WHY BUYING DURING THIS CRISIS IS A GOOD IDEA
Over the past six months or so my sales assistants and I spend a lot of time driving interested people around the island looking at properties that could be of interest to them. Some of them have committed and have put down a reservation fee to reserve the property of their choice. Some of these people have already signed the ‘Sales & Purchase Agreement’ and are already planning their first stay in their new home or are calculating the rental return the purchase will generate which is a nice extra in times that banks virtually offer no returns at all.
Many of the other people we showed around decided not to buy at this moment in time and are waiting. Waiting because the prices for property here might come down and the property they are interested in will be available cheaper then. Or it could be that some other property they maybe might like just as much will become available at a dramatically reduced price.
What is following now they might not be happy to read:
If the world economy should worsen further, it is the natural reaction of mankind to spend even less. It does not matter how much the prices should come down. In that case that dream home in Phuket is probably further away than it is now.
Also, what many people are nor really aware of or do not take in to account, but which is in fact an extremely important factor, is that the property market in Phuket is a cash market. This factor makes that the Phuket Property Market is very strong and resilient against falling prices. This also makes that there is no need for property owners to put their property on the market at bargain prices because they can not afford to pay back their mortgage anymore. Should the situation get worse it is very likely that the good offers which are currently available will be withdrawn or even disappear entirely. Adding this to the fact that the cost of living a luxury live on this paradise island is only about a third of that in comparable locations plus the fact that almost no owner is forced to sell because of the pressure of a mortgage, the developers and owners are very happy to wait until the storm has passed, wait for the economy to get better again and offer their properties back for sale again then at normal market rates.
So if you are really serious about buying a property in Phuket and you think like the people in my example, do not expect to buy a property soon. If that is your strategy, expect to pay more rather than less. Expect the current good deals on offer to be gone. Expect to have less choice of completed properties and be prepared of having to buy something off-plan which involves higher risk because the properties/developments which are completed or are now nearing completion will be sold.
