Real estate business: Boosting online marketing before new mortgage-lending rules take effect
The Bank of Thailand (BOT) announced measures to tighten credit underwriting standards for mortgage loans. Under the new rules, the maximum loan-to-value (LTV) ratio will be restricted on new mortgages for homes which will result in diminishing demand. So, this is the last chance for real estate businesses to do online marketing and win market shares before the new rules come into effect.
Affected parties by LTV
- Second home buyers who will need to pay more on a down payment.
- Investors who buy real estate for resale or rent will need to pay more and take more risks.
- Real estate developers who will face diminishing returns due to restrictions on mortgages.
Looking back to 2011 when LTV was announced previously, the real estate businesses experienced a significant delay in customer decision making and sales decreased by 50%. Gurus foresee that such phenomenon will happen again and real estate businesses will have no choice but to work even harder to find new prospects.
How to Survive as real estate businesses.
Many real estate developers have changed their marketing strategies to acquire more customers before the new rules come into effect, such as put more effort into a sales stimulation program: special bank offers, 0% interest for X years and etc.
However, don’t forget that even the best advertisement or promotion will never generate any sales for you if they fail to appear on the consumer’s radar!
Online Marketing: savior idea for real estate businesses.
90% of home buyers start their decision making process by searching through Google Search and most of them have searched 11 times before jumping to next step. As such, real estate marketers are needed to kick start online campaigns right now with professional support from real digital marketing experts.