Benefits of Buying Property "Off Plan"

To buy a property “off plan” means reserving either a plot or a specific property before construction of a development has started. It carries a risk in that you cannot see your villa before investing, however, the risk is offset by the opportunity to make more money, as off plan pricing is almost always lower than a completed development.

The motivation for buying off plan is twofold:

The purchaser is usually able to negotiate a better discount; he is effectively funding the developer and enabling him to commence the project knowing the buyer is already set.
In order to encourage sales, developers have a tendency to under-price the project. Thus the buyer's capital growth is disproportionate to the increase in surrounding property values.

As a general rule, Phuket property prices will normally go up during the launch period siginificantly. Further increases of around 10 to 15% happen during the construction period.

Off Plan - Process

A reservation fee is required when you buy a property off plan; the fee varies from project to project. This fee reserves the property whilst the contracts are examined and the final details negotiated.

On acceptance of the legal terms and conditions, the remainder of the deposit price is due (normally 10 - 25% of the property price). This secures the property and fixes the price. Thereafter there are the usual stage payments based on construction progress.