Investment option for a single villa

Excellent investment option for a single villa

Location: Chaweng Noi is located on a mountain elevation with a picturesque view of the sea, sandy beach and the Chaweng region of Thailand. Distance to the sea: 2 km by transport. Luxury class area with a luxurious view of the sea. All the necessary facilities and the beach are 5-15 minutes away by transport. Investments: USD 294,120 — Land area 980 sq.m. Advance payment 100%. (Ownership type — Chanote). USD 525,000–the cost of a 4-bedroom villa with a total area of 500 sq.m. Term 6-8 months. With a down payment of 30%, then payment according to the payment schedule. USD 819,120 – only for the construction of a turnkey villa. USD 88,880 – approximate cost of furniture and interior details for 2 villas. USD 908,000 – total investment amount. Return on investment: Low season (half a year). The rental price of the villa per night is 900 USD 19,215 USD — the amount of rent per month with 70% occupancy 7,686 USD — total costs per month 11,529 USD — revenue from rent per month. High season (half a year). The rental price of the villas per night is 1,050 USD 22,418 USD — the amount of rent per month with 70% occupancy 8,967 USD — total costs per month 13,451 USD — revenue per month from renting 2 villas. Total: 149,880 USD net profit for the year from renting the villa. 6.06 years — ROI* and 16.51% per annum — return on investment. Income from selling the villa is around 100% *ROI is formed only on the profit from rent. These calculations took into account that the occupancy of the villas is 70% per year. However, in reality, it is possible to rent out villas with an occupancy rate of up to 90% per year. In this case, the final figures will be different. Let's consider the option with the average possible value – occupancy rate of 80%. The annual income will be 170,352 USD. ROI* – 5.33 years and 18.76% per year – return on invested funds. This is under equal conditions.