The ever increasing positive tourism numbers for Thailand overall, and Phuket, in particular, have allowed real estate developers in Phuket to offer investors guaranteed rental returns on investment properties.
Investment properties are different than residential real estate as they are more or less managed as a hotel by the developer and marketed to holidaymakers to be rented out and generate rental income.
Below you will find our recommended projects with the highest guaranteed rental returns on Phuket. You might also want to take a look at our full list of the best investment property in Phuket and do not hesitate to contact us to set up a free property tour.
7% Guaranteed Rental Return for 5 Years
700 meters to Bang Tao Beach and Dream Beach Club. 10 minutes by car to Laguna, Villa Market, tennis courts, golf courses and Spas.
5 stars resort infrastructure includes restaurants and bars, a fitness center and outside sports ground, a running track, yoga terrace, SPA, 4 pools with the freshwater, kids club.
6% Guaranteed Rental Returns for 4 Years
This collection of 28 villas garden view and sea view villas is located just a 20-minute drive from Phuket’s International Airport via a quiet and scenic route. This is an exclusive and secluded, yet easily accessible piece of paradise, where you can enjoy the high-end lifestyle of the Laguna area, home to the luxury Laguna Phuket Resort Complex.
The project is registered under a condominium and has a hotel license. The villas can as such be sold as condos, foreign freehold.
All units have two stories and are 85 sqm with 1+1 bedrooms and 2 bathrooms.
6% Guaranteed Rental Returns for 10 Years
The spectacular beachfront project is nestled in the headland of southern secluded Nai Yang Bay - only 10 minutes from Phuket International Airport and a couple of steps to its secluded sandy beach. Accessibility to the beach is simply crossing a 3-meter dead-end road. Total area size of this property is approximately 4 rai (1.6 acres).
Each building includes only 6 units; 2 units per floor which are 32.25 sqm (Premier Studio) and 41 sqm (Deluxe one bed). The 73.25 sqm (Deluxe two bed) can be combined between 31sqm and 41sqm on the same floor within the same building. Total: 96 units contained within 16 individual buildings.
One frequently asked question many property investors have is just what can they expect in terms of return on investment.
As an example of a guaranteed rental return on Phuket, “7% Guaranteed Rental Return for 15 Years” means that the developer is guaranteeing the property owner an annual rental return of 7% of the sale price for up to 15 years to be paid out yearly.
For some projects, you do not have to wait until the property is completed in order to receive your yearly guaranteed return or a percentage of the guaranteed sum. You can find more information in our article about the average ROI for property investments on Phuket.
Everything regarding the rentals is handled by a management team, so the investor can just kick back and watch the bank account grow, as a hands-free investment should be.
Owners can also enjoy up to 4 weeks of free stay in their property every year (may vary depending on the developer), a terrific reason to invest in a paradise island like Phuket. Owners can then enjoy all the resort-like facilities like fitness center swimming pool and will also often get discounts at on-site restaurants and spas.
On top of all the advantages above, there are also developers who offer to buy-back the property at the original purchase price +10-15% after a certain amount of years.
Condominium investments in Thailand and Phuket are generally very safe. Foreigners can own condominiums freehold and Thai laws allow leasehold contracts for as long as 30 years. For investors looking to maximize their income during a guaranteed rental return period and then exercise a buy-back clause, a leasehold property could be a better option with cheaper transfer fees etc.
There are plenty of options out there, all with their own advantages and disadvantages and more or less suitable for different types of investors. Do not hesitate to get in touch with us to set up a personal consultation over phone/WhatsApp/email/Signal/Telegram or Line or to schedule a free property tour with complimentary pick-up and drop-off at your accommodation.
“Real estate cannot be lost or stolen, nor can it be carried away. Purchased with common sense, paid for in full and managed with reasonable care, it is about the safest investment in the world.”
- Franklin D Roosevelt