Will You Be Buying A New House Or Condo This Year

[thailandlover]

Given this recent article concerning tax breaks given to home buyers, is anyone considering buying a house or condo this year? Or do the tax breaks have no effect on your plans whatsoever?

http://www.nationmultimedia.com/search/rea...y+tax+allowance

[trogers]

Looking to acquire an old 2-bedroom condo (10-15 years old) between Phrom Phong and Prakanong BTS station price of not more then Baht 40,000 per sq metre. Not more then 15 mins walk to BTS but must be at least 100m into the soi..

Tax break is welcome but not essential for decision.

Edited March 3, 2009 by trogers

[PattayaParent]

I think the biggest factor facing expats buying condos especially will be the exchange rate rather than income tax allowances on mortgages which most Farangs will not benefit from.

I would only be interested in buying a place if there was a substantial reduction in price commensurate with the reduction in exchange rate.

[mark5335]

The tax breaks certainly influenced my decision to buy a condo this year, rather than later. The reduced transfer fee and mortgage fee did it for me rather than the income tax deduction, and it equated to a saving of approx 200,000 baht for us. The condo was purchased in my wife's name so she would be eligible for the income tax deduction, however, she has a modest income anyway so the tax deduction was not a major influencer . Exchange rate didn't influence my decision as my salary is denominated in baht.

[PattayaParent]

But if the condo was to be in your own name Mark then it wouldn't matter that your salary is in Baht, you would have had to bring the money in from outside of Thailand.

Would you have made the same decision in that case when it would have cost you 34% more?

[mark5335]

PattayaParent:

For my case, it still wouldn't have been an issue. Prior to relocating to Thailand last year, I was working in Singapore for the previous 10 years. The SGD/THB exchange rate has not been as volatile as pairings between the THB and western country currencies, having hovered around the 23 level for a while. In fact, early last year I purchased a condo in Bangkok in my own name bringing the funds in from Singapore. The exchange rate I got in Jan 2008 was 23, and it's still 23. (Although SGD is beginning to strengthen slightly against THb over the past few weeks.

However, I take your point that if I had been based in Australia for example, I would be unlikely to proceed with a Thai property purchase in view of the AUD/THB exchange rate.

[donx]

But if the condo was to be in your own name Mark then it wouldn't matter that your salary is in Baht, you would have had to bring the money in from outside of Thailand.

Would you have made the same decision in that case when it would have cost you 34% more?

If mark5335 is from the US, then the exchange rate wouldn't be 34% more. Do you know for certain what his exchange rate is?

EDIT: mark5335 replied while I was writing this post.

Edited March 4, 2009 by donx

[PattayaParent]

OK I should have clarified its 34% against the GBP.