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Capital Growth It is becoming clear to investors, that property investment in Thailand represents excellent value for money, when one considers the price of property globally in comparison. The prices in Thailand will inevitably increase in line with global prices, providing investors with excellent prospects for capital growth. This capital growth will be most evident in the tourist destinations of Phuket, Pattaya and Koh Samui – places where foreign tourism is on the increase, leading to a boom in development. Already in Phuket and Pattaya, prices for quality property are already well in excess of 100,000 THB per square meter and Koh Samui is starting to follow this trend. One of the leading property experts on Koh Samui predicts prices could double over the next 3- 5 years, with capital growth per annum in double digits. While capital growth can never be guaranteed, all the indicators are pointing to strong capital growth 1. Increasing tourist numbers; 2. Increasing high-end hotel projects; 3. An excellent airport facility, welcoming flights from Hong Kong, Singapore, Kuala Lumpur and soon Dubai, Japan and Australia; 4. Increased expenditure on improving the island infrastructure; and 5. Thailand’s commitment to making Koh Samui a high-end international tourist destination. ECO Developments Siam believe it is likely that prices in Koh Samui will continue to grow strongly and will likely double over the next 5 – 7 years. This represents a potential capital growth return of approximately 15 – 20% per annum. Income Potential Due to the growing tourist sector in Koh Samui, we are most confident that income generated from quality investment properties will also grow. The island has strict regulations to protect its natural beauty and this will limit the amount of development. With a portfolio of quality properties, well marketed, managed and maintained; the income generated annually will be excellent and very secure. ECO Developments Siam is developing 46 quality Town Houses and Pool Villas, aiming at the “villa rental” market in Koh Samui. This market is in the early stages of development and promises excellent growth potential. This market appeals to families, friends and corporate clients, providing a resort style setting with a “home away from home” feel. To provide a conservative example of the income achievable, the following income exercise is provided, using a Pool Villa on ECO Trees Project: Income Example A conservative daily rental for a 3 or 4 bedroom, serviced property in Koh Samui is 350 USD - as advised by our management team. Assuming the following conservative factors: Your 3 Bedroom Pool Villa property is valued at 14,750,000 – 14,950 THB; and: 1. Property is rented for 200 days per annum – approximately 50% occupancy (Hotel room occupancy rates average 72% per annum on Koh Samui at present); and 2. 40% of gross rental is deducted for total management expenses, returning 60% to the owner. The % income return on a quality, well-marketed, well-managed property or property portfolio could reasonably achieve almost 10% per annum. Please Note: Being even more conservative, with a 250 USD rental per day the % return achieved is 7%. This represents an excellent income return. Summary When an investor combines the potential capital growth and income, the investment in a property or property portfolio in Koh Samui, with a 5 years investment outlook is a sound, secure strategy. We sincerely hope that you choose to join our family and friends in Koh Samui. It is our intention to provide you with a property that we are proud of and that you and your family enjoy for many years; not only as a home in Koh Samui, but as a sound investment decision. |