Govt aid for home buyers earns broad support

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Govt aid for home buyers earns broad support

By THE NATION

 

Finance Minister Uttama Savanayana

 

Thailand’s three major housing associations are ready to support the government’s latest measure to bolster home purchases, Finance Ministry spokesman Lavaron Sangsnit said on Thursday (November 28).

 

Ministry officials met representatives of the Housing Business Association, Thai Real Estate Organisation and Thai Condominium Association and 19 financial institutions earlier in the day to brief them on the “Good house with down payment” campaign.

 

It is one of the government’s latest economic stimulus measures unveiled on Tuesday.

 

To reduce the cost of buying a home, the government will offer Bt50,000 cash-back per buyer on the down payment.

 

Buyers must earn no more than Bt100,000 a month and be registered on the Revenue Department’s tax database. 

 

The campaign began on Wednesday and continues through next March.

 

Several banks have introduced their own down-payment measures to support the campaign.

 

Krungthai Bank president Payong Srivanich said it fully supported the ministry’s approach.

 

Speaking at a separate event, Finance Minister Uttama Savanayana likened the Thai economy to a sick person needing a remedy to prevent the condition getting worse.

 

The government must thus keep introducing economic stimuli, he said, but it must do so cautiously.

 

Source: https://www.nationthailand.com/business/30378864

 

-- © Copyright The Nation Thailand 2019-11-29

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[Lungstib]

Last numbers speculated that 14 million Thais are collecting govt handouts because they earn less than 100,000b a year. Add on the other normal working Thais who probably get up to 15,000b a month and we are left with a very small percentage of Thai workers buying houses. I would suggest this 'help' is really for the sellers, not the buyers, already part of the wealthy elite who have seen a downturn in their business.

[canthai55]

Keep piling on the debt !!! No Problem !!!

"I load 16 tons, what do I get ...

Another day older and a deeper in debt

St. Peter don't you call me 'cause I can't go

I owe my Soul to the company store"

Remove company store - insert Bank

[smutcakes]

Who exactly is this helping? Just seems to be helping the large house builders? How about they reduce their profit margin, sell at cost. Why should the public have to subsidize.

[sammieuk1]

Speaking at a separate event, Finance Minister Uttama Savanayana likened the Thai economy to a sick person needing a remedy to prevent the condition getting worse.

 

I likened it to a dead person with a wrist full of very expensive watches ????

[RichardColeman]

On the day they announce people's household debt is the biggest, they announce more ways to get into debt ? Sums up rational thought here

[baansgr]

1 hour ago, RichardColeman said:

On the day they announce people's household debt is the biggest, they announce more ways to get into debt ? Sums up rational thought here

Its called stimulus, Western Governments have been doing it for years

[Srikcir]

1 hour ago, baansgr said:

Its called stimulus, Western Governments have been doing it for years

When the national bank such as BOT recently did, increases the ratio of collateral to property value required for a mortgage loan to essentially reduce the number of loan defaults, and the government counters with its own program to make mortgage loans more accessible, it's called government incompetence at best and violation of law at worse.

The Thai government's action is like a stimulus using morphine.

[Scot123]

This sounds more like helping sellers who are struggling but not real help for the buyers. What is 50k hand out if your earning 100k and if that 50k is the reason your buying maybe you need to think hard about buying in the first place. It smells like a poor copy of the stimulant used to keep the car industry happy after the floods but that was far better as you bought the car keeping up payments for I think 3 years and got 100k back. This is far more effective as loan only about 600k and over short period and not a quick 50k then debt for 20++ years... He UK has a far better way Isa to buy when you save get tax incentive and good interest with the saving amounts capped so the rich can't abuse it and when your ready to buy a bonus of £3k.

Edited November 29, 2019 by Scot123