Phuket Post :: Article :: Buying residential resort property

The allure of a hassle free beach house, a bottle of champagne at the touch of a button, babysitters, boats and massages while receiving solid capital gains and a solid yield in excess of 7% may sound like the mystical Shangri La but, as a few investors are learning, a property purchase at a small resort is indeed a sleep-easy vacation home and investment.

In Thailand, this type of property is actually well established. The Amanpuri, launched in the late 1980s with a movie star location and some of the world�s most sought after villas, was later followed by Laguna Phuket�s successful managed villas and apartments at the Banyan Tree, The Sheraton Villas, The Allamanda Vacation Club and the newly launched Dusit Villas.

We are starting to see similar properties now in Vietnam and � as evidenced by explosive growth in the Caribbean � this resort villa trend will continue in Phuket.

Over the past twelve months there have been eight new releases in Phuket, all with very strong management, existing sister hotels with sophisticated reservation and marketing networks � and all with the buyer�s interests in mind.

They offer attractive returns to owners of generally around 50-60% of revenues, flexible usage programs that allow up to 60 days per year usage at any time with no black out dates and full resort facilities, including 24 hour concierge services. Full-time owner occupancy is also generally allowed.

Boutique hotels in this modern vacation world attract high-end travellers, higher rack rates, a more tailored vacation, small teams that are highly personal and efficient and resident international managers, often trained in large 5-star resorts.

An emphasis on design and build quality feature in the signature restaurants, while discreet luxurious spas, gyms and pool areas are necessities. When considering a managed villa, ensure that solid operators are backed by experienced hoteliers, and take a good look at the location.

The boutique operators cherry pick triple A grade locations atop hills or on prime stretches of white sands � the old adage �location, location, location� remains paramount.

As an investment expect quarterly dividends and in some cases � such as the Mangosteen and Phuket Pavilions � guaranteed yields of 5% with annual returns as much as 10+%. These figures are based on owners receiving 60% of the gross revenues, creating solid cash flow.

Experience shows that private villa management offers substantially lower yields, as well as ownership and management hassles. The residential components are designed by internationally renowned architects and include quality kitchens, owners� storage areas and lap pools to ensure a comfortable vacation.

On the re-sale side, luxury hotels attract a wide range of well-heeled travellers giving your property international exposure that can often start a bidding war if the property is resold.

Lastly, ensure flexibility in usage plans, so that Christmas holidays, if you�re willing to forgo those juicy high season rates, will become a truly memorable, hassle-free family villa vacation�

Nick Anthony
Indigo Real Estate
www.indigoRE.com