TOP 10 Reasons to Invest in Phuket Real Estate
Phuket is an amazing place both for investment and to live in. It’s been attracting more and more tourists every year, with 12-18% year-on-year rise in the past few years. Last year Phuket was ranked number 11 as the most visited city by foreign tourists in the world. With over 35 beaches, 32 off-shore islands, international hospitals and schools, shopping malls, beach clubs, yacht marinas, golf courses and constantly improving infrastructure thanks to the huge government investments, Phuket has become a top tourist, investment and retirement destination.
TOP 10 reasons why foreigners invest in the real estate here:
HIGH RENTAL RETURNS
6-8% on average, however best locations can generate even up to 10-12%, depending on the management structure. Мost condominium developers offer the so-called rental guarantee option, which gives you a fixed return of 7 to 10% of your purchase price per year for 3-5 years, some developments even up to 20 years.
According to last year’s statistics, the average occupancy of the hotels in Phuket was 77%. Best developments go up to 85-90%! Add to this the steady tourists increase and it’s more than clear that there is absolutely no question of market bubble- demand creates it’s own supply.
AFFORDABLE PRE-SALE PRICES
Starts at $65 000 for 1 bedroom hotel-managed condo apartment (they have the highest rentability). Prices vary depending on the location and view.
HIGH CAPITAL APPRECIATION for OFF-PLAN PROJECTS
On average the prices raise 30-70% in the course of construction. Some of the investors are here entirely for the capital gains. Once they do their homework and pick a solid development project that has just been launched, they buy a couple of units (at special pre-sale price), which they easily resell when the project is completed and had been entirely sold out. Or they leave one of the units for steady passive income. And then start the new hunt for another high potential project.
FLEXIBLE PAYMENT SCHEDULE
Payment according to the construction progress- after the down payment (25-40%) you pay for what you see. Moreover, according to the law you can resell as soon as you’ve made your first payment, which is a good opportunity to speculate or exit the deal, in case you encounter financial problems.
LOW TAXES AND FEES
Thailand offers buyers and sellers an advantageous and a relatively low set of taxes. In comparison to some developed countries (i.e. UK, France, Singapore, Hong Kong, Australia etc…), Thailand’s tax system remains extremely attractive.
Another reason, which makes the real estate market here so attractive, is the fact that only 15% of the land of Phuket has residential status (the rest is considered mountain area/ national park etc.). At the moment the first hand market is very popular, however, as land is getting more and more scarce, especially sea view land, we are expecting prices to start skyrocketing in the near future (5-10 years).
5-STAR HOTEL FACILITIES
Apart from the financial side, the hotel-managed condominium projects offer a wide range of facilities- rooftop infinity pools, fitness centers, spa, kids playgrounds, restaurants, libraries, reception, lobby, 24/7 security, free shuttle bus to the beach to name just a few.
HOLIDAY HOME- SAVING ON EXPENSIVE HOTELS
If you are buying for investment and choose the rental guarantee option, you get 14-40 days per year to stay for free. Are you one of the numerous tourists who keep coming back to Phuket every year? Then this is a great option not only to save money on expensive accommodation, but also to get a decent passive income while your asset appreciates every year.
Thailand is one of the most affordable and interesting places in the world to think about retiring. Pristine beaches, warm climate, delicious cuisine, low cost of living, high quality health care, friendly people are just a few of the reasons why nearly 2 million foreign citizens chose Thailand as their retirement destination. The lenient retirement visa procedures in addition to the above-mentioned factors have made Phuket a second home for a lot of foreigners.
“Sit back and relax and do the things you never got a chance to do.”