Do you need a salary to buy a property in Thailand
Wondering if you can afford to buy a home in Thailand? Here’s what you need to know and the salary you need to purchase a home in the Land of Smiles.
Finding a House in Thailand
In the last decade, Thailand’s real estate market has grown significantly, with more foreigners choosing to live here or considering Thailand as their second home. Many people want to own a home in Thailand but it’s important to keep the following factors in mind:
- When seeking real estate advice in Thailand, always check with licensed lawyers and reputable estate agents as their knowledge will undoubtedly assist you in locating the best offers and safeguarding your interests while purchasing real estate.
- Start your search for Thailand real estate. These will extend your options for property types and appropriate areas and locations.
- If you’re searching for a home in Thailand, make sure you’re aware of the most popular real estate pitfalls. It is important to weigh both the advantages and disadvantages of offers and deals.
Key Points
- Getting a home loan can be a good option when you want to purchase a house even with a low budget.
- When applying for a home loan, choose a limit that will be suitable to your income and lifestyle.
- Think about how much you’ll spend on monthly house payments and how much money you’ll have leftover for your daily expenses before you purchase a home.
How Much Income Do I Need When Purchasing a Home in Thailand?
When you buy a home, think about how much you’ll spend on monthly house payments and how much money you’ll have leftover for your daily expenses. If you want to apply for a home loan, it is recommended by experts that you should have a monthly income of at least 20,000 Baht. One thing you can also do is figure out what percentage of your paycheck will go toward your monthly mortgage payment and how much will be left over for your daily expenses.
If you earn the minimum wage of 15,000 Baht, you should consider whether your income is sufficient to support you and whether you will be able to afford your monthly dues and fees. It is said that your loan payment should not be more than 40% of your monthly income.
Is a Salary of 15,000 Baht Enough to Cover My Monthly Mortage?
Buying a house is a big and difficult decision. There are several types of home mortgage loans available to meet your specific financing needs. If your monthly income is 15,000 THB and you have no liabilities or other obligations, you are eligible to purchase a house with a down payment of 40%.
If you have a home loan with 6.70% (lowest interest rate in Thailand), the payment term will be as follows:
15 years = 403,020
20 years = 537,360
25 years = 671,700
30 years = 806,040
35 years = 940,3580
*Note: A 15,000 Baht salary can afford to buy a house under the amount that can be lent according to the above table, assuming you want to pay in 30-year instalments, in which case you could borrow 806,000 Baht from the bank, and invest in another low budget neighbourhood.
If your monthly income is 15,000 THB and you don’t have any liabilities or other obligations, you are entitled to buy a house with a 40% down payment.
What Are the Fundamental Requirements for Obtaining a Home Loan in Thailand?
The basic requirements to apply for a home loan in Thailand are as follows:
- You must be of Thai nationality or currently reside and working in Thailand.
- You must be a contract employee of the government or a business, self-employed, or the owner of a business.
- Between the ages of 21 and 62.
- Work experience: Salaried employees, elected officials, and state enterprise must complete the probationary period at your current job. You must provide proof of employment.
Before applying for a home loan, make sure you have enough funds to cover your daily expenses.
What Are the Required Documents for Applying for a Home Loan in Thailand?
To apply for a home loan, you need to prepare personal documents such as:
- A copy of your identification card and a copy of your house registration,
- A copy of the marriage/divorce certificate (if any),
- In the case of a deceased partner, a copy of the death certificate should be included with the marriage certificate (if any),
- Copy of Change of Name/Surname Letter (if any),
- Spouse’s photo ID and house registration,
- Income documents,
- Salary slip/salary confirmation letter Salary slip/salary confirmation,
- Confirmation Bank statement for the previous six months,
- Withholding tax certificate (50 Tavi),
- Affidavit/certificate of commercial registration for self-employed people,
- The current shareholder list (with borrower/co-borrower names),
- Savings bank account for the previous six months (require both personal and business statement),
- Certificate of Value Added Tax (Por. Por.30),
- Full-size copies of all pages of the Title Deed,
- Thor Dor 13 copy, property address submission, and house construction permit,
- Land purchase arrangement and down payment instalment agreement (If any).
What Thai Banks Offer a Home Loan?
Thailand has a variety of banks that provide home loans to Thai residents as well as foreign investors. SCB bank, Krungsri Bank, Bank of Thailand, and Kasikorn Bank are some of the few banks in Thailand that provide home loans with the lowest interest rates.