Thai Partner wanting to buy property in thailand

[overkillxx]

Hey Guys,

Literally just joined this forum trying to seek some answers that hopefully people can assist with here.

Me & my Thai partner live in Australia. For a longtime she has been wanting to buy a property in Thailand for her family to live in. Unfortunately the job she has in Australia, though it pays ok, is cash in hand. Ultimately she has no record of income to prove to a bank in Thailand so that she can get a loan on her own merit. She does however have about 950,000 baht (At least) for a deposit. She will spend about 2,600,000 baht for a property. To do this ultimately I need to Marry her in Thailand & sign into the contract for the property. I don't have any interest in the property as its entirely hers. I am just assisting her to buy it as she isn't able to secure the loan through the bank as she can't prove her income.

A: I recently sold my house in Australia. As such I am looking for another house. If I sign a contract for a house with her in Thailand , can a bank in Australia see this "debt" I have taken on in Thailand when I apply for a homeloan in Australia? I don't think they can unless I declare it. But I want to be sure. hence why I am asking. In reality & as mentioned above I won't be paying for anything in relation to this property. My Thai gf will be.

B: If for whatever reason she cannot pay the repayments, what legal obligations do I have? Can the Thai bank (Whichever bank that may be) get the money from me? Are there agreements in place between Australia & Thailand that may make this possible? I would think that if she defaults on the loan in her repayments the bank would just resell the property. As she will have a decent deposit, I would think that if there was any shortfall after the bank sold the property, it would not be very much.. But this leads me to question C:

C: Her deposit she will have initially on the mortgage is a reasonable amount. But as is the way (Especially with Thai families) her family/whoever may convince her to use that capital to buy "other" things (Car, expensive furnishings, etc). This would have the effect of making the debt on the property larger & if "B" happened & she defaulted on the repayments, then the shortfall would be much larger. Is there anyway I can make it so that any capital paid off on the property cannot be withdrawn on until such time as the property is paid off fully & I am relinquished from any contract with a bank that has my name on it?

D: If I Marry her for the sole purpose of buying this property with her & then divorce her shortly after, is the divorce in Thailand recognized in Australia? I've read some sites saying certain countries may not recognize a Thai Divorce. I am not married to her in Australia. I will simply Marry her in Thailand & then divorce shortly after for the sole purpose of buying a property in Thailand for her as mentioned at the start.

[laphanphon]

Actually, the only question you should be asking is:

Do YOU want to buy her family a house to live it, because that is the reality of it all. Simple.

Personally, I would stay clear of that one, and continue on as things are, simply enjoy living together in OZ. The family got along fine before you, and will do so after, just do you want to pay, during the after.

Ask yourself, would you co-sign a mortgage for an Aussie partner's family in OZ, that a bank would not loan money to. They have rules for a reason.

[deepee]

overkillxx,
The Australian ATO, Border Security and Centerlink have investigative officers who monitor overseas sites such as this .
I know this from a friend whose job it was to do just this.They run profiles on interesting posters and it's not too hard for them to eventually work out who you are. So careful what you admit too especially when divulging info on income and money, property etc.

I expect if your Australian bank gets wind that you have debts overseas they will have no choice but to factor this on on your future loan, but only if the know of it.

Foreigners cannot own land in Thailand so you cannot partner your lady in a purchase which means no Thai institutions will enter into a loan with you. She will have do do all the deals on her own.
You will find that the Thais can also seek proof that any monies used to purchase property have come directly from your lady's savings and not from you running funds through her accounts.

Beware the Thai authorities can confiscate property where marriages/divorces are made for the purpose of purchasing property.Thailand is very protective of Thai land getting into and under the control of outsiders.

[StevePIraq]

My two pence worth, if she wants to buy a house for her family then let her do it with her money as you will never see any return on it and you will never have the house. Don't get involved in this as it is just the typical Thai way of getting a Farang to pay for all of their family. Next they will need a pick up, school fees and do on.

[Guru2017]

Foreign fools buy land and house in the name of a Thai wife. It won't be long they are without house and without wife. Rent land and lease a Wigwam motorhome, and stay in control of your love life.

[oakdale160]

if you go thru with this one thing for certain--we can all see it--- you, with your head in your hands screaming---HOW COULD I BE SO STUPID, all those guys told me not to do it but I was so damn stupid. For us it's kind of sad but boring, like watching a movie you have seen before, its not that great and has a shitty ending.

[caller]

I think some of you guy's are being a bit harsh. We don't know all of the details, but it appears the OP has lived in Oz for some while with his Thai lady, they might well have a great and loving relationship and she clearly works and presumably, cash in hand or nor not, has worked for some time to accrue that level of savings. Nor do we know the OP's financial circumstances and whilst I think it's good to point out the potential pitfalls, there's no need to portray his lady as some sort of gold digger, especially when we know to provide for the family is a natural desire of many Thai ladies and many that live abroad do exactly that.

The guy has wisely come here for advice and he has got some of it. But the bottom line for the OP is that there are rules governing where the money for a house purchase comes from, how long it has been in the Country etc, but good lawyers will get around this. Only Thais can buy land legally, so it won't be in your name. I assume the Oz authorities and banking system, via credit rating checks etc, will be aware of any large sum or regular payments you transfer to Thailand and will ask why? If the repayments are defaulted on, then just as anywhere the bank will reclaim the property and there is no logical reason to marry someone just to buy a house. But if you do decide to marry regardless, if it is legalised at an amphur, then the marriage will be recognised in Australia and any effect that may have on any future divorce!

Having said all the above, the need to marry in Thailand is patently not correct as a requirement to purchase a house, because you can't and the only way you can enter into a contract is as a leaseholder or via a usufruct. Now I'm no lawyer, but that may be difficult if you don't have the appropriate visa to enable you to live here.

[HHTel]

I agree. It must be said that if you were to marry, whether in Oz or Thailand, the marriage is recognised by both countries. Also, the laws on divorce splits both assets and debts incurred within the marriage 50 -50 to both parties.

[StevePIraq]

I assume the Oz authorities and banking system, via credit rating checks etc, will be aware of any large sum or regular payments you transfer to Thailand and will ask why?

Answer: You only have to state "Living expenses in Thailand" and it is no issue even for substantial sums.

If the repayments are defaulted on, then just as anywhere the bank will reclaim the property.
Answer: An Australian bank cannot reclaim property in Thailand.

It would be interesting to hear the OP's response to all of our comments, realizing that some could make him very concerned.

[deepee]

quote caller
"Only Thais can buy land legally, so it won't be in your name. I assume the Oz authorities and banking system, via credit rating checks etc, will be aware of any large sum or regular payments you transfer to Thailand and will ask why? "

These funds will have to be transferred out of Oz to Thailand in the lady's name to satisfy the Thai authorities that it is in fact her money and her purchase and not being done on behalf of a foreigner .Big problem me thinks. The Oz authorities will then be most interested to know where these funds came from bearing in mind that they were cash in hand payments to her.

[StevePIraq]

quote caller
"Only Thais can buy land legally, so it won't be in your name. I assume the Oz authorities and banking system, via credit rating checks etc, will be aware of any large sum or regular payments you transfer to Thailand and will ask why? "

These funds will have to be transferred out of Oz to Thailand in the lady's name to satisfy the Thai authorities that it is in fact her money and her purchase and not being done on behalf of a foreigner .Big problem me thinks. The Oz authorities will then be most interested to know where these funds came from bearing in mind that they were cash in hand payments to her.

Deepee,
I transferred money from Oz and the UK to Thailand and bought a house and land which was registered in my Thai wife's name. We both signed forms at the Thai land office stating where the funds came from. What you are stating is simply not correct.
The Oz authorities may question where she came upon such money but for all one knows the money could have been deposited over a period of time. Best for the OP to respond to advise his feeling on this issue, if he so chooses.
Two months since the OP posted so he may not even be interested

[hhinner]

^^ From personal experience, when a Thai lady with a foreign husband buys land in Thailand the land department will have the husband sign a declaration that the money is not his and that he has no interest in the purchase. It's a pretty meaningless piece of paper and does not affect the husband's legal rights of 50℅ ownership of marital property.

There may be other considerations such as income tax but the Thai revenue department isn't exactly proactive in regard to checking undeclared personal income earned abroad.

[Nereus]

Hmm, not sure about some of these answers. For the Australian Bank I have never had any trouble transferring funds to Thailand. It does not matter if it is going to my own bank in Bangkok, or for many years to my Thai daughters bank in her own name.

The declaration in Australia asks for a reason, to which for small amounts ($25K), I just insert sustenance. For large amounts($250K) I have previously just inserted "to purchase a Condominium". It is none of the Australian banks business what you are going to do with the money, even when the transferring bank has to report it to the Australian authority. Unless you are a known drug dealer, they will not stop it!

In Thailand I bought a house in my Thai daughters name. We went to the Land Department and there was no question about where her money came from. All they wanted to see was her Thai ID card and the cash money for the tax and fees. The tax is calculated on the declared property value, which may or may not be accepted. Never had to pay anything "other".

DEFINIATLY do NOT marry the lady before hand, as THEN you will have problems about just whos money it is!

And just to be sure my "daughter" is a Thai daughter that has about the same blood relationship as a pet dog!

[caller]

Hmm, had I picked up on the fact it was an old thread, I wouldn't have bothered responding. I mentioned the bit about oz banks picking up he had sent money to Thailand as he was concerned this might affect his ability to get a mortgage in Oz if they knew about the Thai house / any mortgage.

[HHTel]

^^ From personal experience, when a Thai lady with a foreign husband buys land in Thailand the land department will have the husband sign a declaration that the money is not his and that he has no interest in the purchase. It's a pretty meaningless piece of paper and does not affect the husband's legal rights of 50℅ ownership of marital property.

Absolutely correct but many don't realise this.