must be repaid before the age of 65. In addition, the income requirements are quite high and there is no alternative for our Expats, but for younger farangs who work here for multinationals or large companies. But I have now finally found a financing institution that does see bread to finance Farangs real estate, but up to a maximum of 50% of the appraisal value. The interest rate is reasonable and is currently 7,3% on an annual basis, but it fluctuates and I think it will be slightly lower because the Thai finance minister lowered the interest rate by a quarter of a percent last week.
I speak to many who are trapped by the loansharks who charge percentages of 1,5 to even 5% and more per month. I know several Thais but also farangs who never pay off and can hardly afford the interest. These men deal with corpses and two acquaintances have been killed as a result, and one has been held hostage and kidnapped for a long time. Interest rates of more than 1.5% per month or 18% per year are illegal, and even punishable if the lender is caught. But these financiers also have their contacts and it is very difficult to put a finger on this. Have experienced a case where they suddenly arrived with 3 instead of a contract, and the case ended with a fizzle again. In addition, borrowing expensive money is extra expensive, because the lender demands 100% coverage and first transfers the condo or house to his name, and when everything is paid, another transfer must be made, all at the expense of the borrower. In addition, there is often an intermediary involved, as well as a lawyer who also wants a commission and a percentage for drawing up the contract.
In short, farang who are interested can contact me by e-mail below, after which I can give advice on how to act. I then need to know the purchase price and the area of the condo or house and land.
Free books
At the time I received a thousand Dutch books from a compatriot for the children's homes, but there are no Dutch children here, and my house and guesthouse need more space and anyone interested in these books can pick them up for free. A small compensation in my charity box is welcome, because on June 19th it is again the school pay for my orphaned and adopted kids, or the payment of books and school clothes. Send me an email or call 08-12907310
Colin de Young
1337 service no. Pattaya.
E-mail; [email protected]
Out of curiosity, I asked about 2 years ago if I could get a loan from my SCB bank. A manager was brought in with whom I had a conversation.
It wouldn't be a problem. Got his card and an extra phone number from him afterwards. I have not taken out a loan.
Are you really that naive, or is this a sales pitch?
You write:
“I was always told that foreigners were not allowed to own land, now I really wonder if they are that naive. Hundreds of thousands of farangs own a house in a company which is legal. I also own 100% of my land and my shares, through a share transfer construction”
This goes well as long as the Thai government does not want to take away “Your land”.
The Dutch government warns against such practices.
If the Thai government starts to act according to Thai law, “Your land” will be taken away from you.
A house in a company is only legal if the company is actually active and makes a profit.
Your talk resembles that of “brokers” who want to sell.
I don't have much knowledge of land purchase in Thailand, but if you already want to own several talangwah, then you apparently have to do so through a much more complicated construction than just a purchase agreement.
Let's put things in a row: a Company is needed, you have to provide a preference share, you are 100% owner yourself, but you need Thai shareholders, who own 51% of the shares, you have to making sure that the vote is in your favor, also protecting you from a coup, and to top it all off, a safe outside the house. Well, a very big red light comes on for me. I like a piece of land with a house and garden, but if I have to look over my shoulder, never mind. You never know how many people might think my safe is kept indoors after all.
With regard to buying a house or condo: there is "a contradiction" in the story that taking out a mortgage loan (for 50% of the appraisal value, not of the real estate value), puts away discrimination in comparison with the Dutch situation. The Netherlands and the EU have absolutely nothing to do with any Thai or South Asian behavior in this matter. Not the same with many other things. No embassy does anything about that. And they certainly won't want that for a long time. Every reference is wrong. If you want to buy real estate, you do it under Thai law.
In addition, it is questionable whether a Thai in the Netherlands has the same rights. That is not just obvious, in other words: he has to do a lot for that!
It is also strange that the same article mentions loansharks. (If you can't keep your own pants in Thailand, and you turn to shady practices, then you run a deliberately self-initiated risk of being embarrassed.) Except for high interest rates, let alone that repayment is possible in that criminal circuit , you must also be wary of fraud, theft, kidnapping, hostage-taking and even murder. It's like a daily TV soap opera here.
It is a good thing that there are strict income requirements, short terms and age limits. And younger farangs, working for multinationals, scratch their heads 2 or more times. Otherwise just work hard and save. My mom used to say that too.
Finally, the story is far too optimistic and naive. The fact that a financing institution (which one?) sees profit in it is no guarantee (credibility?). Let's say the intention is benevolent, but financial transactions abroad involve more than kindness.
Very interesting article by Colin de Jong. It provokes many even more interesting reactions.
When a farang has to lower himself to a loanshark, it's high time he went home.
There are lots of young farangs who work for multinationals. Most of them are highly educated, broadminded, but not unworldly. Think that there are few who actually want to buy property in the form of a house with land. Renting is cheaper and you are better protected. Unless they get married, start a family and yes then the misery about property rights begins. (Buying a condo is another topic). In Europe there is such a thing as the patrimonial company, in Thailand this is also possible. Even well arranged. It only costs you extra money for administration, lawyers, deeds, translations and the rest of the gang their percentage. And yes, the bribes too, of course. Everyone has to live… All this extra stress for 1 property is enough for many people not to do it, and just rent. Or buy it in the name of your wife/husband, and the title deed in your separate (bank) vault.
There are offices where everything is arranged for you. All in package, company, property, insurance, even visa and driver's license, whatever you want. That goes well until something happens, fire, accident with worker on your yard, you want to sell it, divorce, you name it. Here too, the misery begins. It is only in those cases that you get to know the Thai legal system, and that is indeed not according to European law, or the Code Napoleon.
Supposing that mortgages are possible for Thai, but not for farang, and that this is discriminatory: indeed. That's what it feels like. But as a 40-year-old divorced worker in France, you will not get a mortgage without your own capital, surety or guarantor. In both Europe and Asia, the bank looks at it purely from a business point of view: how much will it earn, and will it earn enough if he is dead tomorrow or does not pay off his mortgage.
Furthermore, I agree with KhunRudolf “but there is more to financial transactions abroad than kindness”.
The fact that a Thai bank does not mortgage a farang already indicates that the bank itself does not have much confidence in ownership constructions.
The bank does not care at all whether the money is given to a Thai or Farang. They only wonder if they will ever get it back and what the situation is with the collateral, ie can they claim the collateral. That is why you cannot take out a mortgage on a house in Thailand in the Netherlands, simply because the bank cannot sell it if you default.
You also consider the following. There are endless stories of farangs who misjudge life in Thailand and who return completely penniless to their homeland and still go back to work there. If you, as a bank, have provided a mortgage to it, and the house is sold at a loss, then as a bank you can probably whistle for your money when the farang is back in its own country. A farang is therefore a major risk for the bank.
The story is usually different for the young farang who works for a multinational in Thailand. Many companies will then give you an expat contract. That means that your employer pays your rent, takes care of your visa, you get a rental car, insurance, etc. you name it all. You will receive a net salary and tax payment, etc. will also be arranged by your employer. It will vary from company to company, but that's how it's always been for me. The last thing you want to do is take out a mortgage, everything is already arranged anyway. And there is always the chance that you have to pack your things to another part of the world, so you don't want to be too stuck in 1 place.