Connect with us


By the Book: Benefits of vendor financing

Legacy Phuket Gazette




PHUKET: Although the property market has recently been slow in Phuket, properties are still selling.

In previous years, buyers would pay full cash for properties. However, in today’s climate, sellers are being more flexible to achieve a sale.

One of the main head winds Phuket’s property market faces is that the majority of foreign buyers do not live here all year round. When a potential buyer comes to Thailand, he or she may not have all of the funds readily available to make a purchase on that trip.

Unfortunately for foreign buyers, no facility exists to obtain a mortgage / bank loan to fund a property purchase here. Therefore, without a source of finance, buyers must wait until a subsequent visit to Thailand when they have the full funds available to make a purchase.

For buyers wanting stage payments, there has always been the option of buying off-plan and spreading payments throughout the construction period. In more recent years, it has become common for property developers to offer short-term finance, typically one to three years, on up to 50 per cent of the purchase price.

Now, through Siam Real Estate’s Vendor Financing terms, private sellers are offering buyers stage payments on property purchases.

Vendor financing terms are where a seller will accept a down payment, typically 50 per cent of the purchase price, with affordable repayments over one to three years. The seller retains legal ownership until payments are complete and there is a legally enforceable contract between buyer and seller.

Property ownership documents are held in escrow by a lawyer to ensure that the property cannot be sold to another party. Should the buyer cease to make payments, the ownership remains in the seller’s name.


– It increases the chances of selling your property.

– It is not possible for a foreigner to get a bank loan on property in Thailand.

– It enables buyers to purchase earlier: buyers may not have 100 per cent of the purchase price on hand during their current visit.

– It offers flexibility for the buyer to pay early with no penalties and reduce interest charges.

– It creates security for buyer and seller: lawyer safeguards the property deeds; ownership is not transferred until payments are complete.

– If the buyer defaults, the seller retains the down payment and the property.

– The buyer takes possession of the property upon down payment. The buyer can then move in or start renting out the property.

This is very similar to a bank loan / mortgage, without the bank fees, and will help buyers to purchase a property sooner than would otherwise be possible.

For more information about this article, contact Kevin Hodges, Siam Real Estate (SRE), quoting Vendor Financing. Tel: 076-324042 Email: Web:

— Kevin Hodges


Get more from The Thaiger

📱 Download our app on Android or iOS
👋 Have your say on our Thailand forum
🔔 Subscribe to our daily newsletter
📺 Subscribe / Join for daily shows
👍 Like/Follow us on Facebook
🐦 FOLLOW us on Twitter
📷 FOLLOW us on Instagram


Join the conversation and have your say on Thailand news published on The Thaiger.

Thaiger Talk is our new Thaiger Community where you can join the discussion on everything happening in Thailand right now.

Please note that articles are not posted to the forum instantly and can take up to 20 min before being visible. Click for more information and the Thaiger Talk Guidelines.

Click to comment

You must be logged in to post a comment Login

Leave a Reply

Archiving articles from the Phuket Gazette circa 1998 - 2017. View the Phuket Gazette online archive and Digital Gazette PDF Prints.

Follow Thaiger by email:

Tourism13 hours ago

Songkhla prepares for tourism across the Southern land border

Thailand13 hours ago

French expat being denied re-entry to Thailand over repeated criticism of the Thai monarchy

Coronavirus (Covid-19)13 hours ago

COVID-19 SATURDAY: 6,073 infections, 32 deaths, provincial data

Sponsored2 days ago

CBRE recommends top 5 luxury condominiums in Phuket with fantastic locations

Coronavirus (Covid-19)14 hours ago

Omicron causing concern, Thai authorities ban travellers from 8 countries

Coronavirus (Covid-19)16 hours ago

Thailand’s nightlife venues and bars told to keep closed until January 16

Protests17 hours ago

Amnesty International under investigation for defending activists

Join the conversation on the Thaiger Talk forums today!
Coronavirus (Covid-19)21 hours ago

New Covid-19 strain named “Omicron” and a variant of concern

Thailand21 hours ago

Entertainment venues will not open before January 16

World23 hours ago

“Omicron” – a new Covid variant triggers travel alarms as flights disrupted

Coronavirus (Covid-19)1 day ago

Vaccine passport soon to be made digital and issued for free

Bangkok1 day ago

Bang Sue Grand Station to use only Pfizer and Moderna vaccine

Thailand1 day ago

Thailand News Today | Thailand purchases Covid pills, Democracy summit snubbs Thailand | Nov 26

Phuket2 days ago

Phuket traffic police deny Facebook accusal of targeting tourists

Thailand2 days ago

CCSA hints that some bars and nightclubs could reopen before January 16

Thailand2 days ago

Easier entry for foreign tourists: CCSA approves ATK for on-arrival screening

Thailand2 months ago

Morning Top Stories Thailand | Police to end protests, Human Trafficking | September 14

Thailand9 months ago

Thailand News Today | Thai Airways in rehab, All go for Songkran | March 4

Tourism9 months ago

Phuket’s nightlife. Yes, bars and clubs are still open | VIDEO

Phuket9 months ago

Thailand News Today | Covid passport talks, Thai Airways heads to court | March 2

Tourism9 months ago

Phuket Thai food treats you need to try | VIDEO

Thailand9 months ago

Thailand News Today | Bars, pubs and restaurants ‘sort of’ back to normal | Feb 23

Tourism9 months ago

In search of Cat & Dog Cafés in Phuket Town | VIDEO

Thailand10 months ago

Thailand News Today | Gambling crackdown, Seafood market to reopen, Vlogger challenge | Jan 21

Thailand10 months ago

Thailand News Today | Covid testing for visas, Business impact, Vaccine approval | January 19

Thailand10 months ago

Thailand News Today | Weekend Bangkok bombs, Thailand fires, Covid update | January 18

Thailand11 months ago

Thailand News Today | Stray car on runway, Indonesian quake, 300 baht tourist fee | January 15

Thailand11 months ago

Thailand News Today | Governor off respirator, sex-trafficking arrest, condo prices falling | January 14

Thailand11 months ago

Thailand News Today | Chinese vaccine, Thailand ‘drug hub’, Covid update | January 13

Thailand11 months ago

Thailand News Today | Bangkok may ease restrictions, Phuket bar curfew, Vaccine roll out | January 12

Thailand11 months ago

Thailand News Today | Covid latest, Cockfights closed down, Bryde’s Whale beached | January 11