Thailand Property Finance(Foreigner)

25th June 2015

How Can We Own Property?

Property Ownership Structures

Condominium•Freehold

– Sole Name, Multiple Name… (Including with a Thai Name)– Offshore Company

•Thai Company•Leasehold

– Land Leased (CPB Land)– Freehold Chanote Land, Leasehold

Villa/ Land/ House/ Hotel•Thai Company•Leasehold

Next – Freehold Condo Ownership

Freehold Condo Ownership(Sole/ Multiple Name, Offshore Company)

FOREX Requirements•Tor Tor 3•FET•Foreigner Exchange Transaction Form

Money must be remitted in from overseas for the purchase price of the Condo or exchanged from another currency to THB.

Result – Foreigner Name on the Back of Chanote

Next – Villa, Land, Hotel Ownership

Villa/ Land/ Hotel Ownership(Lender Perspective)

Thai Company Ltd. (Operating)•Up to 49% Foreigner Owned•Up to 51% Thai Owned•Minimum 3 Shareholders

Leasehold•30 Years Maximum

Next – Benefits

BenefitsFreehold Condo•Easy to Sell/ Communicate•Low Risk with Legal Structures•Relatively Easy to Understand

Leasehold and Thai Company Ownership•No FOREX Requirements•Tax Benefits– Property Transfer Fees– Offset Loan Interest– More than 49% of a Condo area can be sold to Foreigners

Next – Disadvantages

DisadvantagesFreehold Condo•Money has to be exchanged•Living Area of Property•Building Noises and Thin Walls•Building Maintainence

Leasehold and Thai Company Ownership•Structure takes some reliance upon third parties•Additional Costs could be incurred•Law is sometimes grey

Next – Who is Willing to Lend

Who is Willing to Lend???

Finance Banks and Companies

Next – Finance Structures

Finance StructuresMortgage or Kai Faaq/ Faak

Traditional Mortgage•Ownership remains in Owners name

Traditional Thai Kai Faaq/Faak•Ownership is Transferred to Lender•No Credit Bureau Reference

Next – Lending Terms

Typical Lending Terms

Mortgage•THB, USD, SGD Currency•Up to Age 70•Up to 20 Year Term

Kai Faaq/ Faak•THB Currency•Up to any age•Up to 3 Year Term

Next – OTT Document Requirements

OTT Document RequirementsID & Verification1. Passport (s)2. Work Permit (s)3. Marriage Certificate4. Confirmation of Salary (Tax Return or Wage/Pay Slips)5. Thai Birth Certificate (Under 18 Only)6. Utility Bill (s) (Confirmation of present address)7. Recent Bank Statement (s) / Book (s) (Thailand)8. Title Deed (s)9. Sales & Purchase Agreement (s)10. Down Payment Slips11. Business Card (s)12. Credit Bureau Report13. Career Resume

Evidence / Proof of Wealth 1. Bank Account (s)2. Investment Statement (s)3. Property Title Deed (s)

Self Employed Only1. Company Registration & Affidavit2. Company Shareholder List3. Evidence of Company Capital4. Last 2 Years Audited Financial Statements (if the company has been open for a while)5. Letter from Accountant to confirm Position, Start Date and Income

Next – OTT Documents Pt. 2.

OTT Document Requirements (Pt. 2)

Purchase of Property in the name of Thai Company 1. Company Registration Documents (Less than 3 Months Old)2. List of Shareholders (Less than 1 Month Old)3. Company Stamp /Seal will be required when signing / verifying Company Documents4. Company Affidavit5. ID Card/ Passport and House Registration of all Shareholders6. Minutes of the Meeting to confirm ok for Company to Loan.7. Company Credit Bureau Report8. Last 2 Years Audited Accounts and Auditors Opinion (If the company has been open for a while)9. Last 2 Years Financial Statements (if the company has been open for a while)

Next – Timescales

TimescalesUpon the Lender Receiving all Satisfactory Documents, it takes between 2–10 weeks for the approval and finance to be completed.

Maybe at the end of several weeks/ months, a decline is still issued.

Common Issues•Miss-communication•Terms Change•1 Branch Approve, Second Branch Decline•Paperwork has been issued incorrectly (Either Lender or Borrower)•An appraisal report highlights legal/ debt issues on the property•1 Signature is missing or in the wrong place•Thai Spelling of the English name is spelt differently at the Land Office

Next – Easy to do Business

Easy to Do Business

Condo Refinance•Pre-Approved Finance Limits for Each Condo•Loan Limit of THB 20,000,000•Single, Employed Professional with Salaried Bank Account for Income•Thailand Resident (Living here)

Next – Thailand Condo Finance Map

Thailand Condo Finance Map

www.globalmortgagefinance.com/thailand-condo-finance.html

Other Resources

Articles•www.globalmortgagefinance.com/foreigner-mortgage-finance-in-thailand.html•www.globalmortgagefinance.com/thai-property-finance---what-does-the-lender-look-for-.html•www.globalmortgagefinance.com/property-finance-in-thailand---mortgage-vs-kai-faaq--faak.html

Youtube•www.globalmortgagefinance.com/finance-explained.html

EMAIL 1: enquiry@globalmortgagefinance.comEMAIL 2: stuart@mbk-center.co.th

EMAIL 3: stuart@mbkg.co.th

TEL No.: + 66 (0) 81278 5382

WEB 1: www.mbkg.co.thWEB 2: www.GlobalMortgageFinance.com

Thailand Property Finance(Foreigner)

Thank you for your TimeAny Questions…