How buying a property in Phuket during the pandemic may improve long-term profit
Phuket is the premier tourist destination of Southeast Asia. Located off the coast of southern Thailand, the island is a half-day’s drive from Bangkok, or a short flight from almost every major city in Asia – including those in China and India.
While most people only ever see the road from the airport to their resort, Phuket is actually larger than Singapore, and offers a varied experience for both holiday makers and residents alike.
The locals are friendly, the cuisine is exceptional (especially the seafood!), and the tropical climate makes it ideal for a winter vacation. Add to all that the well-planned infrastructure, and it is clear to see why property in Phuket has become an important international investment.
Reasons to invest in property in Phuket
If you were lucky to have come to Phuket 20 years ago and then returned only today, you would agree that the island is now unrecognizable. In fact, the regular tourists who skip a only couple of years before returning again are amazed how the island can change so rapidly in such a short period of time. The progress and modernization of Phuket has certainly left many people in awe, so much so, that they truly want a piece of the action.
This can be seen everywhere on the island as new developments have spurred a massive buying frenzy on the island, especially with the Phuket condo market which as seen a huge influx of international buyers. It certainly appears that investors from all over the world are being attracted to investing in Phuket real estate in search of income and possibly capital appreciation.
Phuket is no doubt Thailand’s best and most interesting place to buy a home to live in or as an investment. Here are a few reasons why:-
- Rental rates will increase once the pandemic comes to an end, and real estate investors will benefit from it. Tourists returned to Phuket on July 1st, so this is a great opportunity to invest in houses in Phuket and to benefit from traditional rentals as the market begins to return to normal.
- Property prices have dropped in various areas of Phuket as a result of the pandemic. This is an opportunity for foreign buyers to invest in properties because there is greater scope to negotiate on terms.
- Due to the pandemic there have been limited buyers in the market, which eventually led to a softening in the property market. This is the right time to enter the property market and buy at a desirable rate because to overcome the economical downfall, Thai local or Thai government will sell their property at a negotiable price.
- The value of the Thai Baht has depreciated against the US dollar (by -10% year to date, at the time of writing), making this an ideal time to hunt for property in Thailand. Remember to check deals from trusted real estate agents to save more money.
- The pandemic will come to an end soon. By buying property in Phuket at a lower price now, you will soon reap the benefit of returning holiday makers, which will then lead to higher property prices.
- Real estate should always be viewed as a long-term investment, whether the current market is slow or booming. Buying property somewhere like Phuket will always provide long-term profit because there will be either tenants or vacationers to cover the mortgage payment, which again makes it profitable.
- Buying now at a low price will help in the future. Statistics are showing a growing search for long-stay accommodation in Phuket after the cabinet of Thailand has approved the Special Tourist Visa.
If you’re a foreign buyer please keep these few things in mind:
- Foreigners cannot own land in Thailand. However, they can own and control the structure layout and building on a land plot.
- Foreigners can buy a standalone house or villa or condo unit and register it under their name on the title deed, Chanote.
- Foreigners are allowed to buy leasehold properties.
U.S. State Department and the Centers for Diseases Control and Prevention (CDC) have declared Thailand to be the safest country during the COVID19 outbreak. History says, whenever there is a crisis, some think quickly and invest while some run and hide. Those who have bought or invested in real estate at the time of recession or crisis have always profited from their decision.
Story by Erika Evans