The real estate market in Phuket is diverse, and each developer assures the client that its project is the best and most profitable. Let's see what you need to pay attention to when choosing a property for generating income.
Before proceeding with the selection of a particular object, you need to decide on the purpose of the purchase and the choice of investment strategy. In the article, we considered various options depending on the portrait of the investor, goals and investment period.
Only after this stage, you can proceed to the consideration of something specific.
Criteria to pay attention to:
Property location
The golden rule of resort real estate is that the closer to the sea, the more it is in demand for rent and the faster the price will increase. The most interesting objects are located in the tourist area, close to the beach, restaurants and shops. And the neighborhood with high-level hotels provides a high average price for rental housing.
Management programs
If you do not plan to live in an apartment or villa on your own, then you should pay attention to the profitability programs from the developer. You may be offered:
- A guaranteed rental for a certain period is the amount of your income fixed in the contract, which you receive annually into your account. On the one hand, this is very convenient, since all obligations are known in advance, on the other hand, if the property has earned many times more, then the owner cannot claim an additional payment.
- Rental Pool is when the management company combines several apartments into a pool, and at the end of the year divides the funds received between the owners. This program allows you to maximize profits, but depends on the state of the rental market, demand and price levels.
Buyback
A number of developers offer to buy their properties after a certain period. It turns out that the investor can calculate the exit from the investment even at the stage of concluding a purchase deal. As a rule, the buyback cost is 100+%. This option relieves the owner of the burden of finding a new buyer and minimizes the risk of selling the object at a loss.
Hotel license
This tool is extremely important for profit maximization. The fact is that in Thailand, by law, daily rent is prohibited. Without a hotel license, the owner has the right to rent out real estate for 30 days, that is, you will have to look for tenants for a month or more. It is obvious that the price level for daily rent is 40-50% higher than for a long term.
Professional management
The quality of the service provided is the key to successful occupancy. Therefore, it is worth giving preference to professional teams that meet service standards. Such personnel are trained and regularly pass the standards, and the housing stock is always in perfect condition. The level of service allows you to acquire regular customers, which is extremely important in the long term.
The uniqueness of the object
Recently, special attention has been paid to the concept, design and diversity of infrastructure. Now it is not enough just to build square meters, the owners and users of real estate are opting for companies with an internal philosophy and values of sustainability, renewable energy or a "green" environment. Also, the availability of infrastructure for children, professionally equipped fitness rooms for athletes or restaurants with a top name can be decisive factors. All these features distinguish the complex from the background of competitors and allow you to receive a higher rental income.
We summarize: It is necessary to start choosing an object only after determining the goal and investment strategy. You need to take into account various criteria, and not rest on just one. So, for example, the combination of the right location, a unique concept and a professional team can bring you more income than just having a hotel license.
Of course, we do not forget about checking the developer for reliability, all of us know that advertising layouts can promise a lot of things, and we, for our part, are ready to help you with this.
