Maximising returns from a property investment in Phuket comes down to making well-informed, location-specific choices. Whether you’re planning to buy condo in Phuket for rental income or long-term gains, what you choose and where it’s located both play a key role. Here’s what to look out for if your goal is to grow value and avoid common investment pitfalls.
Choose a High-Demand Location
If quick home selling is ever part of your long-term strategy, picking the right area makes a big difference. Some areas in Phuket are popular destinations of tourists and remote workers all year. These include Patong, Kata, and Surin. Others, like Rawai and Chalong, are quieter and tend to attract longer-term tenants or families. If you want stronger rental income, focus on places with solid year-round demand. Think about who you want to rent to, and match your location choice with their needs.
Compare Rental Yield Potential by Project
How will you know which condo gives better returns? You’ll be happy to know that the condo sector in Thailand has clear legal protections in place. Sadly though, not all projects perform the same.
Some buildings have better management, higher-quality finishes, or stronger branding. These factors affect how often your unit is rented and at what rate.
Don’t just rely on the projections given to you! Ask about real rental numbers.
- Are there short-term and long-term let options?
- Does the building stay occupied during off-season months?
Actual rental data helps you avoid guesses and base your decision on performance.
Check Foreign Ownership Quota and Freehold Options
There’s a legal cap on how much of a building can go to foreign buyers. Once that’s full, your only choice might be leasehold. That setup doesn’t carry the same weight.
Freehold means your name goes on the title, and it’s usually easier to resell down the line. That matters if your goal is long-term value, not just short-term use.
Ask the agent directly. Is this unit within the foreign quota? What’s the title status? Never assume things are in order based on appearance alone.
Look for Turnkey or Fully Managed Units
Handling guests, cleanings, and sudden maintenance calls? Not everyone’s idea of a good time. That’s where turnkey setups come in. They’re units ready to rent, often furnished down to the last spoon.
Managed ones take it a step further. You hand over the keys, they run the show. This might cost a bit in service fees, but it’s less stressful, especially if you’re abroad. Some buildings even promote these as part of their brand. It’s worth checking if they offer daily cleaning, guest support, or listing help.
Factor in All Ongoing and Hidden Costs
Don’t stop at the price tag. What eats into your returns are the ones that you’ll still be paying for after you get the keys. Start with:
- Maintenance fees
- Sinking fund contributions
- Local property tax
- Agent cuts
- Cleaning costs
- Currency transfer charges (if your bank’s abroad)
Not all buildings charge the same, and not all projects are upfront about it. Ask for the full fee list before signing. Even better if they can show a sample breakdown based on last year’s numbers. Keeps surprises to a minimum.
Are you ready to explore the best property options available across Phuket’s prime locations? Explore the online directory of Zest Real Estate today!