Thread: Tax incentives for buying 'used' homes

Some tax incentives for buying used homes that may result in the traditionally stagnant second-hand housing market finally moving:

Cash incentives for used-home buyersKANANA KATHARANGSIPORN

Demand for used houses is expected to grow by 20% this year due to government tax incentives, according to Wisit Kunathornkul, managing director of the property brokerage Realty World Alliance Co. The incentives include exemption from the 3% special business tax on home sales, the reduction in mortgage fees to 0.01% from 1% for buyers, and a cut in the transfer fees that buyers or sellers pay, to 0.01% from 2%.

To discourage property ''flipping'' or speculation, a homeowner must have owned the property for at least one year prior to selling to qualify for the tax and fee reductions.

People selling their homes can also deduct up to 50,000 baht of the capital gain from their taxable income, provided they buy another home within one year.

He said clients could save between four and seven percent of the total cost, which could be realised quickly.

''If the brokerage laws are enacted, the used-home market will grow more as the laws protect consumers,'' says Mr Wisit.Last year the used-home market was worth a total of 70 billion baht, up by 10% from 2004. It is expected to rise to 84 billion baht this year.

About 25% of all second-hand homes worth about 17.5 billion baht, were sold through brokers. The proportion is expected to grow to at least 30% this year.

Last year, Realty World posted sales of about two billion baht from 1,280 properties. Of the total sales last year, detached houses made up 32%, townhouses 31%, land 20%, shophouses 11%, and condominiums 6%.

The company aims to boost sales by 50% to three billion baht by the end of 2006, Mr Wisit said.

To achieve this, it has launched a new service to sell new units from real estate developers, with associated marketing.

It expects to manage sales from five projects this year to generate another 800 million baht.

He said the company's revenue last year stood at 3.6% of total sales on average.
The firm plans to expand its 18 branches by three this year in Khon Kaen, Pattaya and Nakhon Ratchasima.

But what are they going to do about all the ghosts?

Here are a bunch of links to banks and property agent's web sites with details of houses available.
Unfortunately you either need the help of a Thai or beable to read Thai!.
A couple have an English version.


http://www.resalehomethai.com/

http://www.reic.or.th

http://www.propertychoice.net

http://www.kasikornbank.com/PropertyForSale

http://www.bam-amc.com/

http://www.tmbhome.com

http://www.buathong.com/

http://www.sicha.co.th/

http://www.fairnesshouse.com

http://www.bca.co.th/

http://www.krungsriproperty.com/

http://www.phethaiamc.com/

http://www.realtyworld.co.th/

http://www.scib.co.th/th/home/default.asp

http://www.bangkokbank.com

A typical site

Great links Pooly!

Apparently, because I can't read Thai and have to rely on the missus, we can buy a 44 sq met room 5 minutes from work for 687,000 in dear old Nonthaburi!!

Of course I'd rather something within walking distance of lower Sukhumvit so I'm not tempted but there's shitloads of places for 1-2 mill. if your not fussy about the location.

The missus is on about buying herself a house out here and selling off the aparment in Bangkapi.

keep a house in BKK and house here in Chacheongsao. Not a bad idea.

It would save me money on rent. It would also mean though that I would be living in her house which is not the best idea I have ever heard of. I might have to clean it.

"People selling their homes can also deduct up to 50,000 baht of the capital gain from their taxable income, provided they buy another home within one year."

And this amendment just passed by the TRT Party: "Prime ministers selling their company through their children can also deduct up to 7,777,777,777 baht of the capital gain from their taxable income, provided they tell 77 more lies by noon."

I think you missed off a 7!

Originally Posted by NickA

I think you missed off a 7!

Thats a lot of lies!