Is it better to buy off plan?


If you ask me this question, you know already about buying property in Thailand. For the ones who do not know this system: buying off the plan means buying a property before it has been built. This is impossible if your dream property is already built but many large apartment and villa developments are sold this way. Off the plan buying lets you purchase a future property at present prices, so cheaper than it ever will be. It can result in large capital gains before you even move in.
Buying off the plan is for the developer an insurance that he is building according to the demands and he will prevent the oversupply and unoccupied properties. He also can use a combination of deposit funds, project loans and finance backing to commence construction. So this system is as advantages for you as a buyer as it is for the developer.
The only risks are that the buyer is expected to pay a large proportion of the agreed purchase price before receiving the legal transfer of the property. If the developer suffers from financial problems and caused the development to become unsuccessful, it becomes also your problem. Both developer and buyer may face a substantial lost if neither are properly insured during the construction phase in the event of serious or complete damage to the property. The construction problem may delay delivery and you as buyer buys an unseen site what needs a lots of trust in the developer.
But buying this way has large benefits such as a very long payment schedule that gives you more time to get the money to pay the property. You also have greater say in finishes, floor plan and interior style, almost as it is costume made.

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