Real Estate

Koh Samui Investing In Condominiums, Condominiums And Options For The Lifestyle Investor

Real estate investment on the island of Koh Samui

Koh Samui, Thailand’s number one tropical island destination with its own international airport, creates an ideal platform for any real estate investor. Renowned as an internationally known world-class vacation destination, it not only provides a host of nationalities, but also opportunities for lucrative real estate investments.

While most of the interest has traditionally been from European countries such as the UK, Germany, Russia, the Netherlands, France and the Scandinavian countries, a new investor market is emerging from countries in Asia and the Middle East, including Singapore, Vietnam. , Korea, China and the United Arab Emirates. The recent surge in interest from Asian investors is due to an increase in disposable income levels, the recent deregulation of foreign investment laws (Korea), as well as new direct air links to / from Koh Samui. The discounted flights within the region also offer tremendous value for tourists who want to vacation on Koh Samui and the surrounding islands.

Koh Samui’s real estate profile includes many big brand hotels and exclusive luxury villa developments.

The market here has a solid foundation due to the fact that almost all property purchases are made without financing. In fact, local mortgages are not readily available, making property prices much more resistant to global financial collapse. What had been seen in recent months are certain properties that are being discounted, where the owner has the need to sell quickly due to financial losses suffered in other parts of the world. This has created several buying opportunities, although they are generally quickly transferred to investors with cash.

Therefore, recent activity in the real estate market on Koh Samui has been driven primarily by cash investors, looking to move funds to properties where good discounts have been offered. There is activity both in resale properties with price reductions of 10% to 30% to move the property quickly to free up cash as well as certain developers looking to manage their working capital and liquidate the property stock. Developers in early 2009 have been finishing partially complete properties and selling them at a discount to get cash. At this time, there are still several opportunities to acquire and buy luxury properties, before the local market shows full signs of recovery and begins its planned growth path.

After understanding these current local weather conditions, the Koh Samui market has undergone a shift in emphasis with the arrival of a new generation of creative developers aware of the great potential of planned increases in the number of luxury travelers and investors seeking investment. in Lifestyle.

Focusing on two innovative developers who anticipate this demand for lifestyle investment properties, they both focus on the area surrounding Plai Laem and Cheong Mon. They reason that with the area’s fantastic beaches, close proximity to the airport, and no signs of overcrowding, this makes it an ideal location for a lifestyle investment. In fact, the area still exhibits a traditional Thai feel with small beach resorts combined with more luxurious properties, 5-star spa resorts, and hotels.

They both have strong ideas on how to create lifestyle properties, which act as an exciting investment and lifestyle vehicle for those looking to experience tropical island life on Koh Samui in luxury packages.

The Mandalay Gardens apartment project is located not far from Cheong Mon on the hillside. It is only 800 meters from the beach, and many of the apartments have spectacular sea views. In fact, it is a totally flexible vehicle and, as a lifestyle investment, it gives its owners the best possible benefits, with the special feature of Astudo brand hotel management. The project was launched smoothly in May this year, with an active investor-ready display unit already on the hillside site. There are 9 different types of 1 bedroom units ranging from 50 m2 to 90 m2. Prices start from 3.49 million Thai baht. Investment returns are not guaranteed, but with an occupancy level of 35% they are expected to reach 6 to 8% at an average rate of 3,600 baht per night. It is anticipated that most landlords will participate in the rental program and in doing so will grant them up to 60 days per year of free use. There is the possibility before construction begins to combine 2 or more units to create 2 or 3 bedroom apartments. Following its successful first project, Mandalay Villas, Tibor Szedlak, CEO of Mandalay Samui Developments, stated that the company was founded with private financing, with no loans or other outstanding commitments. The legal status of this current project grants its owners a 30 + 30 + 30 year lease. Ownership of the land is guaranteed by the fact that each owner of the unit is an equal shareholder in the company that owns the land. Payments after the initial 35% deposit are based on monthly installments due as work is completed. Sterling has been appointed as Project Managers and DFDL Crawshaws acting as legal advisors. The entire project is set on 5,600 square meters of land and construction will begin in September 2009 and will finish Phase 1 in the third quarter of 2010.

The Samui Emerald Condominium represents another attractive option as a lifestyle investment, with construction already underway, now is the time to take advantage of the remaining units on offer. Completion of the entire facility is contractually scheduled for December 2010. Located next to Plai Laem Beach, it provides easy access to Cheong Mon and back along the coast to the elegant boutique resort, Fisherman’s Village. This area is home to the high-end resort, Six Senses-Hideaway and the Giorgio Armani brand villa development is also nearby. Other nearby attractions include the Big Buddha, Turtle Island and Koh Som. Samui Emerald units give their owners access to elegant facilities including a large swimming pool, restaurant, fitness room and multilingual reception. Units range from 1 to 3 bedrooms, including 4 Penthouse apartments with standard units ranging from 44 square meters to 109 square meters with prices starting at 3.05 million baht. Units are fully furnished in modern designs including loose furniture and electrical items. Again, there is no guarantee on ROI, but expect 8% with average rental rates estimated at 2,700 baht per day for a standard studio room with 30% occupancy. Samui Emerald will function as a hotel. Guests will be met at the airport, transferred to the site, deposits will be taken, guests will be shown to their rooms to find a welcome basket and shower items waiting.

Owners who take advantage of the rental scheme can benefit from up to 167 days a year of free use, while earning income for the rest of the year. Given its legal status as a Condominium, it also offers foreign investors the opportunity to obtain foreign titles.

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