Buy a condo & rent out

[derf1]

I have read many of the topics in this section and I think I am starting to get some idea of some of the issues. I am looking for feedback on the idea of buying a condo and then leasing it out for most of the year. For now I would only be interested in occupying it for at most a month and it would be off season. Has anyone done this and had success in purchasing a waterfront condo and having the mortgage paid off over time by leasing it out.

[Jockey]

I have read many of the topics in this section and I think I am starting to get some idea of some of the issues. I am looking for feedback on the idea of buying a condo and then leasing it out for most of the year. For now I would only be interested in occupying it for at most a month and it would be off season. Has anyone done this and had success in purchasing a waterfront condo and having the mortgage paid off over time by leasing it out.

Derf - There are many agencies in Hua Hin (I'm not one of them), who would gladly rent your condo out charging you commision of course. A good condo can coin in a large amount for 2 / 4 week periods but could also stay empty if you don't get your marketing or agency right. Condos are also very expensive now in relation to what they were 4 years ago, but they represent (IMO) an excellent investment, particularly because of the legal issues with property, many think the condo prices are set to rise dramatically.

I noted you asked about paying off the mortgage. It would be very difficult for a Ferang (foreigner) to buy a condo using a mortgage. The Thai banks would insist you have a non immigration B visa, collatoral, proof of income in Thailand etc. The decision on the loan could take 3 months by which time the condo could be sold to someone else!

A 7 million baht condo could demand rents of 50/60,000 baht per month (short term) or about 25/30,000 a month long term (6 months to 1 year).

[derf1]

Jockey- thanxs for the reply, it gives good direction for more questions to ask and people to talk too. I think I can get funding outside of Thailand for mortgages but will come back with questions when I get answers to your thoughts. Thanxs and cheers

[caller]

You can get mortgages in the UK to buy abroad - in my case, if I so desire, by re-mortgaging on my house.

[Jaime]

Not that I am an expert but I would be very surprised if a British high street bank would lend against a property in Thailand. As you posted Caller, if you want a sterling mortgage for a property in Thailand you can re-mortgage against your UK home and release equity to pay for a property in LoS. That is exactly what we did.

[STEVE G]

In addition to the above, some offshore banks will give you property loans secured against other investments you hold, such as pension funds, equities, or endowments.

[Jockey]

I read Jakob and Marck from 2nd homes estate agency have negotiated a deal with a Danish bank to organise mortgages.

[Winkie]

I noted you asked about paying off the mortgage. It would be very difficult for a Ferang (foreigner) to buy a condo using a mortgage. The Thai banks would insist you have a non immigration B visa, collatoral, proof of income in Thailand etc. The decision on the loan could take 3 months by which time the condo could be sold to someone else!

Bangkok Bank in Singapore seem very willnig to arrange Mortgages for Foreigners buying in Thailand.

A buddy of mine has done just that with a Condo in Cha Am. It seems they were also very professional ont he legal side of the purchase also.

Winkie

[derf1]

Hi Jockey
What is a "non immigration B visa"? Is it attainable?

[Norseman]

Hi Jockey
What is a "non immigration B visa"? Is it attainable?

Read more about it here: http://www.huahinafterdark.com/forum/vi ... php?t=4160

[derf1]

Norseman
Thanks for the link. It has been very helpful especially if full time retirement were something that is being considered. The ramifications are significant.

[up2u]

we obtained our non im 'b ' visa with the help of sunbelt asia , very easy no problems at all

[derf1]

Dear Up2U
What is sunbelt asia?

[Jockey]

Dear Up2U
What is sunbelt asia?

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[derf1]

Jockey Thanks for the link. It looks like these folks do franchise and business establishment plans but there link show a legal part to their business as well, such as how to deal with the Visa Runs. Any idea if they deal only with people that are buying businesses.
Cheers

Derf