Is anyone aware of inovative ways of buying property from a developer ?I know some developers who offer a split buy/rental deal where you lease the property and they rent it out. You usually only get 6 weeks personal use but you can benefit from approx 60% of any rental income.
An example of what I am looking for is something like this.
You make a substantial deposit (30-40%) of villa cost and then the developer has the option to use it as as a show house. The developer gives you a 20% discount for this. There could then be some sort of agreed rental/personal use split with an option to buy or get all your money back after 5 years (similar to UK car lease options) less any rental income that may have been made.
Inovative purchase options
I wouldn't hold my breath.
Developers want to develop, sell, take the money and move on.
Discounts? TiT.
As for renting it out and giving you a return... your "return" won't be much after bookkeeping hocus-pocus. You know, give the rubbish contract to the brother-in-law's company who charges 10 euro for each bag of garbage.
Others offer a "guaranteed" yearly return for three years or so. Basically they take the % off the already-inflated price etc etc.
Developers want to develop, sell, take the money and move on.
Discounts? TiT.
As for renting it out and giving you a return... your "return" won't be much after bookkeeping hocus-pocus. You know, give the rubbish contract to the brother-in-law's company who charges 10 euro for each bag of garbage.
Others offer a "guaranteed" yearly return for three years or so. Basically they take the % off the already-inflated price etc etc.
Happiness can't buy money
Dont forget, most importantly, know your rights in any situation dealing with developers, have heard some shocking stories.
Do not sign anything without knowing full well it is legal and legit, even if it says all good in the contract.
Contracts are second best to Thai law.
Best of luck with your purchase!
Do not sign anything without knowing full well it is legal and legit, even if it says all good in the contract.
Contracts are second best to Thai law.
Best of luck with your purchase!
What rights?Dont forget, most importantly, know your rights in any situation dealing with developers
Here, he who has the most money in a dispute has the most rights! That is usually not the buyer.My brain is like an Internet browser; 12 tabs are open and 5 of them are not responding, there's a GIF playing in an endless loop,... and where is that annoying music coming from?
And if the developer has been here longer then he just may have a connection or two the new arrival lacks. Money and connections are all ye need to know.hhfarang wrote:What rights?Dont forget, most importantly, know your rights in any situation dealing with developers
Happiness can't buy money
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margaretcarnes
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Inovative purchase options
It would be interesting to know what proportion of developers in Thailand are actually still in business after 5 years! (Or at least still have a presence in the area.)
Far too many potential pitfalls IMO - and if it were any other country I would think less hassle to do a simple timeshare.
Far too many potential pitfalls IMO - and if it were any other country I would think less hassle to do a simple timeshare.
A sprout is for life - not just for Christmas.
Pinsharp
Either i am having a retarded moment or you are suggesting that you pay 30% of the market value of a property. Then have an option to buy within a given period. The developer then has the right to use the property as a show house provided they, on top of funding the rest of the build without any certainty of full purchase by yourself and being tied into a rental arrangement preventing them from selling to another party during agreed period give you 60% of any generated rental income. Which of course I would imagine the developer will be responsible for finding clients so being a developer rather than a rental agent they will drop 10% on the gross rental income plus expenses. Then the 20% discount for the permission to use the property as a show house based on the full retail price. Going to be a bit difficult to show a house that has tenants that do not wish to be disturbed don't you think. Then having paid only 30-40% of retail and having had a 20% gross discount on retail option plus 60% of generated rental income you require all monies back after 5 years. Also you want 6 weeks a year that could be very inconvenient if the house is rented out. Someone please draw me a sketch of how this works without the developer WAY overpricing the property in the first place?
Crazy 88
Either i am having a retarded moment or you are suggesting that you pay 30% of the market value of a property. Then have an option to buy within a given period. The developer then has the right to use the property as a show house provided they, on top of funding the rest of the build without any certainty of full purchase by yourself and being tied into a rental arrangement preventing them from selling to another party during agreed period give you 60% of any generated rental income. Which of course I would imagine the developer will be responsible for finding clients so being a developer rather than a rental agent they will drop 10% on the gross rental income plus expenses. Then the 20% discount for the permission to use the property as a show house based on the full retail price. Going to be a bit difficult to show a house that has tenants that do not wish to be disturbed don't you think. Then having paid only 30-40% of retail and having had a 20% gross discount on retail option plus 60% of generated rental income you require all monies back after 5 years. Also you want 6 weeks a year that could be very inconvenient if the house is rented out. Someone please draw me a sketch of how this works without the developer WAY overpricing the property in the first place?
Crazy 88