Resale Property versus New Off-plan Projects

RAWAI BEACH, Thailand - April 9, 2020 - PRLog -- For Buyers looking to purchase property in Thailand there is a choice to be made between buying a brand new / off-plan property from a developer or purchasing a completed property from a private seller in the resale market. Below we have looked at some of the pro's for each scenario;

Resale Properties

• Better Value;  property prices are typically lower in the resale market versus new builds
• Better locations ; resale properties can be found in prime locations, with new developments moving to new less developed locations
• Provide immediate rental income
• Sellers more negotiable; typically private sellers are more negotiable than property developers and can offer buyers better purchase prices

Off-plan / New Build

Latest designs and building materials

• Staggered payments; for off-plan property purchase payments are paid over the construction period typically 12 to 18 months.
• Defects guarantee; developers offer buyers a 1 year defects guarantee and will fix anything within the first year
• Option to make design changes; if Buyers get in early enough on off-plan developments they can make design changes to the floor plan and/or materials to be used.

Thai Baht Positives

• Baht strength over the past two decades has meant higher capital gains and increasing rental incomes for overseas property investors
• Bank of Thailand (BOT) officials and currency analysts explain the strength of the baht by domestic factors. Thailand's solid economic fundamentals — a current account surplus and substantial foreign reserves together with a hawkish central bank — lure capital inflows.
• Baht stability; whilst the Baht has been strengthening against major currencies it has also been stable.

Many consider the baht a safe haven currency among other emerging market currencies due to its stability.

As a result, the baht is likely to retain or increase in value.

• When investing in foreign property markets a local currency which is stable and strengthening brings great benefits to foreign investors. Whereas a currency which weakens or yo-yo's decreases returns and brings uncertainty.

https://www.siamrealestate.com/news/584/resale-property-versus-new-off-plan-projects/

https://www.siamrealestate.com/