Credit crunch and property

Has the credit crunch affected property in Thailand does anyone know, or is it too early yet to identify trends?

Has the credit crunch affected property in Thailand does anyone know, or is it too early yet to identify trends?

You mean the credit crunch in the US and Europe? I don't see how it would affect property in Thailand, as I don't know any banks overseas that would give a loan to purchase property in Thailand.

It has always been very difficult, or impossible, for a foreigner to get a mortgage locally. The huge majority of foreign purchases buy in cash.

I have not heard that locals are having any more difficulty getting mortgage loans now than before.

The Singapore branch of Bangkok Bank does offer loans to foreigners to buy BOI approved property in Thailand.

They do sometimes, under some circumstances, and for some properties. No tall, and it could be off, or it could be on.

A friend of mine tried a couple months ago, and was told that the person who handled such matters had left, and there was no longer anyone around who knew how to do it. So they had stopped taking new applications. They just informed me just this week that they may have started up again.

In any case, the vast majority of foreigners buying in Thailand do so in cash -- as mentioned above.

In any case, the vast majority of foreigners buying in Thailand do so in cash -- as mentioned above.

But not difficult or impossible to get loans, as also mentioned above.


George.

I think the original question implies that the credit crunch and the general downturn in western economies could have knock on effects relating to the numbers of people willing or able to buy in Thailand. Has this had any effect on property prices?

[colmx]

I noticed a hell of a lot of new developments in pattaya with signs "Discount 150,000-300,000 Baht"

So i think its fair to say that the US/UK credit crunch is impacting in Pattaya anyway...

In any case, the vast majority of foreigners buying in Thailand do so in cash -- as mentioned above.

But not difficult or impossible to get loans, as also mentioned above.


George.

English isn't your first language, is it George? "Difficult or impossible" does not mean that it is always impossible. It means that it is always difficult and quite often impossible.

If you'd like to do an experiment, walk into Bangkok Bank and see what they say.

I believe there will be an impact on the property and economy from the credit crunch that is happening currently in Europe and the US, if not yet, soon. The reason being, there are a lot of folk from the west, specifically the US and Europe that do business i.e. buy and rent property in SE Asia, let alone Thailand, and other business activities for that matter. "They" buy property with cash, but also obtain money from other sources, i.e. excess mortgaging, even credit cards, loans and such like. IMHO people over the past 10 years have taken a "don't care" attitude and basically put themselves in financial situations that cannot be sustained over the long period of time - hence now the chickens are coming home to roost. Credit card companies are even tightening up. The effects of this credit crunch is only being felt recently in the UK, say, a noticeable difference in the past 2-3 months, even though the US has been feeling the pinch for some time now. Albeit, I do appreciate that Thailand has other countries that contribute to their real estate economy, such as Russia and other SE Asian countries, I'm not sure how Russia comes into play with the credit crunch, all I know about Russia is that there are a lot of wealthy people who have made their money from state run industries that were worth next to nothing a few years back and now тАж well!

Anyway, some interesting feedback on here, but nothing really concrete in media form really to say that property or the economy is in "downturn" mode in Thailand.

[quote="Singapore Sexpat":1qp0qnvt]
In any case, the vast majority of foreigners buying in Thailand do so in cash -- as mentioned above.

But not difficult or impossible to get loans, as also mentioned above.


George.

English isn't your first language, is it George? "Difficult or impossible" does not mean that it is always impossible. It means that it is always difficult and quite often impossible.

If you'd like to do an experiment, walk into Bangkok Bank and see what they say.[/quote:1qp0qnvt]

I have no desire or any need to walk into a Bangkok Bank to see what they say, as I already own my home here. Impossible doesn't mean that it is always impossible? WTF are you talking about BG? Irrespective of whether English is my first language, impossible means impossible.

Definitions of Impossible:
Not possible; unable to be, exist, happen, etc.
Unable to be done, performed, effected, etc.: an impossible assignment.
Utterly impracticable: an impossible plan.

fatmans post suggests that it is not impossible to obtain a loan, therefor; end of story.


George.

I believe there will be an impact on the property and economy from the credit crunch that is happening currently in Europe and the US, if not yet, soon. The reason being, there are a lot of folk from the west, specifically the US and Europe that do business i.e. buy and rent property in SE Asia, let alone Thailand, and other business activities for that matter. "They" buy property with cash, but also obtain money from other sources, i.e. excess mortgaging, even credit cards, loans and such like. IMHO people over the past 10 years have taken a "don't care" attitude and basically put themselves in financial situations that cannot be sustained over the long period of time - hence now the chickens are coming home to roost. Credit card companies are even tightening up. The effects of this credit crunch is only being felt recently in the UK, say, a noticeable difference in the past 2-3 months, even though the US has been feeling the pinch for some time now. Albeit, I do appreciate that Thailand has other countries that contribute to their real estate economy, such as Russia and other SE Asian countries, I'm not sure how Russia comes into play with the credit crunch, all I know about Russia is that there are a lot of wealthy people who have made their money from state run industries that were worth next to nothing a few years back and now тАж well!

Anyway, some interesting feedback on here, but nothing really concrete in media form really to say that property or the economy is in "downturn" mode in Thailand.

Your analysis is faulty in the extreme. You assume that Real Estate markets in the US, England and East Asia operate in the same way from the same fundamental principles. They don't. You only need to look as far as Scotland to see a Real Estate market operating quite differently from that in England. Look at the RE markets in Tokyo, HK and Singapore. They have never followed US, UK or European patterns but have been driven by local sentiments and conditions. The tenuous link you purport to observe between the market in Thailand and the UK is neither a driver or even a lubricant.

Your analysis is faulty in the extremePlease tell us something new :cyclopsani:

Well, at least the Dollar has gotten stronger against the baht for the last few days.. Over 32 for the first time in a long time...

George,

You're dumber than I thought.

One last time.

Not Impossible.

Difficult OR impossible.

Think of a durian. "Many Westerners find it difficult or impossible to stomach". Some many find it difficult; some find it impossible. Not all find it impossible.

Comprende?

[allieb]

During a credit squeeze many people with cash hold back in spending on unnecessary things or second homes for two reasons.
1 Waiting for the market to bottom out if buying a second home to get the lowest price
2 General fear of overspending until the situation improves

People also tend to travel less.

If Thailand isn't already effected buy the credit squeeze in the west then it soon will be. Its about time Thailand got a slap in the face and treated its Small time foreign investors a little better. What interest rates are all you retirees getting on your 800.000 in the banks ?

I opened a Bangkok Bank account some years ago with the intent of buying a condo and getting a retirement visa at some point. I deposited 20,000 USD which I had brought in cash and T/C's to open an account . I was told that as a tourist I wasn't entitled to interest at all on my deposit. I have since changed my mind about buying a condo and used my BB ATM on my last couple of trips to withdraw or spend most of that money. I don't want to retire in Thailand any more its better to visit frequently. I still love the ordinary people but the system sucks.

....I don't want to retire in Thailand any more its better to visit frequently. I still love the ordinary people but the system sucks.

Totally agree. I am on my first year trial living in Thailand now, and the longer I stay, the less desire I have to spend my old age full time in Thailand.

....I don't want to retire in Thailand any more its better to visit frequently. I still love the ordinary people but the system sucks.

Totally agree. I am on my first year trial living in Thailand now, and the longer I stay, the less desire I have to spend my old age full time in Thailand.

Agreed. I enjoy being permanently in a better-run, more stable place, but within spitting distance of the delicious anarchy that is Thailand.

....I don't want to retire in Thailand any more its better to visit frequently. I still love the ordinary people but the system sucks.

Totally agree. I am on my first year trial living in Thailand now, and the longer I stay, the less desire I have to spend my old age full time in Thailand.

Agreed. I enjoy being permanently in a better-run, more stable place, but within spitting distance of the delicious anarchy that is Thailand.

I always thought Bangkok was in Thailand, not spitting distance from it.

....I don't want to retire in Thailand any more its better to visit frequently. I still love the ordinary people but the system sucks.

Totally agree. I am on my first year trial living in Thailand now, and the longer I stay, the less desire I have to spend my old age full time in Thailand.

Agreed. I enjoy being permanently in a better-run, more stable place, but within spitting distance of the delicious anarchy that is Thailand.

I always thought Bangkok was in Thailand, not spitting distance from it.

I was referring to Singapore. My gosh you are thick.

[quote=allieb]....I don't want to retire in Thailand any more its better to visit frequently. I still love the ordinary people but the system sucks.

Totally agree. I am on my first year trial living in Thailand now, and the longer I stay, the less desire I have to spend my old age full time in Thailand.

Agreed. I enjoy being permanently in a better-run, more stable place, but within spitting distance of the delicious anarchy that is Thailand.

I always thought Bangkok was in Thailand, not spitting distance from it.

I was referring to Singapore. My gosh you are thick.[/quote:rmi593un]

Nowhere near as thick as you BG, if you expect me or anyone else to believe that bullshit.

[quote=allieb]....I don't want to retire in Thailand any more its better to visit frequently. I still love the ordinary people but the system sucks.

Totally agree. I am on my first year trial living in Thailand now, and the longer I stay, the less desire I have to spend my old age full time in Thailand.

Agreed. I enjoy being permanently in a better-run, more stable place, but within spitting distance of the delicious anarchy that is Thailand.

I always thought Bangkok was in Thailand, not spitting distance from it.

I was referring to Singapore. My gosh you are thick.

Nowhere near as thick as you BG, if you expect me or anyone else to believe that bullshit.[/quote:1vas1rvf]

You remind me of that old Jethro Tull song, Georgie-boy. "Thick as a Brick".

Next time you are in Singapore, please let me know. I'll have you round to my condo for cocktails and you can touch everything you wan to make sure it's real.

[quote=Scott123][quote=allieb]....I don't want to retire in Thailand any more its better to visit frequently. I still love the ordinary people but the system sucks.

Totally agree. I am on my first year trial living in Thailand now, and the longer I stay, the less desire I have to spend my old age full time in Thailand.

Agreed. I enjoy being permanently in a better-run, more stable place, but within spitting distance of the delicious anarchy that is Thailand.

I always thought Bangkok was in Thailand, not spitting distance from it.

I was referring to Singapore. My gosh you are thick.

Nowhere near as thick as you BG, if you expect me or anyone else to believe that bullshit.[/quote:33bqci24]

You remind me of that old Jethro Tull song, Georgie-boy. "Thick as a Brick".

Next time you are in Singapore, please let me know. I'll have you round to my condo for cocktails and you can touch everything you wan to make sure it's real.[/quote:33bqci24]

As it happens, I am due to visit Singapore very soon, perhaps you should pm me your address. Oh by the way, I won't hold my breath waiting for it to arrive.

As it happens, I am due to visit Singapore very soon, perhaps you should pm me your address. Oh by the way, I won't hold my breath waiting for it to arrive.

Wonderful, I'll prepare tea and crumpets.