Buying Off Plan Property in Phuket

Buying off-plan in Phuket is a great option for investors who want to obtain a property. You can choose the best units and have the freedom to modify the unit you want to buy. Plus, you can buy a property at a lower price than an already built property with the expense of waiting for the construction to be completed. However, there are some risks associated with buying off-plan properties in Thailand. To minimize these risks, it’s important to go with a reputable developer and builder, view completed projects by the developer, and compare them to sales materials. It’s also important to investigate rental prices of similar condos in the same location and engage a trustworthy lawyer and ensure a robust sale agreement. If you’re interested in buying an off-plan property in Thailand, be sure to read our guide below, so you don’t miss anything!

Benefits of Buying Off-Plan Property in Phuket

  • Lower prices: off-plan property is sold as low as 25-30% lower than completed projects

  • Larger discounts: developers often give further discounts to early buyers

  • Low deposit amounts: reservation agreements often require small financial commitments

  • Staged payments: payment schedules are laid out in accordance with benchmark progress points

  • Proactive customizations: developers often allow for customization options before installation

  • Better plots/units: early commitments mean being able to choose the best location

  • Freebies: developers may offer free upgrades or luxury items

Potential Drawbacks

  • Project cancellation: thorough due diligence and investigation of the developer and builder is necessary

  • Project delays: penalties may incentivize developers to keep the project progressing on time

  • No physical product: buyers must rely on images and videos to envision their property

  • No immediate access: buying off-plan is a waiting game and not suitable for immediate rental returns

  • Construction hassles: noise, power/water supply cuts, and other inconveniences related to construction may occur

Off Plan Property Due Diligence

  • Research the developer: investigate their past performance, style, taste, and overall aesthetics

  • Research the construction company: investigate their past performance

  • Require clear terms in the contract: do not settle for ambiguous wording or agreements open to interpretation

  • Look into title deeds and licenses: ensure the developer has the necessary title and construction permits

  • Compare prices: investigate the costs and value of the property to ensure you’re getting a good deal

Further Detail on Off Plan Property Contracts

  • The Basics: timescales, price, building specification, and floor plan should be clearly indicated

  • Penalties & Compensation: research payment penalties, late completion compensation, and developer’s default options

  • Clauses: extension clause, substitution clauses, assignment, recitals, and alternative dispute resolution should be considered

  • Key Points & Summary: do your due diligence, ensure you have a contract that safeguards your rights and investment, and have the contract confirmed by a lawyer before signing it

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