What You Need to Know About Buying Off-Plan Real Estate in Hua Hin and Thailand
Buying newly developed, off-plan property in Hua Hin is surprisingly affordable and has many advantages over buying resale property – but only if it is done correctly. There are lots of in’s and out’s you’ll need to know – this guide covers the bigger ones and outlines what you can expect during the whole process.
Reserving Your Property
Navigating the Thai real estate market can certainly be challenging, especially for foreigners. With so many options to choose from and a new set of law to learn, the prospect of buying property can sometimes be overwhelming. The key is to have a good real estate agent, which will be your first step. Get in touch with the agents at Hua Hin Property Partner to learn more.
After your agent has helped you find the development and property that you like, you’ll need to pay a reservation fee. The fee is usually 200,000 Thai Baht, or about $6,000 USD, and is typically non-refundable. The reservation fee – and the rest of the buying and construction process – will normally be the same across all new properties.
Contracts and Lawyers
It is highly recommended that you hire a lawyer in addition to working with a real estate agent. You will want a lawyer who is well versed in Thai law to review your contracts and real estate agreements before you sign anything or make any payments. They’ll make sure everything is right and fair and will protect you from signing a bad contract.
Finding a good lawyer isn’t as hard as one might think. There are plenty in the city of Hua Hin whose main clientele are foreigners looking to purchase property in Thailand, so they will be well versed in the process. If you’re not sure where to start, just ask your real estate agent. Your real estate agent will probably be able to recommend a few good lawyers who have worked well with their clients in the past.
Payment terms will be spelled out in the contract, and with most developers, you can expect your payment schedule to look something like the following:
- 200,000 Thai Baht fee to reserve your plot of land
- A down payment on signing the contract, prior to the beginning of contraction. The down payment can be anywhere from 20% to 40%
- Further payments upon the completion of construction milestones
Be sure to have your lawyer with you when the payments are scheduled and agreed upon, and don’t be afraid to ask questions. You want to make sure that everyone is on the same page and that the terms are agreeable to you.
Mid-Way Progress Check
When the construction has hit its halfway point, you’ll need to return to your property in Hua Hin to go over the finishing details with the construction team. These will include things like choosing paint colors, tile designs, the layout of patios and swimming pools, kitchen color schemes, and the fabric and wood being used in any custom-made furniture.
If you can’t make it back to Hua Hin for the halfway point, you can sometimes have the meeting over a video call. That way you can still see the property and get a better sense of how everything will look once it is complete. However, it is highly recommended that you do everything in your power to have the meeting in person so you can make sure everything is to your liking.
When the building is done, you will need to return to Hua Hin to do a walk through with the developer. They should take you around the villa while you verify that everything is in working order and built according to the contract. You will then complete the paperwork with your lawyer present and receive the keys!