Is investing in real estate in Phuket a good choice?
Although the current global COVID-19 situation has caused anxiety for many property buyers, some savvy buyers and investors realize that now is the best time to purchase properties. Here are the reasons why:
Demand for rental properties is expected to increase
As first-time buyers may delay buying a house in 2020, rental demand will rise in 2021. Real estate investors can benefit from traditional rentals. –
Property prices are affordable for investors
Property prices have appeared to decrease in many areas of Phuket since quarter one of 2020. This presents a great investment opportunity for investors with cash or a good credit score to buy properties at lower purchase prices. This year is the best time to buy for investment purposes.
Sellers are more open to negotiation
The 2020 property market is a buyer’s market. The year started with lowering prices for resales and affordable prices for ongoing developments. With fewer buyers in the market, there is no better time than now to negotiate for a better price. Ensure that you get help from a trusted local real estate agent and do your homework on the property before making an offer, as good properties usually have more than one interested buyer. Evaluate the property before acting fast before someone else purchases the property.
The Thai Baht is weaker than last year
After one-way rising in 2019, the Thai Baht has returned to a more realistic value earlier this year. If your home currency strengthens against the Thai Baht now, it is an ideal time for house-hunting. Check hot deals and available discounts on each property from a trusted real estate agent to save even more money. The best deals are often closed before they hit the open market.
Phuket properties can provide a quick return on investment
As one of the best tropical destinations in the world, Phuket has something to offer for every type of visitor throughout the year. Investments in Phuket traditional rentals and holiday rentals can provide a long-term profit. The sooner you buy an investment property and start a rental business, the sooner you can collect rental income. Savvy investors see the current situation as an opportunity to buy, refurbish and complete the property in time for a post-pandemic future.
Phuket always attracts travelers
Although Thailand has not fully reopened to international travelers yet, there are COVID-19 travel restrictions and quarantine guidelines for those who enter the country. Most foreign nationals remain barred from entering Thailand.
However, on 15 September 2020, the Cabinet of Thailand approved the Special Tourist Visa proposal to allow long-stay visitors to enter the country, subject to quarantine and other requirements, allowing eligible visitors to stay in the country for a maximum of 270 days.
According to the Thailand Long Stay Company, more than 10,000 holidaymakers from Scandinavia are interested in staying on Thailand’s top island during the cold winter in their home countries and amidst the COVID-19 outbreak in Europe. These individuals have expressed interest in the special tourist visa and the new extended visit program that Phuket is preparing to offer.