Thai Finance Min: more information needed on second-hand homes

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Min of Finance: more information needed on second-hand homes

BANGKOK, 31 May 2016 (NNT) – The Deputy Finance Minister has pushed for more comprehensive information on second-hand homes on the market, while giving details on the government's elder housing project.

Deputy Finance Minister Wisudhi Srisuphan had been giving a keynote address at the seminar, “Property Investment Trend 2016,” which concluded on Monday. He urged the Real Estate Information Center to work with the private sector to gather background information on second-hand properties, including market price, blueprints, and build quality. Mr. Wisudhi explained that the availability of this information will allow prospective homeowners to make better choices and stimulate the second-hand real estate market.

The Deputy Finance Minister also spoke about the government's elder housing program. He said the program will develop homes on government property and allow senior citizens to pay for them by installments. Mr. Wisudhi added that homes that have been fully paid off can be used as collateral for approving loans for senior citizens to use in retirement.

Meanwhile, Thai Condominium Association President Prasert Taedullayasatit said he believed the property sector could expand by 5%, as major investors prepare to initiate as many as 92 development projects.

Housing Business Association President Athip Peechanon also spoke about factors that determine the attractiveness of a property, which include basic public infrastructure near the home. He said home buyers have become increasingly cautious, amid tougher loan requirements from financial institutions.


-- NNT 2016-05-31

[trogers]

"...stimulate the second-hand real estate market".

You don't need any stimulation. Just address the ill-treatment of banks towards mortgage restrictions on second-hand properties.

Why do they provide 100% financing to the inflated prices of new developments, but only 60-70% on already conservative valuations for second-hand properties?

[JAG]

"...stimulate the second-hand real estate market".

You don't need any stimulation. Just address the ill-treatment of banks towards mortgage restrictions on second-hand properties.

Why do they provide 100% financing to the inflated prices of new developments, but only 60-70% on already conservative valuations for second-hand properties?

Perhaps because they factor in that if they repossess a property they can get a better price for a "new home" than for a "second hand home"?

[CWMcMurray]

"...stimulate the second-hand real estate market".

You don't need any stimulation. Just address the ill-treatment of banks towards mortgage restrictions on second-hand properties.

Why do they provide 100% financing to the inflated prices of new developments, but only 60-70% on already conservative valuations for second-hand properties?

... And that is why nearly everyone only buys new...

[trogers]

"...stimulate the second-hand real estate market".

You don't need any stimulation. Just address the ill-treatment of banks towards mortgage restrictions on second-hand properties.

Why do they provide 100% financing to the inflated prices of new developments, but only 60-70% on already conservative valuations for second-hand properties?

Perhaps because they factor in that if they repossess a property they can get a better price for a "new home" than for a "second hand home"?

"Better" is a relative word, when prices in the second-hand market are only 50-75% that of new developments...

[trogers]

"...stimulate the second-hand real estate market".

You don't need any stimulation. Just address the ill-treatment of banks towards mortgage restrictions on second-hand properties.

Why do they provide 100% financing to the inflated prices of new developments, but only 60-70% on already conservative valuations for second-hand properties?

... And that is why nearly everyone only buys new...

Nearly everyone buys new because they don't have the cash to buy second-hand properties, the cash for the high down payments.

[johng]

... And that is why nearly everyone only buys new...

No, no, no..... its because the old houses have ghosts

[CWMcMurray]

"...stimulate the second-hand real estate market".

You don't need any stimulation. Just address the ill-treatment of banks towards mortgage restrictions on second-hand properties.

Why do they provide 100% financing to the inflated prices of new developments, but only 60-70% on already conservative valuations for second-hand properties?

... And that is why nearly everyone only buys new...

Nearly everyone buys new because they don't have the cash to buy second-hand properties, the cash for the high down payments.

And they don't have large amount for down payments because banks require much higher down payment for 2nd hand properties..

[swerver]

"...stimulate the second-hand real estate market".

You don't need any stimulation. Just address the ill-treatment of banks towards mortgage restrictions on second-hand properties.

Why do they provide 100% financing to the inflated prices of new developments, but only 60-70% on already conservative valuations for second-hand properties?

Not 100% but more than hundred percent correct.

Have been trying to find a buyer for my 20-year well maintained property for the last half-dozen years - ever since all the new property started arriving at practically no down payment because developers sale newly build property at recourse. In case you do not understand recourse, it is the developer will take the property back when payments to finance outfit are 90-days in arrears, cancel the sales contract so developer can sale property AGAIN.

Then to ad insult to injury, real estate companies aren't interested in accepting existing property for listing. I have given up. even there the property is located within walking distance from Central Mall supplying FREE bus service to Sky train, walking distance from Hospital, near expressway, just to give idea that it is not located on some klong.

LOL in LOS

[trogers]

"...stimulate the second-hand real estate market".

You don't need any stimulation. Just address the ill-treatment of banks towards mortgage restrictions on second-hand properties.

Why do they provide 100% financing to the inflated prices of new developments, but only 60-70% on already conservative valuations for second-hand properties?

Not 100% but more than hundred percent correct.

Have been trying to find a buyer for my 20-year well maintained property for the last half-dozen years - ever since all the new property started arriving at practically no down payment because developers sale newly build property at recourse. In case you do not understand recourse, it is the developer will take the property back when payments to finance outfit are 90-days in arrears, cancel the sales contract so developer can sale property AGAIN.

Then to ad insult to injury, real estate companies aren't interested in accepting existing property for listing. I have given up. even there the property is located within walking distance from Central Mall supplying FREE bus service to Sky train, walking distance from Hospital, near expressway, just to give idea that it is not located on some klong.

LOL in LOS

Some mortgages of new developments are actually over 100%. A Thai friend bought a new townhouse with mortgage at 80% of developer declared value, but the actual selling price after promotional discount was less than that 80% amount, leaving almost 3% surplus fund for some fitting up.

Recourse by developers would stop immediately should the property market tank. This is no guarantee to any financing banks. Or did they teach otherwise in their MBAs?