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In early 2020, investing in Phuket when the coronavirus pandemic hit, many professionals worldwide saw a big change in their work lives. The Phuket real estate market also had to adapt. Buyers got used to investing in Phuket without visiting the island.
This tough time brought new opportunities. Many developers and some motivated homeowners started offering great deals on their properties, making it a buyer’s market. This article offers tips for investing in Phuket buyers to ensure they make the right decisions.
The COVID-19 pandemic led to huge lifestyle changes. People worked from home and relied more on take-out food and home deliveries. Online shopping grew as well. The investing in the Phuket industry adapted to travel restrictions and border closures. Developers offered good deals, attracting buyers who had extra time and money.
Technology advancements allowed the real estate sector to show properties to buyers in new ways. With smartphones, agents could conduct virtual property tours, making it easier to buy remotely and invest in Phuket.
If you’re considering investing in Phuket, now might be a great time for good deals. While buying a home to live in might require a personal visit, investment properties can be assessed for safety, security, and return potential.
Tips for buying an investment condo in Phuket
There are many different types of condos in Phuket. Learn more about the Phuket condo investment guide to get the best deals now.
Experienced Real Estate Agents
Finding the right real estate agent can make or break your buying experience. Choose an agent who has a deep knowledge of the investing in Phuket market, a solid track record, and genuine client testimonials. Look for an agent who isn’t just pushing for a sale but provides a balanced view of both the pros and cons of properties. They should have the capability to advise on the best areas to invest in Phuket, taking into account future developments and current market conditions.
A good agent will guide you through investing in Phuket, ensuring you understand ownership laws and are aware of any restrictions. They should be able to answer detailed questions about the market trends, property values, and even the potential rentals in different parts of Phuket.
Communicate Openly
Communication is crucial when buying property remotely. Use platforms like Skype, WhatsApp, or Zoom to have face-to-face conversations with your agent. This allows you to express your needs and preferences more clearly and build a trusting relationship. Regular video calls can help you stay updated on the investing in Phuket property market and the status of your potential investments.
Frequent conversations ensure that your agent understands your investment goals and can provide timely updates about new listings or changes with investing in the Phuket market. This ongoing dialogue also helps in resolving any concerns promptly, ensuring a smooth buying process.
Research and Know the Island
Even if you’re buying remotely, familiarise yourself with Phuket. Research the different areas, understand their appeal, and know which regions are best for investing in Phuket. Popular areas like Patong, Kata, and Kamala are well-known for their tourist attractions, while quieter places like Mai Khao and Rawai may offer more serene environments but with potentially lower rentals.
Look into the local infrastructure, upcoming developments, and the general vibe of each area. Join online forums, read local news, and follow ourvillas blogs to stay updated. This knowledge will help you make informed decisions and choose locations that align with your investing in Phuket strategy.
Clear Investment Criteria
Be explicit about your criteria. List your budget, preferred locations, property size, amenities, and any specific features you want. This detailed briefing will help your agent filter through options and present you with properties that match your expectations.
Discuss safe condo buying tips in Phuket, whether you’re looking for a property to flip, rent out, or use as a holiday home. If rental yield is a priority, emphasise properties in high-demand tourist areas. If long-term appreciation is more important, consider emerging neighbourhoods with planned infrastructure developments.
Gather All Necessary Information
Ask your agent for comprehensive information on each property. This includes floor plans, property specifications, developer background, and any past project reviews. Request detailed financial projections, including potential rental income, maintenance costs, and other expenses.
Compare multiple properties and gather as much data as possible. Evaluate the quality of construction, the reliability of the developer, and the property’s adherence to legal standards. Insist on transparency and don’t hesitate to ask for clarifications on any aspect of the property.
Get Videos of Potential Properties
Learn to use technology to get a real feel of the property. Request live video tours where the agent can walk through the property, showing you every detail on how to invest in Phuket real estate securely. If live tours aren’t possible, ask for pre-recorded videos highlighting the property’s features, surrounding areas, and amenities.
Videos can give you insights into the property’s condition, layout, and neighbourhood ambience. They can also help you spot any potential issues that photos might miss, ensuring you make a well-informed decision.
Understand the Buying Process
Familiarise yourself with the steps involved in investing in Phuket. Initially, you’ll sign a reservation agreement and pay a deposit to secure the property. This is followed by the Sales & Purchase Agreement, which outlines all terms of the sale, payment schedules, and legal obligations.
Understand the costs involved, including the freehold upgrade, utility installations, and maintenance fees. Knowing these details upfront helps in budgeting and avoids surprises later.
ALWAYS Buy a Foreign Freehold Condo
Opt for foreign freehold ownership whenever possible. This ensures that the property is legally yours and can be sold or transferred without complications. Freehold properties are more secure and likely to appreciate in value, making them invest in Phuket compared to leasehold options.
Verify the property’s freehold status with your lawyer to ensure there are no misunderstandings. Freehold ownership provides long-term security and is a significant factor in maintaining the property’s resale value.
Frequently Asked Questions
Can foreigners buy property in Phuket?
Yes, foreigners can buy property in Phuket. The most common way is to purchase a condominium with foreign freehold ownership, which means you own the condo outright. Foreigners cannot directly own land, but they can lease it for long periods or set up a Thai company to purchase land.
How do I make sure the property is legal and safe to buy?
Hire a lawyer to conduct due diligence. They will check the property’s legal status, and the developer’s background, and ensure all permits are in place. This helps avoid any legal issues and ensures your investment is secure.
What are the costs involved in buying a property in Phuket?
Besides the property price, you’ll need to pay for:
- For your lawyer’s services.
- Usually 2% of the property value.
- For the upkeep of common areas (for condos).
- Costs to connect electricity and water.
Can I rent out my property in Phuket?
Yes, you can rent out your property. Many buyers rent their condos to tourists or long-term tenants. Make sure the property has the necessary licences for short-term rentals if you plan to rent to tourists. Rental income can provide a good return on your investment.