• ENGLISH language translator flag image by Phuket Realtor
    • FRENCH language translator flag image by Phuket Realtor
    • THAI language translator flag image by Phuket Realtor
    • CHINESE language translator flag image by Phuket Realtor
    • SPANISH language translator flag image by Phuket Realtor
    • RUSSIAN language translator flag image by Phuket Realtor

5 Things to Know About Buying Off-Plan Property

Category : Buying | Posted On 2018-06-20 00:00:00

5 Things to Know About Buying Off-Plan Property

Buying property pre-construction is referred to as off-plan property and is a common practice in Thailand. It is also common for a property developer to start construction of the project and continue to sell units of the property while still referring to it as “off-plan”.  In this sense, the term "off-plan" is used in a general sense to refer to properties that are not yet completed by the developer.

Point #1

When buying an off-plan property it is essential in purchasing from a reputable developer. This will minimize your risks. Off-plan property is basically buying the rights to a “property” that has yet to be built. A good realtor can help shorten the process of finding these reputable developers. You will want to know about prior projects and the financial health of the developer. Most developers secure funding before they start but you will want to make sure to know that if all units are not sold they still complete the development.

Point #2

When buying a condominium off-plan choose to work with only “condominium registered” developments. The developer will have to obtain a condominium title which can be quite cumbersome. This also means that they will be governed by legislation contained in The Condominium Act and provides a degree of consumer protection for buyers.

Point #3

When purchasing an off-plan property, it’s important to understand that the developer is assuming responsibility for purchasing land, subdivision and all issues relating to access and utilities and full accountability for construction and project management. Bypassing responsibility to a property developer for these tasks, you are largely or wholly giving up control over their implementation. Make sure that the developer is qualified.

Point #4

It does, however, come with its benefits. Buying off-plan property is a great way to save money. On average, you can save anywhere between 10% to 40% off market prices. Some developers refer to this as early bird marketing but most developers call it off-plan pricing. You can watch as your unit increases in value as each phase is released.

Buying off-plan typically gives you more choices. You can choose a high floor in a condominium development or a corner unit. You can choose the best plot in a villa development. Many developers will offer choices of tiles and layouts. These preferences are personal choices that are made easier by buying off-plan.

Point #5

Mortgages and financing for ex-pats (foreigners) in Thailand are extremely limited. Typically Thai Banks will only lend to foreigners who live and work here and qualify. However, purchasing off-plan provides buyers a payment plan that corresponds to the construction progress. In many cases, the purchase can be spread over 2-3 years and additional terms can be negotiated.

We would be happy to discuss reputable developers in Phuket Thailand. Give us a call at +66 93 606 0906.


Tags:  #off-plan property

Phuket Realtor
David Henry
David Henry is known for his integrity, high energy and hard work which goes into every detail or your real estate transaction at Phuket Realtor. David grew up in the Boston area and started as a realtor in his 20's. With over 30 years of experience in real estate, he has now started one of the best independent real estate agencies in Thailand, Phuket Realtor.

Please display the website in portrait mode!