We specialize in off-plan investment opportunities in Thailand. Some of the reasons why this is beneficial to our members are described below.
- Off-plan investments 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
Off-Plan in Thailand
Thailand currently has much to offer investors in terms of off-plan villas, townhouses, apartments and condos. 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 49:51%.
Almost all the off-plan property for sale in Thailand is located in the major investment hot-spots. The government has strict guidelines to ensure the quality of Buying Off-Plan in Thailand is high and that it is also constructed in harmony with the environment. Obviously, as development projects are completed, it may be possible to purchase completed property but this will be priced substantially higher as it is also generating the return on investment for the original investor. They are invariably in popular tourist areas that will allow investors to generate rental returns.
Buying off-plan in Thailand at this time allows investors to purchase property in areas that will attract major rental demand and price appreciations at the lowest possible prices and with the best possible finance options.
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 bank loans and other debts. They do this by selling units off-plan at excellent prices as the buyers cannot see a physical property at this stage and rely on the location and artist impressions, diagrams and computer simulations.
In addition to an excellent price, the investor also benefits from excellent finance structures due to the fact that the property is sold off-plan. 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 on completion and can obviously be financed by a mortgage.
Once you have decided to invest in off-plan property, you need to decide which strategy you will adopt to achieve your return on investment. Our experts will help you to choose the most appropriate investment plan, be it a “pure investment” or the “buy-to-let” strategy.
Maximizing Profit from an Off-Plan Investment in Thailand
Purchasing early
At the commencement of a project, the developer offers units well below market value for the reasons mentioned above. In Thailand it is also important to buy as soon as possible as the property market is in its early stages of development and prices are still very competitive but already rising. Investors who purchase now will see the greatest profits.
Purchasing the best units
Early investors can purchase the most sought after properties on any given development. Penthouses are often favorites. The best units always offer highest capital appreciation in the quickest turnaround time, and will also command the greatest rental incomes.
Price increases as development matures
As the development begins to be constructed the units value rises. There is normally a completed show home at this stage so buyers are taking less of a risk without the need to rely completely on plans.
Price appreciates as more units sell
As more units are sold the price of the remaining units rises. This is due to buyers being able to see current units as mentioned above. Often there is a phase payment structure in operation which mirrors the increasing value of the properties. To the early investor this means that should you decide to sell your property, it will be worth considerably more at this stage than when you made your initial purchase and paid your 25% deposit.