Settha receives 8 proposals from 7 real estate organizations Set up a working group to organize a real estate stimulus package. Amend allocation requirements Reduce the size of a detached house from 50 sq m to 35 sq m, transfer reduction of 0.01% for the first 3 million houses, no price limit or expand to cover 5-7 million, bring back the LTV criteria, ask for 3% interest for the first house, BO house. I reduce land tax by 50%
Real estate business in 2024 Still facing challenges from many factors, including energy costs Construction material prices and interest rates that have continued to rise are counterproductive to fragile purchasing power and being denied credit.
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Resulting in the market slowing down. Reflected from the Government Housing Bank’s Real Estate Information Center (REIC), the report on the housing market situation in the third quarter of 2023 in Bangkok and surrounding areas said New sales decreased -9.7% and remaining units for sale increased 10% to 195,059 units.
Due to the LTV measure (Loan to Value Ratio), the ratio at which banks can provide loans. compared to the price of the house purchased) has been cancelled.
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At the same time, measures to reduce ownership transfer fees The maximum reduction that used to be at 0.01% has been increased to 1%, or from a hundred million baht to a million baht per ten thousand baht.
Evaluate if you want to use this industry as a driver of the national economy. The government must urgently come to help.
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Especially the government in the era with Mr. Settha Thavisin as Prime Minister and Minister of Finance. He understands the situation very well.
Most recently on January 10th, 7 real estate organizations met. The Prime Minister discussed and submitted 8 proposals to stimulate the real estate business.
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with Mr. Issara Boonyang, Chairman of the Board of the Real Estate, Design and Construction Trade Association. The Thai Chamber of Commerce is the head of the committee. From the discussion, the Prime Minister acknowledged that the real estate market situation has been continuously slowing down since 2019 and saw that it was an important problem that should be urgently solved.
Because stimulating the real estate market will have a multiplier effect on many business sectors. with various offers such as fee reductions Personal income tax Support for owning your first home That will revive the real estate market.
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and related business sectors and helps stimulate the overall economy of the country. By setting up a small working group to collect and present a solution to this problem quickly.
Mr. Issara revealed to “Thanasetthakit” said the Prime Minister accepted all 8 proposals with a policy to act immediately.
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Set up a working group to consider measures to stimulate real estate. assets on possible issues, with Mr. Surayut Thaweekulwat, Advisor to the Prime Minister or former CFO of BTS Group, as chairman in order to reach conclusions and drive the market to continue growing, which is expected to be no less than 10%. -15% and is confident that if there are measures to help encourage deer to grow, it will help. Gross national product or GDP has moved up to 4%.
As for the issues proposed to the Prime Minister, there are 8 points: 1. Reduce transfer-mortgage fees. Even though the Ministry of Finance has announced the renewal of the Not long ago, but based on the facts, we can offer more, which is to request a reduction in the transfer fee to 0.01% from 10,000 baht to 100,000 baht per million. or reduce the transfer fee from the current 1% to 0.01% while the mortgage fee Already received a discount at 0.01%, considering that the economy has not yet recovered well from the COVID situation.
For conditions that request a discount There are two options: Option 1: houses at every price level. Will receive a reduction in the first 3 million baht. Second option. Expand the ceiling To cover houses priced at 5-7 million baht in order to attract purchasing power for a circular economy and eventually when there is more buying and selling, the tax will revert back to the government sector.
- Build a house on your own land. Or the home building business has a personal income tax reduction of 10,000 per million, up to a maximum of 100,000 baht.
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For houses priced not more than 10 million baht and must be a contract with stamp duty (A.S. 4) in order to apply for tax deduction with the Revenue Department.
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This is to allow customers to enter the home building market system and pay taxes correctly, without ordering construction with general contractors which may have problems as a result.
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In addition, they also request permission from this market group to reduce transfer and mortgage fees. Which if we go back to 2022 The real estate market has grown because the previous government has given the second-hand home market the right to receive a discount. - Restoring the first house For people with middle to low income to have their own home. The government supports a special interest rate of 3% for 5 years and has the right to permanently reduce transfer and mortgage fees.
In addition, please continue the Baan Dee Mee Down project. of the Prayut government The government helps support the down payment from 50,000 baht to 100,000 baht.
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and restore BOI houses priced not more than 1.5 million baht at a low interest rate which is under the supervision of the Government Housing Bank (GH Bank) with permanent continuity.
- Propose a request to amend the land allocation schedule of the Central Land Allocation Committee. To reduce the size of house areas throughout all 77 provinces.
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Single houses from 50 square wah to 35 square wah, semi-detached houses from 35 square wah to 28 square wah, townhouses from 16 square wah to 14 square wah. - Reduce expenses from land and building taxes by 50% until the economy recovers from the COVID situation, especially wanting public service categories such as clubs, clubhouses, swimming pools in housing developments. Land taxes are paid at the same rate as public utilities.
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Mr. Issara views it as an appropriate number because during 2020-2022 the Prayut government reduced it by 90% and later in 2023 it reduced it by 15% because it was understood that the economy had recovered well.
- Support foreigners Come to live in Thailand By extending the time period for renting Thai land from 30 years to 50 years and having a Long-term Visa, buy a residence worth 10 million baht, get a 10-year visa/no more than 5 million baht, a 4-5 year visa.
- Bring back the LTV measure in 2024 for another year to allow real estate to recover better and
- Relaxation for land that is in the process of being bought or sold. Can submit EIA Because of the present It must already be owned, resulting in delays in project implementation and confirming that no one is applying for fun. Because the costs are quite high, however, for those who own land With the group that is still in the process of buying or selling land, we would like to calculate a different price for the EIA expenses.
As for the situation in 2024, Mr. Isara sees that there are still many challenging factors. Although interest rates are stable but have risen quite high, energy is stable at high prices with major problems.
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Regarding interest, it is accepted that it is an important variable causing 3 groups of people to be affected by higher costs: entrepreneurs investing in both projects and bonds, new home buyers and existing home installments.
The Props Company Limited, the leader of Bangkok Land and House, would like to thank you very much for the good article from Thansettakij.
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