Thailand Finance

In recent years there have been some tentative steps towards opening up financial loans and services to foreigners in Thailand. Banks are beginning to re-assess the eligibility of foreigners seeking finance on property within the Kingdom, and mortgages are gradually increasing in availability, albeit with strict terms and conditions attached.

In general, borrowers must have a very sound credit rating, be living/working in Thailand with relevant documentation and the property must be in the borrower’s name. Loans are generally over a shorter period than offered in the west, and condominiums are the preferred purchases, because outright ownership in condominiums blocks is allowed under Thai law.

There are some Singapore-based banks that, spotting the niche market, now  also offer offshore credit to those wishing to invest in Thailand. Off-Shore branches of Thai banks are also circumventing national restrictions in this manner.

Because of the difficulty in sourcing finance on property, many developers and private lenders offer loans or deferred payments schemes on their properties, attempting to fill the void in the market. On Koh Samui, the finance packages offered by GFS are some of the most competitive and appealing options available to investors, both in terms of interest rates and flexibility.

Considering the relative lack of competition, interest rates on these private loans are quite reasonable, and whilst transfer and legal fees are an additional expense, this is similar to mainstream bank charges.  
Obtaining sound legal advice and maintaining thorough scrutiny of all contracts and documentation, is of course essential. As with any such matter, research is needed to keep up to date with current requirements, and look at the possible permutations, whilst at the same time being aware that the ground rules are in a state of flux.