Koh Samui Island character Investment
Koh Samui, Thailand’s number one tropical Island destination with its own international airport creates an ideal platform for any would be character investor. Recognized for being an internationally known World class holiday destination not only brings an abundance of nationalities but also opportunities for lucrative character investment.
While the majority of interest has traditionally been from European countries such as the UK, Germany, Russia, the Netherlands, France and Scandinavian countries, a new market of investors is emerging from Asia and Middle Eastern countries including Singapore, Vietnam, Korea, China and the UAE. The recent surge of interest from Asian investors is due to an increase in the levels of disposable income, recent deregulation of foreign investment laws (Korea) in addition as new direct air links to/from Koh Samui. Discounted flights within the vicinity also offer tremendous value to tourists wishing to holiday on Koh Samui and its surrounding Islands.
Koh Samui’s real estate profile includes many large branded hotels and exclusive luxury villa developments.
The market here is firmly based due to the fact that nearly all purchases of character are made without finance. Local mortgages are indeed not freely obtainable, making character prices much more resilient to the World financial meltdown. What had been seen over recent months are certain similarities being discounted, where the owner has a need to sell quickly due to financial losses consistent in other places in the World. This has produced several buying opportunities, although these are generally quickly moved on to investors with cash.
So recent activity in the character market in Koh Samui has mainly been pushed by cash investors, looking to move funds into character where good discounts have been offered. There is activity both on resale similarities with price reductions of 10% to 30% to move character quickly to release cash and also certain developers looking to manage their working capital and clear character stock. Developer’s in the early part of 2009 have been finishing off part complete similarities, and selling them at a discount to realize cash. At this time there are nevertheless several opportunities to gain and buy luxury character, before the local market shows complete signs of rebound and starting its expected growth path.
After understanding these current local climate conditions, the Koh Samui market has experienced a change of emphasis with the arrival of a new copy of creative developers aware of the great possible from planned increases in numbers of luxury travelers and investors looking for Lifestyle investments.
Focusing on two inventive developers both anticipating this need for Lifestyle investment similarities, both focusing on the area surrounding Plai Laem and Cheong Mon. They reason that with the areas fantastic beaches, closeness to the airport and no signs of overcrowding this makes it an ideal location for a lifestyle investment. Indeed the area nevertheless displays a traditional Thai feel with small beach resorts combined with more luxurious similarities, 5 star spa resorts and hotels.
Both have strong ideas about how to create lifestyle character, which act as both an exciting investment and life style means for those seeking to experience Koh Samui tropical Island life in luxury packages.
The Mandalay Gardens apartment project is set not far from Cheong Mon on the hillside. It is only 800 metres from the beach, with many of the apartments having spectacular sea views. It is indeed a fully flexible means and as a lifestyle investment gives its owners the best possible advantages, having the special characterize of a branded hotel management by Astudo. The project was soft launched in May this year, with a show unit being ready for active investors already in place at the hillside site. There are 9 different types of 1 bedroom units ranging from 50 Sqm to 90 Sqm. Prices start from 3.49m Thai Baht. Investment returns are not guaranteed, but with a 35% occupancy level are expected to reach 6 to 8 % at a 3,600 Baht a night average rate. Most owners are expected to participate in the rental program, and by doing so are granted up to 60 days per year free use. There is the possibility before construction commences of combining 2 or more units to create 2 or 3 bedroom apartments. Following on from its successful first project, Mandalay Villas, Tibor Szedlak CEO of Mandalay Samui Developments stated that the company has been established on private financing, with no loans or other noticeable commitments. The legal position of this current project gives its owners a leasehold ownership of 30 + 30 + 30 years. Land ownership is secured by the fact that each unit owner equal shareholder in the land owning company. Payment’s after the initial 35% place are based on monthly installments becoming due as work is completed. Sterling has been appointed as Project Managers with DFDL Crawshaws acting are legal advisors. The whole project is set on 5,600 Sqm of land and with construction commencing in September 2009 and completion of Phase 1 by the third quarter of 2010.
The Samui Emerald Condominium represents another attractive option as a lifestyle investment, with the construction already underway, now is the time to take advantage of the remaining units on offer. Completion of the whole facility is contractually scheduled for no later than December 2010. located along side Plai Laem beach it gives easy access to Cheong Mon and back along the coastline to the chic boutique resort, Fisherman’s village. This area is home to the high end resort, Six Senses-Hideaway and Giorgio Armani’s branded villa development is also close by. Among the other close by attractions are Big Buddha, Turtle Island and Koh Som. The Samui Emerald units give their owners access to classy facilities including a large swimming pool, restaurant, fitness suite and multi lingual reception. Units range from 1 to 3 bedrooms, including 4 Penthouse apartments with standard units from 44sqm to 109Sqm with prices starting from 3.05m Baht. Units come fully furnished with modern designs including all loose furniture and electrical items. Again, there is no guarantee on investment returns 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 be run like 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 welcome basket and shower amenities waiting.
Owners who go into the rental scheme can assistance from up to 167 days per year free usage, whilst obtaining income for the rest of the year. Given its legal position as a Condominium, also gives foreign investors the opportunity to acquire foreign title.