Thai commercial banks: Govt measures to boost property sector

[webfact]

Commercial banks: Govt measures to boost property sector

BANGKOK, 15 October 2015 (NNT) – Commercial banks have greeted the government’s assistance measures for the property sector with a welcome, saying that the measures should be helpful to both consumers and home builders.

The cabinet earlier this week approved a number of measures to stimulate the property sector, among which are the allocation of 10-billion baht soft loan through the Government Housing Bank, reduction of house transfer fees from two percent of the estimated cost to 0.01 percent, and tax deduction for customers buying houses worth up to three million baht.

Decha Tulanan, vice Chairman of the Executive Board and Director of Bangkok Bank PCL, commented that the scheme would benefit both consumers and operators. Thanks to the government’s offers, wage earners can decide more easily to buy houses, while builders will also have a better opportunity to sell their products. Meanwhile, commercial banks are ready to launch promotion campaigns to attract more home buyers before the year end.

However, Mr. Decha said that Bangkok Bank would adhere to lending criteria for home loans issued by the Bank of Thailand. He speculated that the bank's loan approval would expand by four percent this year.


-- NNT 2015-10-15

[anon467848]

Deja vu, 1997 all over again.... looking forward to getting 70 baht to the GBP again.

[Christie Paul]

An arsonist who burns your house down, is still and arsonist when he makes a pathetic attempt to extinguish the blaze.

[Torrens54]

Might do well to allow foreigners who LIVE here, to buy a House and land Package in their own name.

[NCC1701A]

Might do well to allow foreigners who LIVE here, to buy a House and land Package in their own name.

yes that sounds great, but houses and vacant land prices would double or triple in 12 months,

condo prices would drop and new condo construction would stop.

Thai would not be able to afford a house in many areas because of soaring prices.

[Thai at Heart]

Might do well to allow foreigners who LIVE here, to buy a House and land Package in their own name.

yes that sounds great, but houses and vacant land prices would double or triple in 12 months,

condo prices would drop and new condo construction would stop.

Thai would not be able to afford a house in many areas because of soaring prices.

Why do you think foreigners would be falling over themselves to buy up this massive volume of property at inflated prices?

[NCC1701A]

Might do well to allow foreigners who LIVE here, to buy a House and land Package in their own name.

yes that sounds great, but houses and vacant land prices would double or triple in 12 months,

condo prices would drop and new condo construction would stop.

Thai would not be able to afford a house in many areas because of soaring prices.

Why do you think foreigners would be falling over themselves to buy up this massive volume of property at inflated prices?

Because of the huge demand.

and for the same reason a 32 sq meter condo costs two or three times the cost of a new Thai house.

because as a farang, you actually own it.

and the first ones in would not be paying inflated prices.

Think of all the beach front property in Thailand that would be bought up right away.

all up and down the coasts. it would all be gone.

Then farm land and ranches. Anything with a view, mountain tops.

Agro corporations would start buying huge tracks of farm land.

I would buy land here tomorrow if it was legal to do so. But "can not".

and don't forget there are people from all over the world wanting land in Thailand, not just EU/UK/AU/USA farangs.

changing the no farang land ownership law and dropping or greatly reducing the import tax on western goods would transform Thailand almost over night. That is one reason they will not do it.

Edited October 16, 2015 by NCC1701A

[GAZZPA]

Might do well to allow foreigners who LIVE here, to buy a House and land Package in their own name.

I must be naive but does this mean that people from Singapore can buy houses and own land in their own name?

[GAZZPA]

Might do well to allow foreigners who LIVE here, to buy a House and land Package in their own name.

yes that sounds great, but houses and vacant land prices would double or triple in 12 months,

condo prices would drop and new condo construction would stop.

Thai would not be able to afford a house in many areas because of soaring prices.

Why do you think foreigners would be falling over themselves to buy up this massive volume of property at inflated prices?

Because of the huge demand.

and for the same reason a 32 sq meter condo costs two or three times the cost of a new Thai house.

because as a farang, you actually own it.

and the first ones in would not be paying inflated prices.

Think of all the beach front property in Thailand that would be bought up right away.

all up and down the coasts. it would all be gone.

Then farm land and ranches. Anything with a view, mountain tops.

Agro corporations would start buying huge tracks of farm land.

I would buy land here tomorrow if it was legal to do so. But "can not".

and don't forget there are people from all over the world wanting land in Thailand, not just EU/UK/AU/USA farangs.

changing the no farang land ownership law and dropping or greatly reducing the import tax on western goods would transform Thailand almost over night. That is one reason they will not do it.

There are middle grounds. The Government does not have to open the flood gates to give foreigners the right to own land. For example, it could allow foreigners living and working here the right to buy land if they have been here over 5 years. It could also state heavy taxes on the sale of the house if they sell within 5 years and limit 1 property to 1 person.

Remember also that there are many companies based here from overseas. If corporations wanted to invest in land and property they can already buy land in the companies name. Don't see huge increases in house prices though.

As for lowering the taxes on imported goods from overseas, well thats just not accurate. If controlled properly it would increase choice in the market for consumers yes but it will also bring down the pricing of some goods probably boosting sales.

There are ways of doing things without exposing yourself completely but right now Thailand is too tightly controlled and it will be its own downfall eventually as other neighbouring countries offer more attractive business opportunities and easier investment for property.

[skildpadden]

Make it much easier for expats to obtain local loans to boost the property sector. I would actually think we would be a safer bet than a lot of Thais.

[NCC1701A]

Why do you think foreigners would be falling over themselves to buy up this massive volume of property at inflated prices?

Because of the huge demand.

and for the same reason a 32 sq meter condo costs two or three times the cost of a new Thai house.

because as a farang, you actually own it.

and the first ones in would not be paying inflated prices.

Think of all the beach front property in Thailand that would be bought up right away.

all up and down the coasts. it would all be gone.

Then farm land and ranches. Anything with a view, mountain tops.

Agro corporations would start buying huge tracks of farm land.

I would buy land here tomorrow if it was legal to do so. But "can not".

and don't forget there are people from all over the world wanting land in Thailand, not just EU/UK/AU/USA farangs.

changing the no farang land ownership law and dropping or greatly reducing the import tax on western goods would transform Thailand almost over night. That is one reason they will not do it.

There are middle grounds. The Government does not have to open the flood gates to give foreigners the right to own land. For example, it could allow foreigners living and working here the right to buy land if they have been here over 5 years. It could also state heavy taxes on the sale of the house if they sell within 5 years and limit 1 property to 1 person.

Remember also that there are many companies based here from overseas. If corporations wanted to invest in land and property they can already buy land in the companies name. Don't see huge increases in house prices though.

As for lowering the taxes on imported goods from overseas, well thats just not accurate. If controlled properly it would increase choice in the market for consumers yes but it will also bring down the pricing of some goods probably boosting sales.

There are ways of doing things without exposing yourself completely but right now Thailand is too tightly controlled and it will be its own downfall eventually as other neighbouring countries offer more attractive business opportunities and easier investment for property.

flood control gates yes, but people invest for much longer than five years. many people would start buying property now for their retirement home.

the company owns the land, no more company, no more land ownership. and proxy companies are illegal. why go through that when anyone can by a farm in the USA or many other countries with 100% direct ownership?

i think you misunderstood my statement on import taxes, all i was saying is high import taxes stop people from wanting to live here. it was a major decision for me not to be able to bring all my cars to Thailand. and why pay twice as much for olives from Spain in Thailand than in California? the list is endless.

so 100% land ownership. prices go up on the nice pieces of land first, good for farang bad for thais as they are forced out of the market. lower taxes are always good no matter what, so bad for big government, and good for me wanting to bring and keep my stuff and more people want to live here and not get ripped off for a bottle of California wine.

anyway none of this is going to happen. nice chatting with you.

[Thai at Heart]

Might do well to allow foreigners who LIVE here, to buy a House and land Package in their own name.

yes that sounds great, but houses and vacant land prices would double or triple in 12 months,

condo prices would drop and new condo construction would stop.

Thai would not be able to afford a house in many areas because of soaring prices.

Why do you think foreigners would be falling over themselves to buy up this massive volume of property at inflated prices?

Because of the huge demand.

and for the same reason a 32 sq meter condo costs two or three times the cost of a new Thai house.

because as a farang, you actually own it.

and the first ones in would not be paying inflated prices.

Think of all the beach front property in Thailand that would be bought up right away.

all up and down the coasts. it would all be gone.

Then farm land and ranches. Anything with a view, mountain tops.

Agro corporations would start buying huge tracks of farm land.

I would buy land here tomorrow if it was legal to do so. But "can not".

and don't forget there are people from all over the world wanting land in Thailand, not just EU/UK/AU/USA farangs.

changing the no farang land ownership law and dropping or greatly reducing the import tax on western goods would transform Thailand almost over night. That is one reason they will not do it.

All the beach front is bought already through Thais and foreigners with nominees.

They could simply limit foreigners to a single one or two raised plot maximum.

Fact is, allowing foreigners to buy would bring billions into the country and the net effect would be dormant land would get utilised instead of sitting around doing nothing.

It would be a massive positive for business. Eventually it would get sold again to someone Thai or other when times change. I don't see the issue.

Edited October 16, 2015 by Thai at Heart