What is "Off-Plan" property in Phuket?
What is Off-Plan property in Phuket?
Off-plan property is basically buying the rights to a unit or property that has yet to be built, as opposed to buying a finished unit or property on the secondary market.
Typically off-plan means buying property from a developer at the pre-construction stage. It is also common for a property developer to commence construction of a project and continue to sell units of property throughout construction while still referring to properties as off-plan.
When purchasing an off-plan property, it is conceptually important to understand that the developer is assuming responsibility for purchasing land, subdivision, utilities access and basically full accountability for construction and project management. You are essentially consenting to pass responsibility to the property developer for all of these matters.
Some benefits to buying off-plan property are that once you have purchased off-plan from the developer, the price is fixed. Buyers are given a payment plan and payments staged according to the construction progress. Buying off-plan can typically save the new owner between 10% - 30% off market prices. Purchasing this way gives you the opportunity to choose the best unit or location. Purchasing off-plan means that the buyer gets warranties on appliances and structure.
Buyers are sometimes able, but not always, to make changes to the unit or property as desired.
The risks with buying off-plan can be greatly reduced by working with a reputable developer with a good track record and financial backing. Other risks are that the property might differ from expectations. Another is that exchange rates might weaken during the payment plan and construction.
For more information about purchasing off-plan property please call us at +66 93 606 0906.