How can I purchase off-plan property in Thailand?
Luxury house and villa projects are often sold by developers before or during the construction period. Buyers can take advantage of steep discounts by purchasing off-plan, while developers can more easily access loans and claim that their project is selling out. The construction of a house takes between 8 to 12 months, starting from the time sales first begin.
As a result, there is a market for buying off-plan houses and selling them at a profit once the building is closer to completion. In Thailand, you can freely transfer the right to buy an off-plan house, even if the building is still under construction. It’s not necessary to wait until the project is complete before selling the property or its sales agreement.
To reserve a villa and sign contracts, you typically only need a down payment of 2%, followed by another 28% paid gradually over the course of several months. Installments are usually payable according to the construction progress basis.
However, purchasing off-plan also comes with inherent risks. The worst-case scenario is that you would have to abandon the contract, losing your down payment and any installments. This could happen, for example, if property values in Thailand decline substantially or if you don’t have enough liquid cash available to complete the transfer.