Buy Off Plan : Explained
Buying off plan is when you buy the property before the developer even starts building it. Most big condos and villas are sold in this manner. This method allows you to buy a property that will be built in the future for today’s prices. Since Thailand's real estate market is one of the most robust in Asia, many foreigners get a buy off plan.
Why are developers using this method?
Using this type of plan allows them to make sure that they construct according to the demands: no excess units that will go unoccupied. In addition, they can use the funds to help them pay for the construction of the property.
Risks of the Buyer with the Buy-Off Plan
- Buyers are required to pay large portion of the price that was agreed upon before they are able to receive the legal transfer of the property
- If the property is not properly insured in case of damage during the construction phase
- Delayed delivery due to a problem in construction
- Buying something that is unseen
Benefits of the Buyer with the Buy-Off Plan
- Because it is new, it will have a low maintenance cost
- A long payment schedule will give the buyer time to get funds
- The buyer will have time to advertise the property for rental or resale
- The buyer can take their plan in designing the interior
- Buying the property at today’s price may give the buyer large capital gains due to a rising market
How to Avoid the Risks
- Consult a lawyer or adviser before signing the contract
- Get professional advice on the contract’s terms and look at the insurance policy and terms
- Get professional advice about the developer: credit or financial check
- Check the credibility and track record of the developer
- Look for reasonable protection or compensation that will cover any unreasonable delays in getting the finished property
- Do a full title search on the property and other necessary details that you need to know