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.

Buying in Phuket is tempting — sun, beaches, and strong tourist demand. But paradise can hide pitfalls. If you know what to check, you avoid the most common mistakes that trip up investors.

Quick note from Superagent: buyers who check quota, fees, and title early sleep better.

1. Overlooking the 49 percent foreign ownership quota

Many Phuket condo projects have already used their freehold foreign quota, 49 percent, meaning new foreign buyers may only be offered leasehold options.

• 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

Phuket shines in high season, but occupancy drops outside peak months.

• 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

Title types, lease terms, developer warranties, and nominee risks are real issues in Phuket.

• 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

Purchase price is only the start. Maintenance and fees eat into returns.

• 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

Not every view or beach proximity equals good returns.

• 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

High demand breeds stale or duplicated listings and misleading photos.

• 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

Phuket can be a rewarding place to invest, but to do it well, you must verify quota status, model seasonal income, confirm legal and title details, budget for ongoing costs, and use verified listings. Doing the homework turns surprises into manageable line items.

Friendly reminder

This guide offers general insights to help you understand Phuket market risks. It is not legal, financial, or tax advice. Rules and outcomes vary by case, so consult licensed professionals such as lawyers, tax advisers, or visa agents before making final decisions.