London Boy

They were in March, but since the Bank of England reduced the base rate to 0.10% most ISA's and saving rates have tumbled.

Just to update everyone who has an interest in my dilema I spoke to an English trained lawyer last night (working in Bangkok). He said that a document between myself and GF won’t really carry much weight if it ever went to court. The cost of such a legal document is around ฿30-50,000, and its primary purpose is to to cement the idea in her mind that the deposit is not joint property. He said the only real protection is to supply 50% of the purchase price so your name is on the land registry documents. As such I think the best course of action is to increase my percentage to 50% (in 3 years time) after the fixed mortgage period runs out and get my name on the title.

You really should read previous posts before replying. As previous explained, settlelement is not untill the 23rd june and the deposit money of ฿1.3million is still in the Uk, in a Nationwide ISA only earning 0.01%. So now is very much the right time to ask this question.

Thanks Black Cab. That’s the most sensible advice I’ve received. I get the feeling you’re a practicing lawyer or a retired lawyer?

I think this is a good point about real estate, but it’s very tricky to know where the bottom of the market is. There are other factors in play as well, such as finding someone desperate enough to sell for less then they bought it for. A rich Thai with 30 condos will never sell to you at a discount whatever the market condition. The Farang I’m buying it from is making a paper loss but in theory a cash gain as he bought it when the £ was ฿70 14 years ago

I said it would be my 12th property Transaction. I didn’t say I still own them all

Because rather then paying that money to landlord/lady to live in a run mediocre apartments we pay it to own our condo which one day will be paid off. Surely that should be obvious.

I’m 49 and she’s 32. Although I have more risk then hers, if I was to walk away she’s stuck with a 3 million debt! Also I’d rather pay the money into a condo we both live in and enjoy, rather then to a landlady who is so stingy and certainly doesn’t have my best interests at heart. I’ll pay 75% of outgoing but that’s reflective of our present incomes. And did I mention we will be doubling our living space?

Nope. I haven’t even brought it over from the UK yet. Although I did need to provide a Statement to KrungThai Bank that I actually had it before they would approve the mortgage.

I agree with you there. You need to start as you mean to go on. Which is why we have discussed this and explained to her the deposit is not a gift but a loan that has to be paid back to me. She currently pays ฿4300 rent and I pay ฿15000 in rent. Our mortgage with be ฿18500 so we’ll be paying the same amount to pay of our condo (plus ฿3000 in common fees). I think financially it makes sense.

I have and have been following this particular condo block for around 6 months. I’ve seen a decent turnover So I’m confident it can be sold when I’m ready, even if it take 6-9 months.

I haven’t bought it yet. Completion is on the 23rd June which is why I’m tackling it now.

When we first approached Krungthai (as well as 6 other banks, but they had the beat rate) they told us the only way a foreigner can be on the title is to pay for 50% of the asking price. Having a lot of experience in real estate (this is my twelve property I’ve bought, although first in Thailand) I’ve always tried to leverage as highly as possible to preserve capital. So I’m reluctant to commit any more then ฿1.3mllion

Interest for the mortgage is 2.71% (through Krungthai) Whereas interest I was earning on my 1.3 million Bhatt is only 0.01% (in a Nationwide ISA) so the money Doesn’t really have an opportunity cost

Thanks, that so true. I've been in Thailand just over 6 years and worked out I've spent £25,000 in rent (current exchange rate). Chances are I'll be here for another 6 years and dont want that figure to be 50k. Would much rather pay off our own mortgage. Although I don't expect any significant capital gain, the real value is selling of an assest when I'm ready to leave and (hopefully) getting my money back.