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Investment · 9 min read

How to calculate a villa’s net yield: the full math on an $860,000 example

Gross yield and the money that reaches the owner are two different numbers. We show the full math on the example of an $860,000 villa.

How to calculate a villa’s net yield: the full math on an $860,000 example
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 — a gross 8.5%. The figure is correct, but it is the property’s revenue, not the owner’s income.

Now subtract the owner’s expenses: 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 yield for a villa in Phuket. It is not a universal figure though: there are properties where the net comes out markedly higher — a lower entry price, higher occupancy, self-management instead of a management company. That only shows up in a calculation run on the specific property.

Check our math — we insist on it.

A separate topic is the “guaranteed 7–10% return” in developer offers. More often than not it is a hidden discount rather than a yield: part of an inflated price is paid back to you as the “guarantee” for the first 2–3 years. What to check is not the figure itself but what happens to the property once the programme ends, and how that plays out 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.

Anton Kozlov
Anton Kozlov
Co-founder, Phuket Prestige
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