Phuket's fast growing infrastructure and international community certainly make it an exceptional investment location in Thailand, with a bright future ahead. As the quality of life has dramatically increased for the past ten years thanks to the arrival of dozens of world-class facilities for luxury living, property prices have soared accordingly, and still keep rising at the steady pace of Phuket's development into one of Asia's prime destinations. It's precisely during such periods of structural development that you will find the best investment opportunities, as long as you have a deep knowledge of the area and its future potential, of how to minimize risk, and how to maximize your revenue while you own the property. Let's see how you can make the most of your investment in Phuket!
Thinking ahead to find future value
When looking for valuable investment, we can sometimes become trapped in the present limitations, and forget to look at the big picture in the long term. Indeed, Apple stock wasn't attractive at all in the late nineties, the company running at a loss with no big changes in sight. While most were selling desperately, a few people knew how to think ahead and foresee the increase in value of the company, and there's the essence of a wise investment. Likewise for Phuket's property market, even if some areas may seem today under-developed, one must think ahead and recognize the future value of property on the island in relation with the larger changes in South-East Asia that will be taking place in the next decades. Phuket has still many rural locations that have yet to reach their full potential, providing therefore excellent opportunities to make a good investment, provided one thinks with a long-term vision in mind.
Every investment comes with a certain a risk, and therefore it's essential to keep it at a minimum. There are several ways to protect your investment, but the first and most important is definitely hiring a professional and specialized law firm. Indeed most risks associated with real estate investment are in the legal procedures involved, and having a good lawyer at your service will save you from bad deals by providing proper due diligence and legal monitoring of your transactions, as well as giving valuable advice when making legal decisions. Off-plan purchases may seem a risky venture at first, but you can largely increase your security by having your lawyer make a background check and due diligence procedure, making them a very interesting option.
Maximizing return on investment
Once you have minimized risk then it's time to maximize your return-on-investment. The natural growth of real estate value takes time, just like the overall development of the island, but in the meantime you can create a continuous stream of income through vacation rentals. Indeed, by owning property in this piece of tropical paradise, you are able to rent it out to vacationers and enjoy considerable extra income. Many property owners actually contract professional management companies to take care of renting out their properties on a regular basis, making them very profitable. Surprisingly, having tenants using the house when you aren't around decreases the maintenance costs as long as it's properly managed, and you'll soon have plenty of revenue to spend on improvements. A professional management company will make this a rewarding experience.
Real Estate is not the stock market
Sometimes we are lead to believe that real estate is like the stock market, where you can buy a stock for 10 dollars and resell it one year later at 50. Such a belief can only leave you disappointed when prices rise slower than expected, or if you can't sell shortly after buying. The truth is, real estate investment should rather be considered with a long term vision, in conjunction with the overall development of the area and the infrastructure, which naturally takes time and can't be artificially inflated, or deflated. That's where the true value of real estate can be found, and makes us realize how good Phuket is actually becoming. With not less than 3 mega projects currently under progress budgeted at billions of Thai Baht, the numerous road works taking place simultaneously throughout the island, yacht marinas and major shopping malls coming to the island, the progress is clear: Phuket is slowly but steadily growing into one of the most desirable locations of South-East Asia, and this will bring real value to the patient investors.
Overall, we can see Phuket offers exceptional opportunities for long-term investment. The development of the infrastructure and increase in population is reminiscent of the past growth of large cities, which naturally lead to a sizable increase in real value. Therefore, as long as you follow the steps mentioned here, you can truly make the most of your investment, and even make it an enjoyable experience. The most important part of the investment process is always the beginning: you need to have the right expectations, the right information and the right people with you, before you can make the right decisions and reap the benefits. You can be sure that we at Phuket SILK Properties understand this and are ready to help you reach your long-term goals, while making it a pleasant and smooth experience. Please have a look at our collection of properties for sale in Phuket and let us know your requirements, we will be pleased to arrange viewings and help you finding the right property you are looking for.