Building Your Own Home in Phuket

High end developments definitely have their advantages but they are primarily targeted at those who want the security, services and conveniences of a first world neighborhood in an Asian environment.

They are also a plus if one of your prime concerns is to earn high end yields through rental returns. The property management teams at any of the major developments have worked this into their long term business planning.

There are many people, however, who would rather assimilate into the local environment by buying an established stand-alone house or piece of land and building themselves.

If you are one of these then it becomes imperative that you secure the services of a reputable real estate agent or property consultant that will help you avoid many of the pitfalls that have beseeched the less informed or naive.

Buying an established premises or just the land and building is a very rewarding experience especially since it will not break the bank.

Setting up a Thai company properly to control your property or registering a renewable 30 year lease to secure it is paramount.

Ensuring that you are buying the right type of land title, verifying vehicle & utility access, checking out the residential zones & planning codes of the area, making sure there are no unfavorable caveats attached to the property & that the person selling you the property is indeed who they say they are: can all be handled by an experienced real estate agent.

Furthermore, all reputable estate agents have databases of the best current local listings, investment opportunities & bona fide land for sale. They will work closely with you, to your available budget, to find exactly the house and land package that suits your needs.

If you have decided to build then it is important to secure the services of a reputable builder. Real Estate Agents have the experience and knowledge within the local building industry and are best able to advise on the services of builder renowned for the integrity and quality of their work.

The reason you need this advice is that whilst most western building companies grant various forms of assurances to their clients in the form of performance bonds, retentions and warranties - they are not typical in Phuket. A Performance Bond for those of you who don’t know is a guarantee issued by the Contractor’s Bank to secure any advance payment that you make to the Builder.

In Phuket the client will generally pay a deposit to enable the builder to start work and then progress payments are made along the way that are work and material related. The deposit, which is usually substantial, leaves your down payment unsecured if no performance bond is issued.

As well as requesting a bond within your contract you should insist on a 12 month warranty from project completion.

For a residential building this is usually long enough for significant construction defects to become apparent.

Remember: Use the services of a professional Real Estate Agent or Property Consultant to verify ownership, title, identity of parties, building permits, utility supplies and development plans in the surrounding areas that might have future impact on your proposed new property