Phuket is a popular destination for vacationers from all over the world. Tropical climate, summer all year round, warm affectionate Sea, fresh fruit - isn't it Paradise? So why not make Phuket your home, and do not buy real estate here? Moreover, investment conditions are very favorable here. And you could harvest a mango in your own tropical garden.
The price of a villa in Phuket
Prices for villas in Phuket start from 5.5 million Baht for a villa with a private pool. For this money you can buy a one or two bedrooms villa with a small private garden and a swimming pool. More interesting offers start from 8 million baht and above. The cost depends on the location, size of land plot, condition of the building, the quality of the finishes, furniture, the internal infrastructure of the village where the villa is located.
Here you will find offers for selling villas and houses at low prices: Hot offers for sale of real estate in Phuket.
The price of a house in Phuket.
The price of the house starts at 2.5 million baht. For this money you can buy a house with two or three bedrooms and a small private garden or without. It will be either a detached house or a house in the village without an internal infrastructure. It is hardly worth counting on something modern for such money.
Price for more comfortable houses with two or three bedrooms, in a security estate with a communal pool and gym starts fromm 3.5 million baht. Usually such settlements are built in the center of the island, near international schools, but they are also could be found closer to the sea, for example, in Bang Tao beach area.
Price depends on the house and it's location. Whan closer to the sea then more expensive.
The price of servicing the villa in Phuket.
The price of servicing the villa is made up of many components, such as:
- pool cleaning
- maid service (if required)
- payments for maintenance of the common area of the village
If you plan to rent out a villa, and at the same time, do not plan to live in Phuket permanently - you will need the services of a management company that will meet and settle the guests and takes care of the house. Usually, management companies charge for their services 10% of the rental price, but, depending on the set of services, the price can be higher.
The price of maintenance of the villa from 50 000 Baht/year.
The price of servicing the house in Phuket.
Maintenance of the house is significantly cheaper than the maintenance of the villa, in particular also because payments for servicing the common area are usually significantly lower.
The price of house maintenance includes:
- maid service (if required)
- payments for maintenance of the general territory of the village
To rent a house you can also attract a management company.
The price of house maintenance starts from 20 000 Baht/year.
What income can I get from renting my house or villa?
Profitability of real estate depends on many factors, such as: location, the condition of the property, the number of bedrooms, the size of the land plot, swimming pool, the interior, the equipment of the house, the purchase price, the efficiency of the management company.
The yield on average is 4-8% per annum but can be higher. Real estate in the middle price segment brings a greater profit than in the high, although there are exceptions. For example, villas in the projects of Sai-Taan and Laguna.
Now many projects under construction offer guaranty refound of investment, buying a villa, you are guaranteed to receive rental income of 5-8% per annum for three to five years, which will allow you to return a part of the invested money.
Features of buying a house or a villa in Phuket.
As is known in Thailand, a foreigner can not own a land plot. Then, how to buy a house or a villa?
In case of buying a house or a villa, the land plot is drawn up in Leasehold. Leasehold is a long-term lease for up to 90 years, the form of ownership is actually equivalent to full ownership (FreeHold). The building, at the same time, can be issued in full ownership - Freehold. If the option of leasehold land registration seems insufficiently reliable to the buyer - the land can be issued for a company registered in Thailand.
Advantages of land registration in leasehold:
- easy, fast, and inexpensive registration
- low taxation in cases of a sale-purchase transaction
Disadvantages of land registration in the freehold:
- The cost of maintaining the company, although they are relatively small.
- Legally more complicated, long, and expensive registration.
At the same time, the registration of a land plot in a freehold is considered more reliable.
If you decide to register a land plot to a company name registered in Thailand, we recommend you to consult with an experienced realtor or lawyer first.
Is it dangerous to buy property in Thailand?
With a competent legal approach, risks in conducting real estate transactions tend to zero. If you decide to purchase a property in Phuket, especially if it is a secondary market property, you need to turn to a good lawyer. The lawyer can verify the purchased real estate for encumbrances and collateral, check the owner of the housing, draw up or verify a purchase agreement, register a property in the land department. That will protect you and your money.
Is the furniture included in the price of the house or villa?
If we speak about the primary real estate market, most often, the price includes only built-in furniture and air conditioning. The rest of the furniture is offered to be bought as a furniture package or independently. The cost of a package of furniture and household appliances ranges from 500,000 Baht to 2,500,000 Baht, depending on acquisition property.
In the case of buying real estate on the secondary market - almost always furniture is already included in the price of purchase.
Is it possible to build a house on your own?
Yes, you can build a house or a villa of your dreams. To do this, you will need to choose and purchase a land plot, make a house plan, and find a developer who will be able to translate your plan into reality.
It is better to apply for help in a real estate agency that will consult you about all details and help you to find a land plot.
Which villas are well rented out?
The best villas for rent are one-story villas with private pool and garden. The size of the garden and the pool is important, many customers prefer houses with a large garden and swimming pool, and are ready to overpay for it. But at the same time, they can sacrifice them if they really like the interior design and the furnishing of the villa.
Another important factor is the distance from the beach. If you buy a house as an investment, choose options with remoteness no more than 5 km from the beach. The best areas to buy, in this case, will be Nai Harn, Kata-Noi, Kata, Karon, Kamala, Bang Tao, Lian, Patong, Kalim.