Finance a Condo in Thailand
Do you want to own a condo? Most people prefer to live in a condo that they own, however, they may not have the full cash value of the condo on hand. This is where financing comes in, and in Thailand to finance a condo as a foreign national can be difficult at best. Banks, for the most part require a deposit of 50% the terms are typically short, 7 years or less, and the interest rates is usually high, starting at around 8%. There is another way to finance a condo in Thailand that cuts the banks out. The Tudor Group, the builders of the CUBE Condo on Pratumnak Hill in Pattaya offer a very attractive developer lead financing option.
Condo can be better than houses because of the location. The same price you buy a medium sized condo, cannot even afford a small house in the city. To stay in the condo, you will have easy access to facilities, shopping malls, restaurants, transportation, and your work place.
Buying a condo is not difficult when you carefully choose appropriate financial plan either from banks or developments.
Bank Finance for a Condo in Pattaya
Occasionally a condo development may already have a deal with a bank so you may be able to get special interest rates, or current promotion. You usually get some more discount by not having to pay for guarantee’s valuation cost for the bank that each developer has a contract with.
The procedure to get your personal loan is not complicated, and the bank’s staffs are willing to assist you very well. Anyway, you need to submit all the necessary documents such as pay slips, bank statements and your employer's certification to prove that you can really pay your loan or you should get and approval. These are other documents you will need to prepare:
- Copy of ID cards/Passport including visa pages
- Marriage certificate
- Thai house book
- At least a 1-year work permit or Thai resident permit
- Booking form
- Sales contract
- Copy of the property document you use to Guaranteed
If you are exploring bank financing our team at The Cube Pattaya will assist you to prepare these papers and advise you to follow bank financial processes. You may do some extra research for financial promotions that each bank have to compare for the best choice.
Interest rate for the loan
At the beginning the interest will be fixed rate for few years, then it will be changed to floating rates: MLR or MRR that will go up and down depending on announcement from the government.
Compare normal salary rate in Thailand to estimate how much the bank will lend you money:
Salary 15,000 - 30,000 may get 750,000 – 1,500,000 Baht for urban condos
Salary 30,000 – 60,000 may get around 1,500,000 – 3,000,000 Baht for condo around the city
Salary 60,000 up will get 3 million Baht up in good locations
How much to pay each month?
Estimation is to pay around 7,000 Bath for 1 million, so when you take a loan for a 2 million Baht condo, you will need to pay around 14,000 a month. Sometimes when it is too much to afford, you can take the loan together with your relative or spouse.
Some drawback is that most banks usually not lend you 100%. Maximum for a foreign national is usually up to 50% of sale price or estimated price depending on which one is lower. Not only foreigners are having difficulties to get a loan from the bank. If you do not work in the company and have salary every month, Thai people such as all freelancers, shop owners or a farmer are having the same issues.
What will you do when you cannot borrow money from the bank?
Development Financing to buy a Condo in Pattaya
From this article, How Can I finance a Condo in Thailand When the Bank Says NO? can explain very well the financial plan from the Tudor Group that may be what you need. Many developers are offering private financing options for foreign buyers, but which plan is most suitable for you? Since property owners are giving different offers, you can spend your time to compare how many percent the down payment is, how long the payment terms are, and how much you will need to pay every month, and the most important thing is how much the interest rate is.
It is not a good idea to pay 50% down payment and pay the rest around 30,000 Baht up with no long-term payment options, is it?
The cube is one example that is very flexible and open for financial terms while not every developer can do the same. You will also get big discount from Tudor Group Thailand’s hottest promotion: guarantee 7.5% rental return for 5 years, paying upfront as a discount (that is 37.5% discount!)
Down payments at The Cube are much lower than what is required by many banks. You only need to pay 30% not 50% at the beginning. And also…
- No credit check
- 100% buyer friendly
- Payment plans are flexible
- No prepayment penalties
Interest rate is only 5%, actually lower than the beginning rate from most banks.
Is the Rental Guarantee Too Good to be True! Is There Any Risk?
Be careful! You need to check about this first. But Tudor Group takes full risk, the buyer has little risk, other than minor costs related to the rental such as cleaning fees and room maintenance, the buyer will take care of them. If you would like to live on Pratumnak hill, next to the city that have full facilities, surrounded with beaches and nature in the future. Discuss with us for Bank Finance or Developer Finance that which one will best suit you. Contact us here for more information from The Cube.