Things to Consider When Looking at Off Plan Condo Projects in Bangkok
Bangkok allows investors to purchase off plan condos. Investing in off plan condos means that you buy a property that is still in the concept state, undergoing design or still under construction. Off plan condos in Bangkok offer very good returns on your investment. Furthermore, an off plan investment project means you do not have to provide all the needed financing upfront.
Unfortunately, with great reward comes great risk. Consequently, there are some things to look out for to ensure that your off plan condo investment pays off.
Plan Ahead Financially
An off plan condo project in Bangkok requires that you put down between 15% to 30% of the total project price as deposit. You can even pay this initial deposit in instalments over one or two years. The rest is paid after the project has been completed. Do not make the mistake of failing to plan for the future financial requirements that will come once the project is complete. Make sure you are in a position to deliver the remainder of the money in a year or so after the project takes off.
Do Your Research
Don’t let the prospect of making higher returns from an off plan condo blind you to the fact poor judgment can still ruin your plans. Enlist someone with adequate knowledge and experience of the Bangkok real estate market in the chosen region to help you ballpark on the rent and possible resale value of the condo project. This way, you can tell whether a certain project meets your expectations. Real estate consultants can help you in this regard.
Consider the Neighborhood
Once you have settled on a particular off site condo project, do some research on what similar housing units in the area provide when it comes to furnishings and other conveniences. It would be a terrible idea to own a condo unit that is of lower standard than other condos in a certain location. Not only will this affect negatively the rent you can charge for the units, it will also mean that your project’s resale value will be much lower.
Beware the Risks
Unscrupulous players in the Bangkok real estate market may provide off plan projects whose viability for commercial purposes are in serious doubts. Such projects are usually too cheap. The last thing you want is to have to abandon your project halfway after having invested copious amounts of money.
Additionally, find a way to verify a developer’s financial capacity to carry out the project until it is complete. Shaky finances for the developer can mean substantially higher risks for you, and you may end up spending months or even years trying to resolve such issues while your project remains unfinished.
Without a doubt, off plan condo projects offer lucrative returns for real estate investors in Bangkok. Furthermore, you will need a less capital outlay when investing in off plan condo projects. You can even settle the deposit in several easy payments. However, you will still need to be extra vigilant when looking at off plan condo projects so that you do not end up owning a project that gives you problems and wasting your money by doing proper research before investing.