In Koh Samui, net returns in excess of 8% are achievable from renting property. There are of course many factors contributing to these high returns such as the rise in affluent tourism as Koh Samui has become an internationally renowned luxury island destination, see: https://www.real-samui-properties.com/koh-samui-real-estate-guide . Another key factor aiding the Koh Samui rental market is the prevalence of affordable online rental booking websites such as Airbnb and Booking.com. These websites allow high occupancy rates to be achieved for very reasonable advertising costs. However, to maximise your rental returns you need to carefully choose your property. As when choosing property for investment anywhere in the world, location must be one of your key considerations.
Firstly, let’s consider the type of location. In island destinations where tourists come to enjoy the beaches, not surprisingly, beachfront properties are the most sought after by holiday makers and command the highest rental rates. Some luxury rental management companies have portfolios made entirely of beachfront property. There are of course different segments within beachfront rental markets, sunset-facing soft sandy beaches commanding the premium rates.
Beachfront land tends to be extremely expensive and for most people owning beachfront real estate is likely to be beyond their reach. Properties within a short walk of the beach, sea view properties and waterfront properties can all be considered within a second-tier market segment. These will also have great appeal for holiday makers and command good rental rates. However, comparing like-for-like properties, the rental rates in this market segment will of course be considerably lower than for absolute beachfront.
You also need to consider the proximity of the location to restaurants, nightlife, the airport, shopping and the islands amenities. In Koh Samui, most of the above are found within the north-east of the island. Renting in the north-east is therefore considered a plus point by most holiday makers. Here is an example of a garden view pool villa located in the north-east of the island at Bo Phut achieving an exceptional rental return of 10%: https://www.real-samui-properties.com/property-for-sale-2-bed-balinese-style-garden-villa-bo-phut-100062 . An exception where not being in the most popular region north-east could be an advantage would be for very high-end exclusive properties where more seclusion is required. An example in Koh Samui is Lipa Noi Beach. This is a 3 kilometre stretch of soft golden sand with no rocks, amazing sunsets and year-round swimming. The neighbourhood is characterised by high-end beach villas. This beach land listing https://www.real-samui-properties.com/land-for-sale-2983-sqm-of-beach-land-lipa-noi-west-coast-100066 is a rare example of pure soft sandy beachfront real estate still available for sale on Koh Samui.
In summary, as with anywhere else, choosing your location carefully is critical when buying a rental property in Koh Samui. Consider the type of location (beachfront, sea view, distance from the beach etc.) along with the region within Koh Samui; the north-east being the most desirable for the average holiday maker.
Firstly, let’s consider the type of location. In island destinations where tourists come to enjoy the beaches, not surprisingly, beachfront properties are the most sought after by holiday makers and command the highest rental rates. Some luxury rental management companies have portfolios made entirely of beachfront property. There are of course different segments within beachfront rental markets, sunset-facing soft sandy beaches commanding the premium rates.
Beachfront land tends to be extremely expensive and for most people owning beachfront real estate is likely to be beyond their reach. Properties within a short walk of the beach, sea view properties and waterfront properties can all be considered within a second-tier market segment. These will also have great appeal for holiday makers and command good rental rates. However, comparing like-for-like properties, the rental rates in this market segment will of course be considerably lower than for absolute beachfront.
You also need to consider the proximity of the location to restaurants, nightlife, the airport, shopping and the islands amenities. In Koh Samui, most of the above are found within the north-east of the island. Renting in the north-east is therefore considered a plus point by most holiday makers. Here is an example of a garden view pool villa located in the north-east of the island at Bo Phut achieving an exceptional rental return of 10%: https://www.real-samui-properties.com/property-for-sale-2-bed-balinese-style-garden-villa-bo-phut-100062 . An exception where not being in the most popular region north-east could be an advantage would be for very high-end exclusive properties where more seclusion is required. An example in Koh Samui is Lipa Noi Beach. This is a 3 kilometre stretch of soft golden sand with no rocks, amazing sunsets and year-round swimming. The neighbourhood is characterised by high-end beach villas. This beach land listing https://www.real-samui-properties.com/land-for-sale-2983-sqm-of-beach-land-lipa-noi-west-coast-100066 is a rare example of pure soft sandy beachfront real estate still available for sale on Koh Samui.
In summary, as with anywhere else, choosing your location carefully is critical when buying a rental property in Koh Samui. Consider the type of location (beachfront, sea view, distance from the beach etc.) along with the region within Koh Samui; the north-east being the most desirable for the average holiday maker.
