This article originally appeared in the fifth issue of Thailand Property Magazine. Read it in its original format, on page 16 here: Thailand Property Magazine Online
Rising between two of Phuket’s still under-developed west coast beaches, the impressive contemporary architecture of the five-star serviced Twin Sands Resort and Spa have naturally attracted a lot of interested investors.
By “a lot,” we mean enough to completely sell out the first two phases. Interestingly, out of all the existing investors, there’s no one-way to classify the type of people who purchase suites in Twin Sands or exotic beach resorts like it. While anyone can immediately grasp the dazzling appeals of owning a piece of coastal real estate in a prime holiday destination, the level of experience that investors have and their intentions for the property always vary greatly. There are some who come along with extensive investment experience, large property portfolios and a thorough knowledge of the area’s growth potential, while others find themselves signing the largest cheques of their lives; excited for a lifestyle by the sea and for their initial acceptance into the Homeowners Club.
Regardless of the intention for the property or how much experience an investor has, when it comes time to put a down payment on a pre-sale property there’s always an element of risk involved. It’s a concept that’s refreshingly understood and resolved by the resort’s multi award-winning developer the Absolute World Group, as prospective buyers are offered a chance for a fully subsidised, full-emersion experience at the resort; a complimentary two-night stay, before asking for a commitment.
“The complimentary visit is to ensure that our investors will feel secure in their purchase,” said Bryan Lunt, Chairman and CEO of the Absolute World Group. “If someone is serious about investing with us we encourage them to sleep, swim, dine and enjoy themselves on the resort; this way they feel completely satisfied, knowing exactly what they’re getting before they sign.”
While the Twin Sands offer is helpful for property purchasers, Lunt says that there’s more to assessing an investment than just soaking in the experience of its resort. Those taking advantage of the two-night stay are expected to use their time wisely and do some due diligence about the property and the surrounding area while they have the opportunity.
The following is a list of inspections one should make before committing to an investment, applicable not just to Twin Sands but anywhere in Thailand:
-Discover What’s Being Built Nearby
Savvy investors should already have an idea of the pros and cons of the neighborhood they’re buying into, but it’s important to try and gauge the future of the area as well. The types of properties that already exist nearby or will be built in the future are important indicators of how land and property will appreciate.
As an example, because a prominent and very high-end American development company called Rosewood will be building a resort next door to Twin Sands, investors can predict that the area will soon turn into an exclusive neighbourhood. Not only will the luxury neighbourhood help the property appreciate, but the simple fact that the company chose a location next to Twin Sands speaks volumes on its potential. Investors should be wary of properties in undesirable neighbourhoods with low-end neighbours as their future is far less predictable.
-Get A True Idea of The Maintenance Standards
Inspecting other properties that the developer has sold off more than five years ago will help you to accurately predict what condition your property will eventually be in.
Developments that have been around for at least five years have reached a routine of maintenance and occupancy. If you see that other properties by the same developer seriously need work, take heed. It’s not uncommon for developers to wipe their hands clean and move on once a project has sold out and profit has been made. The Absolute World Group have two further resorts opened in 2009 and the first phase of Twin Sands, opened in 2012 to experience. Taking a stroll around the grounds and having a coffee in the restaurant will give you an idea of how well the company manages their properties even years after the final sale.
– Play Secret Shopper At the Property You Want
Even if the development is offering a risk-free trial like Twin Sands, it’s in your best interest to show up unannounced on a separate occasion when no one has had an opportunity to prepare for you. With Twin Sands, you will automatically get a thirty-day risk-free reservation, which is the perfect time to get a feel for the commute to the closest city without a chauffeur, observe the demographic and strike up a conversation with people who seem to be living there to get their honest opinions.
– Ask to Meet the Developer
You may be working with knowledgeable sales professionals who can educate you on all of the selling points of a property, but requesting an introduction to the developer helps ensure you will receive the highest level of service the company can offer. While part of the complimentary two-day package at Twin Sands is a full private tour around the development with an experienced Resort Representative, this is not something that’s always offered by other developers. Meeting the developer in person will give you a better idea of why this property may (or may not) be the right one for you, as he or she can show you how the project plans will fit together, and what’s included in the purchase and fees.
-Determine the Payment Schedule
Just as reputable developers will not request a full upfront payment on a presale property, savvy investors should not agree to one; presale properties should always be paid for in stages. Determine what the payment stage schedule will be before you commit. Like Twin Sands offers, it’s possible to get a risk-free reservation period that allows the buyer to do further research before paying up to an initial down payment. An additional percentage may be paid again once the outer structure of the property has been completed with a roof. Once those two payments have been made, there should not be any more money handling until the project has reached completion and you receive your keys.
* Twin Sands, by the multi award-winning Absolute World Group is a full-service luxury resort development in Phuket currently in its third-phase. Starting at 4m THB, it offers both a rental guarantee and six-year buy-back plan.
Get in touch with the Absolute World Group about Twin Sands Resort & Spa here.
