Are you planning to diversify your investment portfolio by expanding into international real estate? If so, then you should definitely consider investing in a condo in Phuket. This small tropical island is a microcosm of all the things you can enjoy in Thailand—historical temples, delicious cuisine, beautiful beaches, world-class diving destinations, and vibrant nightlife. But why should you choose a condo over other real estate properties such as apartments or even a house and lot? Here are 5 reasons why a condo in Phuket makes for an excellent long-term investment.
1) 100% Freehold
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.
2) Easy to sell
If you’re looking to buy a condo with plans of selling it in the future, then investing in a unit in Phuket prove to be a wise move. You can sell the condominium under foreign freehold to other Thais or foreign investors. And the best part is that 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.
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3) Thriving real estate market
Since 2015, reports show that condominiums are the most preferred property investment of foreigners, 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.
4) Excellent ROI
Of course, you have to consider the returns you can make on your property investment. The good news is that most of the developers in Phuket offer 5% to 7% 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. 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.
5) Perfect holiday destination
The capital growth and guaranteed rental returns are compelling reasons to invest in a Phuket condo. But you shouldn’t forget about the many wonderful things you can enjoy in Thailand’s most popular destination. You instantly provide your family and friends with cozy accommodation. Having a place to call home in the perfect holiday destination is something to look forward to, and you’d be hard-pressed to find another site that is attractive and peaceful as Phuket.
