Property buyers in Phuket may face a situation where they like the property, but it is not possible to deposit the entire amount at once or it is simply impractical. At this point, installments turn into a payment method that helps you get into a good project.
When installments are beneficial
1. When an object is bought during the construction phase
Most apartments and villas in Phuket are sold before completion. It is at this stage that installments are especially interesting, and that's why:
- no interest if the schedule is followed;
- payments are distributed over 2-3 years;
- the price at the start is always lower the closer the construction is to completion.
Bottom line: you fix a low price and pay for the object in installments, and the real cost increases as the construction progresses. For an investor, this means the opportunity to enter the project in small step-by-step payments and exit by assignment when the price has already increased.
2. When there is no need to pay a large sum immediately
Even for those who can pay for an object in a single transaction, it makes no sense to "freeze" a large amount if the developer allows the payments to be extended without interest. Installments in this case reduce financial pressure, leave part of the capital free, and also allow you to simultaneously invest in other instruments (including real estate).
3. When does the buyer plan to move to Thailand in the future
Many buyers plan to move in advance: someone gets a long-term visa after 12-18 months, someone waits for the end of the school year for their children, and someone closes work projects at home. In such situations, people want to choose an object now so that they don't overpay later and get ready-made housing by the time they move. In this case, the installment plan allows you to book an object in the right area, take your time moving, calmly process documents and plan household issues.
4. When the rising price plays into your hands
In Phuket, the price of real estate increases as the complex is ready. The closer to completion, the less the developer offers discounts. The benefit of installments here is direct:
you pay according to the schedule, but with reference to the price fixed at the beginning, and the actual cost of the object is already higher.
When the installment plan does not provide advantages
1. When the project is almost completed
The closer the object is to commissioning, the shorter the installment period. At this stage, it can be given for several months, and the benefits disappear. If the facility is 80-90% ready, it is better to look at other benefits from the transaction.
2. When the installment price is higher than for a one-time payment
Some developers make a discount when paying "50% immediately" or "100% immediately". In this case, the installment plan loses its financial meaning. If the discount is more than the installment value, it is more profitable to pay immediately.
3. When a project is questionable
If you are not sure about the developer, it is better to avoid installments. This scheme assumes that you deposit money in stages, and the developer must promote the construction. If the construction costs or the documents are not in order, the installment payment becomes an additional risk.
What installments in Thailand look like in practice
The conditions in most projects are similar:
- deposit for reservations: 50,000-200,000 baht;
- first payment after signing the contract: 20-30%;
- the payment schedule is linked to the construction stages;
- the final payment is at the end of the project;
- there are no percentages as long as the plan is followed.
For foreigners, the conditions are the same – a passport and a willingness to meet the schedule.
