Here is an overview of the opportunities to earn income from real estate investment in Phuket Island, Thailand
from real estate in Phuket
to generate income
6 ways
Experts in Phuket real estate sales and rentals
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1. Guaranteed return program from the developer
Acquisition of apartments in projects offering guaranteed profitability provides a stable inflow of funds regardless of the actual occupancy of the object. These programs are usually implemented in complexes managed by professional hotel operators such as Wyndham Hotels & Resorts and others.
The developer’s obligation to pay rental income is fixed in the contract and typically ranges from 5% to 8% per annum. The owner retains the right to stay in the apartments for a period of two weeks to one month per year, depending on the season, transferring the management of the property to the operator.
The developer’s obligation to pay rental income is fixed in the contract and typically ranges from 5% to 8% per annum. The owner retains the right to stay in the apartments for a period of two weeks to one month per year, depending on the season, transferring the management of the property to the operator.
2. rental pool (Rent and Pull)
This method involves combining apartments with similar characteristics within a condominium and transferring them to the management of a professional management company. At the end of the financial year, the income received, net of management costs, is evenly distributed among all owners participating in the rental pool. The advantage of this scheme is the independence of income from the individual occupancy of a particular property.
The owner’s living conditions in his/her apartments (from two weeks to a month per year) are similar to the previous option. In case specific apartments are unavailable, the participant is provided with alternative accommodation of a similar class. The yield of the rental pool is usually 8−10% per annum.
The owner’s living conditions in his/her apartments (from two weeks to a month per year) are similar to the previous option. In case specific apartments are unavailable, the participant is provided with alternative accommodation of a similar class. The yield of the rental pool is usually 8−10% per annum.
3. Self-renting through a management company or real estate agency
This approach provides greater flexibility in property management. The owner independently determines the periods of personal residence and renting out the apartments.
A management company or real estate agency provides search for tenants and maintenance of the property. The profitability of this method may vary in the range of 8−12% per annum.
A management company or real estate agency provides search for tenants and maintenance of the property. The profitability of this method may vary in the range of 8−12% per annum.
4. Resale during the construction phase
Purchasing real estate at an early stage of construction (excavation stage) and then reselling it after the completion of the project can bring substantial income.
The increase in the cost per square meter in the construction process in Phuket on average is 30−40%. Taking into account the possibility of purchasing real estate in installments, the return on invested capital can exceed 100% per annum.
The increase in the cost per square meter in the construction process in Phuket on average is 30−40%. Taking into account the possibility of purchasing real estate in installments, the return on invested capital can exceed 100% per annum.
5. Buy-back option from the developer
Some developers offer the option to buy back the property at a fixed price after a certain period of time. This provides a predictable return, typically around 15% of the purchase price.
6. Combined version
This approach combines a guaranteed income (about 5% per annum) with participation in a rental pool (Rent and Pull).
This scheme can be particularly attractive for new projects that require time to achieve optimal occupancy. Guaranteed income provides a stable inflow of funds at the initial stage, while participation in the rental pool allows for increased profitability in the future
This scheme can be particularly attractive for new projects that require time to achieve optimal occupancy. Guaranteed income provides a stable inflow of funds at the initial stage, while participation in the rental pool allows for increased profitability in the future
It's important to note:
Guaranteed yield programs are usually valid for 3−5 years, after which a transition to a rental pool scheme takes place. Before making a decision to invest, it is advisable to carefully study the terms of each specific offer and ask us for advice. To do this, leave a request and we will provide you with all the necessary information and make a preliminary calculation of your investment.
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