What is the Average ROI for Property Investments in Phuket?
Phuket is one of the most exciting markets for property investments. It always has been, and not only because of its beautiful nature and landscape but also because it’s one of the most visited holiday destinations in Southeast Asia. It’s always been popular among Australians, Europeans, and Americans, and over the past 10 years, the island has become very popular among Russian and Chinese tourists.
A large percentage of the visitors are interested in owning a holiday home in Phuket. That demand has brought a decent amount of supply of holiday homes over the past ten years, and more and more attractive properties are still being built. That supply has also increased the demand on the developers on the island to come up with attractive return on investment (ROI) opportunities through guaranteed rental returns in order to provide a handsome capital gain for the buyers.
Not too long ago, Phuket property developers came up with the great idea of having an agreement with international hotel chains to run their projects like a hotel when they’re completed. This increases the liability of the project as well as provides a good rental return guarantee to the investors.
High Guaranteed Rental Returns, Phuket
Generally, new Hotel Managed Developments offer 7% guaranteed yearly rental return to new buyers, commonly for no less than 3 years and some projects offer even up to 15 years of guaranteed income generated from renting out your property. Most developers also allocate around one month per year for the owners to use their property. The rest of the year it is being used as a hotel room, generating a passive income for the owner. Everything regarding the rentals is handled by the management team, so it is a completely hands-free investment.
On top of all that there are also developers who offer to buy buy back the property at the original purchase price +10-15% after a certain amount of years.
Most projects have one condition on the owner in order for him to be able to join the rental pool, and that is that the owner has to go with the developers’ default furniture package and cannot change/personalize much in the unit.
That gives an opportunity to the hotel management to rent the units out as advertised.
We’ve put a couple of good deals together here to give you an idea about the rental return possibilities through owning a property investment in Phuket. You might also want to take a look at a more extensive list of the most attractive Investment Properties in Phuket.
Also, if you fill out our Property Finder Service form with your requirements such as budget, preferred location, etc. we would be happy to compile a shortlist of properties.
Spectacular Kamala Cottages:
Guaranteed 7% per year – 15 Years
This project is located in the hills of Kamala beach. Breathtaking sea or garden view, and each cottage features a private Jacuzzi or plunge pool on the balcony that is perfect for enjoying the simplicity of the surrounding nature in the privacy of your own home.
Purchase now and get 7% NET guaranteed rental return for 15 years. In case the client pays in full during construction he will get 3.5% within 1 year from final payment and then 7% for 15 years after the hand over date.
For more information: Kamala Cottages
Investment Condos in Patong
Guaranteed 7% per year – 15 Years
Situated on a beautiful hill side that looks out onto Patong bay, this great compound offers a tranquil yet lively atmosphere with easy direct access to Patong beach, Patong town, and Jungceylon shopping center. Enjoy the experience of witnessing Phuket’s world famous sunsets every evening!
Guaranteed rental returns of 7% for 15 years. In case client pays in full during construction he will get 3.5% within 30 days from final payment and then 7% for 15 years after hand over date.
For more information: Investment Condos in Patong
Premium Hotel Managed Property in Kamala
Guaranteed 6% per year – 3 years
This is a highly recommended resort residences just 380 meters from the beachfront of Kamala. It is operated by 5-star hotels with guaranteed rental returns of 6% for 3 years. Top rated management under internationally branded M Gallery (Accor brand).
Kamala is an up-and-coming area of Phuket with several condominium projects under development, which are expected to give the beach town a huge up-swing in terms of tourism, restaurants and shopping options.
For more information: Premium Hotel Managed Property in Kamala
Investment Property near Laguna
Guaranteed 7% per year – 5 years
Exquisite Property meets Luxury Area in the Heart of Phuket. This is a freshly launched condotel project located close to the Laguna Area, one of Phuket most luxury and trending area.
This project provides unique opportunities both for those who want a Phuket residence and those who are looking for an investment property. Investors can get 7% guaranteed rental return for 5 years and as well as optional rental pools which the rental income will be shared 40/60 between the management team and the investors after 5 years period.
For more information: Investment Property near Laguna
Balinese Style Pool Villas in Bangtao
Guaranteed 6% per year – 5 Years
The professional property developer has earned a solid reputation for delivering top-notch quality products in the most prestigious residential area on the Island. To villa owners who wish to recuperate their investment by renting out their villas, the developer runs a property rental management service providing five years fixed guaranteed rental income. Joining the rental guarantee program is optional.
For more information: Balinese Style Pool Villas in Bangtao
Investment Condos Kamala Beach
Guaranteed 7% per year – 3 years
Only 100 meters walking distance to Kamala Beach and the very popular beach club Cafe Del Mar. Investors are offered a 7% guaranteed rental return program for 3 years and can also stay 30 days per year. The property has plenty of luxury facilities to ensure owners and guests a magnificent stay.
For more information: Investment Studio Condos on Kamala Beach
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