How Can I finance a Condo in Thailand When the Bank Says NO?

cube building with EIA approve

How Can I finance a Condo in Thailand When the Bank Says NO?

The very concept of the Cube Pattaya's financing options were born from the banks saying no. When Thai banks followed the lead of their western cousins and began to tighten lending regulations it became all but impossible to get financing in Thailand without perfect credit, and or having a Thai co-signer. Unless of course you are willing to put down 50% toward the price of your condo AND be able to pay off the remainder in 10 years or less, with an interest rate in excess of 8%!

No Thank you!

The Developers of Cube Pattaya, the Tudor Group Thailand have been developing real estate in Thailand and the UK for over three decades. The partners are expats living in Pattaya and they have heard many stories of banks denying credit applications to people who can afford the payments they just don't meet the new stricter criteria. Banks also can't put the human element in their decision making process the way developer lead financing can. When people make the decisions and not an automated system communities are built.

Why did the Cube begin offering financing to interested investors?

No less than 10 buyers, that had a sizeable down payment and decent credit wanted to purchase in the Cube Condo in Pattaya during 2015. Previously these clients would have sailed through the process of financing. Many had been living and working in Thailand for some years, and some were locals. Despite their ability to pay the banks said no. These buyers were quite disheartened. Yes they could still afford to buy a condo in Pattaya for cash. It would be older though, and on the small side or tiny and off plan for that amount money they intended for a down payment.

There were other buyers that were not outright denied but the finance terms were not reasonable. Asking for 50% down and then coming up with payment plans that would make the monthly payments soar into the 30,000 baht range, with no long term payment options.

These were not reckless buyers being denied, these were hard working men and women who can afford a down payment because they have saved their money, and they can afford a reasonable monthly payment, however reasonable monthly payments tend to disappear if you have to repay a mortgage over a very short term.

The denial process by the banks was forcing buyers into lower and lower priced condos, while increasing their own profits. Classic around the world in this day and age.

The Cube Bridges the Financing Gap – When the Bank says No

Long discussions, and hours of research, and the gentlemen at Tudor Group came up with a plan. They would approach their buyers that got denied and they would offer them financing. The building was not at a stage where construction had started and generating cash flow in the form of down payments and securing monthly income for the next XX years is quite feasible when it is well thought out and well planned.

This special unique financing would not have been available at the pre-sale phase, however at this time, financially it makes sense and buyers win at the same time as the developers.

What our Buyers Have in Common that Got Denied

They want more for less because they are going to be using the condo.

In todays market Pattaya is very dense and the size of new condos are shrinking. They may soar up into the skies with high rise floors among the clouds but the condos inside have shrunk in size. Where once it was common to find a 2 bedroom at 84 sq meters, now it is more common to find a 2 bedroom at 55 sq meters. The Cube is a new development under construction now with large floor plans, and all the modern amenities, not to mention a spectacular design. It attracts buyers that want to live in the condo that they own. The Cube appeals to the buyer who wants to live on Pratumnak HIll, to be in the center of everything while in their own secluded hide away.

The Cube does not appeal to every type of buyer. The investor looking for rental income with small studios will not be interested in buying a unit or units in the Cube. The investor that wants to live in the condo and make a decent return the other months of the year will be very interested. The owner occupied buyer will be very interested in the Cube. The investor that wants to rent prime rentals will also be interested in the Cube. Any building that has high rates of owner occupied unit will command higher rental rates.

The rental return guarantee is same as other buildings, however, it is paid UP FRONT, yes that's right, up front.

If you are interested in owning a condo in Pattaya but do not want to pay cash or get involved in ridiculous finance terms please contact [email protected] today and Simon will help answer any other questions you may have about financing a condo at the Cube. 

the cube building
cube building with EIA approve