How much can you earn from profitable real estate

To calculate expenses and income, we took an average example – an apartment in Phuket with an area of 38 square meters. m for 4 million baht ($115 thousand)

• Registration fee – 22 thousand baht ($630)
• Agent services – free and -100 thousand baht ($2.9 thousand) discount from our agency
• Collecting sinking found – 16 thousand baht ($460)
• Maintenance (common area) – 28 thousand baht per year ($800)
• Water and electricity meters – 10 thousand baht ($280)

You can also order a contract review from a lawyer. Then to this amount you will need to add another 30 thousand baht ($860)

Total acquisition costs – 3,976,000 baht ($113.6 thousand)

How much will the investor receive over five years of guaranteed income

For the calculation, we take the same apartment with an area of 38 square meters. m for 4 million baht ($115 thousand)

• Guaranteed income 7% (five-year contract) – 280 thousand baht ($8 thousand)
• Income tax (3%) – 8.4 thousand baht ($240) *
• Annual maintenance (common area) – 28 thousand baht ($800)
• Net income – 243.6 thousand baht (6.1%) ($6.96 thousand)

The owner’s income for five years is 1,218,000 baht ($34,800) or 30% of the cost of the apartment.

*Please note that the standard tax rate for non-residents is 15% tax. But some developers reduce the tax burden for clients and themselves, of course. Not everyone does this, so make no mistake and check with the developer what tax you will need to pay.

What is the profitability with Rental рool (after five years of guaranteed income)

• The average daily rental price is 2.5 thousand baht (for calculation we take the average cost for the area)
• The minimum occupancy rate for the year is 60% (220 days). This is the minimum that lies within the responsibility of the hotel operator.
• Gross income – 550 thousand baht ($15.7 thousand)
• Operator’s share – 220 thousand baht ($6.3 thousand)
• Owner’s share – 330 thousand baht ($9.4 thousand)
• Income tax – 9.9 thousand baht ($280)
• Annual maintenance (common area) – 28 thousand baht ($800)

Net actual income (Rental pool) – 292.1 thousand baht ($8.35 thousand) or 7.35% of the cost of the apartment.

Income for five years – 1,460,500 baht ($41.7 thousand) or 37% of the cost of the apartment.

Rental income for ten years under the “guaranteed income and Rental pool” scheme will be 2,678,500 baht ($76.5 thousand).

Capitalization during the construction phase will be 30% over 2 years of construction and 40% over 10 years (average increase in real estate prices 4% per year). Total total capitalization of the apartment is 70%.

The total income after 12 years will be 2,678,500 baht + 2,783,200 baht = 5,461,700 baht ($156 thousand).