If you have uttered these thoughts, you would be in very good company, as thousands just like you ponder these questions everyday. We work with clients who have all faced these questions at some point and came to us for the right answers. It is then our turn to ask some questions to get us started.
We need to know about you. Therefore, we ask about your income, savings level, current portfolio, discretionary income, investment history, risk tolerance, retirement horizon, personal and professional goals, likes and dislikes, and pretty much anything to help us develop a thorough profile of who you are and what you seek.
Our clients are readily pursuing and investing in real estate because it has proved to be the best performer of all asset classes throughout history. It is the commitment of Company Vauban to research the real estate marketplace and bring you exciting opportunities that meet high expectations and provide meaningful returns over time.
Thailand has a long and consistent history of holiday tourism and is home to some of the most beautiful, respected and established resort destinations in the world. Combined with exotic natural beauty, fabulous year-round weather, good infrastructure, a commitment to tourism and an ingrained culture of peace and friendly people, we believe there are a number of outstanding opportunities for investing. Given its location and all it has to offer, Thailand still remains very reasonably priced.
Recent research carried out confirms that 80% of those seeking holiday accommodation in South East Asia are looking for high quality self-catering establishments where space and style are delivered and needs for both freedom and privacy are fully assured.
Thailand is experiencing a very positive response to the private home and apartment rental market. Many regular visitors who are familiar with the country find the facilities offered by the traditional hotels or resorts to be somewhat cloistered. Therefore, more and more are now turning to the short-term rental market.
So, an area of great interest to us is what we are calling a “new generation” of resort developers. Seasoned developers that do more than just build and hope for the customers to come in provide a true “turnkey” approach to real estate investment. These developers are providing a complete package, which includes developer-provided financing, rental program and “hotel-style” property management. Our experience tells us this is the approach that best fits our client’s objectives in terms of investment and lifestyle. Therefore, we have researched and selected a number of resorts that meet our high expectations for a safe investment that provides a strong return.
These recommended developments usually provide financing from the developers themselves, completely eliminating the awkward paperwork and approval process with foreign mortgage lenders, assuming you were lucky enough to even qualify. This is a significant benefit for you as an investor. Additionally, by offering a rental program, the developers eliminate another major concern for foreign investors: “How do I earn money on my investment?” Many investors see the value of renting their property out during off-periods and earning significant rental incomes, which help to cover the maintenance, deferred payments and adding to their overall investment return. A rental program combined with property and hotel-style management completes the turnkey approach to your investment as all aspects of maintenance, care, cleaning, renting and booking are handled by professional management companies on your behalf. By wrapping these services together, the developers greatly enhanced the potential value of your investment and make your life much easier.
Company Vauban has selected for you a number of such investment properties and would be happy to discuss them with you. It is our duty to help you find the investment that provides both the security and excellent returns you expect while allowing you to enjoy a great lifestyle that only few could imagine. The properties we have selected are all located in major tourism hot spots guaranteeing easy access and year-round rental potential. Any beachfront and golf course location will have enhanced occupancy demand and rental rates but in general a reasonable return over 6% net can be expected on a yearly basis. Stronger returns are possible depending on where you place your investment and whether you will use the property.
It is also recommended to invest in off-plan properties to benefit from the usual capital gain upon completion. We usually expect a 20 to 30% capital gain upon completion of the development. Capital gains above the norm can reasonably be expected in Thailand. Over the last years, the increase market price reached a range of 10 to 20% on average per year depending on the location, type of property, facilities and services offered and whether it is purchased off-plan or not. The purchase and resale price should follow this trend as construction costs will continue to rise (more than 15% per year over the last 2 years), land prices and higher property demand will continue their growth supported by international tourism and a very affordable Thai market in comparison of other places in Asia and worldwide.
What better way to enjoy your life while your investment earns big profits!
Cyrille Hareux - Managing Director
