Resale Property versus New Off-plan Projects
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;
- 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. (Source: Phornchanok Cumperayot www.thailand-business-news.com)
- 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.