Buying apartments during the construction phase or completion apartments?
Buying apartments during the construction phase
In 80%, buying of apartments are at the stage of construction. Prices in the process of construction grow by 15-20% and this attracts the bulk of investors. Also, at the beginning of construction, the choice of apartments is much bigger.
It would seem that buying an apartment at the construction stage is more profitable anyway. But let’s look at the pluses of buying a completed home.
Buying apartments at the final stage
- Minimum risk
- Ability to evaluate the object live
- The opportunity to immediately use the apartment
- Rent income immediately after registration
The non-obvious plus of the cost, which is higher for the completed object is the receipt of a correspondingly higher income from the guaranteed income program.
Explanation: the income from the developer is calculated as a percentage of the cost of the apartment. Of course, in the case of a sale, the difference between the initial cost and the final one will be important.
The difference in the yield of finished and under construction apartments
1 – Investment in the construction phase: 4,000,000 THB
2 – Investment in the finished apartment: 4,800,000 THB (20% higher)
Terms of the rental program: 7% per annum for 8 years. Term from the beginning of construction to commissioning: 2 years. Sale of the property after the expiration of the rental program: 6,000,000 THB
The difference in the return on investment in completed and newly built housing was 0.475% per year. Or 3.8% for 8 years. From the completed apartments is more “instant profitability”. In the long term and in the case of a sale, buying at the stage of development brings more.
Of course, these are only approximate figures. The cost of sales will depend on market conditions, at the time of sale. Probably, you should not perceive the acquisition of real estate in Phuket. Because of a highly liquid investment. Rather, it should be seen as one of the investment portfolios, designed to save funds for a period of 7-10 years.
Special income program
Our company can offer two options of investing. In completed and under construction apartments, as well as a special income program.
At the second stage of construction of the VIP KATA Condominium project, we offer a return on investment from the first day. That is, the investor receives income already during the construction of the facility, paying the entire amount. For the developer it is an opportunity to direct additional finance for accelerating sales and construction. For the investor (buyer) to get more favorable terms and return on investment from the first days. Standard conditions for the purchase of apartments under construction – payment for the stages of construction. Either purchase of completed apartments in the first stage of construction ready for living or recreation.
For details about the project and accurate calculations of yield, please contact our sales department. We will be happy to offer you accommodation in our objects at special prices. So that you can evaluate the quality of our work and service in person.