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Krabi Property Agents
Get a Mortgage?
If you decide to buy property one way or another, then you will discover that the banks in Thailand don't have the same attitude as the banks in western countries as regards new mortgages. In fact, the banks in Thailand have nearly stopped offering new mortgages on real estate. The banks have suffered heavily from mortgage defaults, and in today's property market, as a matter of their official policy they just aren't going to take the risk of taking on still another dead piece of property. Most of the property on the market is viewed as grossly overvalued anyway, whereby the price doesn't come down to the post-1997 market value of their property because the owner is unwilling to take a heavy loss in the end.
Given the heavy burden of nonperforming loans (NPLs), the banks don't have much money to lend out, and they prefer to lend it to other entities. Thus, if you want to buy property in Thailand, then you're going to either need to pay cash or else get a loan from a foreign bank. Especially to a foreigner who could skip the country any time. The Thais who are successful in getting a mortgage are those who keep enough money in the same bank as collateral (e.g., savings for retirement or childrens' future college education, totalling at least as much as the property is worth), have a strong financial track record, and have an established salary more than enough to pay for the mortgage. Others are usually wasting their time in trying to apply.
To buy a condo or another property on a loan, you're going to need to get a loan in your home country and then transfer the money to a Thai bank account. But before you do this, you'd better thoroughly check with your bank and your lawyer, of course, to make sure everything's going to work. You should be able to line up your ducks clearly in advance.
Read more: http://www.myspace.com/krabiagents/blog#ixzz0xa7JJulu
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