Purchasing property in a foreign country for the first time can be a frightening thought, and requires some research to understand rules, regulations, and restrictions to foreigners who wish to buy.
If you are contemplating purchasing or investing in an “off-plan” construction project in Thailand, even more, due diligence is required before you leap in.
Purchasing a project off-plan may have various benefits. If you purchase early in the process, you have the widest range of choices and can normally get the positioning and layout that best matches your needs. Find all about through Hua Hin real estate if you have a plan for buying property in huahin.
To take advantage of the benefit, however, there are elements of danger that you want to consider and accept. And with my background in finance, I know a few things about risk management.
Projects can and do fail, and therefore you want to take into account whether you’re willing and financially capable of losing funds dedicated to the property. You want to carefully consider your risk tolerance. But read carefully and you can significantly mitigate your risk.
Know the Developer
Before committing funds to a new job, consider the following variables:
Is the developer reputable with a history of delivering what they promise and finishing on schedule? Especially, what other building jobs have they done in Thailand?
Does the programmer own the property free and clear? Request a copy of this “Chanote” (title deed) to the property.
Have you confirmed that required licenses and approvals have been obtained? If not, what’s the condition of the approval procedure?
How is the project funded? Is the programmer using their own funds, are they financed by a bank or private investors, or are they relying on cash flow from job sales?
Is the overall scale and design of the project suitable for the selected location?
Has the programmer clearly documented the construction specifications, unit specifications, and amenities within the project? The Condo Act requires developers to construct based on specifications in contracts and marketing materials.
What firm was hired to perform the construction? What’s their relevant experience?
When construction has already begun, what’s the real progress compared with the initial program? Are there any important delays?