Making Money with Real-Estate in Phuket

Making Money with Real-Estate in Phuket

We all know that when it comes to real estate there can be conflicting information as to how to make money and if it really is possible to make money in this industry?

Well, we are here to tell you that as a successful real estate agent, the best way to make money is to invest your money in real estate. For those who always heed on the side of caution, specifically during times of economic uncertainty, one should remember that while the stock market may display signs of volatility, which could pose as a risk in the short term, gold and property are considered long term and therefore far less risk.

Having been active in the real estate market for over a decade we have seen our clients earn high rental yields and grow their money by simply following our advice, and now we are willing to share these helpful tips with you.

Smart Investing

It is always recommended investing in cities that are showing signs of future growth potential, the earlier you invest, the more money you will make in the future. Phuket certainly has proven time and time again that this is indeed a city with very strong growth potential. With the provinces high level of tourism each year, there is no question that you will see high returns. On average, properties here purchased in good locations, generate approximately 8-10% rental yields per year and not to mention the strong capital appreciation you will earn while at it. If we are talking Capital appreciations you can expect your property to increase its value of approximately 30% from pre-sale to completion for those who purchase off-plan and then around 10% for each year after it has been constructed. Starting to sound good?

Exchange rate

The other factor the greatly contributes to making money in this industry, is on the exchange rate. This significantly helps, specifically for large scale investors and those purchasing multiple units. The Thai baht is a stable currency and held its weight for quite some time now. If we were consider a currency such as the USD$ against the Thai baht, the exchange rate is very much in your favour.

Flipping

Invest in flipping. Property flipping is when a real estate investor buys properties and then sells them for a profit. In order for a property to be considered a flip, it must be bought with the intention of quickly reselling. The time between the purchase and the sale often ranges from a couple months up to a year. This method as we know has been around for quite some time. It has been tried and tested. This is a great way to make your money and if done correctly you could make quite a bit. Many people have even gone on to make careers out of flipping properties.

Short-Term Rentals

In Phuket short-term rentals have been a great way to ensure a good steady passive income. With strong VRBO rental platforms such as Airbnb, people are able to increase their property rental yield each year. The trick is to market your property for those looking for holiday and short-term stay accommodation, as these will have daily and weekly rates attached, as opposed to monthly rates with lower daily rates. Rental income tax in Thailand is also very low and therefore very attractive to investors. Other than short-term rentals, many developers are offering incredibly high rental guarantees, some as high as 10% for up to 5 years.

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