Government Tax Incentives For Used-home Buyers

[whimsy]

I must have missed this when the announcement was made. Just found this in the news on Thai Law Forum.

Government Tax Incentives for Used-Home Buyers

3 February 2006

The government’s move to grant a series of property tax incentives is set to boost the demand for used houses by 20 per cent this year. These incentives include the exemption of the three-per-cent special business tax on home sales and the reduction in mortgage fees for buyers, from 1% to 0.01%. The transfer fees paid by buyers or sellers are also cut from 2% to 0.01%. In order to qualify for the tax and fee reductions, a homeowner must own the property for at least one year before selling the property. Home-sellers can also deduct up to bt50,000 of the capital gain from their taxable income if they buy another home within one year. The used-home market is expected to be worth a total of bt85 billion this year.

Is this tax cut in effect aready, when does it expire? Can I benefit from this reduction if buying property and putting into my name under a 30 year lease? Any more info would be appreciated.

[bluedragon]

Hi, does anyone know if this applies to buying a used condominium???

Thanks, BD

[ilyushin]

Haven't found any other information. Guys and gals keep an eye out.

[whimsy]

bump. ....

I'm still interested in info on this. Does anyone know anything? Thanks

[ilyushin]

bump. ....

I'm still interested in info on this. Does anyone know anything? Thanks

Here is some more info, but not much.

More info 1

More info 2

I'll keep my eyes and ears open.

[whimsy]

Ilyushin, thanks for the info. The first link seems to imply that this change has actually come in. I thought that it may have been stalled when parliament was dissolved.

[ilyushin]

Ilyushin, thanks for the info. The first link seems to imply that this change has actually come in. I thought that it may have been stalled when parliament was dissolved.

Glad it was helpful. I will be speaking with some experts on the subject and get more info to post soon.

[excaliber]

Ilyushin, thanks for the info. The first link seems to imply that this change has actually come in. I thought that it may have been stalled when parliament was dissolved.

Glad it was helpful. I will be speaking with some experts on the subject and get more info to post soon.

I met with the bank manager's at Bangkok Bank & Thai Military Bank last Friday & neither one had a clue about this tax incentive/reduction, and they also told me it was the buyer who pays the (approx) 6.5 % in tax & misc. fees on top of the purchase price.....

[whimsy]

Bump .... Did anyone get any more information on this?

[ilyushin]

Recently, I spoke to a few real estate pros on the subject. They informed me it is just an idea. Lot like the mega projects announced Jan 29, 2006. No real information. Drafting a rough set of incentives.

Found the following article which mentions a bit on the idea. Dated two weeks after the previously posted article.

[February 20, 2006]

Real estate to see an improvement: Government measures to raise the bar

(Bangkok Post (Thailand) (KRT) Via Thomson Dialog NewsEdge) Feb. 18--A real estate world congress in May and better enforcement of brokerage laws should help improve industry standards this year, according to property specialists.

Deputy Finance Minister Chaiyos Sasomsap said the real estate market would grow at a faster pace if laws related to professional brokers and agents were enforced and real estate brokers had a code of ethics.

"After supporting the used home market with tax incentives, we are drafting a licensing law related to real estate brokers," he said.

A committee will also be asked to consider building standard regulations and a code of ethics for real estate brokers and agents, Mr Chaiyos said yesterday at the opening of a used home fair that runs until tomorrow at Central Lat Phrao.

Also yesterday, the International Real Estate Federation (FIABCI) announced that it would hold the FIABCI 57th World Congress in Bangkok from May 26-31.

FIABCI president Dato Alan Tong Kok Mau said the meeting would help improve industry quality and competition by sharing knowledge, information and opportunities.

The theme will be "Caring for the Future through Real Estate", and cover real estate recovery after natural disasters, terrorism protection for property and the impact of petroleum costs and energy prices on the market.

About 1,000 foreign delegates and 400 local participants are expected to attend. More than 250 foreign delegates have already registered.

Professor Manop Bongsadadt, the president of FIABCI-Thailand, said the event would give participants direct access to international real estate contacts and business opportunities.

It would also help to improve the working relationship between the public and private sectors, facilitate the exchange of information about a significant market, and touch on the economic, corporate, governmental and technological conditions affecting the industry.

"We are organising an international networking event. At each congress, lots of investors meet each other and there are a lot of transactions that occur after the meeting, which cannot be estimated," he said.

"This meeting will help raise the standard of Thai real estate business and push it onto the world map."

The congress will include six professional forums: for real estate agents, developers and investors, property valuers, property financiers, property managers and property information providers.

There will also be six study tours: Suvarnabhumi International Airport; how to win contracts from the National Housing Authority; award-winning housing developments; home mart retail outlets; major shopping development at Siam Paragon; and the resort city of Pattaya.

FIABCI was founded in 1951 and has operated in Thailand since 2004. It has branches in 60 countries with 3,200 regular members, 20 academic members and 130 national associations, representing two million real estate professional.

______

They mention that they are drafting the incentive in other related articles. I assume it hasn't been completed.

Edited September 17, 2006 by ilyushin

[whimsy]

Thanks Ilyushin. Possibly caught up in Thailand's extended 'caretaker government' situation. We might see this taken up again after a new government is formed.

I'm surprised that there has been so little interest in this topic. It would mean significant money saved when buyng or selling an establised house(s).

[ding]

Thanks Ilyushin. Possibly caught up in Thailand's extended 'caretaker government' situation. We might see this taken up again after a new government is formed.

I'm surprised that there has been so little interest in this topic. It would mean significant money saved when buyng or selling an establised house(s).

I know Imust be missing something obvious, but here goes;

I thought you could own a condo, 2nd floor and higher, but no land -therefore no house. Are you talking about the renewing lease? Blind Partnership?

[fxm88]

How many vacant houses are there in Bangkok these days? The most recent statistics I can find are from 2000:

The total number of unoccupied houses in Bangkok stood at 337,413, mainly in Bang Yai, Bang Kapi and Min Buri, at the end of June 2000.

[astral]

..........they also told me it was the buyer who pays the (approx) 6.5 % in tax & misc. fees on top of the purchase price.....

This is negotiable.

When I bought the seller paid the taxes!!