Pattaya City being in such close proximity to Thailand’s capital will often see a weekend population increase, as both Thais and Foreigners head to the seaside resort town for some fresh sea air and fine dining. Awash with superb restaurants, botanical gardens, water sports and other exciting things to do, it can only be expected that the area is equally populated with condominiums, much like Bangkok. From units costing under THB 1,000,000, right up to various luxurious penthouse units being offered over THB 100,000,000, there is surely something on offer, to cater for all condo preferences.
The older longstanding buildings tend to provide a larger living space at a relatively low cost with usual minimal facilities. A new modern building tends to offer an abundance of outstanding world-class facilities and some surrounded with landscaped gardens, perhaps, at a smaller living space with higher costs and purchase price. Annual juristic building maintenance costs on an older building are likely to be less where minimal facilities need regular upkeep.
When it comes to the financing of the various condominium developments around Thailand and in particular those of Pattaya, Jomtien & Bangkok, one lender decided upon pre-approval of projects giving an estimate loan size for all units within certain buildings. Whilst the latest local and global economic conditions meant a change in their terms and that anything on the list over than 12 months pre-approval OR any building older than 10 years will need reconfirming before an approval, it does, however, provide a great insight as to what lending might be achievable for those looking to raise cash-back or baht equity release.
The map is publically available and easy to search on Google Maps and is best opened on a desktop computer however, it can also be of use viewing from a mobile phone. Let’s take for example a look at the map entry for Cetus condominium in Jomtien, built by Apus Development and finished around 2014. Directly on Jomtien beach road with uninterrupted & stunning sunset sea views over the Gulf of Thailand, this project was pre-approved by the lender back in December 2015 for loan sizes between THB 55,000 – THB 70,000 Sq.m. Using the Google map references (see image), it can be ascertained that if you owned a unit on the 29th floor for example than a loan size of up to 65,000 could be granted, assuming no more than 60% of the purchase price or valuation. Let’s say the unit in question was 54 Sq.m. than the most likely loan size is around THB 3,500,000 (54 x 65,000). Whilst the latest worldwide economic conditions mean the lender would need to re-verify the loan size since they pre-approved Cetus over 12 months ago, it should, however, help provide a decent guesstimate on what kind of finance could be made available before spending too much effort. The map allows users to gauge a general idea of what finance could be achieved, without even speaking to a lender and without submitting various piles of paperwork.
There are over 300 condominiums previously approved around Thailand and with a decent number around Jomtien and Pattaya, almost 16,000 view count, could imply the map is of some use to those wishing to raise Mortgage finance using Thailand’s condominiums.
One particular segment of users who find the map useful is that of a serial investor. One who generally will know money locked up in a property asset could be working harder elsewhere. Let’s go back to the THB 3,500,000 equity release loan from the Cetus condo mentioned earlier. A typical 50-year-old male borrowing this amount could get a monthly installment as low as THB 39,000. Whilst there is both local and global economic turmoil, increased likelihood of buying reduced price condominium or even houses are more likely. If for example the THB 3,500,000 could be used to purchase another property (or even more than 1 property) which could be rented out for at-least the loan installment cost, the interest rate payable on the loan is simply irrelevant since, in essence, the tenant is paying this rate by them paying rent. In addition, if the THB 3,500,000 was used to snap up a property which due to hard times was sold at a discount from a usual market price of for example THB 4,000,000 than not only does the investor do well from the rental, they are also able to lock in an instant yet to be realised gain from the purchase price. Working with a hard focused real estate agent, who might even be able to flip the property purchase for THB 4,000,000 and then, one could pay off the loan of THB 3,500,000 only to be left with a decent little profit.
A great way to review large numbers of condominium units for sale and their respective rental rates can be found through various property portal sites however, one which I find most easy to use and user-friendly is Hipflat.co.th. One may easily search by choosing either an area or condo building for all available units to both purchase and rent and each project with having some form of analysis and charting of price action. Cetus for example at the time of writing was looking quite a positive investment choice with both asking price and rental rates increasing over the past 12 months. The current asking price is stated to be around THB 129,541 Sq.m. as per their calculations and data. Cross-referencing the Thailand Condo Finance Map with Hipflat, investment property purchases with finance can be gauged, determine what kind of investment returns could be achievable.
Of course, once a lender deposits as per our example THB 3,500,000 onto the borrower’s Thai bank account, they are free to spend on whatever they please. Perhaps invest in Bitcoin & other Cryptocurrencies OR, Gold, OR their own Company & Business, the choice is theirs. The aim of borrowing as per this example was to “make more money” elsewhere rather than leave locked up in a property asset.
Thailand condo finance is relatively straight forward providing basic document requirements are forthcoming. At MBK Guarantee Co., ltd. both Foreigner’s and Thai’s are able to raise Mortgage finance on Thailand condominiums with a 1 product fits all attitude. The only discrepancy is that due to government restrictions, Foreigners need to purchase a condominium fully in their own name before can lend, however, a loan may be approved and contracts signed beforehand, so one knows finance is forthcoming. Interest rates tend to be around 9.65% and terms are available up to 10 years with an option for a balloon payment schedule, which helps to lower monthly installments. Finance on Villa and Land is also available and rates tend to be at a flat rate of 12%.
For further information on how to “Finance Property, Land & Condos in Thailand”, or a web-link to the “Thailand Condo Finance Map”, please feel free to email [email protected] OR, call 66 (0) 81278 5382 OR, Line ID stuartmaxwellfoulkes, I shall then be happy to assist.
To speak with a native Chinese national, contact Rose on 66 (0) 95648 2913 or WeChat: rose215620 or email [email protected]