As safe as houses’ definitely applies, quite literally when it comes to investing into Phuket houses.
Amongst the different types of property one can buy in Phuket, houses definitely tick a lot of investment boxes. Houses in Phuket deliver steady returns, both monthly and annual. People can do buying a house in Phuket from any nationality, and when they are sold, the proceeds come home untouched. Moreover with Thailand’s real estate market growing massively over the last five years, any investment shall lead to a big pay off in the future.
Little wonder then, that if you are interested in real estate investment you need to learn about the passive earning potential of buying a house in Phuket. And that’s exactly what we will discuss now.
What factors decide the cost of a Phuket house?
The truth is, Phuket house pricing is heavily influenced by the property price index of the rest of Thailand, but there are a few important differences.
And those chiefly revolve around the major presence of foreign investors into Phuket property.
Since these investors do not rise and fall with the rest of Thailand’s pricing index turbulences, Phuket house pricing is actually kept secure for now.
Foreign investment into Phuket also saves it from the proverbial quicksand of the easy credit catastrophe.
The easy credit catastrophe occurs when a boom lifts developer boats briefly and they pool all their money into new buildings after new buildings until they realize the boom has stopped and no one is actually capable of buying all of them. This results in negative pressure on pricing as well.
But since Phuket’s investment comes from outside the Thai economy, it is well insulated against the boom-bust cycle.
Pricing of Phuket houses
Phuket houses vary greatly in pricing, even sometimes when they are located in the same area.
A house valued at 2 million BAHT could stand adjacent to another whose rates are closer to 350 million BAHT.
Pricing parameters:
Pricing of Phuket property is fixed based on
- The value of the land
- Where the property is located within Phuket
- The aesthetic view it offers
- The superiority of architectural design
- The brand value of the developer
- Market sentiment and fluctuations
- Structural Engineering
- How far it is from the many beaches of Phuket
The per square meter value
Phuket’s pricing per square meter depends on whether the building is inland or near the shore. Obviously, pricing near the shore would be higher because of its desirability whereas as you get closer to Phuket Town pricing nearly gets cut in half.
The ‘’other’’ reason to buy a house in Phuket
Phuket is an island. 70% of Phuket is mountains, on which grow forests, palm oil trees and rubber plantations. There is a large portion of coast and sea which has already been cordoned off as ‘preserved areas’ in order to protect Mother Nature. What this means, however, is that land, and the buildings on it are of limited supply,
decreasing daily as smart investors buy land and property. At some point, due to the limited availability of land, the law of scarcity simply HAS to catch up and prices are going to soar.
Therefore, whoever invests in Phuket property today is in for a massive payoff when that day arrives in the near future. In some parts of Phuket, it’s already happening.
Investing in Phuket houses
Given these reasons, Phuket houses are a great choice when it comes to real estate investment. Once you buy Phuket property, you can rent it out monthly and then sell it with a very high appreciation value from the market. This alongside the leniency offered to foreign nationals by the Thai government makes a house in Phuket the biggest win-win investment you’ll ever see in Thailand real estate.
Next steps
I’m sure the thought has crossed by now in your head, ‘’ How do I find houses for sale in Phuket and take advantage of this massive real estate market?”’
Well, don’t worry. IBGProperty is here for you.
IBGProperty is Phuket’s leading end-to-end property investment solution. Our mission is simple- to deliver renting, buying and selling Phuket houses so seamless that buyers and sellers never need an intermediate-ever. We also take care of all formal and legal procedures so all you need to do is invest- and sit back as your passive income grows steadily.
Sound like a proposition worth considering? What are you waiting for? Head to https://ibgproperty.com/ and start your Phuket investment journey today.
