Stimulus campaign expected to revive property market

[snoop1130]

Stimulus campaign expected to revive property market

By THE NATION

 

 

Property Developers expect the housing market to recover, with the number of people registering for the government’s stimulus campaign ‘Good House with Down Payment’ reaching 100,000 on December 11.

 

The campaign opened on November 27, and will run until March 31, 2020, offering Bt50,000 cash-back per buyer on down payment. Also, buyers must earn Bt100,000 a month and be registered with the Revenue Department’s tax database.

 

In late October, the government approved a drop in both transfer and mortgage fees to 0.01 per cent from 1.0 per cent and 2.0 per cent for those residences with maximum Bt3 million price. This measure will work from November 2019 to the end of 2020.

 

Housing Business Association president Atip Bijanonda has said that ‘Good House with Down Payment’ will help those who bought condominiums two years ago. 

 

LPN Development’s chief executive officer and executive director, Opas Sripayak, said that if there are 100,000 persons registering in the campaign, the market’s earnings will be at least Bt100 billion.

 

“The effectiveness of the campaign will be a good sign for the total economy of Thailand,” he added. 

 

Meanwhile, an academic of the Thailand Development Research Institute, Norarit Pisolyabutr, has said that the government prioritised short-term problems regardless of those long-term, causing entrepreneurs to delay launching projects and leading to the market slowdown. “This situation brought long-term risk to the market, and once a big problem happens, those stimulus measures would be useless,” he added.

 

Source: https://www.nationthailand.com/news/30379071

 

-- © Copyright The Nation Thailand 2019-12-04

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[IAMHERE]

15 hours ago, snoop1130 said:

Also, buyers must earn Bt100,000 a month and be registered with the Revenue Department’s tax database.

I'd like to know how many of those are in Thailand. I'm gonna estimate that those that make that kind of money already have real estate.

[worgeordie]

16 hours ago, snoop1130 said:

Housing Business Association president Atip Bijanonda has said that ‘Good House with Down Payment’ will help those who bought condominiums two years ago. 

 

How does that work out ?,if they have already bought a Condo,

unless he means it might be easier for them to sell .

regards worgeordie

[johng]

16 hours ago, snoop1130 said:

Also, buyers must earn Bt100,000 a month and be registered with the Revenue Department’s tax database.

I wonder just how many Thais earn 100,000 baht per month ?

[hotchilli]

30 minutes ago, IAMHERE said:

I'd like to know how many of those are in Thailand. I'm gonna estimate that those that make that kind of money already have real estate.

Upper class Thais or Chinese.. 

[RichardColeman]

34 minutes ago, johng said:

I wonder just how many Thais earn 100,000 baht per month ?

Those of 3-4 farang a day I guess

[TerryLH]

Earlier reports said they can't be making more than 100k a month.

[Chazar]

The govt have   just driven a nail into the coffin for condos even farther with their taxes  starting January , they sure  know how to cripple an already ailing market.

1st  condo free, second  if  family  living in it 200 baht per  million 3rd  condos 3000 baht per million of  value...........tossers

With  falling rents its already getting difficult a 4  million baht condo will incur 12000 baht in tax or 1k a  month off any rent income if you have 3 or  more

 

[Airalee]

20 minutes ago, Chazar said:

The govt have   just driven a nail into the coffin for condos even farther with their taxes  starting January , they sure  know how to cripple an already ailing market.

1st  condo free, second  if  family  living in it 200 baht per  million 3rd  condos 3000 baht per million of  value...........tossers

With  falling rents its already getting difficult a 4  million baht condo will incur 12000 baht in tax or 1k a  month off any rent income if you have 3 or  more

 

Ouch.  Do you have a link for that?  Would love to send a copy to my LL.

[spidermike007]

Note to the genius minds coming up with these bizarre ideas. The property market is a market that reacts to supply, demand, the health of the economy and a drop in foreigners buying these units. 

 

Therefore, when prices are adjusted to account for these factors, demand increases. Otherwise, keep dreaming and scheming. 

[Chazar]

15 hours ago, Airalee said:

Ouch.  Do you have a link for that?  Would love to send a copy to my LL.

Sorry  no  link, Wife informed me today she sells and rents  condos in BKK we  have 7 so we  know it  will be affecting everyone who has more than 2.

40%  fine if  not  paid  followed by jailtime allegedly, she sent  me this  paper which  her friend sent to her which I think is an assessment of  the friends  condo for this purpose

[Chazar]

On 12/4/2019 at 6:05 PM, snoop1130 said:

Also, buyers must earn Bt100,000 a month and be registered with the Revenue Department’s tax database.

so virtually almost none of the population then................wow thats some stimulation package

[LivinLOS]

20 hours ago, Airalee said:

Ouch.  Do you have a link for that?  Would love to send a copy to my LL.

https://www.bdo.co.th/en-gb/insights/tax-updates/new-property-tax-law-in-thailand

 

After numerous attempts over the years to reshape the way property tax is imposed in Thailand, new property tax legislation has finally entered into law in Thailand.

The new law replaces the current House and Land Tax Act and the Local Development Tax Act and aims to encourage the productive use of land and improve tax collections. Taxes will commence to be collected under the new law from 1 January 2020.

Taxable properties

The tax will apply to land as well as condominiums, apartments and buildings, including houses, or any construction which can be used as a residence or for storage, industrial or commercial purposes.

People will now potentially be liable to tax on their homes, although a generous tax exemption threshold will apply.

The tax will be imposed on property held at 1 January of each tax year.

Tax base

Tax is currently imposed under the House and Land Tax Act on a property’s annual rental value at the rate of 12.5%.

Under the new law, the tax base shall be the appraised value of the property as determined for the purpose of collecting registration fees under the Land Code. In the case where there is no appraised value, the tax base will be calculated in accordance with the criteria, method and conditions as prescribed in Ministerial Regulations.

Tax rates

The following ceiling rates have been introduced for four categories of property:

   (1) Properties used for agricultural purposes:                          0.15%

   (2) Properties used for residential purposes:                          0.30%

   (3) Properties used for purposes other than (1) and (2):         1.20%

   (4) Vacant/non-utilised properties*:                                          1.20%

*If the land or building is left vacant or undeveloped for three consecutive years, the rate will increase by 0.3% every 3 years subject to a cap of 3%.

Tax rates have been announced for 2020 and 2021. For example, for a condominium unit owned by an individual that uses the unit as their place of residence and their name appears in the house registration book, the tax rates are:

Tax rates after 2021 shall be prescribed by Royal Decree. The local authority empowered to collect the tax has the power to impose a higher rate but in any case it shall not exceed the ceiling rates.

Tax exemptions

Tax exemptions are provided in the following cases:

• Land and buildings owned by individuals that are used for agricultural purposes shall be exempt from tax until 2022, after which a tax exempt threshold of Baht 50 million shall apply.
• A tax exempt threshold of Baht 50 million shall apply to land and buildings owned by individuals that are used as their place of residence, if their names appear in the house registration book on 1 January of the tax year
• A tax exempt threshold of Baht 10 million shall apply to buildings owned by individuals, where they are not the land owner, that are used as their place of residence, if their names appear in the house registration bookon 1 January of the tax year. By definition this would include a condominium unit.

Transitional relief

In the first three years that the new property tax is collected, if the tax assessed is higher than the tax previously payable under the House and Land Tax Act, the taxpayer shall be liable to pay the house and land tax amount plus a portion of the excess in each year, being 25% in the first year, 50% in the second and 75% in the third year.

The Fiscal Policy Office has issued a summary of the implications of the new law (in Thai language): Property-tax-guide-in-Thai-Fiscal-Policy-Office.pdf

 

[ChasingTheSun]

Simply an oversupply of units in some markets across Thailand.

 

It needs to be allowed to self-correct, or else the problem will just worsen.

[Number 6]

This is hilarious. Most doctors make 50-70k. One of my students her parents:

 

Radiologist working cancer hospital - mom

 

Epidemiologist - dad

 

Together pulling in 75k

 

Good luck with that program lol.

 

50k - that's a long weekend in Japan.

 

Thai promotions are always a serious laff.

 

The taxes coming in are half the property taxes in US in many lower taxed states. But what are you getting here? Absolutely nothing.

 

You just know the Thais won't look at the taxes as well...taxes. They will consider it part of the investment they need to recoup on the sale. Wondering why their condo isn't flipping. Speaking of flipping I wonder if the flippers will be liable for the taxes.

 

Finally, wanna bet developers holding and renting condos won't pay taxes?

 

Edited December 12, 2019 by Number 6