How Can You Benefit From Buying Phuket Property Off Plan

New projects in Phuket frequently provide the possibility to acquire condominiums prior to the commencement of construction. Buying “off plan” is the term for this and there are many benefits to buying a Phuket property off plan. Despite the fact that the final project may be a year or more away, the location, marketing materials, and attractive pricing of off-plan properties sometimes attract a large number of customers. This article focuses on the advantages and benefits of buying off-the-plan apartments, as well as the reasons why so many investors opt to do so.

Why Are Off Plan Property Purchases So Popular?

For those unfamiliar with construction lingo, off plan simply implies that units in a condominium complex are sold before work begins. Off-plan purchases are very common in Phuket, and they tend to become even more popular in hot markets. As many current or potential purchasers are aware, certain developments in desirable areas may sell out when the land is still merely soil and weeds.

It’s worth noting that buying off the plan carries a higher risk than buying completed condominium projects. Buyers, on the other hand, may eliminate the majority of this risk by following the proper processes.

Our previous blog post on the dangers of purchasing off the plan can be found here:

The Pitfalls of Buying a Phuket Condominium Off Plan

Aside from the risks, there are also apparent advantages. A buyer has the opportunity to purchase a potentially good home (or investment) at a price that is often substantially below what the finished units will sell for. These “early bird” units generally sell out rapidly, so purchasers are motivated not only by the lower price, but also by the fact that they are limited in number.

You are likely to be highly pleased with your investment if you choose the proper developer – one with a proven track record and a strong balance sheet.

Does The Process Differ When Buying Off Plan

When purchasing a unit within a completed property development, most purchasers will tour several units, assessing everything from layout to décor to views. The location and marketing materials are the most important factors in off-plan acquisitions.

There is no way to touch or feel the finished product. All you get to see are well-built models on a tabletop exhibit, as well as artist’s drawings of what the condo will look like in the future. You may look at floor plans to discover where each apartment will be situated relation to facilities like swimming pools and lift shafts. You may also see whether units offer views of the mountains, the pool, or the sea.

Although you won’t be able to touch the final product, you will be able to walk through a specially designed showroom to see what the interior will look like once it’s finished. Showrooms can be erected on the future project site, but they can also be established in a sales office hundreds of miles away from the development.

The showroom, no matter where it is located, allows you to inspect fixtures and fittings and create a mental picture of how things will look as well as the quality of the final result.

You may make a pretty educated decision about your purchase based on the brochures, the showroom, floor plans, and architectural models – as well as a visit to the real place to see the area, the views, and so on.

Get In Early To Get The Best Units

Another of the benefits of buying Phuket property off plan is that you get a distinct advantage by being the first to the party and getting an early assessment at the situation. You can get the “best seat,” as it were, while the latecomers are sometimes left standing.

The saying goes that the early bird gets the worm. When it comes to off-the-plan condo investing, the “early bird” gets first dibs on the greatest apartments. The highest floors and units with sea views are generally the first to sell, followed by any condo units with a view of the swimming pool.

Early Birds are wary speculators who understand that anything less than the top units may be difficult to resell. They’ll be aware that “premium apartments” with superior views may be available in other Phuket complexes.

A Growing Scarcity In Limited Units

Over the last several years, the number of “mega projects” on the island has increased. Unlike in the past, when most new projects only had 50 to 100 condominium units for sale, today’s projects have hundreds.

New units, on the other hand, tend to sell rapidly in a busy market since they are constantly in low supply. Buyers who recognize the advantages of owning Phuket real estate understand that if they wait, there may be nothing left to buy, or what is available will almost likely be less appealing.

Get The Best Discounts Early

The fact that buyers who purchase “off-plan” pay far less than those who arrive late to the party is probably the most convincing argument to do so. In most circumstances, these early discounts are simply too appealing for some purchasers to pass up. Off-plan buyers may be offered extra incentives such as free furnishings bundles or free freehold improvements on occasion.

Off-plan condos are a considerably more appealing alternative for purchasers looking to buy a condo as an investment and who are interested in capital appreciation than older established units or completed developments.

The typical finished development cycle is between 12 and 24 months, depending on the size of the project. Historically, prices have increased significantly over the first 1–2 years after a condominium is completed. Many property investors favor off-plan properties because of the pre-construction gains and the lower “early bird price” paid.

There’s A Reason Discounts Are So Appealing

On occasion, properties in Phuket are sold at somewhat higher prices than their resale value. This is frequently done to account for the developer’s sales and marketing costs, or to counteract the guaranteed returns they’re promising. They do it, of course, to increase their own profits. Getting in early is one of the benefits of buying Phuket property off plan.

Normal price inflation may take a few years to offset this initial overvaluation, meaning your initial investment may not be recouped as fast when you sell your home. Even if you don’t own the condo for long, off-plan reductions increase your chances of seeing capital growth when you sell.

Buying off plan is one of the best ways to buy new build Phuket condominiums, in our opinion, as long as the necessary due diligence has been performed on the land title of the development, the actual developer, the legal structure of the project, the requisite licenses, and the sales and purchase agreement.

Guaranteed Returns Are More Attractive

Off-plan buyers may be offered better conditions on their assured returns, especially if they pay a bigger amount of their investment up advance. On rare occasions, you can receive an extra percentage point or two, as well as an extra year or two on the guaranteed return time period.

You Can Buy Now But Pay Later

There may be incentives in place to do so, but you don’t have to pay the whole price right once if you buy off-plan. A reservation deposit will be required to reserve your apartment, followed by a bigger payment, maybe as high as 40% of the purchase price, a month or two later.

However, the remaining is normally paid in installments at each stage of the development process, with the final payment payable only when your unit is registered and transferred to you. This might take up to 24 months from the time you made your reservation deposit.

Customising Your Unit Is An Option

When purchasing an off-the-plan property, many developers may enable you to make certain adjustments to your unit. Changes to fixtures and fittings, as well as finishes such as kitchen, bathroom, and bedroom closets, are possible.

There are usually a variety of furniture packages to choose from, giving you the option of creating an interior that is more in accordance with your preferences. You may be able to alter the layout by shifting inside walls or pulling down walls to combine two adjoining apartments into one bigger one.

Summary

Even if there is nothing to see except a field of dirt, savvy purchasers may find benefits of buying Phuket property off plan. The most evident benefit of this technique is the exceptionally significant discounts offered during the planning stages. When it comes time to sell, these decreased entry fees frequently benefit purchasers.

Buying off-plan is one of the best methods to acquire new build Phuket condominiums as long as the appropriate due diligence has been done on the land title of the development, the real developer, the legal framework of the project, the requisite permits, and the sales and purchase agreement.

As a Phuket condominium investor, you may profit substantially from discounts, the option of prime apartments within the development, and the ability to customize the unit to your own personal likes and requirements with the greatest legal counsel and assistance.