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Phuket Property Investment is as Safe as Houses

Phuket Property Investment

A Phuket property investment can really do nothing but appreciate now and for the foreseeable future because of Phuket Island's limited land space and increasing demand.

Phuket is a cosmopolitan island with all the trappings well heeled foreigners expect. Therefore, the Australian, New Zealand, American and Hong Kong dollar compete with the Pound, Baht, Yuan and Yen for a slice of the cake.

Phuket is only 6 hours flying from 2/3rds of the world's population which makes it very accessible to a lot of people and one of our associates, John, who is an international business executive, sees Phuket as an ideal "home base".

Phuket Property Investment – The Price Drivers

Mervyn Baines, another colleague at Indigo Real Estate, explains that property appreciation really lies in the land value.

According to Merv, land values are increasing at around 33% per annum in and around Patong.

For most of the West Coast though, the figure is more like 20%, and less in the centre and the North and East.

He also pointed out that, land values are easy to determine, as the Land Department issues statistics every year, although when talking average percentages, beach-front land cannot be compared to a plot in the centre of Phuket Town.

Phuket Property Investment – Where & What to Invest

Every type of dwelling sells well here especially condominiums, as they can be wholly owned.

Depending on your budget and the type of project / purchase you envisage, there is still plenty of investment potential around the Island.

Buying land, with all the attendant problems is still a good idea, since it is relatively scarce.

For example, you should still be able to find space to buy land and build a house or a small to medium complex of condominiums in the Chalong / Nai Harn areas in the south.

In Patong there is next to nothing available by the way of virgin land and demolition is often the first stage of any construction project.

Although the popular West Coast, due to demand and restrictive, but sensible, building regulations, is now moving toward saturation point,the improving infrastructure is now opening up new areas such as the Mission Hills Golf Complex and the North and East coasts.

Although these areas don't enjoy the facilities of the tourist traps and the beaches, there are still some beautiful jungle, mountain and sea views.

Prices here are much cheaper than on the popular West Coast and if you're looking for peace and seclusion, this could be the place for you. Although as an investment, your return will reflect this fact.

If money is no object, you could join the large multinational hotels in the North and East, where there is space for large complexes, marinas, or even golf courses.

The 5 star boutique hotels give first–rate returns and owners can expect around 60% of rental fees after management deductions and the owner occupier will normally find him / her self in an exceptionally strong sellers market if they decide to pull up roots.

There are also small fortunes to be made, buying property "off–plan" with a 100% return on your investment being possible within 12/18 months.

The risk factor depends entirely on who you buy from and what and where the property is.

Many developers can even arrange rental management packages, as can your local estate agent.

Buying to rent is also a feasible proposition with a 5 to 15% return depending on your mortgage and again what and where you buy, and of course there is still the capital gain component as well.

Remember when you're buying land to get your lawyer to double check ownership documents and make sure you have access to water and other public utilities and that you can obtain planning permission.

Phuket Property Investment Future

Without a doubt now is the time to invest as land prices continue to rise because of the limited space available.

This is especially true on the island's West Coast.

However, to our way of thinking, condominiums are still the best bet wherever you buy. They have all the advantages of ownership and none of the hassle.

If you wish to holiday or live in the tropics, there is no other destination with so much to offer.

Phuket's sensible building regulations, and limited land space means your Phuket property investment can do nothing but appreciate, now and for the foreseeable future.

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