webfact Posted March 7, 2016 Share Posted March 7, 2016 Thailand plans $1.98 bln loan programme for first-home buyersBANGKOK: -- Thailand is expected to roll out a 70 billion baht ($1.98 billion) soft loan programme for lower-income first-home buyers, a senior finance ministry official said on Monday, as it seeks to stimulate domestic spending amid a sluggish economy.Southeast Asia's second-largest economy is struggling to gain a strong footing almost two years after the army took over.Loan applicants must be first-time buyers of homes not exceeding 1.5 million baht, Somchai Sujjapongse, permanent secretary of the Finance Ministry, told reporters.Full story: http://www.reuters.com/article/thailand-property-measures-idUSL4N16F3OC-- Reuters 2016-03-08 Link to comment Share on other sites More sharing options...
tbthailand Posted March 7, 2016 Share Posted March 7, 2016 hilarious... Link to comment Share on other sites More sharing options...
HOAX Posted March 7, 2016 Share Posted March 7, 2016 Cool. Advocate even more debt. Exactly what Thai people need. Spending money is good for the market, but all these debt creating government programs for the low income, uneducated citizens is a never ending debt spiral very few gets out of, and that market gets into inflation. What's the typical 23 year old village boy/girl today? - No higher education, or an education but working with something completely different. - Been married for more than 3 years and have kids soon to begin in school - Monthly income: 10-20,000 thb - No career plans - Owns a brand new pickup truck (700,000+) - Their kids live with their parents. - Often needs to borrow money to pay bills - Gets offers from the bank to refinancing their debt - Gets offer to loan more from the bank - Government offer them to loan even more - Increasing living costs - More social pressure to show off your "wealthy" lifestyle. - Help family rebuilding mother's house. ... etc. The future doesn't exactly look super great for these youngsters. Every Thai's priorities just seems to be off logic. Sent from my iPhone using Tapatalk Link to comment Share on other sites More sharing options...
shirtless Posted March 7, 2016 Share Posted March 7, 2016 This will be another money pit.Thais fail to budget and keeping up with the Jones is all the rage Link to comment Share on other sites More sharing options...
terryp Posted March 7, 2016 Share Posted March 7, 2016 got to keep the thai banks afloat....this is going to be one huge financial ponzy yet again.....bank repos in the next couple of years will be massive Link to comment Share on other sites More sharing options...
NongKhaiKid Posted March 7, 2016 Share Posted March 7, 2016 It seems the quote about failing to learn from history's mistakes etc has never reached LoS. Link to comment Share on other sites More sharing options...
chiang mai Posted March 7, 2016 Share Posted March 7, 2016 Stimulate the economy, help the house builders, help the banks and help the people all positive points I reckon. ...and it's only 2 billion dollars, less than 1% of GDP. Link to comment Share on other sites More sharing options...
colinneil Posted March 7, 2016 Share Posted March 7, 2016 (edited) More debt for poor village people who will want the loans, but have no means of paying back. As the Thais say !! ting tong mak mak !! Edited March 8, 2016 by colinneil Link to comment Share on other sites More sharing options...
halloween Posted March 8, 2016 Share Posted March 8, 2016 (edited) hilarious... When you manage to stop laughing, google 'loan programme for first-home buyers', accept spelling correction, and then you will find a similar scheme has been operating in Oz for 16 years. I haven't checked all the 14.5 million hits, but I would bet that most are positive. The poor deluded fools obviously don't see the humour. Edited March 8, 2016 by halloween Link to comment Share on other sites More sharing options...
chiang mai Posted March 8, 2016 Share Posted March 8, 2016 The government is merely guaranteeing the funding, it's the banks who have to administer the loans. Don't knock government if the banks do a poor job, unless you just want to bash all things Thai that is! Link to comment Share on other sites More sharing options...
chiang mai Posted March 8, 2016 Share Posted March 8, 2016 hilarious... When you manage to stop laughing, google 'loan programme for first-home buyers', accept spelling correction, and then you will find a similar scheme has been operating in Oz for 16 years. I haven't checked all the 14.5 million hits, but I would bet that most are positive. The poor deluded fools obviously don't see the humour. Indeed, many countries have similar, including the UK. Link to comment Share on other sites More sharing options...
ramrod711 Posted March 8, 2016 Share Posted March 8, 2016 I don't know if there are as many unsold, empty condos in the rest of the country but this might help fill some of the ones in Chiang Mai. I don't see how that would stimulate the economy though. I hope it works out better than the first car scheme. Link to comment Share on other sites More sharing options...
ramrod711 Posted March 8, 2016 Share Posted March 8, 2016 hilarious... When you manage to stop laughing, google 'loan programme for first-home buyers', accept spelling correction, and then you will find a similar scheme has been operating in Oz for 16 years. I haven't checked all the 14.5 million hits, but I would bet that most are positive. The poor deluded fools obviously don't see the humour. Take a look at this, see if government programs still appeal. https://www.youtube.com/watch?v=_juHR5uodjU Link to comment Share on other sites More sharing options...
chiang mai Posted March 8, 2016 Share Posted March 8, 2016 When you move money through the economy it helps to stimulate it, things get sold, suppliers get paid, new projects get started, new furniture and appliances get bought, stores move inventory, and so on. Link to comment Share on other sites More sharing options...
pinkpanther99 Posted March 8, 2016 Share Posted March 8, 2016 Let's hope this works better than the first time buyers scheme for new cars Link to comment Share on other sites More sharing options...
casualbiker Posted March 8, 2016 Share Posted March 8, 2016 I don't know if there are as many unsold, empty condos in the rest of the country but this might help fill some of the ones in Chiang Mai. I don't see how that would stimulate the economy though. I hope it works out better than the first car scheme. most Thais buy houses not condos. At least in areas that there are houses... Link to comment Share on other sites More sharing options...
halloween Posted March 8, 2016 Share Posted March 8, 2016 hilarious... When you manage to stop laughing, google 'loan programme for first-home buyers', accept spelling correction, and then you will find a similar scheme has been operating in Oz for 16 years. I haven't checked all the 14.5 million hits, but I would bet that most are positive. The poor deluded fools obviously don't see the humour. Take a look at this, see if government programs still appeal. https://www.youtube.com/watch?v=_juHR5uodjU I very much doubt if the current high price of housing in Oz can be tied to the first home buyers scheme. Sustained extremely low interest rates since the GFC have prompted buyers to pay more than worth (IMHO). Link to comment Share on other sites More sharing options...
keeniau96 Posted March 8, 2016 Share Posted March 8, 2016 Cousin of my wife works in family construction biz and is very regular helper around our house. She and her partner (Thai male, employed, 27 yrs, nonsmoker, nondrinker, no mia noi) are in process of buying a small house in a new moobaan near the Phuket airport. Cost about 1.5 mn will be finished in June-2016. Combined income just over 30k b/m, she has motorbike, he has small car. Bank is very tight but looking OK for financing. I will be urging them to look into this new gov't program. Link to comment Share on other sites More sharing options...
toybits Posted March 8, 2016 Share Posted March 8, 2016 Wait a few years after this program and it will be a buyer's market with all those newly repossessed homes. Link to comment Share on other sites More sharing options...
williamgeorgeallen Posted March 8, 2016 Share Posted March 8, 2016 i was in oz buying property just before the first home buyers grant came in. i only managed to buy one unit in melbourne before it came in but even still it shot up in value once the grant came in. home buyers grants just push prices up as demand is greater and people have bigger deposits and so can borrow more. there was an inquiry in oz why prices were going up. not mention of prices going up due to government grants, i dont know why. Link to comment Share on other sites More sharing options...
williamgeorgeallen Posted March 8, 2016 Share Posted March 8, 2016 hilarious... When you manage to stop laughing, google 'loan programme for first-home buyers', accept spelling correction, and then you will find a similar scheme has been operating in Oz for 16 years. I haven't checked all the 14.5 million hits, but I would bet that most are positive. The poor deluded fools obviously don't see the humour. Take a look at this, see if government programs still appeal. https://www.youtube.com/watch?v=_juHR5uodjU I very much doubt if the current high price of housing in Oz can be tied to the first home buyers scheme. Sustained extremely low interest rates since the GFC have prompted buyers to pay more than worth (IMHO). i bought an apartment in oz just before the first buyers grant came in for 120k, after 2 years it would have sold for more than 180k. 150% increase in 2 years. grants like this just push prices up further out of reach of first buyers. Link to comment Share on other sites More sharing options...
theguyfromanotherforum Posted March 8, 2016 Share Posted March 8, 2016 Wait a few years after this program and it will be a buyer's market with all those newly repossessed homes. Hilarious. Was there ever a buyer's market in Thailand? Link to comment Share on other sites More sharing options...
williamgeorgeallen Posted March 8, 2016 Share Posted March 8, 2016 Wait a few years after this program and it will be a buyer's market with all those newly repossessed homes. Hilarious. Was there ever a buyer's market in Thailand? after doing some buying and selling i can tell you it is alot easier to buy than it is to sell in thailand. Link to comment Share on other sites More sharing options...
BKResort Posted March 8, 2016 Share Posted March 8, 2016 (edited) Good news! This may be a good thing, if lenders do the proper qualifications, and under Government regulations. Most farangs sometimes cannot believe that many Thai young couples are living well with a family income of not more than 20.000THB/month. Likes any other country, not everybody is bad budgeting income. In most places in Thailand, out the tourist cities, it is very possible to build a nice home for 400.000THB on a 100.000THB small lot., or buy new small homes for less than 400.000TH, or townhouses for even less than that. I know a nice housing complex with houses under $300.000THB. Sure, no farangs are living in that particular place. By the way, on a very nice area close to Phayao. A 26 years old Thai, by the local lending system in place, can finance up to 40 years term, and probably these low income loans will have low fix rates, under 6%. If you like maths, you will find that a 500.000THB loan in 40 years, makes a not very high monthly fixed payment for a low income young family. Any honest Government can creates honest plans for low income housing..but not Lending Corporations. That's why Low Income Housing Programs never work in some "free market" countries, where millions are homeless, even receiving Government "benefits".. Sounds familiar? Edited March 8, 2016 by BKResort Link to comment Share on other sites More sharing options...
khunpa Posted March 8, 2016 Share Posted March 8, 2016 (edited) I really hope they combine this with mandatory training-cources to the borrower's in how to make a budget, think long-term and pay the money back. Edited March 8, 2016 by khunpa Link to comment Share on other sites More sharing options...
Srikcir Posted March 8, 2016 Share Posted March 8, 2016 to stimulate domestic spending amid a sluggish economy Really? Here’s reality: In its latest global economic report, HSBC Thailand said the Thai economy was expected to recover gradually in 2016, but cautioned that household debt remained relatively high at over 80 per cent of GDP, which could become an obstacle to further boosting domestic consumption. The Nation 2016-01-04 Kasikorn Bank has forecast the Thai economy will recover slowly due to household debts and the sluggish global economy. 2016-01-08 High household debt, lower consumer confidence and slowing exports are causing Thailand’s economy to slow down majorly. 2016-01-14 According to BOT Governor Mr Veerathai, the Thai economy will recover gradually this year but in an uneven manner, given the lack of income growth both in the agricultural and non-agricultural sectors as well as high household debt. 2016-02-12 The Government at this time should not be encouraging an increase in household debt! But this soft loan program for lower-income first-home buyers will further INCREASE household debt and DEPRESS an already weakening economy. The Finance Minister should heed PM Prayut’s warning in his weekly televised address: "Please refrain from racking up debts … mounting bills "may slow down the country's progress." 2015-02-11 Link to comment Share on other sites More sharing options...
yllorco Posted March 8, 2016 Share Posted March 8, 2016 It is a win-win program for the two banks. Does it apply to foreigners? Link to comment Share on other sites More sharing options...
bark Posted March 8, 2016 Share Posted March 8, 2016 Cool. Advocate even more debt. Exactly what Thai people need. Spending money is good for the market, but all these debt creating government programs for the low income, uneducated citizens is a never ending debt spiral very few gets out of, and that market gets into inflation. What's the typical 23 year old village boy/girl today? - No higher education, or an education but working with something completely different. - Been married for more than 3 years and have kids soon to begin in school - Monthly income: 10-20,000 thb - No career plans - Owns a brand new pickup truck (700,000+) - Their kids live with their parents. - Often needs to borrow money to pay bills - Gets offers from the bank to refinancing their debt - Gets offer to loan more from the bank - Government offer them to loan even more - Increasing living costs - More social pressure to show off your "wealthy" lifestyle. - Help family rebuilding mother's house. ... etc. The future doesn't exactly look super great for these youngsters. Every Thai's priorities just seems to be off logic. Sent from my iPhone using Tapatalk Two people earning a total of 30,000 baht; could never afford the monthly payments of a 1.5 million baht home. Even at half the normal bank rate. Link to comment Share on other sites More sharing options...
casualbiker Posted March 8, 2016 Share Posted March 8, 2016 Cool. Advocate even more debt. Exactly what Thai people need. Spending money is good for the market, but all these debt creating government programs for the low income, uneducated citizens is a never ending debt spiral very few gets out of, and that market gets into inflation. What's the typical 23 year old village boy/girl today? - No higher education, or an education but working with something completely different. - Been married for more than 3 years and have kids soon to begin in school - Monthly income: 10-20,000 thb - No career plans - Owns a brand new pickup truck (700,000+) - Their kids live with their parents. - Often needs to borrow money to pay bills - Gets offers from the bank to refinancing their debt - Gets offer to loan more from the bank - Government offer them to loan even more - Increasing living costs - More social pressure to show off your "wealthy" lifestyle. - Help family rebuilding mother's house. ... etc. The future doesn't exactly look super great for these youngsters. Every Thai's priorities just seems to be off logic. Sent from my iPhone using Tapatalk Two people earning a total of 30,000 baht; could never afford the monthly payments of a 1.5 million baht home. Even at half the normal bank rate. How much are the monthly payments? Link to comment Share on other sites More sharing options...
toybits Posted March 8, 2016 Share Posted March 8, 2016 Wait a few years after this program and it will be a buyer's market with all those newly repossessed homes. Hilarious. Was there ever a buyer's market in Thailand? Kind of like the First Car project. They discounted car prices for first time buyers. Soon after that there was a flood of second hand cars from those who finally gave up on paying installment on their dream car. Same pattern. Link to comment Share on other sites More sharing options...
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