03 Apr 2023
PhuketProperty.com; Off-plan properties in Phuket, Thailand have become increasingly popular among investors and buyers in recent years. An off-plan property is one that is sold before it has been completed or even started construction. Buyers often purchase off-plan properties as a way of getting a good deal, as they are usually priced lower than completed properties. However, purchasing an off-plan property comes with its own set of risks and considerations. In this blog post, PhuketProperty.com will give advice to people considering buying an off-plan property in Phuket, Thailand.
Research the Developer
The first step when considering purchasing an off-plan property is to research the developer. It is important to ensure that the developer has a good track record and a solid reputation in the industry. This can be done by looking at their previous projects and speaking to previous buyers. It is also worth checking whether the developer is registered with the Thai Board of Investment (BOI), which ensures that they meet certain standards and requirements.
Location, Location, Location
The location of the property is crucial when it comes to buying off-plan. Look for areas that are in high demand and have good potential for capital growth. In Phuket, areas such as Laguna, Layan, Cherng Talay, Surin and Kamala are popular with tourists and have a strong rental market. Consider the proximity to beaches, restaurants, and other amenities when choosing a location.
Know the Payment Schedule
When purchasing an off-plan property, buyers will typically need to make a deposit upfront and then make stage payments throughout the construction process. It is important to know the payment schedule in advance and ensure that you can afford the payments. Additionally, make sure you understand the refund policy should the project be delayed or not go ahead.
Understand the Contract
Before signing a contract for an off-plan property, it is essential to read and understand all the terms and conditions. Ensure that the contract includes a detailed specification of the property and its fittings and finishes. Look for clauses that protect you in the event of delays or issues with the property. It is also worth having a lawyer review the contract before signing. PhuketProperty.com can help with a recommendation for professional advice.
Research the Local Laws and Regulations
Buying property in a foreign country can be complex, and it is important to understand the local laws and regulations. In Thailand, foreigners are not allowed to own land, but they can own a condominium unit. It is also worth considering the taxes and fees associated with buying property in Thailand, which can include transfer fees, stamp duty, and legal fees.
Consider the Risks
Buying off-plan property comes with its own set of risks. The property may not be completed on time, or there may be issues with the construction process. Additionally, the final product may not match the initial specification, or there may be unforeseen issues with the property. It is important to be aware of these risks and ensure that you are comfortable with them before committing to a purchase.
Choose a Reputable Agent
When buying off-plan property, it is important to work with a reputable agent who has experience in the industry. An agent can help you navigate the process and provide valuable advice and support throughout the purchase process. PhuketProperty.com was established in 1998 and the Director has over 18 year’s experience in the real estate sector in Phuket.
Visit the Site
Finally, before committing to an off-plan purchase, it is worth visiting the site and getting a feel for the location and the development. This will give you a better understandingof the area and the potential of the property. It may also allow you to meet with the developer and ask any questions you may have about the project.