SCB advises customers to manage land tax through Property Backed Loan, increasing the yield of 6-8%

SCB WEALTH organizes a seminar on “Land Tax Strategies 2022”, offering asset management tools through “Property Backed Loan” to wealthy clients, and recommends arranging asset allocation portfolios to suit the client’s acceptable risk profile. for the opportunity to generate an average return of 6-8% per year

On April 26, 2022, Dr. Satit Phongthanya, Senior Director of Estate Planning and Family Office, Siam Commercial Bank, revealed that SCB Wealth organized a seminar for the bank’s Wealth customers on the topic of “Land Tax Strategies for 2022” to provide knowledge and understanding about land tax and buildings where the government will collect the full tax rate this year, for the first time after two years the government reduced its tariffs by 90 per cent due to the coronavirus pandemic.

However, the appraisal price of the land used for tax collection in 2022 is the appraised price in 2016 and in 2023 there will be a new appraisal price of the land. This will result in higher land tax rates as well.

For land and building tax rates in 2022, for example, vacant land, property value 0-50 million baht, tax rate 0.3%, property value 50-200 million baht, tax rate 0.4%, property value 200-1,000 baht. Tax rate of 0.5%, property value 1,000-5,000 million baht, tax rate 0.6% and asset value 5,000 million baht or more. Paying tax at the rate of 0.7%

However, SCB WEALTH has a financial tool for asset management called Property Backed Loan as one of its management options. manage land tax to be more flexible by bringing the existing land to mortgage with the bank and take the loan that has been converted into another type of investment portfolio under the supervision of a team of financial advisors

Mr. Pakorn Petrakat Senior Director Executive of Wealth Lending Product Department, Siam Commercial Bank, said that Property Backed Loan products meet the needs of private banking customers who want to earn more from their existing land rather than leaving unprofitable land with a lower interest rate. interesting

According to the survey, most Wealth customers own about 40-50% of their assets. And plans to pass on the land to the next generation of heirs, therefore suitable for long-term investment in the form of Property Backed Loan, which provides loans to use loans from banks to invest in various types of assets.

It is classified as Asset Allocation under the supervision of a team of financial advisors. and select assets that are suitable for customers on acceptable risks with the goal of generating good returns Even after deducting the interest on the loan and paying the land tax There is also an opportunity to increase the wealth of the client’s investment portfolio as well. can be operated without prior payment fee

Dr. Kampol Adireksombat, Senior Director of SCB Chief Investment Office (SCB CIO), Siam Commercial Bank, revealed that Property Backed Loan focuses on generating good returns. to use the money to pay the land tax and interest on the loan by a team of financial advisors Introducing Asset Allocation Portfolio to diversify investments across multiple assets.

By considering both the country group, market, industry sector and the appropriate valuation by assigning portfolios to customers divided into 3 main groups (Mild Moderate, Moderate, and Aggressive allocation) based on expected returns and acceptable risks for customers

“Property Backed Loan portfolio management focuses on generating yearly cash inflows. We do not take risks that are very risky. It focuses on opportunities to generate consistent returns. in order to be sufficient for the customer to pay the land tax loan interest Asset Allocation Arrangement In addition to RM that takes care of consulting with customers, there is also a team of experts who are responsible for finding the right product, together with a team of investment consultants to help analyze the strategy. and select products in order to get an asset class that meets the customer’s goals,” said Dr. Kamphon.

Read the original news: SCB advises customers to manage land tax through Property Backed Loan, increasing the yield of 6-8%.


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