Some of the difficulties in choosing your property in Phuket, is trying to decide which option best suits your lifestyle.
I have listed below the options available to you, so when you come to meet me in Phuket you might have a better understanding of your options.
Compulsory Leaseback – Compulsory leaseback options will give you a guarantee rental, example 5% for 5 years return. But this will only entitle you to between 45-60 days usage and usually will have black out periods for the peak times in the Season, so you will not be able to use this for Xmas, New year etc…Banyan Tree Phuket is an example of a Compulsory leaseback offering 6% guaranteed rental for 6 years
These are purely investment properties, you will never be able to live here and your property will always be in the rental pool.
Condominium – buying into a condominium development is a very popular option for foreign buyers. Condominiums are set up so that 49% of the condominium will be allocated to foreign freehold ownership, meaning that you will own the condominium unit in your name forever, unlike a leasehold unit where you can only lease on a 30+30+30 year basis
Apartment – apartments that do not have Condominium title can only be leased on a 30+30+30 year basis. Most development are using a protected leasehold structure. This means that when you purchase your leasehold unit you will actually be buying the shares in the landholding company where your unit sits. Once all the units are sold out the owners will have voting rights in the land holding company, effectively giving you a perpetual lease.
Development with hotel or rental facilities – developments with Hotel facilities. i.e. Andara residence will give you the options to add your unit to the rental pool. They will not give you a guaranteed rental like the compulsory leaseback but will give you a varied income depending on occupancy rates. Where as some developments do not have hotel facilities they do have rental options. However developments that are run as a hotel will generate a higher rental income as they will charge for your unit to be in their rental pool and the income will be split between owner and hotel. This is a popular investment as it has the advantages of knowing your unit is being looked after by the hotel and they are driven to make money for themselves which will ultimately benefit you as the owner.
Villa – Residential villas tend to have a more long term rental income or specifically for high season rental. Most people who are looking at staying in Phuket for maybe 6 months of the year would prefer this option as they would have someone to look after the unit, but is available for you use 365 days a year. In term of an investment, it will be through appreciation of your property and unlikely by rental income.