Maximize Your Return on Investment with Off-Plan Properties in Thailand
Thailand’s real estate market has always been a promising option for investors. Beautiful seaside locations such as Phuket and Koh Samui attract a large number of tourists, and there is, therefore, a high demand for property investment both domestically and internationally.
One of the best property investments you can make is by buying an off-plan property, which can offer great potential returns. An off-plan property is a residential property that is not yet built and can be purchased based on its plans during its pre-construction phase or early construction phase. It is often cheaper than completed properties as the cost is lower when it is still in the construction phase.
In this article, we will highlight some of the main benefits of buying an off-plan property in Thailand.
Below Market Prices
One of the key advantages of investing in an off-plan property is the competitiveness of the price compared to completed properties. Off-plan properties often offer a capital-gain premium compared to completed villas, making them a more attractive investment opportunity. This is because the developers often rely on the funds generated from the sale of off-plan properties to finance construction, giving the investor access to a high-value investment at a more competitive price.
Higher Rental & Capital Gains
Investors often purchase off-plan properties with the goal of renting them out and collecting rental fees. By buying the property at a lower market value and then renting it out, you can earn higher returns. Additionally, you have the advantage of keeping rental prices lower, ensuring a high occupancy rate. Furthermore, the property's market value will appreciate during the construction period, resulting in growth in the property's price. By the time the property is ready to be lived in, the value of your investment may have increased, leading to higher capital growth. This is especially true for developments in areas with increasing property prices, such as Koh Samui and Phuket.
Scope for Customization
Buying an off-plan property before construction gives you the unique opportunity to customize the property to your personal requirements. Structural changes are often impossible or very expensive in completed properties, but in an off-plan property, you can make changes such as adding a bedroom or increasing pool size. You can also choose fixtures and fittings that fit your taste, saving you time and resources. The developer's full-time construction team will install everything professionally, giving you the best value.
Phased-Out Payment Plans
With a completed property, you don't have the option of a phased-out payment plan, as the property is already built. With an off-plan property, you pay based on each stage of construction. This gives you the ability to see the progress of your property construction and protects your investment as you don't have to pay the full value of the property upfront. Additionally, you have the flexibility of a payment plan that suits you.
Brand New Property
Another popular reason for buying an off-plan property is that you receive a brand-new property built with the best materials, modern fixtures, and up-to-date finishes. Since the property has never been lived in, there is no wear and tear, and everything, including fixtures, furniture, and appliances, is unused and new, ensuring that it will last longer.
Re-sell at a Profit before the Completion
In many cases, the property's value will increase before completion. If you decide to sell, you can expect to receive a higher market value, making it a good opportunity for a quick profit. If you prefer not to sell, you can rent the property out and generate steady rental income.
Investing in an off-plan property in Thailand can offer a number of benefits, including lower purchase prices, higher rental and capital gains, scope for customization, flexible payment plans, a brand-new property, and the possibility of re-selling for a profit. These benefits make off-plan properties a valuable investment option for those looking to maximize their return on investment in Thailand's real estate market.
If you found this article informative and helpful, make sure to subscribe to our exclusive newsletter, Thai Property Market Insights, for in-depth insights on Phuket and Koh Samui's luxury villa market. Additionally, be sure to check out our other articles, "Thailand's property market is on the rise: An in-depth look at recent trends and statistics" and "Benefits of Owning a Property in Thailand."
If you're considering an investment project in Thailand, our team of dedicated property experts is always available to provide guidance and answer any questions you may have. Schedule an in-depth call with us to get all the information you need to make a smart investment decision with SKHAI.