code_slayer_bkk Posted April 3, 2020 Share Posted April 3, 2020 Beach gal has a loan for 1 more year on a building she owns ..... the mortgage company contacted her today and told her that they will forego all mortgage payments for the next 3 months .... So her payment is 35K per month ... I asked her if she needs to pay 105K when the 3 month waiver is over .... I get a blank look ! .. lol But ... good news I think ... especially for people that need the help .... I told Beach gal to pay it each month and forget the waiver .... she has no choice ... I told her to do ! 4 1 Link to comment Share on other sites More sharing options...
monkey_omelette Posted April 3, 2020 Share Posted April 3, 2020 They will charge extra interest if she takes the holiday so best to pay it now if she can. Link to comment Share on other sites More sharing options...
forcebwithu Posted April 3, 2020 Share Posted April 3, 2020 4 minutes ago, monkey_omelette said: They will charge extra interest if she takes the holiday so best to pay it now if she can. More accurately, they'll charge interest on the unpaid interest due each month. Can get around that by paying just the interest due each month. 1 Link to comment Share on other sites More sharing options...
code_slayer_bkk Posted April 3, 2020 Author Share Posted April 3, 2020 1 hour ago, forcebwithu said: More accurately, they'll charge interest on the unpaid interest due each month. Can get around that by paying just the interest due each month. Yea, I am certain there are some penalties ( or what ever you call it ) ... nothing is ever free ... especially with banks and loan sharks ( lol ) ... We could have paid for the building when she bought it ... but, I insisted she get a 5 year loan ... to establish some good credit ... Even though I don't really know if credit ratings even matter here in Thailand for Thais ... I should find out ... seeing all of the new cars on the road I imagine there is some sort of credit rating ? I understand for farangs ... I have paid cash for everything .. I have no problems with that ... how can a bank trust a farang here when they can just get on a plane and leave? 1 Link to comment Share on other sites More sharing options...
Mr. Smooth Posted April 3, 2020 Share Posted April 3, 2020 13 hours ago, code_slayer_bkk said: Beach gal has a loan for 1 more year on a building she owns ..... the mortgage company contacted her today and told her that they will forego all mortgage payments for the next 3 months .... So her payment is 35K per month ... I asked her if she needs to pay 105K when the 3 month waiver is over .... I get a blank look ! .. lol But ... good news I think ... especially for people that need the help .... I told Beach gal to pay it each month and forget the waiver .... she has no choice ... I told her to do ! If the mortgage company is making that offer to her, and certainly to other clients I would assume, then wouldn't those 3 months being forgiven at the present time, simply be tacked on to the end of the 5 year loan in order to have the entire amount paid in full? I think for people in America, and certainly in California, there are 3 or 4 major banks making that same offer to their customers for a 90 day grace period, and simply adding those months on at the end of the term. 1 Link to comment Share on other sites More sharing options...
Khun Ling Posted April 3, 2020 Share Posted April 3, 2020 Same as everything everywhere. Banks being of generous heart, If it sounds too good to be true then it probably is. What would worry me would be if my bank or any other bank contacted me effectively cold canvassing, I would smell a rat immediately 1 Link to comment Share on other sites More sharing options...
Yesitisdakid Posted April 3, 2020 Share Posted April 3, 2020 16 hours ago, code_slayer_bkk said: told Beach gal to pay it each month and forget the waiver .... she has no choice ... I told her to do ! If she can this is the smart thing to do IMO Link to comment Share on other sites More sharing options...
Krapow Posted April 3, 2020 Share Posted April 3, 2020 Lots of this sorts stuff is just 'deferred' , still has to be paid, eventually ... 1 Link to comment Share on other sites More sharing options...
Freee!! Posted April 4, 2020 Share Posted April 4, 2020 3 hours ago, Yesitisdakid said: If she can this is the smart thing to do IMO The really smart thing to do (if possible) is to fully repay the remainder of that loan now and save on the interest. The bank won't like it as it will miss out on the interest (not her or your problem), but it won't hurt her credit rating. 1 Link to comment Share on other sites More sharing options...
code_slayer_bkk Posted April 4, 2020 Author Share Posted April 4, 2020 (edited) 2 hours ago, Freee!! said: The really smart thing to do (if possible) is to fully repay the remainder of that loan now and save on the interest. The bank won't like it as it will miss out on the interest (not her or your problem), but it won't hurt her credit rating. You know .. I was thinking the same thing .... it is a little over 400K ... I am thinking we will do ... and then wait for 6 months and see what other good buildings become available to buy ( I am certain there will be more than a couple ) .... still make her put the 35K in the bank ( savings ) each month .... I don't mean to sound like a hard ass with her and money .. but, IMHO Thai women and money ( regardless of their good intentions ) don't seem to be a good mix .... you gotta teach them to be smart with money .... which isn't easy at times ... living for today ... isn't exactly smart with money .... Plus, I ain't gonna be around forever ... now we have Ziggy in the mix so it is very important to me Beach gal gets smart .... Edited April 4, 2020 by code_slayer_bkk 2 3 Link to comment Share on other sites More sharing options...
code_slayer_bkk Posted April 4, 2020 Author Share Posted April 4, 2020 5 hours ago, Khun Ling said: Same as everything everywhere. Banks being of generous heart, If it sounds too good to be true then it probably is. What would worry me would be if my bank or any other bank contacted me effectively cold canvassing, I would smell a rat immediately Yea, I was thinking the same thing ... but, it seems legit ... time will tell ... Link to comment Share on other sites More sharing options...
forcebwithu Posted April 4, 2020 Share Posted April 4, 2020 37 minutes ago, code_slayer_bkk said: You know .. I was thinking the same thing .... it is a little over 400K ... I am thinking we will do ... and then wait for 6 months and see what other good buildings become available to buy ( I am certain there will be more than a couple ) .... still make her put the 35K in the bank ( savings ) each month .... I don't mean to sound like a hard ass with her and money .. but, IMHO Thai women and money ( regardless of their good intentions ) don't seem to be a good mix .... you gotta teach them to be smart with money .... which isn't easy at times ... living for today ... isn't exactly smart with money .... Plus, I ain't gonna be around forever ... now we have Ziggy in the mix so it is very important to me Beach gal gets smart .... One reason you might not want to pay the loan off is if it's a fixed rate loan, at a good rate, and you expect the inflation rate to tick up. If the inflation rate gets high enough, you'll be paying the loan off in the future with inflated THB. Does Inflation Favor Lenders or Borrowers? Link to comment Share on other sites More sharing options...
code_slayer_bkk Posted April 4, 2020 Author Share Posted April 4, 2020 3 minutes ago, forcebwithu said: One reason you might not want to pay the loan off is if it's a fixed rate loan, at a good rate, and you expect the inflation rate to tick up. If the inflation rate gets high enough, you'll be paying the loan off in the future with inflated THB. Does Inflation Favor Lenders or Borrowers? Good point ! I am no good on speculating the Thai baht .... it seems like for years it has hovered at around 32 ... It is only about a little over 400K ... how much will I save ... 5K or 10K .. isn't enough for me to worry about .... Link to comment Share on other sites More sharing options...
Krapow Posted April 4, 2020 Share Posted April 4, 2020 8 hours ago, Freee!! said: The really smart thing to do (if possible) is to fully repay the remainder of that loan now and save on the interest. The bank won't like it as it will miss out on the interest (not her or your problem), but it won't hurt her credit rating. Depends! I only have one mortgage left to pay on my properties, the rest paid off in full. But, it's the most expensive property, and I have it rented out for decent money. I could pay the mortgage off in full right now, but then i'd have to the 20% tax in full on the full rental profit, while just paying the mortgage as usual takes a big chunk outa the 'profit' on which I have to pay tax. The full rental tax would be quite a bit more than the interest. So I leave it as it is. Link to comment Share on other sites More sharing options...
Freee!! Posted April 4, 2020 Share Posted April 4, 2020 3 hours ago, Krapow said: Depends! I only have one mortgage left to pay on my properties, the rest paid off in full. But, it's the most expensive property, and I have it rented out for decent money. I could pay the mortgage off in full right now, but then i'd have to the 20% tax in full on the full rental profit, while just paying the mortgage as usual takes a big chunk outa the 'profit' on which I have to pay tax. The full rental tax would be quite a bit more than the interest. So I leave it as it is. But would you make a profit on the rental? As property owner you are also responsible for gross and exterior maintenance (small interior stuff may be the responsibility of the renter), so you will need to build up some reserve. A lot of course depends on the country. Link to comment Share on other sites More sharing options...
KWA Posted April 4, 2020 Share Posted April 4, 2020 If it's a low interest loan and you can make more using the money elsewhere then no reason to pay it off except to feel good. Link to comment Share on other sites More sharing options...
code_slayer_bkk Posted April 4, 2020 Author Share Posted April 4, 2020 12 minutes ago, KWA said: If it's a low interest loan and you can make more using the money elsewhere then no reason to pay it off except to feel good. Yep .. I agree .. but, I f****king HATE owing anybody or anyone a red penny! I have been like that my whole life ..... The sooner I have it out of my hair the better I feel ..... it just makes me feel free which is the way I live ...... Link to comment Share on other sites More sharing options...
code_slayer_bkk Posted April 4, 2020 Author Share Posted April 4, 2020 19 minutes ago, Freee!! said: But would you make a profit on the rental? As property owner you are also responsible for gross and exterior maintenance (small interior stuff may be the responsibility of the renter), so you will need to build up some reserve. A lot of course depends on the country. Beach Gal and I own 2 rentals for about 5 years ( both are paid in full ) .... they are both really nice and one has a swimming pool ... we have them painted each year ( inside and outside ) ... which beside the cost of paint is 70K baht ... the maintenance on the swimming pool is 2K per month ( 24K per year ) ... plus, sometimes some miscellaneous costs ( shower water heaters and a couple of other things I can't remember ... ) So, on 2 properties 100K maintenance each year ( 100K / 12 = 8,300 / 2 = 4160 per month ... ) ... the rent covers all of the maintenance costs .... still both are in non-profit mode because we haven't recouped the purchase price of the 2 places yet .... Still casually looking for a couple more to buy ... it is one of the only ways I see of making some serious passive money over here ... not for me but for Beach gal and Ziggy .... hopefully they will provide some financial flexibility for them 1 Link to comment Share on other sites More sharing options...
Murchie Posted April 4, 2020 Share Posted April 4, 2020 9 minutes ago, code_slayer_bkk said: Beach Gal and I own 2 rentals for about 5 years ( both are paid in full ) .... they are both really nice and one has a swimming pool ... we have them painted each year ( inside and outside ) ... which beside the cost of paint is 70K baht ... the maintenance on the swimming pool is 2K per month ( 24K per year ) ... plus, sometimes some miscellaneous costs ( shower water heaters and a couple of other things I can't remember ... ) So, on 2 properties 100K maintenance each year ( 100K / 12 = 8,300 / 2 = 4160 per month ... ) ... the rent covers all of the maintenance costs .... still both are in non-profit mode because we haven't recouped the purchase price of the 2 places yet .... Still casually looking for a couple more to buy ... it is one of the only ways I see of making some serious passive money over here ... not for me but for Beach gal and Ziggy .... hopefully they will provide some financial flexibility for them I see absolutely no need to paint the properties every year. Link to comment Share on other sites More sharing options...
Krapow Posted April 4, 2020 Share Posted April 4, 2020 55 minutes ago, Freee!! said: But would you make a profit on the rental? As property owner you are also responsible for gross and exterior maintenance (small interior stuff may be the responsibility of the renter), so you will need to build up some reserve. A lot of course depends on the country. Of course, or why rent it? I already rent out two other properties. Link to comment Share on other sites More sharing options...
code_slayer_bkk Posted April 4, 2020 Author Share Posted April 4, 2020 15 minutes ago, Krapow said: Of course, or why rent it? I already rent out two other properties. LOL .. no shit ! Link to comment Share on other sites More sharing options...
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