Loan Tip: Borrowing in Thailand to Buy Thai Property (citizens)

A related entity is currently in Bangkok and looking into loans to buy Thai property. The entity is a Thai citizen (and Aust) but lives and works in Sydney.

Here are some things that I have discovered about finance in Thailand.

So far the biggest issue is getting reliable information as you walk into a bank you have to pass the gatekeepers. Some have just said no, so go to a different branch of the same bank and get a different response from those that know more.

It seems 70% LVR may be possible with Kasikorn Bank, but only if other property and assets are held in Thailand. They will want to cross collateralise other property I think. It is also necessary to first have a credit record here so opening a credit card would be a good first step. They will want 12 months bank statements, certified by the Thai embassy/consulate in Australia plus payslips, tax returns etc.

Pre-approvals don't seem to exist. When you are ready you must first find the property and put down a deposit and negotiate the return of the deposit if the finance is not approved. It seems this is standard practice with new properties, but might be more difficult for existing properties.

I have also found a broker, but they charge a fee of 3% of the loan amount, but they claim to be able to assist foreigners borrow to buy here too, as well as Thai nationals working overseas.

There is also the possibility of vendor finance, mainly for brand new properties, but also existing. One brand new development offer 2 years interest free with a 30% deposit and you making minimum repayments for the 2 years equivalent to what the rent would be for that apartment. Title remains in the vendor name until paid in full. Not sure what happens if you cannot pay the rest after 2 years, but potentially lose your deposit.

One strategy to borrow, indirectly, is to just use cash sitting in offset accounts linked to Australian investment properties. The increased interest would then be deductible against the Australia rent. This is a strategy open to non-Thai citizens who can own strata units in Thailand - a cheap retirement strategy perhaps.