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How difficult is it to get a loan to purchase land? (Foreigner + Thai)


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My wife and I are interested in a piece of land and we're wondering what terms need to be met in order to qualify for a loan. I've been employed (with a work permit) for only about 4 months, but also have income from overseas. I don't have any credit in my home country. My wife, who is Thai, has been employed at her current company for only about 8 months, but she also has had somewhat steady online income for a few years. The land title would be in her name. Our combined incomes are more than enough to make payments and we'd try to put down a significant down payment. She was researching Kasikorn Bank and read that for me to help with qualification, I would need to have my work permit for at least 1 year. Will my overseas income even be considered when going through the application process? What about her online income? Are other banks more accommodating to foreigners? We'd really appreciate any advice as this is our first go at land ownership.

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"The land title would be in her name" you have no choice in that aspect.

The whole thing will be in her name.

My advice would be to wait until she has 12 months of bank statements showing regular income, then go talk to the various Banks as no "one size fits all" is applicable.

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8 minutes ago, BritManToo said:

She needs 6 months worth of payslips, 25k/month will get her a loan of 1.5 million baht.

Your income is irrelevant as you can't own land in Thailand.

Oh wow. That's disappointing to hear. If my income is irrelevant that definitely limits us. When she was talking to Kasikorn Bank she mentioned me and they said I just need to have had my work permit for at least 1 year. We'll need to call them again and clarify.

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11 minutes ago, CharlieH said:

"The land title would be in her name" you have no choice in that aspect.

The whole thing will be in her name.

What I meant was putting the land in her name as opposed to having the land be in a company's name.

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2 hours ago, henry15 said:

Putting the  land in a company  with nominees is illegal

From what I understand, starting a company with the sole purposes of a foreigner buying land is illegal, however buying land with an actual, operational company is perfectly legal. Is this not correct?

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Unfortunately you will not be of any help officially to get a land or house loan. The only help you can be is by providing the capital fund.

So the bank loan must be done through your wife, and the banks will check:

-how old is your wife (if more than 35y.o it is going to be very difficult)

-does your wife has credit card debts?  if so, you guys should clear it before sollicitating the banks (if your wife got already a loan for a car, then it is unlikely she will get another loan till the car loan is not done)

-how much money can you bring? (banks usually loans about 80% of the total price, but not sure for land loan though)

-how much your wife is earning and how much is the land? (wait at least 1 year of employment before asking a loan)

- is there anyone Thai from your wife entourage that could be a guarant (family or real good friend, but they should not have a loan on their own already).

 

I have made a loan for a second hand house, my wife got the loan with TMB bank  (only this bank allows her 95% of the full amount), she earn 25k/month, been working for 10 years, no others loan (no car..) It took about 2 months for the process.

PS: be sure you follow up closely with the banks, because it is not uncommon that they lose your files and then you have to start all over again after weeks of process (that has happened to me and to a friend recently..)

 

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2 hours ago, jakow said:

From what I understand, starting a company with the sole purposes of a foreigner buying land is illegal, however buying land with an actual, operational company is perfectly legal. Is this not correct?

Yes.

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