Buying Property in Thailand BEFORE Construction Begins

The most profitable time to purchase real estate is BEFORE construction, but the risks are also the highest.

Let’s take a closer look.

The presale stage is the initial stage of construction, when the developer starts construction work, most often after receiving all the permits (not always; it is necessary to check) and before the foundation is laid.

Pros: the lowest price per square meter;

the ability to choose the best layouts and location (floor, side, view);

interest-free instalments.

Cons:

The waiting period before occupancy is 12-24 months.

Risk of delays or changes in the project.

How is the payment made?

Reservation fee:

From 50,000 to 200,000 THB – non-refundable, included in the total amount.

First contract payment 2-4 weeks after reservation:

25-50% of the cost after signing the reservation agreement, and according to the developer’s terms

Installation during construction:

3-5 payments as key stages are completed (foundation, frame, roof, interior decoration).

Final payment:

30-50% upon handing over the keys and registering the property.

Is it possible to get a mortgage?

No, but you can get an instalment plan:

0% while under construction and a fixed rate upon completion of construction (provided for individual projects). Usually no more than 5 years and 7% per annum.

Documents required for the transaction:

Reservation Agreement

Sales & Purchase Agreement

Payment Schedule – usually an appendix to the main agreement

Additional expenses

Registration fee at the Land Department – 1-2% of the cost

One-time contribution to the capital construction fund (500-1000 baht per m2)

Maintenance fee for common areas – in advance for a year (50-100 baht per m2 per month)

Freehold quota fee (if full ownership is required) – approximately 300,000-600,000 THB

Installation of meters (10,000 – 20,000 baht)

Furniture package (optional)

What should we do if the construction is delayed?

Could you check the contract’s guaranteed delivery date and penalties for late delivery? Jsxyj pfcstroyshchiki stipulate a delay of up to a year. Penalties should be applied beyond this period.

How to protect yourself?

Check for construction permits.

Choose trusted developers with already completed projects.

Make sure that the developer owns the plot.

Involve a lawyer to check the contract (significant for foreigners).

Choose experienced agents who work with the project officially, make sure that the company has been on the market for a long time and values ​​its reputation.