Purchasing off-plan property in Thailand
While purchasing property in Thailand you need not pay until a certain level of progress has been shown towards completion.
Never invest unless you see regular progress on the building, reports or updated photos, as well as other investors investing at the same time. Any developer who charges 40% or more upfront is not to be trusted. However, there are some highly reputable developers who have a history of success. In such cases, you can safely negotiate a discount off the purchase price in case they need a higher payment upfront.
Even the 10% charge that some Bangkok developers ask for is unusual. However, these developers have reliable finance systems in place. The usual rate is 2-5% upfront and 20-40% as the sale is being completed. These agreements are negotiable with the developer, especially if you are investing in multiple properties within the same development. Some developers also hand you significant returns if you agree to a large payment upfront. Usually, your real estate agent will be able to tell you how to negotiate and how to add flexibility to the agreement as they understand the kind of terms developers are likely to agree upon.
This multi-stage payment structure is highly supportive of foreigners who do not receive financial assistance in Thailand. A secondary benefit is that exchange rates can vary from the time you pay upfront and the time you complete the sale. Therefore, even if exchange rates are not favourable during the initial payment, you always have other payments during which time the rates can turn favourable.
When looking at potential candidates for investment, you need to pay attention to
- A show mock up room
- Finishing
- A skilled project manager. To ensure everything is well=constructed and updated.
If a company wants to rent out property, then they can call themselves a rental management company or hire one. This means you can use this opportunity to get clearances done for your property. The company in question will not want to involve uncertified, poor-quality property since it can harm their reputation. So they will enthusiastically run different tests, ensure every aspect of the property is updated and carry out due diligence. All of this is a dream come true for you as a client since you now have proof that the property is worth trusting and buying without lifting a finger. If the 2 companies have an agreement, you can request to see the sign on this agreement and the duration of the agreement- the longer the better.
Conclusion
If all the above indicators of trustworthiness and quality are in place, then the property is likely worth investing in and you can benefit massively. In case you need help figuring out real estate investment in Phuket, IbgProperty.com is your one-stop solution for all your Phuket real estate buying, selling and renting needs.
