Thailand has always had a strong allure as a holiday destination. The cheap prices, the paradise beaches and the friendly people have been attracting travelers for many years. If you are young or old, Thailand has something for you. You often find that if you like somewhere a lot and know that you will be coming back year on year, it may be worth doing an investment in the place where you spend a lot of your time. What better investment to make than to buy a property. Buying a property blind is not the best thing to do however so let’s take a look at what the ROI of investment in Thailand.
Thailand is a pretty big place with a big population. There are many places where you can buy a property. If you plan to rent out a property for a lot of the year whilst you are not there, the best places to buy are the places which are popular with the tourists. The ROI of investment in Phuket will be different from the ROI of investment in Hua Hin. The ROI of investment is still a pretty solid bet as it is the capital city and is a growing metropolis. Where most foreigners tend to buy property in Thailand is either Phuket, Hua Hin or Pattaya. Each of these locations attract a lot of tourists and are popular year round. We will be taking a closer look at Hua Hin as we have been working closely with an owner in the location who bought a small villa and have a full year worth of data on what result he got for 2014.
Hua Hin is a small beachside town about three hours south of Bangkok. It is a popular weekend destination and has a cleaner, more honorable reputation than say Pattaya. It is convenient both for local Thais and office workers from Bangkok to go to for a getaway and foreigners who want the chilled out vibe which is more relaxed than the more tourist resorts in Phuket. It is also lesser known so the perfect place to buy a property for an investment for the future. Roomfilla worked with an owner who did just this. He had bought a 2 bedroom villa 1.5 km to the beach with a private pool and in an excellent location. He wanted to see what he could do with the villa on the short term rental market but did not have the time or energy to run things from Europe when he was not in Thailand (50/52 weeks a year).
We got to work wondering what the best ROI we could do for a full year in Hua Hin. We took some photos and put the property to work, advertising it across the internet and managing the enquiries that came in. Before we knew it, we had the first booking, the second followed and the third. We were getting quite a few and we didn’t even hit the high season yet. It was popular! The bookings kept coming, the guests kept being happy and things were going swimmingly. The year passed in record time (a year is still a year!) and we counted up exactly how much we had made for the owner of the villa.
We were surprised to see that within 1 year we had made a ROI in Hua Hin of 12%, now that isn’t too shabby at all! We continue to work with the owner and continue to get bookings for the coming year. If anyone tells you that property investment doesn’t pay off. It can. You just need to be careful that you buy in the right place and for the right price. As we continue to expand the roomfilla portfolio, we continue to gather data on the hot or not spots. This will assist us in ensuring we continue to offer popular and awesome rentals on the vacation rental market. 12% ROI is a lot more than you would get if that money was sitting in your bank account!