Take a real example from our collection: an $860,000 villa in Bang Tao.
Take a real example from our collection: an $860,000 villa in Bang Tao. Gross income at 68% occupancy is $73,100 a year. Sounds like 8.5% per annum? That is exactly the figure the advertising will show you.
Now subtract what the advertising stays silent about: rental management at 25% ($18,275), utilities and pool maintenance ($9,400), furniture depreciation and a repair reserve ($5,900). That leaves $39,525 — a net 4.6%.
A net 4.6% is a good, honest yield for a villa in Phuket. The problem is not the number — it is that the market has trained buyers to expect twice as much, and keeps selling them that expectation.
Check our math — we insist on it.
The “guaranteed 7–10% return” in developer offers is not a yield but a hidden discount: you pay an inflated price, out of which your own “guarantee” is paid back to you for the first 2–3 years. Once the programme ends, the property settles at the market's 4–5% — but without that discount at resale.
That is why every Phuket Prestige listing carries a full published calculation: gross income, all expenses and net yield under three occupancy scenarios. Check our math — we insist on it.
