Buying property in Phuket in instalments

Buying property in Phuket in instalments

Many immigrants and investors wishing to buy property in Thailand are interested in Phuket, the largest island in the country. More than 50% of its area falls on the picturesque hills and jungle. There are plenty of mangroves, coconut palms, and beaches here. At the same time, Phuket is comfortable for everyone: young people, families with children, and seniors. The island has all the necessary infrastructure: schools, educational institutions, hospitals, markets, stores, shopping centers, and entertainment for every taste. Today there are many options to purchase real estate in Phuket, including the installment plan. This article unveils the details.

Content:

Features of buying property in installments

Buying apartments, houses, and villas in Thailand is available before the start of construction, off-plan, and on its completion. Even at the earliest stages, the builder must show you the exterior and interior of the future living space.

The contract must include the date of beginning and completion of construction as well as the following:

  • the cost of the property
  • terms of payment
  • payment method

Having bought property off-plan in Thailand in installments, you can resell the object at a higher price after its delivery. Housing in Phuket is constantly growing in price due to the high demand and appreciation of building materials. Buying a home or commercial property here is a good investment. If you are buying a home not for resale but for your residence, the installment plan is a great way to reduce the financial burden.

Buying property in Phuket in instalments

Buying on the installment plan: the advantages

If the area where your property is being built is trendy, buying off-plan allows you to purchase the most suitable property for your needs rather than choosing from the leftovers. It is an excellent opportunity to buy a home that fully meets the necessary parameters and ideas about the ideal property on the island. If the object is not built yet, you can save significantly and buy it reasonably cheaply. At the initial stage of construction, many developers launch marketing campaigns and offer special conditions. As a rule, construction companies in Phuket provide attractive payment terms.

It is worth considering that real estate in Thailand is inexpensive compared to many other countries. At the same time, you will consistently profit from such a purchase. For example, you can benefit from short-term and long-term housing rentals. In addition, you can sell your property at a higher price before construction is completed.

What must be specified in the contract when buying real estate in instalments

The contract between you and the developer must include specific parameters, namely:

  • the technical characteristics of the building;
  • the floor plan;
  • penalties for late completion of construction for off-plan property;
  • penalties for late completion of construction.

After signing the purchase and sale agreement, the down payment is made, and an installment schedule is drawn up.

Buying property in Phuket in instalments

Example of the conditions for buying a home on an installment plan

The developer company determines the terms and conditions of the installment plan. They also depend on the object's construction stage, speed of construction, and other parameters. As a rule, developers offer installments for up to 3 years at the design and clearing of the construction site stage. Moreover, the purchase of housing in installments applies not only to off-plan projects. You can also buy completed objects in installments for up to 1 year.

The standard conditions of purchase are as follows:

  • the reservation fee for an apartment in new off-plan projects in Thailand is about $5,000;
  • down payment for the first month after booking is about 30% of the cost of housing;
  • payments at the end of construction of the foundation, finishing, and furnishing of the premises usually reach 20% at each stage;
  • the final amount at the moment of registration of the title to the property equals 5–10%.

The amount of the down payment also depends on the developer. For example, if the company can complete the project on raised investment, the deposit may be 20%. If the projects attract investments for construction, the first payment may be higher and reach, for example, 50%.

Buying property in Phuket in instalments

We can help you buy property in Phuket

Buying property in Phuket by installment is a convenient opportunity for many investors to become the owner of their property on a truly fabulous island. If you are also considering buying a villa or house in Phuket, now is the time to get detailed advice from experts in the field! Contact our experts in any way. They can tell you how to invest in Thai real estate. They can help you to select and purchase objects of your choice. Please get in touch with us!

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