Many overseas property investors are attracted by the paradise Thai resort of Phuket. With delicious cuisine, historical temples, beautiful beaches, world-class diving destinations, and vibrant nightlife, what’s not to like?
When investing in Phuket there three main different types of property you can buy; houses, apartments, or condos. But there are reasons why a condo may be the best bet for overseas property investors.
A non-Thai citizen can invest in a property in Thailand, but only a condominium can be legally owned freehold by a foreigner. This is per the Thailand Condominium Act (1979), which safeguards the rights of a non-Thai citizen to own a condominium. You have the option of investing in a house, but this must be done through a Thai partner, setting up a Thai Limited company, or purchasing a lease. You may not want to go through these complicated processes especially in a foreign land.
Return on Investment
Most developers in Phuket offer 5 to 7 per cent guaranteed return for the first three years. Hotel managed condos are particularly attractive because you allow the hotel to manage your condo unit and benefit from guaranteed rental returns while having a place to stay in Phuket at least once a month.
You must make sure to perform proper due diligence on these developers, however, before you buy. That ‘guaranteed return’ is only as good as the developer or scheme backing it.
You can sell a condominium under foreign freehold to other Thais or foreign investors, and the prices can be very attractive. The government usually sells foreign freehold units at a higher price, which means you can enjoy higher returns on your investment. Many foreigners are eager to invest in a Phuket property, so there are always a good number of buyers in the market.
Phuket Property Market
Reports show that since 2015 condominiums are the most preferred property investment of foreigners in Phuket, particularly from ASEAN countries. Even locals have shown an increasing interest in owning a condo in Phuket. All this points to the continuous growth of the real estate market on the island. Prices are projected to go up in the coming years as Phuket becomes even more popular to tourists and investors.
Paradise Holiday Destination
Despite the prospects of good capital growth and rental yield, it should also be remembered that you can also get to enjoy the paradise holiday destination of Phuket.
When your condo is not rented out, you and/or your family and friends can get to experience the aforementioned delicious cuisine, historical temples, beautiful beaches, world-class diving destinations, and vibrant nightlife available in Thailand’s most popular destination.
A condo investment in Phuket may be just the dream overseas property you are looking for.