Investment Summary
Although Thailand has been affected by the world's economic troubles, it has taken a very conservative approach since the financial crisis. Banks have cleaned up their balance sheets and are now careful lenders, which means no sub-prime exposure. Resort property transactions are also principally a cash purchase with little mortgage or debt in place. This means that there is less risk to asset values falling, other than due to supply and market demand. In fact, prices have held stable here while other parts of the world continue to experience steep price declines.
Koh Phangan was traditionally seen as Koh Samui's younger sister in terms of investment, despite visitors to Koh Phangan increasing by 10% each year. Although development and investment in Samui has shown steady growth, it has taken much longer for people to see the potential of Phangan. A beautiful island, just half an hour from an international airport and home now to a collection of 5* resorts, Koh Phangan is catching up fast and is an opportunity not to be missed
Sitara represents a solid proven investment that has strong growth potential. Investing in Sitara now will give you a discount of up to 40% on similar Samui developments. Prices are predicted to rise sharply in Koh Phangan over the next few years as Samui's land becomes scarcer and prime development reaches its peak.
Capital growth is estimated at 15% per annum on a property purchased within Sitara Village. Rental yields are also expected to be excellent on this project - based on a 2-bedroom villa we estimate a 6% net return with only 50% occupancy over the 10 month rental season. Purchasing a Sitara villa not only gives you a beautiful island getaway, but a secure investment for the future.




