Rental guaranteed return
On average, it's 6-8% per year, depending on the location can reach up to 10-12%. Location popularity depends on a distance from the beach and infrastructure. Developers offer a Rental Return Guarantee program, with an annual return of 7-10% per year (from the purchase price) for 3-15 years, with an option to extend the program up to 20 years.
High level of capitalization
During the process of construction, real estate prices normally increase up to 30-70%. Investors who are interested only in the capitalization of investment, choose the newest project and buy a property at starting sales prices. After completion of construction they can resell it at new increased prices. Others keep their property and get annual guaranteed return.
Property prices will increase within next 5-10 years
Another reason why Thailand real estate market is attractive to investors. There's only 15% of the island area can be used for construction and has a resident status. The rest of the area belongs to the National Park and any type of construction on this land is prohibited. As long as free land is becoming less and less, investors tend to buy new projects as quickly as possible. Projects that are closest to the sea and with seaview are the most popular.
Retirement and Longterm Residence
Thailand is one of the most attractive and affordable places in the world. Great for retirement. Snow White beaches, warm climate, delicious food, reasonable prices for comfortable living. Thailand has a simplified retirement visa system, and therefore is one of the most popular destinations for senior people from all over the world. Most of them already consider Thailand as a second home and willingly move here for permanent residence.
Convenient installment payment plans
The Payment for the purchase is arranged according to the stages of construction. The first payment is the biggest one — from 25% to 40%. By the law of Thailand, you have a right to sell your property after paying the first installment. Means you can resell your property at higher cost and return the invested money if necessary.
The average occupancy of hotels in Phuket reaches up to 77%. In the most popular projects — 85-90%. The tourists flow in Phuket is constantly increasing every year. Developers and investors are confident in their investment returns.
Low taxes and fees
Taxes and fees for real estate purchase in Thailand have much lower rate comparing to other countries like England, France, Singapore, Hong Kong, Australia and others.
Presale affordable prices
The presale price for a studio apartment in a hotel managed condominium is from $ 70,000 in average. Prices vary by location and view.