Thailand’s Treasury Department announced that it would work on 2,000 units under the country’s low-cost housing project in 2018, reports local media. The government continues to look for ways that will allow low-income earners to purchase their own homes, which is a big issue facing many people at the moment.
Land in the Udon Thani, Chiang Mai, Chiang Rai, Khon Kaen, Lampang, Prachuap Khiri Khan, Chon Buri, and Nakhon Phanom provinces will be put up for auction by the Treasury Department. These sites have been earmarked to develop homes under the Pracha Rat (People’s State) housing scheme and will be bid on by several private developers.
Leases for low-income earners have been set for 30 years, says Treasury Department Deputy Director-General Amornrat Klamplob to the Nation. The 11.4 million recipients of the government’s welfare and subsidy scheme will have 1st priority for leasing homes in the planned housing projects.
Any residential units remaining will then be made available to people who earn under THB35,000 per month. The homes are priced between THB350,000 to THB700,000 and under the 30-year lease agreement will have mortgages that cost less than THB2,000 a month. State-owned banks will provide the mortgages and can charge 2.75% interest during the first 3 years of the loan.
Each land plot must have at least 70% of the total area developed into residential space while any remaining areas can be allotted for commercial use. The Treasury Department allows the commercial spaces as a way for developers to bring in income that can be used to finance the maintenance costs of common areas.
The developers of each development will be allowed to sublet it out to others as long as they manage the project throughout the remaining period of the lease. Anyone leasing a unit is unable to transfer the lease rights unless it involves an heir assuming the property.
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