CAPITAL APPRECIATION
10% to 20% annually over the last 5 years from buying off-plan
RENTAL RETURNS
6% up to 14% annually dependent on the type of property and own personal usage
TAX ON RENTAL INCOME
3% if paid in to a Thai Bank Account, 15% if paid overseas
TAX ON PROFIT
Careful tax planning at the time of purchase can minimise any tax liability on realized capital gains"
As a Tawan Properties owner you can look forward to significant investment returns whilst enjoying the full lifestyle benefits of owning a luxury beachside property.
Tawan Properties attract an affluent professional community of like minded people who place a higher value on owning a private home on a prestigious private managed development than they do on buying an ordinary unit on a less exclusive resort style development. They know the value of being close to the beach and/or stunning seaviews, easy access to the world-class facilities, spas and restaurants that abound on the island and the convenience of everyday life.
Not every one is interested in renting their home and many buyers are making Tawan Properties their primary residence or keeping it for themselves only allowing friends to use their homes. This creates a very different feel for the development which keeps it exclusive and well cared for, keeping property values high. With only a few homes ever likely to be available for commercial rent, those that choose to earn rental income can be assured of little competition, premium rates and high and loyal occupancy.
Talk to the experts. Private homes that are personally furnished attract higher premiums, greater loyalty and greater occupancy with more referrals to friends than homogonous, units on a busy resort. Renters tend to better behaved, cause less wear and tear and if they enjoy the experience they will become potential buyers in the future.
Investment returns come in two forms:
Many of our renters are frequent visitors to the Phuket where they prefer the privacy, space and lifestyle that goes with staying in a private residence for the weekend or a few weeks instead of a hotel suite. As all our properties are a minimum of 3 bedrooms with sleeping for at least people, rental is also an economic option for many people. Typical peak periods are December through to February.
The “extended stay” market is something which has grown exponentially over the past few years. There is a significant short-term migration of populations in the northern “cold winter” markets seeking accommodation in the “hot winter” locations such as Phuket. These people look outside of the traditional one to two week hotel packages for accommodation and stay for period of up to 4 months – typically February to May. This creates a very healthy high-season for owners wishing to let for longer periods of time.
The “long term” market is also significant. There are a multitude of people looking to rent for long periods of time from 12 to 24 months. Maybe they are planning to move to Phuket but want to experience life for a year and make sure it’s the right choice for them. Maybe they have bought a house and it is still under construction. Maybe they are semi-retired.
A combination of the residential style developments we offer plus our prime location means that rental opportunities are maximized.
Tawan Properties operates a voluntary rental management operated on behalf of owners by CB Richard Ellis (or others entirely at the owners discretion). Richard Ellis will be actively promoting Tawan Properties rentals via its website www.myasianvilla.com (an affiliate of the highly successful www.whistler.com), its offices around Asia and its regular clients as well as managing the rental process (agreements, deposits, cleaning handover inspections etc). They can also provide all the support services (temporary maids, car hire etc) to make your guests stay a truly memorable one and one that they will want to repeat and recommend to friends.
From the CBRE 2008 Outlook Report published on the 17th January 2008
“Growth in tourism creates the market for resort real estate and increases in tourism bring in both more buyers and fuel demand which in turn creates price rises, according to international property consultant CB Richard Ellis. 2007 was a year of robust growth for the tourism industry in Thailand’s resort markets. Arrivals to Phuket alone totaled 5.47 million, a third of total tourist arrivals to Thailand.
Phuket has outperformed itself in terms of hotel occupancy and arrivals even in last year’s low season. From a highly seasonal tourist destination, worldwide appeal has transformed Phuket into a year-round destination, with a 70% average annual hotel occupancy. This high season is undoubtedly one of the busiest Phuket has seen. Phuket International Airport currently handles up to 287 international flights per week, while many hotels and airlines remain fully booked until March this year. Looking ahead in 2008, CB Richard Ellis expects a long term growth in the Thai resort property markets”
Net returns average 8-14% per annum, depending on whether you make it available for the peak rate high season period covering mid-November through to April, Easter and Chinese New Year or choose these periods for your own use. A properly managed property, available for year round rental should deliver a net 8 - 14%. The expenses are typically brokerage fees, monthly estate management fees, rental management fees and local tax paid on net income. Those buyers wishing to use their property in the peak times can expect less and many choose to rent their property just for a few months to provide a surplus of Thai baht to spend when they are here.
Well located, well built, desirable properties on exclusive well managed developments close to the beach are always saleable and in demand. To put this into context there are examples of such properties achieving 100% appreciation in just 3 years. There is already a shortage of building plots close to the beach and as new buyers are still expecting to acquire seaview or beachside property, there is a strong demand for Tawan Properties re-sales. Tawan Properties buyers have already concluded re-sales at 40% above purchase price ( within 18 months). There are also a number of new real estate firms setting up in Phuket to specifically address the re-sale market.
Interest in Phuket property remains high and the demand for well located quality homes seems to have no end. It is not just the well-off Asian and expatriate families living in Asia who buy today, but a much broader range including those directly from Europe seeking a better and much more affordable property than they can buy in Spain or France; whole families who move their homes here and make use of the international schools and hospital facilities; property investors and those who have business’s that can be operated from Phuket. Phuket is being actively marketed through focused property exhibitions in London, Manchester, Stockholm, Oslo, Frankfurt, Dubai, Moscow, Shanghai, Hong Kong between now and the end of the year.
Phuket still attracts those seeking a holiday home but with these new types of buyer the demand is for homes that can be lived in, with access to near by resort type facilities and quality beaches. Even though Phuket prices are rising dramatically, many buyers have overseas property and assets that have risen in value faster, giving them superior spending power and the ability to purchase a luxury property for the price of a 2 bedroom apartment in Wandsworth, London or a 2 bedroom 800 sq.ft. apartment in Hong Kong. With many professionals around the world re-evaluating their lifestyle and limited property and stock market opportunity in their own countries, there are many more people coming.
Far from it. Phuket remains competitive and was recently voted in Business Magazine as one of the top 5 most desirable places where you could live like a king on what you had saved during your life.
