Reasons Why to Invest in Phuket Real Estate
Real estate investing is not everyone’s cup of tea. It can be risky and rewarding at the same time. Since real estate involves huge sums of money, people often decide they are better off staying away from it. On the other hand, we see people piling wealth by rationally investing in real estate.
Over the past decade, the Thai real estate industry has climbed up the ladder of trust, profit, and luxury. Thanks to its booming tourism industry, places like Phuket have really helped tourists and investors see the real side of this amazing country.
Because of its tourism-driven economy, investors from all over the world are parking their money and gaining long-term benefits. Most of these foreign investors buy a holiday home in Phuket and let its management be handled by trusted property care service providers in Phuket. Because of this trend, property management Phuket has become a great revenue generating sub-industry.
Here are some reasons why you need to invest in Phuket real estate and get a vacation home of your own.
1. The Tourism Industry is Booming
Tourism works like a charm on the real estate industry and brings a plethora of opportunities for investors. According to stats, Phuket alone sees a 10% increase in incoming tourists. Moreover, it is said that Phuket alone handles over 20% of tourists coming to Thailand. This proves the fact that the overall economy of this island is booming which helps people build businesses resulting in increased affordability.
2. Stable Income From Rental Property
People are always looking for a villa to rent Phuket when they come to a busy tourist destination. As an investor, you can gain a handsome monthly cash-flow by purchasing a rental property in Phuket. If you use the modern day online renting platforms like Airbnb, you can double your income generated from a usual property. Moreover, by investing in Phuket you no longer have to worry about occupancy rates—thanks to tourism from Russia and China, Phuket has reached over 75% occupancy last year!
3. Amazing Appreciation
Though there have been some ups and downs, the overall real estate market of Phuket stands firm. If you are someone interested in the long game, then this is the place you need to invest it. cashing on appreciation is the best way to earn potential gains. Phuket is a small island and there is less land available. Most of the usable land is tied to houses, restaurants, hotels, and shopping malls. This depicts the fact that the present properties will gain value in the long run and you need to be in the front seat.
4. Low Taxes
New property investors are welcomed by the Thai government. Therefore, the taxes on rental income and property taxes are fairly lower than what you’d expect. The transfer fee is 3% and if the building is new, half of this is covered by the developer. All the other taxes are a liability for the seller to take care off.
The current market in Phuket is ripe. Tourists are flowing in and it is considered to be the best destination in Asia. Don’t forget the currency advantage you have if you move from North America or Europe. You’ll find the culture to be great and food and entertainment cheap.