Is buying off-plan beneficial?
Whether you are purchasing to live in or to rent out, the sooner you purchase a Pattaya condominium, the better the price you will receive. This means that if you buy off-plan, you are able to buy at a very low price point and achieve a very high return on investment (ROI) — and this is before any appreciation of or rental income from your Pattaya property.
Another often overlooked advantage of purchasing off-plan is that you can customize your chosen Pattaya condominium by working closely with a property developer`s design personnel; your investment is tailored to your demands and needs. This customization combined with flexible finance makes purchasing off-plan an attractive proposition.
Investment opportunities in Thailand are invariably in the tourist areas of Jomtien, Pattaya, Pratumnak and Wongamat. These are the areas that attract price appreciations and rental proceeds far into the future. By buying off-plan property in Pattaya, investors can choose the best locations that best suit their investment strategy.
More and more visitors come to Pattaya annually. According to the Tourism Authority of Thailand (TAT), it shows no signs of slowing down. Thailand`s economy is also going from strength to strength as it forms firm ties throughout ASEAN and the rest of the world. This means that Pattaya as a city will continue to flourish and there has never been a better time to invest in Pattaya real estate.
Is there any investment risk?
The industry trend shows that 50% of property in Pattaya is sold before it is even built. This confirms the confidence investors have in the Pattaya property market. But as with any investment, it is important to appreciate any associated risks.
An Environmental Impact Assessment (EIA) evaluates the way in which any construction will affect the environment. The government of Thailand introduced the EIA to ensure that each Pattaya condominium is constructed in an environmentally aware and friendly way.
The risk to the investor is that if they purchase off-plan, the design might be modified to achieve EIA approval. It is possible to reduce this risk to virtually zero by choosing an experienced and knowledgeable Pattaya property developer with a portfolio of completed projects.
Another risk to the investor is choosing a property developer that does not operate under its own capital but instead sources financial support from alternatives such as banks. It is possible to remove this risk by choosing a company that can operate under its own capital at all times.
If you as an investor do your due diligence on the above, these risks may be mitigated; you can be confident in your investment and reap the rewards of an off-plan purchasing strategy.