Real estate, hey! There is hope for government assistance after 7 real estate associations came to discuss. Settha Thaweesin submitted 8 proposals to stimulate the market and solve problems for consideration. Issara Boonyang revealed that the Prime Minister Order to set up a working group immediately. I believe I understand the situation already.

Issara Boonyang, Chairman of the Board of the Real Estate Business Trade Association Design and construction Thai Chamber of Commerce and Honorary President of the Housing Business Association said yesterday (10 Jan.) 7 real estate associations which includes Real Estate Trade Association Committee Design and construction Thai Chamber of Commerce, Housing Business Association, Thai Condominium Association, Thai Real Estate Association, Real Estate Sales and Marketing Association, Thai Real Estate Brokers Association and the Home Builders Association Met with Mr. Settha Thavisin, Prime Minister and Minister of Finance. To submit a proposal to stimulate the economy through real estate stimulus measures.

“After discussion, the Prime Minister ordered the establishment of a working group with real estate knowledge to consider the 8 matters presented. It's called working immediately. with representatives from the operators going to provide information To study what can be done Does not affect the budget Or even if it affects you, it's worth taking action. This takes time to consider first. While the Prime Minister Go on missions abroad.”

The 8 proposals, including many that have already been proposed, include:

1. Reduction of transfer fees to 1% and mortgage fees to 0.01%, which has been extended until December 31, 2024, with a request to adjust the criteria for the value of housing purchases. From a price not exceeding 3 million baht to not exceeding 5-7 million baht or giving the right to a reduction of the first 3 million baht to stimulate spending by those with purchasing power above 3 million baht for both newly built houses and second-hand houses.

2. We would like to support the reduction of personal income tax for those who wish to build a house on their own land. At the reduction rate of 10,000 baht per million, up to a maximum of 100,000 baht, reducing the burden on those who want to build houses on their own land and stimulating the economy in all sectors connected to the home building business. Including encouraging more home builders to register as juristic persons and enter the tax system.

3. Support the first home ownership of low-income people. Considering a low interest rate or soft loan of 3% for the first 5 years from a government financial institution, waiving transfer and mortgage fees for the first home priced under 5 million baht, supporting a down payment for first-time homebuyers of 100,000 baht for First house only

4. Ask the Ministry of Interior and the Central Land Allocation Committee Amending the announcement of the Central Land Allocation Committee Subject: Setting policy for land allocation for residential and commercial use, requesting to "reduce" the land size of the allocation project to be consistent with the economic situation. By reducing the size of single detached houses from an area of not less than 50 square wah to not less than 35 square wah, semi-detached houses from an area of not less than 35 square wah to not less than 28 square wah, and townhouses from an area of not less than 16 square wah. It is not less than 14 square meters.

5. Land and building taxes, for example, request a 50% reduction in land and building taxes for a period of 1 year because the economy has not yet recovered. Edit rates for land and buildings under development or completion of projects that have not yet been sold. and public services in housing projects, such as clubs, swimming pools, and clubhouses, from being designated as other categories. It is a type of residence, etc.

6. Consider reviewing the rules and laws related to the ownership of residences by foreigners, such as extending the lease period from 30 years to 60 years by defining the lease as a property right, reviewing the criteria of the Board of Investment or BOI. Concerning the ability for foreigners to purchase housing, granting a 10-year long-term visa for foreigners who purchase housing of 10 million baht or more and a 5-year midterm visa for housing purchases of 5 million baht or more.

7. Help coordinate with the Bank of Thailand (BoT) to cancel measures to control housing loans or Loan-to-Value: LTV in order to stimulate purchasing power.

8. Request a review of risks from uncertainty in the process of requesting approval for environmental impact reports or EIAs of condominiums for entrepreneurs who have entered into contracts to buy and sell land. You can submit and complete the steps to receive EIA approval while the land has not yet been transferred. Because the approval process is complicated. Binding with many sectors This causes a very high risk in doing business if the EIA is not passed, causing the entrepreneur to suffer great damage to the point of bankruptcy. Because they received the transfer of land at a very high price but were unable to develop the project.

“The Prime Minister already understands that real estate is a business with many connections. It is a good thing that you took action immediately,” Issara said.

At the same time, Mr. Settha Thaweesin, Prime Minister and Minister of Finance Posted a message via X yesterday (10 Jan.) that

“The real estate market situation has been continuously slowing down since 2019. I see this as an important problem that should be urgently solved. Because by stimulating the real estate market, there will be a multiplier effect on many business sectors.”

“Today, 7 real estate organizations Has presented various measures, whether it be a reduction in fees Personal income tax Support for owning your first home That will revive the real estate market. and related business sectors and helps stimulate the overall economy of the country. I have set up a small working group to collect and present solutions to this problem quickly.”

Source:https://www.bangkokbiznews.com/property/1107816

at 11/1/2024

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