Bangkok Bank has reversed a long-standing policy against granting foreigners or farangs mortgage loans for property investment in hopes of jumpstarting Bangkok’s moribund real estate market, thus falling into line with neighboring nations banking practices for foreigners. Mortgage loans toward the purchase of a condominium will have a limit of borrowing up to 25 Million Baht based on 70% of the property’s appraised value or purchase price and loan approval will be approved dependent on the property owner’s earning capacity.
“If it sounds to good to be true, then it is too good to be true.” My boss Manny Winick taught me about any seductive business deal.
Housing prices in Bangkok are dropping fast than the World Trade Towers. Bankers will connive sweetheart deals with property owners to have their houses and condos re-valued for inflated prices. The current ownership laws against farangs is another hurdle for prospective owners, since the Thai government seems dedicated to refusing to cede any property rights concessions to foreigners and without that issue being addressed then there’s no real reason to own property in Thailand.
Lastly real estate agents are worst than car salesmen.
They are only interested in their commission, which is not a sin, but could be a crime, if they inveigle the unsuspecting farang into a loan without a safety net.
At this point it’s still advisable to wait and see how desperate condo developers become before cashing in the equity of your property.
Caveat emptor or let the buyer beware.
Caveat canem too, which means beware of the dog
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