Investors, which plan to receive passive rental income in Thailand, prefer property in Phuket. If you decide to invest, protect your savings from depreciation, and try yourself in a new business, then investing in real estate in Thailand is definitely a worthwhile option.
With the right approach in choosing an object and quality management of it in the future, buying an apartment (villa) can become not only a stable passive income but also turn into a decent active income.
This choice is justified by the developing infrastructure of the city, high ROI, and a wide range of residential and commercial facilities. Before choosing the best option, read the following recommendations
Proper Cost Planning
It sounds simple, but many buyers of Phuket real estate underestimate the costs associated with it. The best way to calculate costs and determine the potential amount of net income from renting a property is to use the 50% rule.
The 50% rule implies the summation of all operating expenses for the month – taxes, maintenance or repairs, payment for property management services, insurance, etc. If the resulting number exceeds 50% of the rent, then a potential buyer should consider alternative real estate options in Phuket.
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Market Research
In the process of selecting rental real estate, it is necessary to study all aspects of market conditions. The buyer should analyze the following information:
- infrastructure and prospects of the area;
- the price range for renting analog properties;
- property tax rates;
- cost of real estate management services.
Only by answering all the questions about the property in question and the area in which it is located, a potential buyer can make a decision about the transaction. For potential buyers of real estate in Phuket, also do not forget about the peculiarities of the season on the island.
From the beginning of November to the middle of February, the most favorable weather is here. It is at this time that the island is visited by the largest number of tourists, because of which prices for buying and renting housing rise.
Optimal Rental Property
Choosing the optimal apartment or house for rent is the key task of the investor. By making a mistake, he can get a property that drains his finances. Therefore, he must take a responsible approach to this issue in order to achieve a stable passive income.
First, an investor should remember that he is buying a house not for himself, but for tenants. Phuket offers a wide range of properties that meet the tastes of landlords but are not the best option for renting.
Therefore, the investor should make the most detailed portrait of his ideal tenant and make a choice based on his preferences and lifestyle.
Besides, the buyer must choose the type of property management. Technically, there are two types of rental real estate in Phuket. The investor can manage his property independently or become part of a managed condominium.
The second option allows you to buy a new building and receive a fixed-interest income based on its value. It guarantees the buyer an annual rent, but limits control over the property.
East Or West: Where to Choose Real Estate
Phuket is a resort location that receives up to 10 million tourists annually. Guests leave about 2.5 – 3 billion dollars on the island every year. The lion’s share of this money goes to hotels and apartment owners.
Therefore, when we talk about investing in real estate in Phuket, then, one way or another, we mean entering the hotel business.
If you look at the map of the island, you will notice that the vast majority of top hotels are located on the west coast. The reason: this is where the best beaches are, and the eastern part of Phuket is not suitable for swimming at all.
The result: infrastructure is developing in the west; prestigious complexes are being built and the most solvent tourists are coming here.
Conclusion for the investor: it is necessary to buy here, on the west coast. It is advisable to choose the best of the good, i.e. the scarce first line.
Professional Help
Competent real estate agents with many years of experience will know the necessary subtleties that will help sell a property at a bargain price. They take into account all the factors of this issue: from the right time to sell to current market trends.
Experienced investors are not afraid to seek help from a qualified real estate agent who is well acquainted with the area and market conditions. Buyers of residential and commercial properties in Phuket entrust all transaction issues to specialists in Thailand-Real.Estate.
They have all the necessary knowledge and can tell which areas bring the highest ROI to owners. Investors working hand in hand with such an agency never doubt their decisions.
