Home Builders Association Revealing that the home construction market shows signs of recovery in the 2nd quarter of 2024 from the government’s real estate stimulus measures. Build a house to reduce taxes “Millions per tens of thousands” has a positive impact on the entire business group involved. Looking at new waters, penetrating the renovation market Strengthen the army to create a great house.
Mr. Worawut Kanchanakul, Honorary Director Home Builders Association (HBA: Home Builder Association) Said that from the measures to stimulate the economy through the real estate sector approved by the Cabinet (Cabinet) on April 9, 2024, it will affect the overall picture of the real estate market. And the home construction market in the second quarter of 2024 is likely to expand better from the stimulus of government measures. This is the first time that the home building market has received a tax deduction measure for building a house on its own land. The measure “Build a house with a tax deduction of one million per 10,000 baht” is a deduction from personal income tax for those who build a new house. Not more than one house under a house construction contract for which the house construction company is entitled to pay stamp duty. By means of paying taxes via the internet network (Online) with the Revenue Department. The contract must be signed and construction begins from 09 April 2024 to 31 December 2025. The construction cost according to the contract can be whatever it is. But consumers will receive a personal income tax deduction. Ten thousand baht per million but not more than one hundred thousand baht As actually paid Look at the tax invoice received from the home construction company. Consumers will receive tax deductions in the next tax year. From the year the house construction was completed
For the advantages of measures to build houses to reduce taxes. “Millions per tens of thousands” will have a positive impact on
“Consumer” Those who plan to build a house on their own land will be able to reduce their burden. The money hired for construction can be deducted from personal income tax. This will help make decisions faster. Previously, some had delayed the decision due to the economic situation.
“Shop, construction material company” With sales increasing from the overall picture of home construction orders that are likely to expand better.
“State tax” Using housing construction payments to reduce personal income tax by 10,000 baht per million and not exceeding 100,000 baht overall has a positive effect on government revenue collection from VAT of 7%, both in the form of purchasing various construction materials. and house builders, etc.
However, looking for new markets new group purchasing power Came in to reinforce the existing customer base. Another interesting approach is the “Renovate Market,” which is a large market and spread across many locations, including Bangkok, the surrounding area, and other provinces. Advantages of accepting renovation work It’s about not spending a lot of money, finishing quickly, saving money quickly. Helps find another way to generate income for the company. and is likely to expand further according to the demand of the second-hand home market.
In addition to marketing strategies Another important factor of the home building business is costs, which should be carefully managed. especially concrete and steel that continually adjusts prices This is in contrast to the labor force that today has enough to accept increasing house construction orders.
“Oil prices are rising. Rebar material adjusts price These factors make it difficult for businesses to cope. Especially the cost of construction materials has increased. Steel prices have already increased by 5-10%. Home building companies are trying to maintain the same price level without increasing it, even though there are factors that increase the cost of building houses,” Mr. Worawut said.
Finally, Mr. Worawut said that government measures Came out to stimulate the economy, private businesses and consumers to gain confidence. This was carried out simultaneously with the reinforcement of the association’s marketing and sales promotion strategies. These are two catalysts that resulted in the overall home construction market in the second quarter, including the last two quarters of 2024, expanding beyond Target set
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