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Buyer's Guide

BUYING THAILAND’S OFF-PLAN PROPERTY

If you’re looking to invest in profitable real estate markets around the world but can’t afford high housing prices, buying off-plan property in Thailand could be the perfect opportunity. Developers offer lower prices with better incentives for unfinished properties like villas and condos, and most off-plan projects in Phuket also offer favorable rental returns. In this article, we’ll explore the benefits of buying off-plan property in Thailand, as well as potential drawbacks, and how you can safeguard your investment through due diligence.

Benefits of Buying Off-Plan Property in Thailand

  • Lower Prices: Current data shows that off-plan property in Thailand is sold as low as 25-30% lower than completed projects.
  • Larger Discounts: Developers often give further discounts to early buyers.
  • Low Deposit Amounts: Reservation agreements often require very small financial commitments.
  • Staged Payments: Good developers lay out their payment schedules in accordance with benchmark progress points.
  • Proactive Customizations: Developers often allow for a variety of customization options.
  • Better Plots/Units: Early commitments mean being able to choose the best location.
  • Freebies: Developers sometimes offer free upgrades to furniture packages, free foreign freehold status, or luxury items such as tablets, motorbikes, or even entire condo giveaways for high-end purchases.

Potential Drawbacks

  • Project Cancellation: This is the biggest risk and it has happened in the past.
  • Project Delays: There are often penalties the developer must pay to keep the project progressing on time.
  • No Physical Product: Buyers must rely on images and videos in order to envision their property.
  • 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, your unit might be finished well before other units in the project.

Off-Plan Property Due Diligence
To minimize risk exposure, thorough due diligence is essential. Here are some things to consider during the process:

  • Research the developer and construction company
  • Require clear terms in the contract
  • Look into title deeds and licenses
  • Compare prices

Off-Plan Property Contracts
Ensure your contract safeguards your rights and investment with clear terms and clauses such as:

  • Timescales
  • Price
  • Building Specification
  • Floor Plan
  • Payment Penalties
  • Late Completion Compensation
  • Developer’s Default
  • Extension Clause
  • Substitution Clauses
  • Assignment
  • Alternative Dispute Resolution

Buying off-plan property in Thailand can be an excellent investment opportunity, but it’s important to do your due diligence and seek the advice of a lawyer before signing any contracts. Keep in touch with the developer and ask to be informed of any issues or modifications. And remember, the earlier in the construction process you purchase a property, the better the deal you’ll get. For a list of recommended options, take a look at our off-plan property in Phuket, and feel free to contact us at Phuket Property Group if you have any questions.

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