Off plan is when you buy a property prior to construction; you buy from the plans hence the ‘off plan’ name given to it. Here are the pros and cons that we think you need to consider.
(1) Chance to Custom Design
Clearly as the unit has not been built you can ask for specific changes to be made to your modification which can be quite broad and can be as much as changing the bedroom and/or kitchen dimensions. You will also be able to choose bathroom and kitchen from tiles to taps fitted. You end up with a custom property perfect for your needs and tastes.
(2) Property Appreciation
By buying off-plan you can enjoy the benefits of developer discounts, it is not uncommon in Pattaya to see prices rise by upto 30% from when initially pre-launched to when the condominium in Pattaya is completed. FazWaz.com can provide further information on how different developers projects historically have fared in terms of appreciation during this ‘Off-Plan’ period.
(3) Staged Payments
Developers will require staged payments throughout the build process which means you don’t have to make one large off payment, and can instead save to afford each payment. Different developers off different payment terms. You can effectively secure a high value asset for a very low initial capital outlay.
(4) The Flip
Some investors buy property off plan never intending to pay for it and certainly never to live in it. They instead take full advantage of the stage payments method of funding the build and never make the final payment, which is usually the largest. Rather they put the property back onto the market just as it is about to be completed and take out all the profit from the natural increase in the value the property has achieved throughout the period it took to build. This does represent a risk as the property market could go down as well as up and there may not be buyers waiting in the wings. You will need to do your research and make some assumptions as to what you think the future of Pattaya holds.
(1) Developer Issues
By buying a property from a developer off plan you are taking a risk on that developer. What if they encounter financial difficulties during the build and never completes or what if they don’t build the properties to a high standard? Ensure you ask to see evidence of previous builds from the developer has outlined all developers history to help you make the right decision.
(2) Development Saturation
If you are buying into an area where there is a massive amount of development going on it will be very difficult to know what the area is going to look like when finished. Your particular developer may finish their project and roads, but will other developer nearby cause a problem aesthetically on the area?
(3) The Wait
Buying off plan means you will have to wait a long time before you can move into your dream condominium, meaning you have paid out on something without getting the immediate benefit of being able to live in it.
If you have further questions then please feel free to contact us, our role is to help you make the most informed decision on not only is buying a condominium the right choice for you but also what condominium you should buy – be that off – plan or already completed.