Top Mistakes Investors Make in Phuket Property (and How to Avoid Them)

The Highlights

• Confirm the condo foreign quota, 49 percent, before you pay.

• Model rental income conservatively and plan for off-season vacancy.

• Verify titles, costs, and live listings, and use verified matches to avoid wasted time.

1. Overlooking the 49 percent foreign ownership quota

• Why it matters: leasehold terms limit control, complicate resale, and can lower long-term value.

• What data says: the Real Estate Information Center (REIC), reports that foreign quota limits have been reached in several resort destinations, including parts of Phuket.

• How to avoid it: before you reserve a unit, ask the developer for written confirmation of the freehold quota and check the project’s juristic person documents.

2. Assuming rental demand is steady year-round

• The problem: if you base cash flow on peak-season rates only, you may face long empty periods and negative returns.

• Best practice: model income using conservative occupancy assumptions, for example, 50 to 60 percent across the year, and build in management and vacancy costs.

• Practical step: secure a reputable property manager and consider mixing short-term bookings with monthly or longer leases to smooth revenue.

3. Ignoring legal and contractual details

• Common traps: off-plan projects that run late or do not finish, unclear defect liability, and missing registration of foreign ownership or leases.

• How to avoid: hire a Phuket-experienced lawyer, visit construction sites, and require written guarantees and clear refund terms for off-plan purchases.

4. Underestimating ongoing costs

• Typical extras: sinking fund and monthly common area fees for condos, pool and garden upkeep for villas, insurance, and occasional major repairs. Common fees often sit in the THB 30 to 80 per SQM range, monthly, depending on the project.

• Pro tip: ask the developer or seller for a detailed annual expense breakdown and add a 20 to 30 percent buffer to your rental income assumptions.

5. Paying for location promises that do not deliver

• Risk examples: hillside villas with poor road access, properties far from amenities, or pockets with seasonal access problems.

• How to avoid: visit the property in both high and low season, check local infrastructure such as roads and utilities, and talk to neighbours or current tenants about real-life issues.

6. Relying on non-verified or stale listings

• Why it harms you: wasted time, missed opportunities, and potential scams.

• What to do: insist on live photos or video walkthroughs, verify title documents before depositing funds, and use verified listing services. For short-term rental data and market activity in Phuket, platforms such as Airbtics offer useful visibility.

• Superagent tip: Annie filters duplicates and flags verified matches so you can focus on genuine options.

The takeaway