Investing in Phuket apartments
Large apartments in Phuket are a luxury which is not affordable for everyone. There are several types of apartments on the local market, this division is based not on the number of rooms but refers to functional use of such properties. Let us look at them closer.
Duplex – is basically related to elite real estate. Actually this type can be rarely met on the market.
Penthouse – there is a great number of penthouse definitions, each of them just opens one or two features of this kind of property. Someone says about a luxury apartment located on the top floor. Others add that it is a flat on the top floor of a tall skyscraper.
Loft – flats built up in loft style are characterized by high ceilings.
Apartment, condo, studio – have become extremely popular in major populous areas. Nowadays most of people talking about any of these options still consider housing equaled to a standard flat. We have already described differences between these types on our previous articles. Further the notion “apartment” will be used as a collective definition of all kinds of flats.
Regardless of the type of apartments, there are certain risks of investing in units containing more than 2 bedrooms. A small percentage of investors prefers buying so called multi-room flats and using them in commercial goals. Sometimes they lease each room separately. Let us have a look at possible risks.
#1 Price of multi-room units is rarely changed. It occurs because they are not in a high demand, so there is no any reason to vary rates.
#2 It is difficult to sale it. Firstly one-bedroom and two-bedrooms will be taken because they are very popular among buyers.
#3 If it comes in resale, it is necessary to pay attention to the quality of construction. As a rule, these apartments are sold in older buildings where the quality leaves much to be desired.
#4 Telling the truth it is an impossible task for thousands of people to collect money for buying a flat with three-four-five-bedrooms. We do not even say a word about 6-7-8 units. Additional headache is to support it in proper conditions.
Although there are several reasons why people choose such objects consciously. Many business owners need their own equipped areas for development. It is proved that in most cases it is much easier to buy a multi-room apartment and re-register it as a commercial area. The point is that modern Phuket real estate market does not offer enough choices of commercial buildings. In majority of cases, such scheme is extremely cheaper than ready-made offices or commercial premises.
