Urban village and Mortgage

[philo]

I would like to hear about experiences from people who have bought a house in one of the many 'mooban's surrounding UT. I am especially interested in the cheaper alternatives (like First Home and Lake Garden City). Are there more places at around 1 million?

Also, my wife does not have an income, but I have a documented pension at around 80 k a month. She has 50 rai of rubber - but it won't give money before in 3-5 years. Will we be able to get a mortgage?

I would appreciate any info - negative as well as positive - before I put my last few hundred thousand Baht as a down payment and get obligations for 25 years (I am 50 and have a daugther, so I think that if we have a house in Udon, my daughter can get a decent education and I don't have to stay in my small house in the remotest jungle of NK all the time).

[ttom]

I would like to hear about experiences from people who have bought a house in one of the many 'mooban's surrounding UT. I am especially interested in the cheaper alternatives (like First Home and Lake Garden City). Are there more places at around 1 million?

Also, my wife does not have an income, but I have a documented pension at around 80 k a month. She has 50 rai of rubber - but it won't give money before in 3-5 years. Will we be able to get a mortgage?

I would appreciate any info - negative as well as positive - before I put my last few hundred thousand Baht as a down payment and get obligations for 25 years (I am 50 and have a daugther, so I think that if we have a house in Udon, my daughter can get a decent education and I don't have to stay in my small house in the remotest jungle of NK all the time).

Have a word with a good, trustworthy lawyer first in order to sort out any details according to your visa requirements, clever asset deposits, and formalities in order to secure your investment.

As foreign person, you can not legally buy grounds in your name. Forget the idea of creating a juristically person like a company which could own grounds.

You can arrange are (renewable) lease a plot of land including house. The lease contract can be registered with the land office.

If you are willing to invest about 1 million TBT, you can pay some amount, i.e. 40 percent, upfront into a bank deposit and pay smaller additional monthly interests, repay loan and all utility fees.

If you don’t trust the Thai Baht that much, you can even open foreign currency accounts.

This deposit should fulfil requirements according to both visa regulations (400 or 800 k deposit) and serves also as security for your (wife's) mortgage. A bank loan is usually only for the first 60 to 70 percent of property value availible.

There are sometimes special programs for farmers and Thai first time house builders available. Some programs are provided by Gov (Housing, etc.) Banks only.

In order to arrange your
visa free of hassle,
the lease contract and
registration with land office,
bank loan,
the assistance of a good and trustworthy lawyer will save you a lot of trouble. And usually the lawyers are well informed regarding banking practice and suitable constants.
There is good (female) lawyer in Nong Khai. If you explain all you requirements in detail, the fees are not that high.

[philo]

Thanks.

Visa is no problem for me - I have non O (Thai wife) and this year I will be applying for retirement visa - which is easier.

The house I would have bought in my wife or daughters name (I consider all money brought to Thailand as lost already). But - as it turns out - my wife cannot get a loan as she has no income. They offered to get a 50% cash and 50% loan and a 30 years lease if the house (lease) is in 'farang name'. I will think about it.

Are there nobody living in these villages? I have been touring them, and they seems to be quite sleepy. May be renting something is better - or just use the money for a room in a guesthouse when we are in Udon ...

[canuck-viking]

I live in PK Thani 4 --there is a nice house for sale across the street from me for about 1.2 million baht. there is a new mooban being built next door- prices starting at about 670,000 send me a pm if you want more info

[Ray.Charles]

Hi, I do not know if you are still around or not, because I just read a one-year old post from you.
I will need to spend about 1,500,000 baht to buy or build a house near Udon. My lady-Thai does not have any income, and we are not married. What is the likelihood of her getting a 1,000,000 in mortgage if we are able to put down 500,000 plus perhaps owning the land.

[laphanphon]

though i have never financed here, i believe actually, very good, though most banks will not lend to anyone over 60 yrs old, if you are listed as co-signer/leasee or whatever, mortage will be that length of time, till you reach 60. i may be incorrect.

[papaguido]

though i have never financed here, i believe actually, very good, though most banks will not lend to anyone over 60 yrs old, if you are listed as co-signer/leasee or whatever, mortage will be that length of time, till you reach 60. i may be incorrect.

Maybe not all banks go by that rule, it wasn't an issue for me.

[sgt]

Just picking up this subject. I am trying, trying being the operative word, to arraign financing for a house purchase for my Thai wife and I and so far have been turned down by banks, or if not turned down offered only 50% financing. I am aware of the ownership etc problems for farangs. I think if I had the 50% for down I probably wouldn't need the financing in the first place. My income after retirement (I don't finish work for about 1.5yr) will be around 77,000 bht per month, according to the USD/Bht. My biggest problem is not having the large sum of cash that everyone seems to think I should have. Many reasons, the largest being a divorce that led to bankruptcy in USA about 10 years ago, but the reasons don't matter, only the fact that large lump sum of cash is not available. Any suggestions, anybody have much information of bank financing or real estate financing? Anybody had much dealing with any of the housing projects, and do they offer their own financing? I know of one that offers 500000bht down and payoff in 2 or 3 years with little or no interest (interest has to be built into price). Any help or suggestions would be appreciated, esp over the next couple of days while I am still in town, before return to USA.
Thanks,
Wayne

[BobHelm]

Wayne, I have seen financing offers when people are starting brand new builds that don't require a large down payment - but that is the only time I have seen it.
If you try somewhere like the office in "Lake Garden" (it is by the swimming pool there) I am sure they will give you one.
I am NOT saying that they are a good deal, or a bad one, because I have never really done the maths - just seen it. Worth a trip out there just for an idea, even if you don't like the properties - I wasn't too impressed, hence the 'not bothering to do the maths'...
Lake Garden isn't the only one I have seen - have been given leaflets in the past while in the Complex, but it is the only one that I know was still offering these sort of deals a month or so ago...

[BobHelm]

Ah Ok TG (clever girl ) kept one from Tanadorn Homeplace - not the same as I remember for Lake Garden, but similar & so will give you an idea.
Houses in Tanadorn are more expensive too - the cheapest is 1,750,000 .
The down payment is 20% - so 350,000 but you can even split that up, rather than hand over the 350K.
That is done this way... Deposit 15,000 At contract signing 50,000 then 10 monthly payments of 28,500.
This leaves 1,400,000 to be financed at 7.5%..
5 years = 28,053 per month, 10 years = 16,618, 15 years = 12,978, 20 years = 11,278, 25 years = 10,346, 30 years = 9,789.

Hope that helps....

[UdonExpat]

I did some inquiries about mortgages a year ago. I did not go through any mobaan but went directly to several banks as I was not interested in a housing development. Previously, I did talk with people at mobaans about loans and they all assured me they could arrange financing.

The general requirement for farangs was that the loan had to be paid in full before the farang was 60 years of age. In other words, if you were 55 years old when the loan originated the loan period would be 5 years.

A loan to a Thai wife/gf would require a bit of fraud unless the wife/gf really had a job/business that produced enough income for her to qualify on her own merits. The loan officers were willing to participate in the fraud and instructed us how to do it. If my wife showed 6 or more months of periodic deposits to her savings account that made it appear she had a regular source of earned income, then the loan officers thought they could make an adequate case for the mortgage to their superiors.

Loan officers made varous statements about the loan rates and percent down that was needed for a mortgage. As in dealings with all sales people I figure they are looking for my desire to work with them and then the REAL terms will come. All discussion ends when it's time to sign the papers. I have bought many homes over the years and always found that on closing day the deal was seldom exactly as we had previously agreed.

[sangharina]

Hi fellows, I have a great business idea but I have bad credit. I really have a great business idea and have always wanted to do this, but unfortunately certain circumstances pulled me away. My bad credit is going to get in the way of me being able to get a loan, and I don't know where to start. I am looking for serious information that can really help me. Any help to get a business loans will be greatly appreciated

[BKKSTAN]

Sorry,I just couldn't resist!

[aznyron]

I live in PK Thani 4 --there is a nice house for sale across the street from me for about 1.2 million baht. there is a new mooban being built next door- prices starting at about 670,000 send me a pm if you want more info

what is a mooban ? thank you Ron / Jun

[laphanphon]

Sorry,I just couldn't resist

me neither, sorry

what is a mooban

damn Ron, how long you been here, mooban is simple a building developement, like PK or First Homes, that's all.

[trubrit]

Sorry,I just couldn't resist

me neither, sorry

Never mind Bkkstan and LA the're just a couple of cynical old fogies.

You sure.gif

Just tell us what bar you are thinking of buying.

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[laphanphon]

Bkkstan and LA the're just a couple of cynical old fogies

ah yes, well spotted old chap, as they say, 'takes one to know one'

[Robtaff]

I'm looking at getting a mortgage/finance to buy a home in/near Udon Thani.

Done a few internet searches but as usual more info on udonmap than the WorldwideWeb.

From reading this topic am I correct in thinking that the finance has to be in my name but the property/house will be in the wife's name?

[laphanphon]

house can be in your name also. most banks won't mortgage over the age of 60, so full payment required before that age. if 50 now, 10 yr mortgage is best you will get. i personally have never had a mortgage in thailand, but that is what i was told by quite a few who have.

[papaguido]

4 years ago we secured a loan for our house for 80% and 20% down. Everything is in my wife's my name, but the loan was based on my income alone. LA's right about the age thing and as I understand it now it's difficult to impossible to secure anything more than 50%.