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Welcome to www.samuipropertyonline.com,
the online version of Samui Property, an independent monthly property &
real estate newspaper published by Siam Map Co. Ltd., Koh Samui,
Thailand.
Samui Property offers impartial, objective
news articles, stories, legal advice & information, zone maps, photos,
classified adverts and features about real estate, property, villas,
developments, homes, house and land for sale and other real estate
related items on Koh Samui.
Please come back every month for fresh
news and information on the Koh Samui Property & Real Estate Market.
What’s The Alternative?
Samui now competes with top-end luxury destinations around the world. Where are they and how do they compare as a place to invest in property?
Having a high, or even biased, opinion about the place you live is not a negative thing. In fact, it’s often inspiring to listen to people who are proud and passionate about where they choose to live. And choose is the important word because most of the foreign people that live, or invest, on Samui do so because they choose to. That’s also true for the many Thais here; they have chosen to live and work here because there are good job opportunities on the island, and their lifestyle is often better than the available alternatives. Maybe that choice is something that helps create the legendary Samui atmosphere.
Even if you doubt the integrity of someone writing in promotional publications aimed at tourists (or potential investors), you should consider their motives. If someone writes positive things about a location because their job demands it, then indirectly they’re doing so because that job allows them to continue living there. If they didn’t enjoy living there why would they continue? That fact in itself is a fantastic advertisement for life on Samui.
Not everyone you speak to shares that passion for the island. Some will complain about many things, such as: damaged roads; the lack of water; and the electricity supply. And yet they stay here because, in reality, these problems and issues are nothing compared to the alternative of living elsewhere; they choose to stay despite their moans and groans and all of these issues are steadily improving.
Samui is now an established high-end holiday destination and, as such, it should only be compared with other similar destinations around the world. What are the alternatives? And what do they offer?
Well, there are numerous tropical destinations around the world and each has its own atmosphere, outstanding natural beauty, rich culture and history, and the style and standard expected of a world-class resort destination. But each location also possesses negative aspects that can be the deciding factor when investing in foreign property, as opposed to just visiting as a tourist.
Destinations such as the Caribbean, Florida, South America, the Maldives, Mauritius, Sri Lanka, the Seychelles and Bali, as well as Africa and of course the hotspots of Europe all provide exceptional high-end competition for Samui.
The main tropical holiday alternative would usually be the Caribbean which offers a large number of islands each with its own beauty, beaches and great weather; if you go to the right places, at the right time of year. However, it’s unfortunate, but undeniable, that the levels of crime are far higher in some of the more popular destinations than they are here on Samui. To buy a home in a safe, peaceful and desirable location the property prices can be extreme. And, in addition to this, if you require a year-round escape, or rental return, then the hurricane season is a factor that cannot be ignored.
This actually sets a pattern for other destinations around the world, too. It can be taken for granted that all of the locations mentioned share certain qualities. There’s absolutely no question that all of these places have the ingredients for a fantastic holiday experience. But, when it comes to living, owning a holiday home or having a rental investment, there are other considerations.
A specific destination may have everything you desire for a tropical home but the perceived threat or fear of crime could put you off buying, especially if the house is to be empty for periods of the year.
Regular monsoons, typhoons and hurricanes can all have an impact on the availability for your own holidays, and also on the yearly rental returns. Not to mention the additional risks of other natural disasters, such as earthquakes, tsunamis, and volcanic eruptions that can affect many of the world’s finest locations. Political situations and the threat of terrorism could also be an issue you consider.
Another possible issue is that in the majority of worldwide destinations there are noticeable areas of affluence and desirability, with prices that make them unattainable to many investors. And the cost of living for retirees and residents can be very high in popular locations.
Nowhere is completely free of risks and this is not an article designed specifically to criticise other places and use their problems to promote Samui. But this is a property newspaper focussing on real-estate, and all of these factors need to be considered when buying or investing in property; wherever you choose to go.
Samui is not without its own issues and problems. Some have been very well documented over the last 12 months or so. But, when compared with many other places, these risks may seem more trivial and less of a concern; that will depend on your own individual perceptions.
Aside from infrastructure issues, Samui has had alleged land scams; Thailand has experienced a military coup; foreign immigration laws have been tightened; and the intricacies of foreign land ownership are widely discussed. But, when you look closely at these things they’re not as bad as they may appear. The alleged land scams were identified and are being investigated; the military coup was conducted quickly and non-violently with absolutely no bloodshed. The reasons behind the coup were announced as being for the good of the country and the Kingdom is due to return to a democracy following a public referendum approving a new constitution; immigration laws were introduced in an attempt to reduce illegal workers and tax evasion; and, finally, despite some alarming proposals regarding changes to the Foreign Business Act, the decision was made to defer all changes until an elected government can assess the situation.
As a place to live, or invest in, Samui’s size and development style make it a unique destination as there are no recognisable good or bad areas. Every part of Samui has a mix of exclusive luxury properties and more affordable homes all sharing the beaches and the views available. Where else in the world could you buy a three-bedroom luxury pool villa priced around $300,000 (Bt10 mil) that shares a road and a view with a home costing $2 million (Bt60 mil). Add that fact to the very low crime rates; genuinely friendly people; pleasant year-round climate; low cost of living and excellent rental returns, and it’s hard to imagine a better value-for-money investment anywhere else in the world.
Property prices have risen here and it may now be possible to find properties of comparable prices in many of the aforementioned locations. But you still tend to get more property for your money here and, taken as a whole package, Samui arguably provides the opportunity to get a bigger house, a better location, and a higher return on your investment than any of its competitors. So, there are many alternative holiday destinations but, as a place to own property, Samui appears to have few real competitors.
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