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Investment in Thailand Real Estate

Monday, May 17th, 2010

Phuket is one of the last havens in the world where you can invest in property safely and receive a handsome return on capital. Phuket is undoubtedly becoming the new playground of Asia and although a small island (550 kilometres square) has every modern amenity including, international hospitals and schools, modern infrastructure and roads, broadband communications, beautiful beaches and landscape, the finest hotels and restaurants, international shopping malls, friendly welcoming people, relaxed living and little crime, and last of all a warm climate all year around. Several new marinas and golf courses are also being built.

When buying off plan you put down a reservation deposit to reserve the plot, Villa, Condo etc. and then usually within 30 days after seeking legal advice and contracts being vetted and due diligence carried out, you sign contracts and pay the first installment of anything between 15-30 % of the sales price and the remainder over a period in stage payments based on build completion until it is finished which is usually approximately one year hence for most developments. By buying this way you get the opportunity to buy at up to 30% or more below market value. The reason you can save so much is the developers wish to attract early buyers whom have no hurry to occupy the property but realize the benefits and significant savings of buying early.

The above example shows that for a small outlay you can spread your payments over one year and receive a large capital gain even before you move in! Many investors do just that flip and sell the property shortly after completion. However, it is probably wiser to hold on to it as with the prices rising by 15-20% per annum plus materials inflation, Phuket property makes a very sound investment indeed over the longer term. You can also rent out the property and receive a rental income as well.

There are few places now in the world a better investment than in Phuket, Thailand. Phuket is fast becoming the playground of Asia and offers the savvy investor the best property investment opportunities. First, the cost of living is approximately a third of that in the UK and other European countries. There are many exciting and value for money off plan projects being developed from condos to luxury villas in Bangkok, Phuket, Pattaya, Koh Samui and Hua Hin. Besides, buying property as an investment, you have the added advantage of a holiday home in paradise. Land has doubled in price in the last 3 years and continues to show no slow down while the land stock is available. Beach front land is now at a premium in every location.