What is the Average ROI for Property Investments in Phuket?
Phuket is one of the most exciting markets for property investments. It’s always been. This is not only because of its beautiful nature and landscape, but also it’s one of the most visited holiday destinations in Southeast Asia. It’s always been popular amongst Australians, Europeans and Americans. And over the past 10 years the island became so popular amongst Russian and Chinese tourist.
Big percentage of the visitors are interested to have a holiday home in Phuket. That demand has brought a decent amount of supply over the past ten years. More and more attractive properties are being built. That supply also increase the demand on the island with attractive ROI opportunities as well as handsome capital gain chance for the buyers.
Recently Phuket property developers came up with a good idea of having an agreement with international hotel chains to run their projects as a hotel when they’re completed. This increases the liability of the project as well as provides a good rental return guarantee to the investors.
Generally new Hotel Managed Developments offer 7% guaranteed yearly rental return to the new buyers. Mostly it is not less than 3 years. Meanwhile some projects offer up to 15 years. They mostly allocate the property for the owners to use around one month throughout the year. The rest of the year it is being used as a hotel room and maximize the rental return.
That requires one rule for the most of the projects. That is the owners have to go with the developers’ default furniture package and cannot change much in the unit. That gives opportunity to the hotel management to rent the units out as advertised.
Just to give you an idea about return on property investments in Phuket, we’ve put bunch of good deals together.
Guaranteed 7% per year – 15 Years
This project is located in the hills of Patong beach. Consist of total 150 cottages. They guarantee 7% net yearly rental return for 15 years. There is no monthly fee, electricity, maintenance fee or sinking fund. After 5 years the developer offers a buyback option with the purchase price plus 10% interest rate. The first rental guarantee is to be paid by the developer one year from the final payment. This is clearly one of the best investment options on the island.
For more information: Patong Cottages
Guaranteed 7% per year – 15 Years
From the same developer as Patong Sea View Cottages, these cottages also offer the same rental guarantee of 7% per year for 15 years. The interior of the cottages are pretty much the same. These are slightly bigger which 60 square meter, and also these are in walking distance to the beach. Everything else and all the conditions are the same as the Patong Cottages.
For more information: Kamala Cottages
Guaranteed 10% per year – 5 years
This project is being built by Phuket’s one of the most popular developer who built numerous projects all over the island. They offer 10% yearly rental return guaranteed for first 5 years. Since it is located in Phuket’s most desired area Patong, it will not be so difficult to get all the investment back in 9-10 years time in total.
For more information: Patong Condo
Surin Beach Condo
Guaranteed 7% per year – 7 years
This is a fully completed condominium located in Surin beach, only couple of hundred meters away from the beach. They offer a great guaranteed return of 7% per year for 7 years. Since it is a completed project, the first payout will take place in March 2018. Surin is a developing area in Phuket. Now price per square meter is quite low. By the time the buyers collect their 49% rental return, the price per square meter will increase and it will provide a good capital gain at the end.
For more information: Surin Beach Condo
Maikhao Beach Condo:
Guaranteed 10% per year – 5 Years
This project is located on the Northern part of the island, and being developed by a local developer. They also offer 10% rental return guarantee for the first 5 years. It will be run by a 4.5 star hotel chain. Their prices make them one of the most affordable projects on the island. And of course to be able to get 50% of the investment back in 5 years is always make the deal sweeter.
For more information: Maikhao Beach Condo
Kata Noi Condominiums:
Guaranteed 6% per year – 3 years
This is a project that located in Kata Noi beach. All the units have sea view, and it is located only 500 meters from Phuket’s one of the most beautiful beaches Kata Noi. They offer 6% rental guarantee for 3 years. But more than what they offer, the possibility of maximizing the rental income is quite possible with this project just because of its location. The project is located in Phuket’s most desired area Kata Noi, which not too many accommodations available. Therefore this project actually is pretty unique when it comes to return on investment. Also it will be very easy to sell when needed just because of its location.
For more information: Kata Noi Condominium