Off Plan or Under Construction Property Investment in Thailand Overview
Off Plan or Under Construction Property Investment in Thailand can offer investors the ability to buy at the lowest price possible and achieve maximum return on investment.
Keeping your property for a number of years will allow you to benefit from excellent rental income opportunities. Meanwhile you can enjoy a beautiful holiday home and watch your property appreciate in value.
Buying a condo allows foreigners to buy freely, without the need to establish a limited liability company, provided the foreigner to Thai ownership ratio on your chosen development does not exceed 49%. However, if you choose to buy in a Thai Company you can manage to get even better savings as many developers will offer a substantial discount for buying in Thai/Company Name. Whilst you can save on the purchase, please note that whenever you have a Thai company, you will be required to submit balance sheets each year in arrears, so there’s an ongoing minimal cost associated with this option.
The Thai government has introduced and is enforcing building standards and regulations to ensure the quality in Thailand is high and that it is also constructed in harmony with the environment. Every Development must be EIA approved in order to build. Obviously, as development projects are completed they will be priced substantially higher. This is when the initial investors will see the best returns on their early investment.
Quality new investment opportunities in Thailand are always located in areas that offer the greatest potential for capital appreciation on the property. They are invariably in popular tourist areas that will allow investors to generate rental returns.
Buying off-plan or under construction in Thailand allows investors to purchase property in areas that will attract major rental demand and price appreciations at the lowest possible entry prices and with flexible finance options. Those who purchase in quality developments early will see the greatest returns on their investment.
Buying off plan or Under Construction enables you to pick & choose your own unit
How can property be cheaper if bought off-plan – How does it work?
The developer of any project is always exposed to risk. They want to cap this risk as quickly as possible and limit any bank loans they may have. They do this by selling units off-plan at lower prices as the buyers cannot see a physical property at this stage and rely on the location, show rooms, artist impressions, diagrams and computer simulations. This is also a risk for the investor too of course and so it works both ways, although by doing your due diligence and having a conservative risk strategy, those risks can be mitigated. It is very important to look at the Developers track record to ensure that they are strong in the market, have experience and will build.
In addition to the lower purchase price, the investor also benefits from finance structures too and can spread the payment across the term of construction. The investor usually only needs to pay around 25% of the value of the purchase in the form of a deposit, the rest is payable over the construction period at 0% interest.
Tips of Buying Off Plan or Under Construction Property Investment in Pattaya
When you're planning to buy a condominium in Pattaya there are a few things to be aware off listed below.
1. Choose the project wisely. Make sure to buy your condo from a firm that is well established and has been in business for several years.
2. Do a background check to see how many condominiums and projects they have completed or are under construction. This is a very important issue to make sure that your investment is safe.
3. It is important to know what type of return you are looking for. If you are looking for long term rentals, Jomtien beach is recommended as many who have been here or lived here before prefer the quiet location close the the beaches in Jomtien. Jomtien is also good for the holiday rental during peak season and will show a very healthy return. You have many options in Jomtien.
4. If you are looking for a year round rental return for holiday makers, Central Pattaya City developments are ideal to rent out as many people coming to Pattaya for a short Holiday want to be located close to all that Pattaya has to offer.
5. When buying a condo please make sure the building provides easy access to public transport. Easy access to public transport will make the property very attractive and allow the owners and future renters easy access to dining, shopping and entertainment venues in and around Pattaya and Jomtien.
6. Please do not hesitate to ask for a discount when buying a condo in this beach paradise. Discounts may vary and are handled on a case by case base.
7. Most of the condominium developers offer standard contracts which you can trust. You do not have to hire a lawyer for this purpose. Just make sure everything is listed as you like and ask for corrections or expalainations when necessary. If you would like to have a lawyer look through the contract before signing that is your right as well. Please do whatever it take to make you feel comfortable with your purchase.
The real estate industry in Pattaya is still booming with more and more visitors coming every year. ASEAN came to Thailand in 2015 and the city will continue to expand to become one of the biggest cities in Thailand after Bangkok with a well organized infrastructure. New train lines and a sky train in Pattaya are in the planning stages.