Defining Off-Plan Property
Simply put, an off-plan property is a parcel of property you buy based on seeing the plans for the property when it is still in its construction stage. This is an extremely common practice throughout Asia, and it’s gaining popularity in the UK. Buying a property like this also usually entails a significant discount for the investor, who gets access to stunning property for a small deposit.
Off-plan property has the potential for large benefits, and this is what makes it so attractive. In an area like Koh Samui, the time to buy is now, when the local market is heating up. However, buying a property like this can be daunting, even for a seasoned investor.
Also, remember to consider how much your estimated rental income will be and compare it to how much you’re paying for the property; your investment must have a good yield after taking this into account.
Benefits of Purchasing Off-Plan Properties
As mentioned above, there are several benefits that come with purchasing an off-plan property, and this is what makes this practice so attractive to potential investors.
1. A Better Investment
Since an off-plan property is in the initial stages of construction, the developer fixes a base price onto the property. This price usually works out to be lower than the final price of the finished property because the final cost of construction and finishing tend to rise. Also, developers reward early-bird buyers with a better deal because of their commitment to the project. Another major factor that pushes up the prices of the finished properties is that they appreciate in value. Off-plan properties can be savvy investments especially if the property developer is trustworthy.
2. Increased Property Variety
For anyone considering an off-plan property, you’ll get a larger variety of properties to choose from. Off-plan properties give you immediate access to every piece of luxury property that is currently available. So, the earlier you invest in Koh Samui off-plan property, the more property variety you’ll have to choose from. For example, you may get to choose a block from that penthouse property right on the ocean that you’ve dreamed of for years, and you’ll get it at a bargain price.
3. Ability to Personalise the Property
When you buy a completed property, you can renovate it at a higher cost. Off-plan properties allow you the unique advantage of being able to change and customise it as the developer is building it.
Not only can this save you money in the long run, but it can leave you with a personalised property once it has finished. You can do things like add extra doors and windows, move internal walls to open up the floor plan, or join two smaller rooms to form one larger, airy space.
4. Increased Property Value
Your property’s value will start to rise once construction begins on the property, and this results in larger potential future profits. Since you’ll only put a small deposit down when you choose a property, you could sell it when the developer finishes construction and make a large profit.
You can also hold on to the property once the developer finishes construction. Koh Samui is a luxury tourist attraction that is rapidly gaining popularity, and you can safely bet that property values are going to continue to rise over the coming years.
Off-plan properties are gaining traction, and you want to get into this market early. Using a reputable property development company is the first step in being able to purchase the property of your dreams in the luxurious, beautiful Koh Samui.