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2020 has started… Talk in the press of World War 3, several whole cities quarantined in China for a deadly new virus outbreak, Australia is burning, Spain is flooding, Taal Volcano in the Phillippines awakens with a bang after 43 years, the UK has left Europe via BREXIT, Thailand is in smog and we have reports of a severe drought ahead also, amongst other things… Disaster and lives lost and nations split.

In terms of the financial world more locally, we have the THB continuing its strength against other global currencies, thus lowering the spending power of Expats living off foreign currency income. In some instances and in only the last 5 years, the baht is up over 40% of its purchasing power! In addition to property & landowners, the “Land and Building Tax Act” became effective at the start of the year and is the first land and building tax to be introduced in the Kingdom of Thailand. All property owners will be taxed based on the official appraisal value, as appraised by the Treasury Department. Tax rates in 2020-2021 for residential properties will be starting from 0.02% to 0.1% depending on appraisal value and the rates will change up to 0.3% in 2022 onwards.

To top these financial worries off, it has been reported recently that teachers in Thailand owe 1.1 trillion baht which is equivalent to around 16% of total public debt in the kingdom. Reportedly 80% of those who are educating Thailand’s future, allegedly on average owe THB 3,000,000 each. “The huge debt incurred by teaching personnel was attributed to the rising cost of living, family burdens and a lack of financial discipline on the part of both teachers and the financial institutions they borrowed from” according to reports in the press.

For all of the above, it is clear that the year ahead needs careful financial planning to either minimise debt and interest paid on borrowing whilst at the same time, maximising returns on those investments made or at the very least, start investing to start earning interest in the first place, rather than spending interest.
Making the money you earn work hard for you, rather than working hard to give the money away to others is key.

It is not uncommon for cryptocurrencies to swing on a daily basis of 3% therefore; it is feasible to take for example an affordable THB 10,000 deposit into Bitcoin Cryptocurrency (amongst others) and trading to make 3% per day… IF one was able to successfully trade on a daily basis for the next 335 days (until the end of the year) using the same initial THB 10,000 without adding any more and reinvesting any returns & proceeds each time, by April that THB 10,000 would now be worth over THB 100,000, in June it would be worth more than THB 500,000, by September more than THB 5,000,000 and by the end of the year an unimaginable THB 193,924,666. Now to be fair at some point, one is likely to make a decision not to re-invest the whole amount each day aiming for a 3% profit and of course, if things were that easy everyone would be doing it… Trades can go down, just as much as they go up but… However, if one is THB 3,000,000 in debt (such as our teachers’ example above), THB 3,000,000 could be achieved by trading each day by August this year, literally one could pay off all debt before it even gets to Loy Kratong!

For the January edition article this year, I mentioned the Bitcoin price is $6,900. At present, at the time of writing it is standing at $8,696 which is 26% profit for 27 days. In fact, it went up to $9,189 earlier this month already which would be 33% profit so certainly on average more than 1% per day this month so far and that’s not even trading, just simply holding (HODL’ing) the Bitcoin. If however, you chose to invest in another Altcoin (such as BSV which is a fork of the original Bitcoin and in the top 10 by market cap) than one would have enjoyed up to 391.8% profit if traded BSV against Bitcoin pair! The BSV against Bitcoin trade would have been a perfect example of how making the money work hard for you is conducted. You would have bought Bitcoin for $6,900 expecting a rise in price and then traded to BSV hoping that BSV increased by more than what Bitcoin would. As a result, you would then have increased your Bitcoin supply by up to 391.8% profit, sold back to Bitcoin and not only that, the Bitcoin value itself also went up by 26% (if price at time of writing) so you made a profit on both. THB 10,000 invested as per the earlier example “could” now be sold for THB 48,975 in just 27 days.

In essence, the above scenario would have been the “perfect” trade, literally buying the bottom and selling the very top which of course, is not likely many would have achieved…..if any at all. The idea, however, is simply to highlight that investments are out there with returns that can work in a life-changing manner. Imagine for example if one put THB 1,000,000 into that scenario instead….. the same amount would now be worth THB 4,897,500. The bigger the starting point, the bigger the returns of course. Now with land taxes being implemented, it is often thought to develop the land in order to reduce taxes or help cover/pay for the new expenses. Why put effort into developing infrastructure when one could simply Kai Faak the land, deposit into Crypto and wait for a year etc…. particularly with the halving event coming up in May this year… A Kai Faak loan offers no monthly repayment expense as 1 year’s worth of interest and fees are deducted up-front. Hassle-Free, see you in 1 year to repay the loan OR renew for a further year…

Cryptocurrency could offer a once in a generation opportunity similar to the gold rush of days gone by. Taking a little time out to study, research and trade small amounts each day until confident, could be the life-changing scenario one could dream of.

At MBK Guarantee Co., Ltd. we offer equity release lending for Condo, Villa, and Land being offered as collateral. Both principal & interest or interest-only terms are available under Mortgage or Kai Faak terms respectively. This means if you own a property already and would like to take cash out to invest elsewhere aiming to earn a better return than being locked up in the collateral, we can help. Interest rates start at 9.4% for condo commercial terms and 12% for all other collateral types. Up to 10-year tenor or even 20 years if choose a 50% balloon repayment option as we may renew the balloon at the end of the first 10 years assuming good repayment history.

For further information on how to “Finance Property, Land & Condos in Thailand”, or a web-link to the “Thailand Condo Finance Map” which shows pre-approved condominium projects for finance, please feel free to email [email protected] OR, call 66 (0) 81278 5382 OR, Line ID stuartmaxwellfoulkes, I shall than be happy to assist. To speak with a native Chinese national, contact Rose on 66 (0) 95648 2913 or WeChat: rose215620 or email [email protected]

Note – This article is not to be considered as financial advice or a recommendation to invest into Crypto currency. This article also does not reflect on our company MBK Guarantee and all opinions or views are that of my own only. Any decision one makes to borrow against a property puts the home at risk in terms of default and investments could go up, just as easily as they could go down.