Is it possible to finance a property in Thailand?
For many potential buyers, especially those who are unfamiliar with Thailand’s property market and laws, the question of how to obtain financial assistance with the aim to purchase property in Thailand is fairly common.
It used to be nearly impossible to finance a property in Thailand until fairly recently. Each year we are seeing more financial institutions allow foreigners to apply for loans and mortgages. It is also worthwhile checking in your home country if they do offer some kind of financing for properties abroad, as some countries do now have this option in place because they understand the importance of such financing and know-how to take advantage of an ever-growing market where many people are looking to invest abroad.
Institutions in Thailand have warmed to the idea of allowing this, hence we are seeing more options for foreign buyers to obtain some kind of financing, however, there are still strict conditions in place and in most cases foreigners will be expected to finance up to 50% of the property in question by themselves, in order to qualify for financial assistance. Another thing is that the loan repayments each month can be as much as 9%. While Thailand strongly encourages foreign investment, they do still want this to remain as a cash market where the foreign property market sector is concerned. Of late we are experiencing more sellers offering some form private financing for foreign buyers. Particularly in provinces such as Phuket where property developers are understanding there is a need for such flexibility and the importance of remaining competitive. We are seeing this offered in projects sold off-plan and under construction. The norm is typically around 5% interest on each payment with a down payment of at least 35-50% of the purchase price.
It is in your best interest to inform your real estate agent that you will need some form of assistance to save you from being shown properties that you are not able to afford without financing in place. If you are with a professional company such as our team at Phuket Buy House, your real estate agent will know who is offering the most competitive interest rates, as well as where to invest and feel secure. Using such a method will mean that the property will then only be transferred once the final payment has been made. If you would like to know more about the options available to you in terms of financial institutions or which projects we would recommend to you, then please contact us at www.phuketbuyhouse.com.
Our team of specialized agents is ready to help!