At Prime, we often get asked, when is the best time to buy real estate. My standard answer is; any time, but in the next 20 minutes is preferable! Jokes aside, the question is more relevant now than it may have ever been.
The COVID-19 world pandemic has ravaged the world’s industries and economies, including tourism and property sales on the island. However, this doesn’t mean that developers and sellers are dumping their property prices, no sir. Recent history has taught us that the Phuket property market is fickle sometimes, but not in a state of collapse. In the last 15 years, the property market has gone through a lot. A Global Financial Crisis, Bird Flu, Military Coups and nine Prime Ministers and still come out the other side. Yes, it was a little bruised. And yes, a number of motivated sellers exchanged at remarkably low prices. But these were few and far between in comparison with the total transaction.
The Property Must Fit The Reason
The price paid for a property should depend on what you are buying and also the reason for the purchase. Yes, vendors of less desirable studios, 1-2 bed apartments at the back a village may well reduce their prices. The buyer may have other ideas for the property. It may not be a “live-in” purchase but more of a “cheap, short-term holiday let” investment, which makes sense. However, properties in better locations that are viewed more as a permanent or secondary home. They may hold their value more and are less likely to sell at a greatly reduced price.
Due to the lack of available borrowing for foreigners to secure a property purchase within Thailand most of the purchases are cash-based, apart from Thai Nationals. This makes a huge difference in what an individual owner is willing to accept as a final offer for his or her property. And this normally depends on their individual circumstances. As a rule of thumb, there is always room to negotiate, but not to be reckless or offensive. If you are a buyer and have a professional broker THAT YOU TRUST, you should be guided by them prior to making your offer. If you are a vendor, the same applies. Should you not have a broker you feel entirely comfortable with, you may want to reconsider your options prior to moving forward.
Is This The Best Time To Buy Real Estate?
Finally, the answer! In short, YES, it could well be! It’s definitely not the worst! There will be some great bargains around and when I say that, I mean, they represent great value for money! Some properties may not come down to what the buyer would like, but the likelihood of that happening is very slim given the facts above.
Top tip! Have an open and proper discussion with your broker. He/she needs to know what you really need and want. Then listen to their advice.
For more information on great value investments and buys in Phuket property, email; [email protected] today.
