Overseas property investment

userfriendly2

I am looking for sincere help/guidance from fellow boards members.

I want to buy a property for approximately 50 - 60k abroad in thailand - and lease it out. I plan to repay from my own salary which I earn working full time in Ireland withing the public sector as well as from the rental income I receive. I have a small amount of money tied up in BOI shares and a small amount of money saved totalling approximately 10k.

What are my options/best way to approach the bank and the likelihood of being approved for this money to pursue this?

Appreciate any and all help

Atlantic Dawn

No chance any Irish based bank will give you this as a mortgage. A personal loan could be an option but it's a rather high amount for that without security on it.

userfriendly2

userfriendly2 wrote: »

I am looking for sincere help/guidance from fellow boards members.

I want to buy a property for approximately 50 - 60k abroad in thailand - and lease it out. I plan to repay from my own salary which I earn working full time in Ireland withing the public sector as well as from the rental income I receive. I have a small amount of money tied up in BOI shares and a small amount of money saved totalling approximately 10k.

What are my options/best way to approach the bank and the likelihood of being approved for this money to pursue this?

Appreciate any and all help

The amount of things that can go wrong in Asia with property investment are not worth the risk. That is from someone that has built projects there. The only thing you can be sure of is that there will be difficulties. Better to just rent when you go there.
You can rule out banks 100%, an Irish bank wont give it to you, and the interest rate on a local bank would be too high.

ironclaw

I've never dealt in property in Asia, but from a business perspective, its quite different. Customs and local interpretation of law can widely vary. Everything starts to get expensive when you are translating and dealing with local agents. Money to 'grease the wheels' is common in some industries. If it costs €60k to buy, you can be sure another wedge will be needed by the time you actually get it into your name. Do you have the money and time to spend in Thailand finalising all the paperwork, with overhead for delays?

Another consideration is the distance and time difference. Are you willing to stay up half the night to answer questions or liaise with a tenant? Or potentially risk outsourcing the rental activities? Do you speak Thai or will you need a trust worthy translator?

Lastly, your cash flows. Thailand, from an economy perspective, is super cheap so you need to examine your target market and the income you can generate. Is it tourists? If so, can you survive seasonally? Or, are you going to lease long term to perhaps an international professional / teacher? Beijing city rental prices are on par and above Dublin, I can't see the same being true in Thailand especially off season. Even if you got €1000 per month, that 5 years of a pay off less any expenses. Realistically you're looking at maybe 10 years assuming no major investments needed. €60k is a lot of foreign holidays and I don't see Thailand properties appreciating (Open to correction)

As I said, I have no experience in Thailand or with property in that neck of the wood, but I think you'd be a long time making back a €60k investment that part of the world.