Real Estate Assistance May Last Longer
The Finance Ministry may broaden tax and fee-reduction spurs for real estate purchases after March 2009, said Finance Minister Suchart Thada-Thamrongvech.
Real estate associations submitted an appeal for an expansion recently, together with other applications; as well as one that the Bank of Thailand slashes interest rates in line with other reductions in the region.
They also advised the government to accelerate investment in mass-transit projects and to support commercial banks to slow down sanction conditions for home loans.
Dr Suchart said the real estate tax spurs were set to terminate in March however the ministry would think about their extension as real estate is a key sector in motivating financial growth.
On March 4 the government declared a decrease in the particular business tax from 3% to 0.1%, in transfer fees from 2% to 0.1%, and in mortgage fees from 1% to 0.1%.
The minister said the real estate feared an impact from the weak financial circumstances. Exclusive of additional government encouragement, the industry has a goal of 74,000 recently registered residential units in 2008.
He also said that Thailand's policy interest rate should be in sequence with others in the area. He added that demands from price rises and increasing oil prices had relieved and countries in the areas like South Korea had already decreased their policy rates by 0.75% points.
He also advised commercial banks - while shielding themselves from the worldwide financial meltdown - to slow down conditions for discharging housing loans. He said these loans carry lesser threat than other types of credit as they are protected by property. Applications should as a result be well thought-out by banks in an "undemanding manner."
The government is at present at the bidding stage for building up the Purple Line and look forward to open bidding for the Red and Blue lines in 2009.
Dr Suchart said the government had tried to set up buoyancy in the country's financial system with the application to expand the Deposit Protection Act's 100% deposit guarantee for three years from 2009.
Real estate associations submitted an appeal for an expansion recently, together with other applications; as well as one that the Bank of Thailand slashes interest rates in line with other reductions in the region.
They also advised the government to accelerate investment in mass-transit projects and to support commercial banks to slow down sanction conditions for home loans.
Dr Suchart said the real estate tax spurs were set to terminate in March however the ministry would think about their extension as real estate is a key sector in motivating financial growth.
On March 4 the government declared a decrease in the particular business tax from 3% to 0.1%, in transfer fees from 2% to 0.1%, and in mortgage fees from 1% to 0.1%.
The minister said the real estate feared an impact from the weak financial circumstances. Exclusive of additional government encouragement, the industry has a goal of 74,000 recently registered residential units in 2008.
He also said that Thailand's policy interest rate should be in sequence with others in the area. He added that demands from price rises and increasing oil prices had relieved and countries in the areas like South Korea had already decreased their policy rates by 0.75% points.
He also advised commercial banks - while shielding themselves from the worldwide financial meltdown - to slow down conditions for discharging housing loans. He said these loans carry lesser threat than other types of credit as they are protected by property. Applications should as a result be well thought-out by banks in an "undemanding manner."
The government is at present at the bidding stage for building up the Purple Line and look forward to open bidding for the Red and Blue lines in 2009.
Dr Suchart said the government had tried to set up buoyancy in the country's financial system with the application to expand the Deposit Protection Act's 100% deposit guarantee for three years from 2009.
Labels: real estate, real estate tax
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