How to Invest on a Property in Phuket, Thailand

The perfect destination for a holiday home, real estate in Phuket is highly sought out for its sunny surroundings, gorgeous beaches and lively atmosphere. Known as the 'pearl of the Andaman Sea' the land is second in value appreciation to Thailand's capital Bangkok. If you've got your eye on Phuket as the perfect destination for an investment property or holiday nook abroad, here are some tips on how to invest in a property in Phuket Thailand.

Image Credit: Avadina Hills by Anantara

1. How Foreigners Can Own A Property In Phuket

Phuket's real estate values have been rising over the years. And while attracting its fair share of families and individuals hankering to own a spot within the perfect paradise, Phuket is also the ideal location for those of you considering an investment property. Owning a slice of this sunny land is quite a profitable venture and while laws are governing a foreigner owning land in Phuket, it is possible. Listed below are factors to be considered if you are a foreign investor planning to buy property in Phuket.

2. Purchasing Branded Residences In Phuket

Branded residences are categorised as luxury property in Phuket. And are the easiest to own under the clause of 51% Thai ownership and 49% foreign ownership of property. This dynamic allows foreigners to buy property in Phuket, owning them as freehold units.

These accredited all-inclusive resort-style residential plots are seen as the perfect investment; enhanced when you choose Phuket real estate for sale within prestigious property development projects. There is a good choice too from which you can choose since many reputed hotel chains are now offering the perfect residences to invest in, whether you are looking for a holiday home or investment property. Villas such as those on offer by Avadina Hills by Anantara are considered branded property and are highly valued as prime real estate. Villas or any other luxury property in Phuket which shares its name with a reputed international hotel chain come with guarantees; designs by world-class architects, interiors which reflect the finest in luxury, fixtures of the highest quality and finishing that is more than perfect.

3. Buying Your Holiday Villa Or Condo Via An Offshore Company In Phuket

Although Thai laws are relaxed towards foreigners buying villas or condos in Phuket; its better if you do so via an off-shore company, such as a reputed hotel chain. Transactions are smooth and easy, and even in the event, you want to sell off your property its as simple as a transfer of your off-shore shares to the new buyer of your property.

4. Buying Landed Property In Phuket

Under the category of landed property are houses, villas, townhouses and bungalows in Phuket. Any property which occupies a private portion of land is considered a landed property. Laws against foreign ownership of landed property in Thailand are strict, and titling of land in the name of a foreign owner is not allowed. Bottom line – foreigners cannot own land in Thailand. Hence, investing within a property development project is the most viable solution if you want to own a share of quality property in Phuket.

5. Lease The Land And Own The Building In Phuket

Since foreigners are not allowed to own land in Phuket, you can consider leasing the land and putting up a building - which you can own. You can lease the land from the freeholder who is often a company or an individual. Real estate law restrictions do not apply to a foreigner owning a building in Phuket; hence, many choose to obtain the land on a long lease and proceed to build on it. Foreigners putting up their dream vacation home tend to do so, on a 30-year lease of the land. It's not as clean, permanent and secure as owning a villa within a luxury complex but is an option if you are considering buying a holiday home in Phuket.