Let it Be
Villa owners can survive and even prosper during the credit crunch.
Wednesday, July 1, 2009
Regardless of the financial crisis throughout the world, people still want a holiday. They just have less money to spend on travelling, accommodation and on their living costs when they’re here. Therefore, it could be argued that this is a great time to buy a villa as a holiday let or to maximise the rental of your existing villa.
On Samui, there are villas available to buy and rent in all budgets and in all areas, in the same way as there are hotels here to suit all budgets in all areas. So what is it that makes a villa property so much more appealing at the moment?
Well, firstly, this is not meant to criticise or attack the hotels on the island that are also currently making a concerted effort to attract tourists. There will be many people who only associate holidays with hotels and who would not like the idea of renting a house or villa in any circumstance. However, there is a growing number of people who recognise that in their situation a villa offers many potential benefits.
For instance, more and more tourists tend to travel in groups, whether with friends, couples or as families. People like to share holidays, meaning that the average size of travelling parties seems to be increasing. Fewer couples tend to travel alone, even honeymooners. In fact, so many couples are getting married abroad that they actually bring their friends and family with them to enjoy both the wedding and the honeymoon.
If you’re travelling in a group then a villa may offer very practical accommodation. In addition to just having bedrooms, as they would in a typical hotel, most villas also provide private communal areas, such as lounges, kitchens, dining areas, pools and gardens where the whole group can mix and spend time together without intrusion from outsiders.
This extra space is something which can become increasingly important if children are part of the group, especially in terms of the garden and pool. The kitchen too can be ideal if you have children as you have the space and facilities to buy favourite food items and store them for when they’re required.
Nowadays, many villas are managed in such a way that they’re run like mini-resorts with staff, services and facilities to match a hotel complex. And if being on the beachfront is an essential part of your holiday then one of the numerous beach villas available would be ideal. Some even provide extras like chauffer-driven cars, in-villa dining and butler service.
All of these benefits exist at all times but they become more attractive in these current cash-stretched times when you consider the costs involved.
For example, the group may consist of three couples, and for them to rent a villa of a comparable standard to the hotel of their choice it would usually work out noticeably cheaper to rent a villa. This means that you can either save money, or you could stay in a more luxurious villa for the same price.
So when you consider that, together with the benefits of the space and privacy, you can understand why this would be such an attractive opportunity for many travellers during the credit crunch. In fact, by having a fully operational kitchen, the financial benefits are increased as you at least have the option of cooking and staying within the villa. A garden or terrace also allows for private parties or barbecues.
Of course, so far the rental villas described conjure up images of the many exceptional, luxury high-end properties which exist on Samui. These properties are likely to have higher occupancy now for all of the above reasons. But the theory also works for those villas, houses and apartments which are lower down the ladder in relation to luxury and location.
A two or three bedroom house, with or without a pool, should also benefit from those looking to minimalise their expenditure. Groups with smaller budgets can still split the costs of the villa between them and make significant savings on hotel prices. This increases even more if they are flexible about the size, facilities and location, etc.
Visitors who’re prepared to hire a car have a much wider choice of properties available. And those who have been to Samui before will know how small the island is and how convenient each area is for their needs. These people may consider a hillside or garden villa at a cheaper price knowing full well that the nearest beach is only a five-minute drive away.
It doesn’t matter what size or location your property is, the reality is that it will meet the requirements and the budgets of some of the tourists arriving on the island. People will definitely be looking for bargains and wanting to save money and they will be divided between the options of reduced hotel rooms or private villas. It would make sense that families and groups will definitely see some advantages of staying in a villa than in a hotel, and that’s why during the credit crunch it’s a great time to really promote your property and market it accordingly.
Finding the right accommodation at the right price will be of paramount importance for most tourists for the foreseeable future. The practicality, space, privacy and shared costs of a villa will make it much more attractive during times of financial difficulty and could be the answer for those people who desperately want a holiday but either wrongly assume they can’t afford it or are deterred by high room rates.
Using your property now as an income generator could be important to your own financial situation and, if you’re an investor, buying a completed property now which is ready to let could see you start achieving a return immediately. Add to that the fact that property prices have fallen, or are at the very least frozen, means that there are several bargains and deals out there which could see you happily enjoying the benefits of owning and letting your very own Samui home right away.
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