Real estate promotion tracking-- How much money do we need, to have enough down payment on house & condo

At the end of this year until the beginning of the year 2019, every major property developer has accelerated the promotion. Encourage people to decide to buy a house. The word "final chance" is often seen in those promotional annotations. Each word ... each message ... what does it mean? Policy of the Bank of Thailand on the issue of down payment will affect or not. In the future how much, we must place down payment. We have answers here!

Current Situation

Since today - 31 March 2019, the new policy of the Bank of Thailand has not yet been effective. Everyone and every developer can also buy a house or condominium and place a down payment at an agreed rate. But the situation will be slightly different Depends on whether the project purchased is a recently launched project, not yet constructed or a completed project.


1. Down payment for new construction projects

Is a down payment with the project owner directly having to pay down payment for 24 installments or 36 installments depending on the construction period. Most of the installments are about 10-15% of the condo price. This is the buyer's own money not a loan from the bank


Therefore, if buying a condo for 2 million baht, the project owner will request 10% down payment, pay 24 installments. This means that buyers will have to pay 200,000 baht down payment for 24 installments or until the project is completed. Then submitting a loan from the bank to pay the remaining 1.8 million baht and pay the principal and interest to the bank.
 

2. The down payment for the completed project 

For the completed project, down payment is not an installment payment. But is a lump sum that buyers may apply for a loan from the bank. By which amount of loan will be received, usually depends on 2 main factors: 1. Credit of the applicant 2. Deals that developer and bank have together. But most often do not receive a full loan, mostly will be released at approximately 80% of the condo price.

Current outstanding promotion

There are many promotions that the developers use to encourage people to buy the house before 1 April 2019.


1. Chance to get 100% loan

Is a deal between the project owner and the bank in order to help the buyer to get a 100% loan ceiling limit. Clearly speaking, there is no need to find money to put down yourself. Just get all money from bank and later pay with bank.

Even various developers will announce that there is this promotion, not everyone will be entitled to 100% loan, because it depends on the personal credit of each person and other conditions that promotion requires also.

 

2. 0% interest for x years

Is a promotion that is seen often, this promotion did not come to help with the down payment. But comes to help with the installment in the early period. In most cases, this type of promotion usually gives 0% interest installments for about 3 years. After 3 years, the interest will float according to the market mechanism.


3. Installment 999 baht / month or 999 baht per million


These 2 promotions are similar. Is usually a completed project? Need to place the down payment first or not depending on the promotion conditions. Some promotions may pay only 999 baht and continue until the specified time, such as 1 year or 2 years. Once the promotion is complete, the payment will be paid down as a lump sum. And after the promotion ends the interest will also float.

4.  Stay free for 1-2 years


This kind of promotion often requests down payment first. Then, when transferring the ownership of the project successfully will being exempted from installments during the first 1-2 years.

For the promotion of real estate companies, if you are interested, can follow the website or various fan pages. Don't forget to compare each promotion and try to find the most suitable offer, such as free of charge, transfer cost and mortgage fees such as 
 siri.ly/rtm-blog

Future situations (1 April 2019 onwards)

The Bank of Thailand recently has a new policy on the regulation of credit rates on collateral value (LTV) in property loans wwhich will be effective from 1 April 2019. And affect the finished project group or ready to move directly because the LTV ceiling is lower, causing the down payment to be at a higher rate.

  • Home loan contract 1, price below 10 million baht, 90% LTV

  • Home loan contract 2, price less than 10 million baht, installment payment for the first 3 years and more LTV 90%

  • Home loan contract 2, price less than 10 million baht, with the first installment payment of not more than 3 years, 80% LTV

  • Home loans of 10 million baht or more, all LTV 80%

  • Home loan contract 3 and up, every group price, 70% LTV  


The meaning of this policy is no one can make a 100% home loan full ceiling campaign.The opportunity to place a down payment of at least 10% of the condo price is contract 1, and price less than 10 million baht. This means who want to get 2 million loans to buy a ready to move condo must have at least 200,000 baht as a lump sum ready to pay. In fact, may have to pay in proportion to more than 10% if the bank is more stringent.
 

However, the new policy of Bank of Thailand may not directly affect new construction projects. Because the new construction project Buyers will continue to pay installments for a period of 24-36 periods or until the project is completed depending on the individual project developers themselves will be more stringent or not.

New policies that occur May cause the situation of placing down payment on condo and buying property for living and investing in the future is not easy like before. Buyers should therefore consider both the budget itself and ability to pay. To be able to buy and invest in new projects appropriately. Important ... should consider the quality of the project and the reputation of the project developer as well. Because the reputation of the project developer is considered one of the factors that may result in a high recovery rate under the control of the new policy.
For those who are interested in buying a property for living or invest, before starting new policy of the Bank of Thailand, can check the initial approval limit easily via mobile phone.
 

Reference  http://forbesthailand.com/news/property/แบงก์ชาติคุมสินเชื่อบ้.html

http://www.realist.co.th