Talking about bank loan, based on conversation with one bank manager from PBB who is awared of this industry, the bank will only provide up to 70%(if remember correctly) of the land valuation price. Bank will not loan a single cent on the building cost. In another word building cost all by cash only.
Can understand why. Putting ownself under the bank's shoes, the only thing valuable to the bank is the land. The building made of concrete, rebar, wooden plank etc of zero value to the bank. The bank is not going to take the risk of fail farms in the middle of no where. All risk is bore by the farmers. Banks are smart. They are in all win-win position. If you success, they win. If you fail, they still win as land acquired only 70% of the cost. Farmers go eat bananas.
If the gomen is smart, they should go study how many % of the nest in the market contributed from the shop houses compare to farm land. Not surprise 80:20. If any change in ruling to strike out shophouses, you are taking about 0:20 ie hundreds of millions may be billion gone down the drain because one silly error on the paper. Dont play play.
Should learn from one relative, buy one particular bank share, multi million by now.
V2. Swiftlet Keeping Discussion, Home of Fuciphagus Domesticus
Apr 17 2009, 05:03 PM
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