When you search for rental properties, there are several qualities you should seek. Here are a few major considerations :

- Think location. There’s an old real estate saying the three most important things to look for in real estate are location, location, location. Look for rental investments in areas convenient to major employers, schools, shopping and public facilities, and transportation.
- Consider the price carefully, and the amount of rent you can justifiably charge. If you hope to charge more than the cost of the monthly mortgage, insurance and taxes on the home, you should be careful to invest no more per month than the local rental market can bear. If your goal for rental income to “break even” or perhaps less as the property increases in resell value, price becomes somewhat less important.
- Think about future resale value. Properties in growth areas can rapidly increase in value, turning your rental property into a prime resale opportunity. Investing in low growth areas can provide a steady stream of renters, without a major growth in equity.
- Consider the neighboring homes, and how well they are maintained. Even one home on the block that is poorly cared for can drive down potential rental income
- Look for properties with solid construction. Even the best tenant will be more likely to put wear and tear on a home than a home owner. Try to find low-maintenance properties that will stand up to the wear and tear of renting.

You should also consider how active you can or want to be in the oversight and upkeep of your rental investment properties. If you live nearby, it can be relatively simple to stay in touch with tenants, and to keep an eye on your investment. If you lack the time, or your property is some distance away, you may wish to work with a property management firm.

FINANCIAL CONSIDERATIONS

Property Management, The management of a development varies in scope from the maintenance of the site and common areas, to the servicing of each unit, depending on what the developers and owners want. The property managers will also be responsible for security and administration of the estate. The management of a development can be handled by either the developer, an entity attached to the development, or an independent property management company.

You should be comfortable that the appointed party will deliver the quality and scope of services you expect, and be aware of costs incurred. Financing Generally, Thai banks do not lend to foreigners for land or property purchases. However, some institutions such as Bangkok Bank’s Singapore branch and the Thai affiliate of Singapore’s United Overseas Bank are now starting to offer mortgages of up to 70% of the price of the property to foreigners. Some developers also offer funding assistance, but you need to be aware that the vast majority of purchases are on a 100% equity basis.

Tax
At present, there is no tax in Thailand on the occupation of property or ownership. There is a proposal to bring in a property tax on ownership at the rate 0.1 of 1% of the government assessed value of the property, which is historically below current market value. On the rental or the sale of the property, depending on the status of the owner an individual, resident or non-resident in Thailand, or a corporation various taxes on the actual sale proceeds or on the assumed income based on assessable value may be levied. This is a specialist area, on which you should seek legal advice. As a guide, these may include:

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We have over ten year local expericnce and are independent, so we can give a balanced view. Don’t be confused – our agents can guide you through your purchase options, enabling you to make informed decisions, and buy with confidence.

Why invest in Phuket ?

Because its at the hub of South East Asia – the melting pot of nationalities from around the world.

It’s also very accessible for holiday makers from major desitnations like:?? Bangkok, Singapore, KL, Hong Kong and Taipei. Being internationally accessible enhances tourism growth and this coupled with the vast sums the Tourism Authority of Thailand (TAT) spends on promoting Phuket, means wealth opportunites for property buyers looking to diversify their portfolio into holiday rentals.

Property Management

Phuket Property Sales has joined a partnership with Phuket Island Property Services ( PIPS) to provide property owners professional property management and rental services. Most property owners if not resident in Phuket will want some form of management service if the have bought property which is not part of an estate or if their estate managers do not provide property management and rental service.

Here is some information about the services offered and how the market for rental services in Phuket is becoming increasingly popular.

Phuket Island Property Services (PIPS) have been providing rental services to Phuket homeowners since 2000. Their flexible approach has become known across the Island to be one that provides the maximum benefit to the owner and catering to the owner’s individual rental requirements.

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