New Develpoments vs exsisting ones

[ITKMAN]

I have some experieince with the differance between the two but not in Thailand. Prime concern is investment security. I have never gone with a new company but only one that have established success in the market. I suppose that I will stick to that but which options would provide the mose growth, not that growth is really important but it must be an issue will all realestate investments.

New Devlopments, under construction or Exsisting gated communities... In America the new develpments almost always out perform exsisting one's is that the same in HH and Thailand in general. The brokers in Phuket have indicated that new devlopments will out perform in that local but it is not the case in all of Thailand and name brand issues fall into play, location/status etc.. any info that is based on some specific info...

[STEVE G]

Hi itkman,
You indicatede your experieince with the differance between exsisgting devlopments and new develpments in locatiopn in americqa was importatn in providing the mose realestate growth, New Devlopments out perform exsisting one’s in HH as well.
I think!

[c.g]

most development sell under the market value so if you buy before completed then you should be able to make a profit.

[silverbird]

most development sell under the market value so if you buy before completed then you should be able to make a profit.

To me this sounds as wishful thinking. Why? Many of the farang developers down here lack cash from the very first beginning. Those who will not be able to continue finding buyers paying them a lot in advance risk having their businesses come to a complete stop. Why are houses not completed in time even today when the market is hot? Sometimes there are good reasons but sometimes because the developer has invested the cash-flow from one project into another one! If the market comes to a halt – it likely means losses for the buyers. Buyers that have paid up to 80% of their total cost without even got a title of deed! My guess is when the market gets cool we will se a lot of people having paid for something that never will be delivered!

Anyone buying a house that is built and ready can make sure he gets the property registered into his (or his companys ) name before he make his payment. He can also check if the quality of the house matches his expectations.

[malcolminthemiddle]

most development sell under the market value so if you buy before completed then you should be able to make a profit.

To me this sounds as wishful thinking. Why? Many of the farang developers down here lack cash from the very first beginning. Those who will not be able to continue finding buyers paying them a lot in advance risk having their businesses come to a complete stop. Why are houses not completed in time even today when the market is hot? Sometimes there are good reasons but sometimes because the developer has invested the cash-flow from one project into another one! If the market comes to a halt – it likely means losses for the buyers. Buyers that have paid up to 80% of their total cost without even got a title of deed! My guess is when the market gets cool we will se a lot of people having paid for something that never will be delivered!

Anyone buying a house that is built and ready can make sure he gets the property registered into his (or his companys ) name before he make his payment. He can also check if the quality of the house matches his expectations.

Spot on + what about foreign buyers who had planned to register their half built property in their "Thai Companies" + the same foreign buyer who wanted to get out of the deal, who could he sell to now, only a Thai at a substantial discount?

Chances are alot of developments will grind to a halt

[roberto]

Depends too on the guarantees of infrastructure afterwards. Where's the compulsion to build the club house and bar and restaurants and wide avenues, shuttle buses and shops when the houses are all sold? Lots of existing developments lack the facilities promised when they were selling plots. Thailand is a law unto itself don't read too much of your US experience into Hua Hin try suing a thai over contractual obligations. Check it out for yourself. Discounts on off plan often come from an inherently rising market anyway, one that exists for older communities too. Also factor in that you know if they flood or have water supply problems etc etc. If someone's offering you a deal thats too good to be true it usually is. Perhaps a mix and match if you are buying a few, existing and off plan then all your eggs aren't in the one basket.

[malcolminthemiddle]

Depends too on the guarantees of infrastructure afterwards. Where's the compulsion to build the club house and bar and restaurants and wide avenues, shuttle buses and shops when the houses are all sold? Lots of existing developments lack the facilities promised when they were selling plots. Thailand is a law unto itself don't read too much of your US experience into Hua Hin try suing a thai over contractual obligations. Check it out for yourself. Discounts on off plan often come from an inherently rising market anyway, one that exists for older communities too. Also factor in that you know if they flood or have water supply problems etc etc. If someone's offering you a deal thats too good to be true it usually is. Perhaps a mix and match if you are buying a few, existing and off plan then all your eggs aren't in the one basket.

Spot on as well and don't forget the selling price includes "the club house and bar and restaurants and wide avenues, shuttle buses and shops" that are now in jeopardy, do you think the developer will offer a discount if they are not built?

Then there's the situation where the developer has borrowed money to develop his project and sales have now dried up, the banks will still want their interest?

[c.g]

for sure there are bad developments, ppl who spend all the money on new land before the old project is finished but alot of projects you will make a good return in less then a year of completion.

[silverbird]

for sure there are bad developments, ppl who spend all the money on new land before the old project is finished but alot of projects you will make a good return in less then a year of completion.

I think the golden years are over for now. The balance in between sellers and buyers are likely to be more even. A slight overweight for sellers might show up very soon. Those who built and are speculating in a quick sale are likely to be among the loosers if they have to sell.

[JW]

I think that there has been quite a lot of fairly mediocre design but there does seem to be some more imaginative property in the pipeline. I think things are looking pretty good.