Thailand’s MBK offering condo financing for foreigners

[migrant]

Thai institutional group MBK PLC is now offering financing to foreigners on freehold condominiums through its subsidiary MBK Guarantee Ltd.

This appears to be an extremely notable development in Thailand, where previously financing was nearly impossible to obtain for foreigners.

Loans from THB2 million to THB20 million (US$63,431-634,313) are being offered with monthly payments from 2-10 years for all foreigners – including non-residents. Interest is set at a minimum lending rate (MLR) of Thanachart plus 2% (roughly 8.375 per cent floating), and there is an option for a balloon payment at the end of term of 50 per cent.

The company says no income or work permit is required to obtain a loan, but the property must be in prime locations of Bangkok, Hua Hin, Cha Am, Pattaya, or Samui, according to Sakchai Suthipipat Vice President, Investment Department, MBK PLC and Head of Credit Department, MBK Guarantee Ltd.

MBK Guarantee is also offering mortgages in order to refinance properties. With the mortgage financing, credit is based on the value of the property not cash flow from a business. All types of properties will be accepted, including land banks, SDH, villas, and leasehold properties will be eligible. Interest rate will be set at the MLR from Thanachart Bank plus 5.625 per cent, or roughly 12 per cent floating. Tenor is up to three years and principal payment is not required during loan period.

Conditions apply to both of these financial services that have yet to be revealed. Email sadip.shrestha AT damacgroup.com for more information.

http://www.property-report.com/site/tha ... gners-8748

[MorSage]

Expensive! I just got a morgage on a Cha-am condo 1.5% for the first year and MLR minus 1.25% thereafter from Ayudhya Bank (but I know the major shareholder and am a resident) I am also aware that UOB bank will provide competetive rate morgages to foreigners but these loans are made in either Singapore or US dollars so there are currency valuation risks associated. Further, the president a friend of mine, has very negative views on Hua Hin real estate and the bank's valuations will probably reflect this, due to multiple global factors and its' market so dependent on foreigners, and having many dodgey (poorly managed and financed) projects. In fact he sees Hua HIN as the weakest / most problematic market in Thailand but one in which many normally unreasonable offers may be accepted so the bargains are out there, happy hunting.

[MorSage]

UPDATE: Just saw KC (president UOB) and he now is saying that MAYBE the market has bottomed and should begin strengthening including in Hua Hin. Getting a loan from his bank is not only possible for foreigners but is very competitive interest rate wise and overcomes the hurdle that non-residents have to buy with cash from overseas (which his bank supplies).

It seems that if you are thinking of buying you should ideally do it soon especially if you can hunt down properties where you can help the existing owner out of their problems cheaply. As an example, the condo I just bought was just valued at 166% of what I purchased it at by both the Ayudhya and Thanachart banks so I got a bargain while helping the prior owner out of their liquidity difficulty.

[caller]

UPDATE: Just saw KC (president UOB) and he now is saying that MAYBE the market has bottomed and should begin strengthening including in Hua Hin.

It seems that if you are thinking of buying you should ideally do it soon

Has the World economy suddenly improved without my noticing?

[kendo]

I thought there was signs of improvment, where i work container volume's are up 16% on this time last year, but the feeling outside of my main work place is very different, i thought things were starting to improve all round ie, my small courier business, housing market etc its almost start stop month by month, a double dip ressecion a real possibility things are grim.

Qestion this above company anything to do with MBK shopping mall.

Kendo

[MorSage]

"Has the World economy suddenly improved without my noticing?"

Apparently, yes or so say the figures the president of the largest bank in south east asia gets, further he said he was now bullish (+ve) on the Thai property market despite the possabilty that the recent signs of global recovery may not last. As Thailand is internationally somewhat undervalued and the broader Thai economy is "BOOMING" especially the eastern seaboard manufacturing segment, except tourism and the small business sector which are usually a good barometers of economic strength and his greatest concern about longer term sustainability.

[caller]

"Has the World economy suddenly improved without my noticing?"

Apparently, yes or so say the figures the president of the largest bank in south east asia gets, further he said he was now bullish (+ve) on the Thai property market despite the possabilty that the recent signs of global recovery may not last. As Thailand is internationally somewhat undervalued and the broader Thai economy is "BOOMING" especially the eastern seaboard manufacturing segment, except tourism and the small business sector which are usually a good barometers of economic strength and his greatest concern about longer term sustainability

Oh okay, so it's goodish for Thai's (and Germans) then!

[Johan]

WTF, just when I paid off my house...