Buying Property in Phuket with an Installment Plan
Many immigrants and investors interested in purchasing property in Thailand are drawn to Phuket, the country's largest island. Over 50% of the island is covered with scenic hills and jungles, featuring an abundance of mangroves, coconut palms, and beautiful beaches. Phuket offers a comfortable living environment for all, whether young people, families with children, or seniors. The island is equipped with essential infrastructure, including schools, universities, hospitals, markets, shops, shopping centers, and entertainment options to suit everyone’s tastes. Currently, there are several options for buying property in Phuket, including installment plans. This article explains the details.
CONTENT:
- Features of buying property with an installment plan
- Advantages of buying on an installment plan
- Key details to include in the installment purchase contract
- Example conditions for buying a home on an installment plan
- We can help you buy property in Phuket
FEATURES OF BUYING PROPERTY WITH AN INSTALLMENT PLAN
In Thailand, you can purchase apartments, houses, and villas before construction begins, off-plan, or upon completion. Even at the earliest stages, the developer must provide details about the future appearance and interior of the living space.
The contract should specify the following details:
- The start and completion dates of construction
- The total cost of the property
- Payment terms
- Payment method
When buying property off-plan in Thailand on an installment plan, you can resell the asset at a higher price once the construction is completed. Property prices in Phuket are steadily rising due to high demand and increasing construction material costs. Whether you plan to resell the property or use it as your residence, an installment plan can significantly ease the financial burden.
ADVANTAGES OF BUYING ON AN INSTALLMENT PLAN
If you choose to buy in a popular area, purchasing property off-plan allows you to secure the most suitable unit rather than settling for leftover options. This offers a chance to purchase a home that meets all your expectations and preferences. Buying before construction begins also often means getting a lower price. At the initial stages, many developers in Phuket launch promotional campaigns with special deals and favorable payment terms.
It is worth noting that real estate in Thailand is relatively affordable compared to many other countries. You can earn a steady income from your investment, whether by renting out your property short-term or long-term or by selling it at a higher price before the construction is finished.
What Should Be Included in the Contract When Purchasing Real Estate in Instalments
When entering into a contract with a developer for a real estate purchase, it is essential to include the following details:
- Technical specifications of the property;
- Floor plans;
- Penalties for delays in construction for off-plan properties;
- Penalties for late delivery of the property.
After signing the purchase agreement, a down payment is made, and an installment schedule is agreed upon.
Buying Property in Phuket in Instalments
Example of Terms for Purchasing Real Estate on an Instalment Plan
The developer sets the terms for the installment plan, which can vary depending on the stage of construction, construction speed, and other factors. Typically, developers offer installment plans of up to 3 years during the design and site preparation stages. Additionally, installment plans are not limited to off-plan properties; completed properties may also be purchased with up to a 1-year installment period.
Standard purchase terms include:
- A reservation fee for an off-plan apartment in Thailand is approximately $5,000;
- The down payment in the first month after reservation is about 30% of the property’s total cost;
- Payments during the construction of the foundation, finishing, and interior furnishings typically account for 20% at each stage;
- The final payment upon transfer of ownership is 5–10% of the total price.
The down payment amount can vary by developer. For example, if a project is financed through external investments, the deposit might be 20%. However, if the developer raises funds through property sales, the first payment could be as high as 50%.
We Can Help You Buy Property in Phuket
Purchasing real estate in Phuket through installments is an excellent opportunity for many investors to own property on this beautiful island. If you’re considering buying a villa or house in Phuket, now is the time to consult with experts! Contact us, and we’ll guide you through the process of investing in Thai real estate, helping you select and purchase the property that meets your needs.