Thailand Home And Condo Show Opens

[george]

Thailand Home and Condo Show opens

Zero interest rate on offer at home show

BANGKOK: -- Home-buyers will enjoy shopping at the "20th Home and Condo Show" that starts today and runs until Sunday.

Among the special promotions on offer are zero interest on home loans for the first three months and discounts and other incentives for selected properties.

A Nation survey yesterday showed almost all commercial banks participating in the event at the Queen Sirikit National Convention Centre would waive interest for the first three months on mortgage loans for those applying at the fair.

And developers are drumming up interest in 500 residential projects worth a combined Bt100 billion with special promotions like discounts of Bt100,000 to Bt3 million per unit, free furniture worth Bt50,000 to Bt400,000 and package tours.

Chatchai Payuhanaveechai, senior vice president for consumer loans at Kasikornbank (KBank), said the bank would offer zero interest for the first three months of its home loan and finance up to 90 per cent of a property's' appraisal value.

KBank has targeted Bt1 billion in mortgage loans over the four-day event.

Krung Thai Bank (KTB) will also offer zero interest for the first three months of a mortgage loan and then the minimum retail rate (MRR) minus 1 percentage point. At present, KTB's MRR is quoted at 7 per cent.

Vijitra Property Group CEO Suebwong Sukhamongkol said his company would offer a discounted price of Bt3 million for only 24 units at its ready-to-move-in single-family-home project and one free three-day, two-night trip to South Korea.

Tararom Enterprises will launch a "Countdown Sale" at the event, with discounts of up to Bt300,000 for Promenade Home in Thon Buri and a free gift worth up to Bt400,000 for those buying a residence in the Noble Home project in the Watcharaporn area.

Housing Business Association secretary Wasan Kiangsiri, who is also president of the organising committee for this event, said that the fair would stimulate demand for residential projects in the first half of the year.

The association expects total sales of Bt2.5 billion and more than 80,000 visitors over the four-day show.

-- The Nation 2009-02-19

[noahvail]

Ok, I'm still relatively new to LoS, but this sounds suspiciously like below-prime lending rates, that got many of the world's banks into trouble...not so long ago. I know it's MRR -1, not prime -1, but what's the prime in Thailand now, and how can I find it? Thanks...

[geriatrickid]

Not that unusual as the no interest deal is only for the 1st 3 months and there is no mention of how long the mortgage rate will be granted. Nor is there mention of the fees that get added to these deals.

It's a cute gimmick intended to move some real estate and generate some investment income for the bank. If it is a qualified borrower, then that's a nice spread if the cost of capital to the bank is hovering around 1-2%. Toss in the fees and charges and the bank isn't losing anything. Developers often package their own financing to include incentives like this.

The banks have to do something to get some activity going, although I think real estate is ridiculously over valued here.

If you are questioning the ethics and lending practices here, then I agree with you as it is indeed scary way to do it.

[capco1]

What happens after the first three months are over? Nice teaser rates but you better understand the entire loan note before jumping on any "Deals". Now the million baht question.......Which of these banks will even consider a mortgage for a falang?????.......My guess will be zero.....Just like the teaser rates being offered!

[asia_pilot]

Does anyone know in which convention center the show is located at ? Google doesnt help....

[george]

Does anyone know in which convention center the show is located at ? Google doesnt help....

Queen Sirikit National Convention Centre

[Gravelrash]

No doubt the unbridled excitement of saving 3 months interest charges on a 20 year loan should create a stampede of frenzied buying.

[zorro1]

Simple they up the price of the condo slightly which covers the 0 or you dont get the usuall discount. you still end up paying for it and then the developer pays the bank. Been happening in furniture and motor cars for decades. Hardly worth posting the info its every where.

[Hawkup2000]

I love fairs in Thailand. They are highly underrated. It's a nice weekend activity walking around talking with people (and also looking at all the beautiful women ).

Edited February 19, 2009 by Hawkup2000

[khundon]

6% on a property that's going to plummet in value, there having a laugh.

Anyone who buys at those mortgage rates, want their head read.

Just look around at the amount of OVER inflated prices, on houses for sale at the moment.

[cloudhopper]

Thailand Home and Condo Show opens

Zero interest rate on offer at home show

BANGKOK: -- Home-buyers will enjoy shopping at the "20th Home and Condo Show" that starts today and runs until Sunday.

Among the special promotions on offer are zero interest on home loans for the first three months and discounts and other incentives for selected properties.

A Nation survey yesterday showed almost all commercial banks participating in the event at the Queen Sirikit National Convention Centre would waive interest for the first three months on mortgage loans for those applying at the fair.

And developers are drumming up interest in 500 residential projects worth a combined Bt100 billion with special promotions like discounts of Bt100,000 to Bt3 million per unit, free furniture worth Bt50,000 to Bt400,000 and package tours.

Chatchai Payuhanaveechai, senior vice president for consumer loans at Kasikornbank (KBank), said the bank would offer zero interest for the first three months of its home loan and finance up to 90 per cent of a property's' appraisal value.

KBank has targeted Bt1 billion in mortgage loans over the four-day event.

Krung Thai Bank (KTB) will also offer zero interest for the first three months of a mortgage loan and then the minimum retail rate (MRR) minus 1 percentage point. At present, KTB's MRR is quoted at 7 per cent.

Vijitra Property Group CEO Suebwong Sukhamongkol said his company would offer a discounted price of Bt3 million for only 24 units at its ready-to-move-in single-family-home project and one free three-day, two-night trip to South Korea.

Tararom Enterprises will launch a "Countdown Sale" at the event, with discounts of up to Bt300,000 for Promenade Home in Thon Buri and a free gift worth up to Bt400,000 for those buying a residence in the Noble Home project in the Watcharaporn area.

Housing Business Association secretary Wasan Kiangsiri, who is also president of the organising committee for this event, said that the fair would stimulate demand for residential projects in the first half of the year.

The association expects total sales of Bt2.5 billion and more than 80,000 visitors over the four-day show.

-- The Nation 2009-02-19

Translation - put a fork in it, it's just about done.

[Old Man River]

Ok, I'm still relatively new to LoS, but this sounds suspiciously like below-prime lending rates, that got many of the world's banks into trouble...not so long ago. I know it's MRR -1, not prime -1, but what's the prime in Thailand now, and how can I find it? Thanks...

The link below is from the BOT's website. The savings rates will show, but then click on loan rates to the right and it will show today's loan rates.

There is no standard prime rate in Thailand like in the US. Each bank has their own, based on their cost of funds. However, they try to make their rates competitive.

http://www.bot.or.th/english/statistics/fi...te/IN_Rate.aspx

[fobuff]

Wait till the place is financed, built, and all the units.

Just go and see....

Leave money, credit card, ID and TGF home...

and you should escape with a few scars....

Fobuff