Phuket Post :: Article :: "Esse Quam Videri"

In all forms of business and particularly the creation of a new home there are talkers and there are doers (and derivations of both!)

Ones actions are much stronger than words, to be rather than to seem, but for a property buyer investing in the NEW ASIA there is often a leap of faith to be made� backing a new development team, working with a local builder, trusting your agent, ensuring detailed architecture, understanding the lawyer and signing away your initial deposit that is generally 30% of the total value.

In any development there can be a disconnect between the developers intent and written expectations and the final delivered product. Increasing building costs, tight labor, management and inexperience are normally the issues that cause headaches and fortunately, in our years of experience none bad through ill intent or deceit.

Consider this? You�re flush with cash, the bonus was bigger than expected or your London house sold to a Russian millionaire and you�re thinking� ahhh, sun, surf, beautiful weather & a new tropical new house. The luxury destinations of Phuket, Koh Kood, Koh Samui, Bali and Vietnam now offer a wide mix of exciting new residential resort properties. All are full of promise, market widely with intense, beautiful computer imaging making the project look built and spend large budgets promoting attempting to generate solid pre-sales. In military strategy you are best to keep your friends close and your enemies closer, likewise keep the developer and caretaker of your dream house on a short leash� here are some thoughts on how to protect your interests�

RULE #1 Know your developer
Study his background & reputation and seek solid independent advice before committing to an off plan project. Ask for referees and talk to the contractors, architects or project managers. Have they built before, how was the timing, how were the detailing, how was their communication? How deep is their bench? Professional consultants, advisors, professional project managers, International M&E advisers? Many of the new resort developers enjoy International experience and have built hotels which make the DD process much easier (Trisara, The Taj Group, GHM, Raffles, The Oberoi, Jumeirah, Laguna & Six Senses).

RULE #2 Know yourself
Seriously, do you have 15 hours a week to spend on building your dream house remotely and the ability to travel to your dream destination spending three days at a time with contractors, architects, interior designers and doing that consistently for two to three years?? If not buy carefully from a seasoned developer, or pay the premium and buy completed product. Be realistic about what the property is for, occasional use, a beach house, a new business base or permanent home � whatever its is be clear to your agent and developer, and the harder you think about it and the quicker you make those decisions the easier the process.

RULE #3 Development Scale
If the developer is building 7 houses (Baan Mandala) and is building out to completion regardless of sales (now completed and selling) then scale is easier to judge, as is timing and overall expectations. If the project is for 200 apartments and pre-sales are integral to cash flow then there is a higher risk and you must be much more inquisitive. International developers or listed companies like Raimon Land can handle big scale projects much better than individual developers who have to build up a team that can handle scale.

RULE #4 Have they something built
Reputationally a previous project is the best form of DD, however new developers have excelled by quickly showing buyers what they are capable of, and quickly building showhouses or display suites to show off interior detailing, material choices and options. HK based Alan Zemans Kamala beach project Andara were quick to build out infrastructure, the gated entranceway and a show unit which dramatically improved sales, likewise Bangkok based listed company Raimon Land excel at first class show units and mockups.

RULE#5 Promises, Promises, Promises
�we will� and �we did� often get confused. Get hard deadlines, tie payments into construction milestones and be hard on the developer if the project starts to slip, and ALWAYS expect delays... just the nature of building. Tough weather, delays by contractors, difficulty procuring materials or simply underestimating the project scale always come into play. DO NOT book that big wedding in Phuket expecting your villa to be on the dot six months out � you are asking for trouble.

RULE#6 Don�t Deliberate: ACT
After considering the 150 websites, deciding your ideal destination and property, deciding on beach front, mountain top or jungle location and where you want to be (in the action or isolated) then get a good real estate advisor. You will need inside tips, local knowledge, good connections and impartial advice on pricing; you should negotiate (not always successful) and you should not go about it independently. With this in mind, BUY IT. Put in an offer, be prepared and move forward in an organized way. Demand is strong, the best units go quickly and if you don�t communicate then it will slip and the deal will be lost. Most importantly off plan buying offers you often discounts of 20 to 100% of the finished unit price, particularly if you are early on a three year estate build out. The risks are manageable and offplan buying is a well traveled acquisition process. Follow the above with Rule 7 and you are in good shape to make an informed, smart investment property acquisition.

RULE#7 Get good advice
Get a good lawyer and get good advice about which lawyer to use. Get a good real estate agent and get good advice (if you can) about which agent and agency to use! Listen, read, surf the net and always read the fine print. Happy Buying!

* The Latin phrase �Esse Quam Videri� meaning �To be, rather than to seem� is the motto of Geelong Grammar School in Australia.