Phuket Real Estate ,property investments in Thailand how does it work buying off Plan ?

PR Log (Press Release) – Nov 22, 2008 – Phuket is undoubtedly becoming the new playground of Asia and although a small island (550 kilometers square) has every modern amenity including, international hospitals and schools, modern infrastructure and roads, broadband communications, beautiful beaches and landscape, the finest hotels and restaurants, international shopping malls, friendly welcoming people, relaxed living and little crime, and last of all a warm climate all year around. Several new marinas and golf courses are also being built.

How it works

When buying off plan (as opposed to resale property) you put down a reservation deposit to reserve the plot, Villa, Condo etc. and then usually within 30 days after seeking legal advice and contracts being vetted and due diligence carried out, you sign contracts and pay the first installment of anything between 15-30 % of the sales price and the remainder over a period in stage payments based on build completion until it is finished which is usually approximately one year hence for most developments. By buying this way you get the opportunity to buy at up to 30% or more below market value. The reason you can save so much is the developers wish to attract early buyers whom have no hurry to occupy the property but realize the benefits and significant savings of buying early. This assists the developer with early buyers' confidence in the project and gives an injection of capital and security for the bank and aids the projects finances. It is a case of WIN, WIN for all parties! During the build stage it is normal for prices to rise substantially due to material cost rises and to en able the developer and buyer to maximize their returns. It is only right that those, whom buy first, pay less than those whom buy last.

Investment return

The above example shows that for a small outlay you can spread your payments over one year and receive a large capital gain even before you move in! Many investors do just that “flip” and sell the property shortly after completion. However, it is probably wiser to hold on to it as with the prices rising by 15-20% per annum plus materials inflation, Phuket property makes a very sound investment indeed over the longer term. You can also rent out the property and receive a rental income as well.

Now is the time to invest here without question and we are avail able to give advice on the best developments on the island as we represent them all.