One of your most important decisions as a potential buyer is whether to go with a off-plan property or an existing home. Off-plan homes are properties that have been proposed by a developer, but have not yet been built. When you purchase a off-plan home, you are putting money down before construction begins.

Advantages of off-plan homes

The main advantage to buying into a new development before construction starts is that you often get a lower price than if you buy when construction is complete. The market value of off-plan units generally increases, so your unit may be worth more than you've paid for it before you set foot in the place. In addition, you can often choose from a variety of finishes and flooring options or tailor-made the property by consulting the developer architects regarding modifications in advance of construction, allowing you to customize your home.

If you are using the property as an investment then you will have the time during the property construction-phase to market your property for re-sale or for rental.

Seasoned off-plan home  investors have been known to more than double their money in a short period of time. Even newcomers have witnessed a 15 to 30 percent appreciation in Chiang Mai with off-plan homes.

Advantages of Buying off-plan homes with Thailand Home Guide

As local experts we can put our experience to work for you and can benefit you measurably. Thailand Home Guide works as independent consultants and are not affiliated with any developer. We can help you navigate all your choices, and make an unbiased and well-informed decision that never compromises your objectives. The developer pays our commission, so your purchase price is the same whether you use us or not. In fact, the developer will not reduce the price of your home even if you are not represented by Thailand Home Guide. The developer pays the commission as part of their anticipated marketing expenses as we provide valuable services and make the site agents's jobs easier by assisting the customers with community information, financing, short-term rental during the construction, home inspection, walk-through, and closing.

We can also help you understand the developer's contract. Developer contracts are very developer oriented and vary by developer. We can help explain the things you need to watch for: assignability, transfer fee, marketing your unit prior to closing, restrictions and policies, financing and payment schedule, taxes, contributions to working capital, maintenances fees, walk-throughs and punch lists, your options and responsibilities at closing, the developer's warranty, and more.

Risks

Buying a off-plan home, townhome or condo can be a great opportunity, but there are potential risks associated with it. Because you are buying into something that does not yet exist, there could be unforeseen problems and setbacks before you move into your home. By understanding the risks and planning carefully, you can avoid complications and come out a winner.

Checklist

Use our checklist to help cover the bases:

• Consult with a real estate professional to review your contract closely and ensure that the terms are reasonable. Is there  a clear timeline listed for the construction process? Can the developer change the finishes you've chosen without notifying you? Keep in mind that contracts prepared by or for the developer will generally favor its interests, not yours.
• Research the developer. Find out what the company's track record is with big residential projects. Has it had any disputes? Has it cancelled any projects?
• Understand your exit points. Because there are several steps to buying off-plan homes, make sure you know the "drop dead" date, or the point after which you can't back out. This point is often before construction is complete, so make sure you're comfortable with your commitment
• Visit the site regularly. Is construction progressing on schedule? Make sure the developer is comfortable with your visits. If you are abroad, Thailand Home Guide consultants can do regularly visits in behalf of you!
• Know your rights. Find out what your home warranty covers you from major structural flaws in your home for a specified period of time.
• Prepare for construction delays. Developments fall behind schedule for reasons as varied as strikes, material shortages, regulation changes and bad weather. While delays may not be the fault of the developer, they should make a good faith effort to rectify the problems.

• The interest rate of your loan. As your closing date approaches, you may want to lock in an interest rate. If a construction delay affects your closing date, find out whether your lender is willing to extend the lock-in period.
• The market value of your home. Check your contract to ensure that you pay the presale price even if your home increases in value before closing. While developers can reserve the right to raise the price, it's considered unethical.
• Your move-in date . A delay in occupancy can affect the money you spend on an interim rental property, the date your children change schools and more.