It is quite common for many people to consider moving to another country with a better climate and affordable living either to spend a few years there or even the rest of their lives. Senior citizens usually prefer to make Southeast Asia such as exclusive pool villas in Thailand for their retirement destination and so do younger people with families who decide to leave their cold countries behind and find new opportunities in a tropical country with inviting weather.
One of the most popular places for this is Thailand for its sunny climate, spectacular beaches, and liberal laws for foreigners. Rich in culture with myriad landscapes that stretch from the north’s Chiang Mai and its milder climate to the south with its more touristy attractions. Popular for its excellent climate, fabulous beaches, and luxurious hotels in the peninsula in the southwest of Thailand. It definitely comes as no surprise why so many people choose to stay and settle down at such a fantastic destination.
Pros of Property Investment in Phuket
There are plenty of pros of investing in luxury pool villas in Phuket. Let’s look at the major ones:
Freehold Ownership
The topmost reason is the right to 100% freehold ownership in Thailand. An international buyer can invest in a property in Thailand, but as a foreigner, he can only own a condominium legally through freehold ownership. However, if you wish to invest in a house you can do so if you invest through a Thai partner. This route automatically protects you from going through complicated laws and processes in a foreign country.
High Capital Gains in Future
Also, going forward you can easily sell the condominium under foreign freehold to other foreign investors or Thai locals. You stand a chance of making an attractive profit in the future as the government usually sells foreign freeholds at higher prices. Several investors are keen on investing in affordable pool villas in Phuket and the market is pretty promising, making it easy to sell your property.
Growth of Phuket Real Estate Market
The real estate market in Phuket is booming and reports have confirmed that both locals and foreigners are increasingly interested in owning a condo in Phuket. Therefore, there is a strong indication of consistent and continuous growth in the island’s real estate market. In the coming years, the prices are expected to shoot up looking at the increasing popularity of Phuket among tourists over years.
Guaranteed Returns
Every investor has to consider the returns he can expect on his property investment before he decides to buy a property. Many developers in Phuket offer up to a 7% guaranteed return to the owners for the first three years after the property purchase. Even more attractive is property investment in hotel-managed condos wherein your condo unit is managed by the expert services of a hotel at the same time you get to benefit from guaranteed rental returns.
Dream Destination
Last but not the least, Phuket is a dream destination with plenty to offer to a wide variety of people, right from stunning beaches, vibrant nightlife, cultural attractions, and awesome weather that allows you to enjoy summer almost all year through.
Cons of Property Investment in Phuket
Incomplete Projects
In all probability, the most lucrative way to buy a property is at a significant discount off the purchase price offered to people who buy it early. This is a rather common practice in Phuket wherein development is sold off completely even before the construction commences. Sometimes this practice can be risky for foreign investors as some of the developers might not complete the project for various reasons. Therefore, it is imperative that you select a developer who has a sound reputation with a trusted track record of successful completion of past projects in their portfolio. Check out SKHAI's flawlessly finished past development projects.
Skipping Mandatory Approvals
Also, worth noting is that all development projects need to be approved by the Environmental Impact Assessment (EIA) before commencing the construction. However, many developers market units even without the approvals in place. Unforeseen changes in legislation or problems on the land can result in delays, changes, or even fully stop the construction.
Unsatisfactory Final Product
Many developers who sell off-plan properties do not deliver the final product as per what is portrayed in their brochures or marketing materials. In such cases it one can land up with bad quality construction and the final product might not be up to the mark. It is important to consider the developer’s past project’s construction quality to be assured of good build quality and finish.
Mistakes to Avoid
There are a few basic mistakes that one can avoid while making a property investment in Phuket which are as under:
Failing to Conduct Title Search of the Property
Most importantly, always make a title search on the property or land that you plan to purchase. This will allow you the opportunity of a comprehensive check and give you a background on the property’s histories such as possible mortgages, leases, creditor right of ownership, or other charges against the property even before you consider buying it.
Not Hiring a Local Lawyer
It is highly recommended that you purchase a property in Thailand with the assistance of a lawyer. It would be risky to go through the process without a local lawyer’s help as you are investing in a country with a completely different language, culture, legal system, and Thai contracts are a lot different from western contracts. Therefore, it is crucial that you work with a local lawyer who is aware of all the rules and glitches in the system. Ensure that you select a reputed law company.
Skipping the Assistance of a Real Estate Agent
Also, worth noting is that you should not look for a property without a local real estate agent’s help. A good agent will ensure that you get a fair price, communicate effectively with the owners and developers in their local dialect, and may also be aware of the finer geographic aspects of the area you are considering.
In Conclusion
It is apparent that Phuket holds the promise of endless gains for investors. However, as in the case of any investment in a foreign country, it is extremely essential to be cautious and discerning rather than being impulsive or emotional. With due diligence, patient research, and reliable help from local people it is possible to invest safely in your dream property on this breathtakingly beautiful island. Investment in a Phuket property can open many gateways to further gainful investments or simply help you acquire a wonderful private holiday or retirement home for yourself and your family.
If you are interested in Phuket pool villa investment opportunities connect with our team at SKHAI to learn about some of the best deals on properties in the most spectacular locations on the island.
