There are many methods in which you can purchase a property. The amazing thing about the property market is that you can literally purchase a structure at virtually any point of the process – from the initial planning stage, right through to when the development is completed and ready to move into. Depending on the type of property, or the flexibility of the developer, you can purchase a property in a method that suits you.
If you are considering purchasing property in Thailand, it is wise to look at all potential avenues of purchase. Thailand has a diverse property market and there are many ways in which you can seal a deal for your dream home or future investment.
Some very experienced investors will purchase a property direct from the developer once it has been built. Many others will purchase a property through a real estate agent. It is not even uncommon to purchase property directly from another person in Thailand due to the relaxed property regulations. One type of property deal that is sometimes overlooked is the purchase of an Off plan property. In the paragraphs below, we will explain what this is, and why it could be beneficial in Thailand.
What is Off-plan property?
Off plan property refers to purchasing a property whilst it is still in the development stage i.e. off the actual building plans themselves. Some developers allow this process as it guarantees their return on investment before the building has even been created. A developer may offer off plan purchasing and a customer can look at the blueprints, architectural drawings or even CAD (Computer Aided Design) diagrams of a proposed property. Once they have viewed the blueprints, they can agree on a deal with the developer and guarantee the purchase price of the property. This type of property transaction has the following benefits:
– Developers have great insider knowledge and will choose prime property locations for their developments
– You can have input into the style and design of your property
– There is no price fluctuation: what you agree at the off plan stage is what you will pay
– Your property can appreciate in value before it is even built
As you can see there are many benefits to off plan purchasing and as you will see these benefits are compounded in a country such as Thailand.
Why is Thailand a Suitable Place for Off Plan Investment?
There are many reasons as to why Thailand is a suitable country to invest in off-plan property opportunities. The following are some of the main contributing factors:
PLC Property developers in Bangkok
Bangkok is a prime area for off plan purchasing. There is a large variety of PLC property developers that have a large financial backing and a vast amount of resources/capital at their disposal. These developers can use their knowledge and resources to provide off plan property deals and do not have to worry about receiving large customer deposits. Furthermore, these companies have insider knowledge and usually know the best upcoming locations in Bangkok where the property will only increase in value.
Favourable outlook for the Thai property market
The current state of the property market in a country or region will obviously have a key effect on the plausibility of an off plan scheme. Luckily, the property market in Thailand is generally still progressive, and although its growth has slowed down in recent years, prices still look to increase. Furthermore, as prime real estate space becomes harder to acquire in large cities such as Bangkok and Chiang Mai, new developments become increasingly valuable and lucrative.
Other contributing reasons can be seen below:
– Thai developers often provide discounts on off plan property between 5-30%
– Many Thai off-plan projects provide guaranteed rental income for those purchasing to rent- Thailand has a lot of upcoming areas that are perfect for off plan developments
In summary, the way that Thailand’s property market operates, the current economic climate, and the abundance of PLC property developers in large cities such as Bangkok make off plan purchasing a viable option. If you are considering investing in an off plan property in Thailand, you must take care to review the plans carefully and other considerations such as the location and current Thai economy. There is no guarantee that your off plan property will increase in value, so a little research and forethought will help a great deal, as will the support of a Thailand real estate agency.
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