Bank Of Thailand To Control Second-Hand Property Transactions

[webfact]

PROPERTY MARKET
Central bank to control second-hand property transactions
The Nation

BANGKOK: -- Bank of Thailand is mulling measures to control the spike in asset prices, having the second-hand properties in focus.

Governor Prasarn Trairatvorakul said on Tuesday that the central bank is drawing up the rule on compulsory downpayment for second-hand property purchases.

The loan to value (LTV) ratio could be raised, which will limit the amount of loans banks can lend for second-hand home purchases.

At present, the LTV ratios for condominium and house purchases are 90 and 95 per cent, respectively, meaning that borrowers need to put up downpayment of 10 per cent and 5 per cent of purchase value.


-- The Nation 2013-04-09

[waza]

An attempt to deflate the housing bubble.

[Locationthailand]

Except of course if you are Farang where Banks request 50% if you buy in your own name. I bought from the repossession lists at SCB, you don't even need a deposit, they just want NPL's (non performing loans) off their books. I just took over an existing debt by refinancing it 100% so how BOT is going to control that I have no idea (nor care).

[julemanden]

Except of course if you are Farang where Banks request 50% if you buy in your own name. I bought from the repossession lists at SCB, you don't even need a deposit, they just want NPL's (non performing loans) off their books. I just took over an existing debt by refinancing it 100% so how BOT is going to control that I have no idea (nor care).

House, farang, finance ??? Did you mean Condo?

[aguy30]

Central bank to control second-hand property transactions
The Nation

A totally misleading headline that should be:

Central Bank considering rules for downpayment on second-hand property loans.

Edited April 9, 2013 by aguy30

[loong]

Except of course if you are Farang where Banks request 50% if you buy in your own name. I bought from the repossession lists at SCB, you don't even need a deposit, they just want NPL's (non performing loans) off their books. I just took over an existing debt by refinancing it 100% so how BOT is going to control that I have no idea (nor care).

House, farang, finance ??? Did you mean Condo?

Where did he mention House?

[NeverSure]

What is a second hand property? What's a first hand property? I'm lost.

Second hand to me means "used" but maybe not in LOS. Thais are getting no down payment loans on new homes. They are essentially getting no down payment loans in the first time car buyer deal. Everyone is a first time buyer of course by hook or crook.

If by some means, second hand means used, this will deflate the value of used properties, but not of new?

Could this be a favor to the developers to push people to their new projects?

As said, I'm lost but nothing the Thais do makes sense to me.

OK, I'll go sit in the corner.

[mark5335]

"Central bank to control second-hand property transactions

The Nation

A totally misleading headline that should be:

Central Bank considering rules for downpayment on second-hand property loans."

In fact, the news article refers to "2nd homes" not second hand homes. So it may affect people who already own a home, who are now considering purchasing another home (which may be new or second-hand).

Edited April 10, 2013 by mark5335

[NeverSure]

Maybe that makes sense. In a bubble, a lot of people try to buy as many as possible, resulting in oversupply and empty units.

The other side of that coin is that if the feverish pace of building and buying slows, it will affect the economy. Been there, done that.

[Maestro]

I have deleted an off-topic post and the replies to them.

[Valentine]

What is a second hand property? What's a first hand property? I'm lost.

Second hand to me means "used" but maybe not in LOS. Thais are getting no down payment loans on new homes. They are essentially getting no down payment loans in the first time car buyer deal. Everyone is a first time buyer of course by hook or crook.

If by some means, second hand means used, this will deflate the value of used properties, but not of new?

Could this be a favor to the developers to push people to their new projects?

As said, I'm lost but nothing the Thais do makes sense to me.

OK, I'll go sit in the corner.

My first thought was the same, pandering to the developers of new homes.

[belg]

yes off course unless you are farang...

what is it that money has to come from your home country

even you have been living here many many years on extention based on marriage

what is up with that ?

what if you have no more contacts or bank account in your country

but you have money here, because you SOLD YOUR HOUSE in your home country but rented here a few years????

you would think it would be easy to go back and open an account in your home country, you can do that... but then, there are the limits of the money you can take out of a thai bank to transfer overseas.....

crazy !!!!!!!!!!!!!!!!!!

let's say worst case scenario ..... you get divorced or your wife dies... you will be invited to leave the country within 7 days as YOUR VISA JUST EXPIRED !

no matter that you have a loan or cosigner to pay for your wife's house (as we still cannot buy land or a house, eveh thais can do anywhere in the world where farang can buy land/house)

[KonKorat]

Hi,just after some info,i want to buy a condo in Thailand,i travel to Thailand 2 times a year on a 30 day tourist visa.Can i buy a condo whilst on a tourist visa?I ask this because i know i have read that you have to have a bank account in Thailand,i have read that foreigners cannot have a bank account if on a tourist visa?

[Morden]

The BoT plan is probably great news for the private money lenders.

[Thighlander]

you can get a ba with a tourist visa, unless they are having a bad hair day.

[sprq]

"Central bank to control second-hand property transactions

The Nation

A totally misleading headline that should be:

Central Bank considering rules for downpayment on second-hand property loans."

In fact, the news article refers to "2nd homes" not second hand homes. So it may affect people who already own a home, who are now considering purchasing another home (which may be new or second-hand).

Ah, suddenly it makes sense.

[diggledunc]

Loan to value ratio raised to limit lending, Hmm!!!!

Should that not be reduced. Perhaps Thai banking works in reverse to the UK.

[Locationthailand]

Except of course if you are Farang where Banks request 50% if you buy in your own name. I bought from the repossession lists at SCB, you don't even need a deposit, they just want NPL's (non performing loans) off their books. I just took over an existing debt by refinancing it 100% so how BOT is going to control that I have no idea (nor care).

House, farang, finance ??? Did you mean Condo?

House - anyone can buy a home. You just need to own a Thai company and you can own 100% of a Thai company - if you know the rules.