Phuket Property: Location, Location, Location - Part 3 - Page 3
Published: November 15, 2011 at 10:54 am
Is the North East a good investment?
If you are buying for investment it is still far too early. Interest from property investors in the North East Coast of Phuket is limited. Five years ago everyone was talking about the East Coast catching up with the West due to cheaper land prices and less tourists. But in truth, it has never happened. Your capital appreciation will also be lower than on the West Coast and when you sell you'll have far fewer interested buyers. Yes, you will find property prices are less. But you’ll have difficulty renting your property unless it is linked to a good five-star hotel.
Even then, you need to do your homework. Ask to see details of occupancy rates. Look at the room rate per night compared to West Coast rivals. And calculate your nett return carefully. You won't find maintenance and common area charges any lower than at West Coast resorts - so you need to factor this into your decision too.
Should you buy on the North East Coast of Phuket?
In reality, you should only consider buying on the North East Coast if it suits your lifestyle. It is unlikely you will see large gains in the value of your property and rentals will be harder to come by. In my opinion, it will be at least five and probably more like ten years before the North East Coast starts to gain the same popularity as the West - if ever. So if you buy here it should be because you enjoy peace and quiet, the lack of tourists and limited development. If that is more important to you than the convenience of having things on your doorstep, the North East could be ideal for you.
To find out more, you can get a free copy of ‘The Definitive Guide to buying property in Phuket’ here.