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Buying an apartment from a developer

The purchase of real estate on the primary market has undeniable advantages. First, it is a deferred payment, i.e., a person does not have to pay the entire amount for the apartment at once. Usually after signing a contract, a contract of sale between the developer and the buyer, a payment schedule is established. Depending on the timing of construction, the deferred payment may be a year, two years or more.

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Process of Buying a Condo in Thailand

The construction boom in Thailand began about 12 years ago.  Before 2008, construction also took place, but not to the same extent.  In 2013 alone, 42 new projects were launched. And the trend in this area has changed dramatically. If initially, the developers were mostly foreign - 60-70%, and the Thai only 20-30%, now it is the local developers - 70%. This is a good trend because it gives investors more confidence and reliability. After all, Thai builders are supported by Thai banks, while foreign ones are not always.

New players in this market appear very rarely. Of course, some developers are late with the construction deadlines and do not comply with the terms of the contract, but as a rule, they still build and complete the undertaken obligations to the end. Surprisingly, over the past ten years, 95% of developers have brought their projects to their logical conclusion.

Usually, the first sum a buyer pays is the deposit, after which the apartment is taken off the market, so it is already potentially yours. The amount of the deposit varies from 10,000 to 100,000 baht. Then, usually, after a month, the buyer pays 20-25% or maybe 10% of the cost of the apartment; it depends on the developer's conditions. And, as a rule, immediately determined the amount to be paid at the end of construction. Often it is 40%, and the Thai developers may be up to 80%.

The difference between what you paid in the beginning and what is left at the end of construction is paid in equal parts once a month or once every three months, depending on the contract. In general, this document is standard, but of course, for each buyer individually, each time the payment terms change, the apartment and the person's name change.  And the contract is accompanied by invoices - bills for payment. By these invoices, a buyer from Russia, Kazakhstan, Ukraine or any other country transfers money by wire transfer to the account of the developer.

Buying an apartment in the Primary market is also interesting because while the house is still under construction, you can choose the floor and the view. In addition, you can buy 2-3 apartments and combine them into one, which in the secondary market is much more difficult to do.

 

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Update: 20-02-2023
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