Looking for an investment in Phuket, Thailand? Buying off-plan property can maximize your ROI. With a lower price, larger discounts, and small deposit amounts, it’s an attractive option for those who want to invest in profitable real estate markets but can’t afford high housing prices. Staged payments and proactive customization options, along with better plots/units and freebees, are additional advantages. However, potential drawbacks include project cancellation, project delays, no physical product, no immediate access, and construction hassles. To minimize the risks, do your due diligence, research the developer and construction company, compare prices, and look into title deeds and licenses. Require clear terms in the contract and consider the details, such as timescales, price, building specification, floor plan, and penalties/compensation. We offer off-plan property in Phuket and would be happy to give you a personal consultation free of charge or obligations.
If you’re an investor who wants to invest in profitable real estate markets around the world but and want to avoid high housing prices, while less customization options, then buying off-plan property might be for you. The idea is to secure the property at a lower price and sell it for a higher price once the surrounding area develops.
While buying off-plan isn’t for everyone, modern renderings and 3D videos can help buyers envision completed projects, and due diligence aided by a good lawyer can help limit risk exposure. Check out our list of recommended off-plan properties in Phuket, which have excellent potential for short or long-term returns, whether they are nearly finished or just getting started.
To maximize your ROI, minimize risks, and turn your property into a hassle-free moneymaker, here are the benefits and potential drawbacks of buying off-plan property in Thailand:
Benefits:
- Lower prices: Off-plan property is sold as low as 25-30% lower than completed projects.
- Larger discounts: Developers often give further discounts so long as you are one of the first buyers.
- Low deposit amounts: Reservation agreements often require very small financial commitments.
- Staged payments: Payment schedules are laid out in accordance with benchmark progress points.
- Proactive customizations: Developers often allow for a variety of customization options you can choose before installation.
- Better plots/units: Early commitments mean being able to choose the best location rather than settling for what’s left.
- Freebies: Developers often offer free upgrades to furniture packages, free foreign freehold status, or luxury items such as tablets, motorbikes, etc.
Potential Drawbacks:
- Project cancellation: This is the biggest risk by far, so thorough due diligence is important.
- Project delays: There are often penalties the developer must pay to incentivize them to keep the project progressing on time.
- No physical product: Buyers must rely on images and videos in the absence of a show unit.
- No immediate access: Buying off-plan is a waiting game and not suitable for anyone looking to start earning rental returns right away.
- Construction hassles: If you get in early on a villa project, be prepared for noise, power/water supply cuts, and other inconveniences related to construction.
- Failure of monthly downpayments, within construction, might lead to contract cancellation and loss of money, as well as getting no loan by the bank. (Loan by the bank just only if a Thai citizen is involved)
To minimize the downsides and safeguard your investment, we offer a free personal consultation to answer all your questions.
Off-plan property due diligence is crucial to minimizing risk exposure. Some things to consider during the process include researching the developer and construction company, requiring clear terms in the contract, looking into title deeds and licenses, and comparing prices.
Off-plan property contracts should clearly indicate timescales, price, building specifications, and include a floor plan. Clauses should also cover payment penalties, compensation for late completion, and an option for a full refund should the developer fail to complete the project.
To summarize, here are some key points to keep in mind when investing in off-plan property in Phuket:
- Thoroughly research the developer before making a decision.
- Ensure that the contract you sign protects your rights and investment.
- Consult a lawyer to confirm the contract before signing it.
- Stay in touch with the developer to stay informed about any changes or issues.
- Remember that buying early in the construction process often leads to better deals.
If you have any additional questions about investing in off-plan property in Phuket, please don’t hesitate to contact us at 999 Phuket Property.
