Thailand-Property

Off-plan: a good or bad buy?

When focusing on an off-plan property investments – which involves investing into a property before it’s built – the main benefit is normally a reduced price compared with the completed project. However, this is only one advantage among many.

The price of off-plan is definitely a valid point. Properties bought off-plan are significantly less expensive than others on the market. Often by the time many off-plan properties come to market, they are worth significantly more than they were when originally launched for sale. In Bangkok this the appreciation can be as much as 30 percent.

However, a property investor who only focuses on what benefits them most – namely low prices and high returns – may miss out on the crucial point of looking for what benefits their potential tenants.

This is where investing off-plan can have benefits as these kinds of properties naturally stand out from the crowd for those looking to rent.

Firstly, when built, an off-plan property will be brand new. It sounds obvious but when it comes to the market, tenants will be eager to be the first to live there. Also, with no tenants currently occupying the property it will be ready to move in to from the date of completion.

At a time when many tenants are living in older, more run-down properties, there is an undeniable appeal to rent a contemporary property which was only completed in the last few years. An off-plan property can offer high-spec facilities, modern décor and new or barely-used fixtures and furnishings, all of which are appealing to tenants.

Another reason new properties appeal to tenants more than just for the prestige  is that they are less likely to suffer maintenance issues. Having working appliances, whether as complicated as air-con or as simple as light bulbs, makes properties look more professional on viewing trips and makes them much more attractive to tenants. The fewer calls to the maintenance team needed, the happier the tenant.

Furthermore, when the original tenant is ready to leave the property should still be in good shape. The newer the property, the lower the maintenance, meaning it is faster to get the next tenant in, with fewer repairs required in the interim.

Alongside these more practical reasons, off-plan properties are also much more likely to be decorated in a modern, appealing way. As many will have been created for the rental market, they are likely to be decorated in neutral shades to appeal to the masses. Rooms like the bathroom and kitchen will look sleek and modern. Ultimately, the modern styles of off-plan properties are often more aesthetically pleasing to both tenants and investors alike.

Overall, buying an off-plan property can benefit both the investor and the future tenant, buy as always the purchaser needs to conduct full due diligence to ensure the property actually gets built.