Investing in real estate is a popular strategy for achieving financial stability and capital growth. Let's examine a specific case of the profitability of purchasing a villa in Thailand, along with the benefits and risks of such an investment.

Capitalization

Botanica Luxury Villas is a premium-class villa developer in Phuket, offering villas with modern design and high-quality finishes.

For example, let's consider a small three-bedroom villa with an area of 422 square meters, a plot of 511 square meters, and a construction stage cost of 26,950,000 ฿.

On average, the capitalization during the villa's construction period is 50%. This growth allows estimating the future market value of the completed villa.

Upon completion, the market price of the villa will be 40,425,000 ฿, and the capitalization will be 13,475,000 ฿. This means that the investor will gain a substantial profit from the increase in the villa's value during construction, with an ROI of 50% within 12-18 months, the typical construction period for these villas.

Rental Income

Another lucrative aspect of villa investment is income from rentals. Let's consider income from both long-term and short-term rentals, where the rental price depends on the season.

Taking into account different rental prices based on the season and villa occupancy, the revenue from the rental program will be:

• Long-term rental: 3,798,000 ฿
• Short-term rental: 5,219,718 ฿

However, like any investment project, expenses must be considered. Profitability calculations include costs for check-in, check-out, guest attraction, villa maintenance, Wi-Fi, fees for common area maintenance, and income tax.

As a result, the net income after deducting expenses will be:

• Short-term rental: 3,636,149 ฿
• Long-term rental: 2,356,602 ฿

If you use a property management company, which typically takes 30% of the income, the owner's profit will be:

• Short-term rental: 2,545,304 ฿
• Long-term rental: 1,649,622 ฿

If you choose our property management company, Apart Homes Hospitality, your profit will be slightly higher:

• Short-term rental: 2,908,919 ฿
• Long-term rental: 1,885,282 ฿

This case demonstrates that investing in villas in Phuket can be profitable, especially when considering rental program income. However, it's crucial to be aware of risks and additional costs, such as property maintenance and management. A detailed analysis, discussion, and clarification of all payment aspects and conditions are essential.

Any remaining questions?

Feel free to reach out to us through email or phone on our social media channels, and we'll gladly provide free consultations on all matters ⬇️

✔️ Email: hello@apart-homes.com

✔️ Contact Phone: +66 83 503 2555

✔️ WhatsApp: +66 83 503 2555

✔️ Telegram: +66 83 503 2555