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08.02.2024 6:36

How to make money buying a home in Phuket?

How to make money buying a home in Phuket?

How to make money buying a home in Phuket?


Which investment strategy to choose.


Investment strategies. Features of each direction, their pros and cons.


Thailand is one of the ten most visited countries by tourists. And the kingdom is actively developing the tourism sector, trying to attract as much investment as possible through tax incentives and subsidies. The country's economy and currency are stable, which provides investors with security.


There is no seasonality in Thailand and the influx of tourists is constant. Due to this, there is an active development of the country’s infrastructure, tourist areas and the construction of more and more residential and office facilities. Taken together, this ensures high demand for real estate among investors.


Phuket: one of the most popular tourist destinations. The island has areas of different levels of recreation. Accordingly, each zone guarantees a constant influx of tourists.


Buying resort property is one of the most profitable strategies for an investor.

Let's look at three working investment options in Thailand.


Buy to sell.


Real estate is purchased at the pre-sale stage at the lowest price, and upon completion of construction it is resold when prices rise. It turns out that in 1-3 years you can increase your income by two or more times.


This investment option requires good information about the objects and quick decision making. Since they suddenly learn about the opening of pre-sales, you need to be ready to quickly obtain investments for investment in order to enter at the minimum price.

It also requires a lot of passion from investors, since buying a project that has not even begun to be built, and then waiting 3 years before its construction without having any income is risky.


Buy to rent, then resell.


Real estate is purchased during the construction phase, leased for at least five years, and then resold.


In this case, the highest total income is achieved: real estate will increase in price by 20-25% and rental income will also be added.


Buy to rent.


Purchasing apartments for long-term rental is considered the most reliable investment strategy.


You purchase real estate and sign an associated contract for a period of up to 15 years, with a specified amount of income. During the term of the contract, you do not incur maintenance costs, but simply receive a guaranteed 7% of the value of the property. At the end of the contract, the developer can buy the apartments from you for the price of the original transaction. But, as a rule, during the duration of the contract, the cost of the apartment can increase significantly and resell it, refusing to buy it back, it will be more profitable.


When choosing this strategy, the investor is guaranteed to have passive income of up to 9%.


Results.


To summarize, Thailand's ever-growing economy offers a variety of investment opportunities. And no matter what investment path you choose, each has its own guarantees and risks.


Thanks to cooperation with Homebook, you will have the opportunity to receive detailed advice on choosing a strategy and selecting an investment object.