Govt housing loans to benefit low and moderate income earners



BANGKOK, 19 October 2015 (NNT) – The new government’s housing loan policy is set to benefit low to medium income earners.

Government Spokesperson Major General Sansern Kaewkamnerd explained that the newly launched government housing loan policy will function as a means of stimulating business in the real estate sector, while lightening the burden of low and moderate income earners.

Those who purchase housing through the new policy will receive a tax reduction at a rate of 20% of the housing price, with the reduction to be evenly subsided for a period of 5 years. House registration and other related fees will be reduced to 0.01%, which should also help buyers afford amenities for their new home.

The government has set a requirement that buyers’ income must not be over 30,000 baht a month, and that the price of the house cannot exceed three million baht.

Loans will vary according to income, with those making 10,000 baht a month or less only being eligible to take up loans of 1 million baht, while those generating 20,000 baht will be eligible for 2 million baht loans.

Major General Sansern said the measure should make housing more affordable for lower and moderate income earners.


-- NNT 2015-10-19

That is not a populist policy?

Edited October 19, 201510 yr by hanuman2543

So after the poor were tricked into buying cars they can't afford to stimulate the auto industry, it's now time repeat with housing/land industry?

Or perhaps a veiled attempt to obtain records for all the land that went missing?

What a joke of a government, populist policies all over again and Thais like the sheeps they are will be tricked into it.

That is not a populist policy?

No, not at all. Only policies put in effect by the red administrations are populist. This is......well, non-populist populist policies.

Debt slaves to the state. If that isn't a way of buying votes, I don't know what is.

So, 10,000 THB salary per month gives a 1,000,000 THB loan

With 50% of salary to pay the loan:

1,000,000 THB / 5,000 THB = 200 month = 16 years

this is without any interest and only if you can live on 5,000 THB/month [166 THB/day]

And with 10,000 THB/month salary nobody pays tax in Thailand at all, so how can there be any benefits ?

Propaganda pure !!!

Those who purchase housing through the new policy will receive a tax reduction at a rate of 20% of the housing price, with the reduction to be evenly subsided for a period of 5 years. House registration and other related fees will be reduced to 0.01%, which should also help buyers afford amenities for their new home.

... up to 25,000 THB/month salary there is no tax to pay so where is the tax reduction ???

Loans will vary according to income, with those making 10,000 baht a month or less only being eligible to take up loans of 1 million baht, while those generating 20,000 baht will be eligible for 2 million baht loans.

... 2,000,000 THB loan at a 20,000 THB salary is usually called INSANITY !!!

Seems like simple math is not really an issue here

A fool who falls for it

More nonsense as the banks have said they are not interested in making the

changes in lending practices necessary to implement this program so " Catch 22 " you can have it but, oh no, you can't !

YES THE MATHS DON'T ADD UP... BUT if this is true my wife could buy a house with a good deposit provided by me and I rent it from her to pay the payments.. For me that would be a win win as she will get an asset which cost me a deposit and as I have rent somewhere so I may as well pay the rent to her to build up her security.. As Thais are vague about this sort of thing does anybody know where I could find out who the lender is???? James

These government loans when combined with eventual government debt forgiveness policy is a boon to the real estate industry.

Don't want the loan-sharks to get all the business. The mafia just makes it impossible to pay and shoots the loanee. The government will keep then alive so they will be life-long debt slaves. It makes more sense.

A farang making 100K THB / month couldn't qualify for a 10K THB loan.

Well, of course they can loan the money to themselves by depositing the loan amount in escrow and then pay the bank interest on the loan. That's what I call insanity.

Edited October 19, 201510 yr by connda

I thought this program was supposed to be thru the government's Government Housing Bank, or perhaps the similar Government Savings Bank.

But either way, the missing element here is the INTEREST RATES on the loans. Absolutely no mention of that. Without that piece, there's zero way to know whether this offer has any value, or is just another promotional scam.

very good incentives for low income earners to own their own property I don't see a fall back scheme if something goes wrong and these people suddenly find themselves out of work ,

The next head lines "the poor get poorer and the banks repo 100's of homes that the poor can't afford the monthly payment"