Who Is The Right Developer for You?
Many tourists who visit Pattaya fall in love with this vibrant city and see that there are many condominiums and villas available to purchase for very reasonable money. But how do you choose the right developer?
Here’s a list of important questions that you need to ask yourself before looking at what the different developers have to offer;
• How much do you want to spend?
• Are you looking for a Condo, House or Pool Villa?
• Location – Are you looking for a sea side location? Are you looking for nearby schools for your children? Do you want to be in the city, by the beach or in a quiet residential area?
• Do you want to buy in foreign name, Thai name, Thai Company Name or do you wish to have a long term lease?
• Do you want to buy off plan or buy a property that is already complete with title deeds available?
• Do you want to design your own home with the help of a developer/construction company?
• Do you want to buy to live in, to rent out or are you simply looking to purchase for investment?
• Do you need wheel chair access? Do you require a lift rather than stairs, or do you simply want a condo on the ground floor or on the 26th floor with sea views?
As you can see, there are many things to consider before purchasing a property and this list covers many, but not all. You have to start with a budget in mind for sure, this is a major decision making factor. Then the type of property you want. Many developers in Thailand and Pattaya specialise in either building houses, villas or condos. There are both Thai and foreign development companies operating here that have had good success, and those that have not.
In and around Pattaya there are many condo developments under way within the city and on beach locations. Pratumnak Hill, Jomtien and Wongamat are prime loctions to name but a few!
When buying an off plan condo it is strongly advised to only buy from an established company that has a track record of completing their projects. Due diligence is the name of the game, an hour or two’s on line research will reveal all the pros and cons about the developer you’re considering to buy from. Why buy off plan? Normally the answer is simple, if you buy during construction or even before the project has broken ground, unit prices are cheaper than when completed. If you are not in a hurry to move in or sell for profit, off plan condo and housing can be a good option.
Buying in foreign name, Thai name, Thai Company Name or buying to lease or rent… The options can be a little confusing at first. To simplify, 49% of a condominium units can be owned in a foreign name, i.e. Non-Thai. The remaining 51% of the units can be sold in Thai name, sold to a Thai registered company, which can have a foreign controlling Director or can be leased from the Thai registered construction company/developer. Leases are for 30 years and renewable.
When buying a house foreigners cannot own land in Thailand, with a few exceptions. Both good condo and villa/house developers will advise you on all options available to you. Again, internet research is a must for any housing or pool villa development company. A good company track record with lots of completed projects over many years always promotes confidence!
If you are looking to purchase a property for investment purposes and do not intend to live in it, the best option is to by a condo with guaranteed rental return. A few companies in Pattaya offer 5 and 10 year deals that guarantee 7 – 10% annual return on your investment, one company is offering 20 year deals with guaranteed buy back options on 2 specialist projects!
Ownership options include foreign ownership, in Thai name, in Thai company name and lease hold.
Location is a big part of a property purchase decision, once the budget is decided it’s often the second or third most important factor, but for some people its number one! If you are buying to invest and the developer offer guaranteed rental return based on running your condo as a part of a hotel, a good location is also important, but not so critical if they have good tour operators working for them!
Who can help you find what you are looking for? A reputable Real Estate Agent can! It’s why they earn a good % commission on a sale, it’s their job to guide you in making the right decision in what you buy ultimately. It’s probably best to buy from an independent Agent when looking to buy an off plan or investment property for the simple reason that they will show you a full range of developers units on offer, not just from one company, unless they feel what they are showing is the from best developer that meets your needs.
In conclusion, the right developer for you is one that offers what you’re looking for, within your budget, with the right location and with the right type of ownership and living or guaranteed rental arrangement. Online research by yourself or with help from a friend who isn’t making a % from the deal is of paramount importance.
You can organise all the paperwork and completion of legal documents yourself, but it is recommended to employ a highly reputable lawyer and Real Estate Agent to take care of this for you.