House Hunter: 'I just love Thailand's gorgeous beaches'

THE PROBLEM

THE PROBLEM

Roger Freeman writes: "Like many other people lately, I've been worrying about grown-up things like a pension, and have decided to buy a small property abroad as a nest egg.

"Naturally I want a property that will continue to grow in value but I also like the idea of using it myself for holidays and saving myself money that I would have spent on hotels. I also like the idea of renting it out when I'm not using it. One of my favourite places in the world for a holiday is Thailand and, as I've started to hear rumblings about British buyers investing there, I'm wondering if this may be the place for my property buy. I love the country's atmosphere, the food and the people. The beaches are gorgeous and a big draw for me and others - and not just because of Leonardo DiCaprio!

"I've been to Thailand many times - to Koh Samui, Phuket and to Bangkok and Chang Mai in the north - but I would like to know where most British buyers are investing. I assume that most investors are buying new build, so would like to know what the standards are like. A friend told me that there are restrictions on non-Thai nationals buying certain properties and that anyone wanting to buy has to form a company with a Thai national first. I'd like to get some professional advice on this and also be put in touch with agents dealing in Thailand as I don't really know where to start or what I could expect to pay. I've also heard that the market so far is unregulated so I'm a bit worried about becoming involved with unscrupulous sellers, which obviously is something I'd want to avoid."

THE ADVICE

"We are always on the lookout for emerging markets and Thailand - a 12-hour flight from Britain - fits the bill. It's very close to Hong Kong and Singapore, where many of our investor clients are based, and the infrastructure definitely meets certain international standards.

"We've chosen to base ourselves on the island of Phuket, where there are good international schools and an international airport. You only have to look at hotel groups such as Marriott, which have interests on the island, to gauge its popularity. Phuket has stunning beaches and now also some great golf courses - the Chinese, who are not too far away, love golf, so this is important for anyone who wants a good rental return on their investment.

"Koh Samui doesn't have an international airport, although there are plans to build one. Chang Mai is in the north, so has no beaches. If you want a good rental return you need to think about all these factors.

"I've now been out there several times and am very impressed. The quality of the building is very good, certainly on a par with Spain, and the value is phenomenal. For £75,000 you can get a two-bedroom, two-bathroom apartment overlooking the 18th hole of a golf course, within a five-minute stroll to the sea. Buyers can expect a reasonable rental return for around 10 months of the year starting from October.

"This is an exciting time to invest there as the market is so new, and if Roger doesn't need to start holidaying there immediately I'd suggest he buys off-plan to maximise his investment potential. Build time is between 12 and 18 months, and payment is in stages. I'd also advise to buy on a development where there is a community, so that maintenance worries can be handled properly while you are away.

"Potential investors must ensure that they deal with a reputable company with a strong track record. Personally I don't believe that investing in Thailand is high risk but Roger is right in saying there are very complex laws that apply to foreigners. Non-Thais currently cannot own land there outright, but there are legal ways around this within the Thai company structure, and as a company we do have information on this and offer inspection visits. Potential buyers must seek the advice of an English-speaking lawyer and there are some excellent lawyers based on Phuket."

Paul Blagden is the corporate director of Ocean Estates International (0800 328 0444, www.oceanestates.com)

THE SOLUTION

Property one: Golf Lersuang, near Kung Bay, Phuket.

Price: From 5.7m Thai Baht (£76,000).

Agent's details: A development of 22 two- and three-bedroom apartments with views of the "pay and play", Jack Nicklaus-designed golf course and mountains on the east coast. The development has communal gardens and pool, underground parking and is 10 minutes from Phuket's international airport.

Property two: The Residence, Bang Tao Beach, Phuket.

Price: From 12.3m Baht (£165,000).

Agent's details: This resort is 21 luxury villas set in lush tropical gardens in a gated community just 20 minutes from the international airport and 10 minutes from Laguna Resort and golf course. These two-, three- and four-bedroom villas have private saltwater pools, rooftop barbecue areas and are furnished in contemporary style. The development has an on-site restaurant, spa and full concierge and security service.

Property three: Club Lersuang, near Surin, Phuket.

Price: From 10.5m Baht (£140,000).

Agent's details: This townhouse development has an idyllic setting on the north of the island, five minutes from the beach. Set in landscaped gardens, all properties have the option of private pool at extra cost. Resort facilities include large communal pool, gym, fitness centre, 24-hour reception, restaurant, sauna and internet café.

THE VERDICT

"This gives me an interesting range of properties and has also focused my mind on how to get maximum rental income from any investment. I admit that, although I'm principally buying to make money, I've been thinking about buying somewhere I would like to holiday myself, but I now need to think about it from a renter's point of view. When I go on holiday I like to try and head off the beaten track if possible but this wouldn't be the best idea for a rental property, so I can see why Phuket offers a good compromise with its gorgeous beaches and scenery and golf courses, all of which attract the rental market.

"I'm reassured by this advice and of course would seek the advice of an English-speaking lawyer who specialises in this area. This is one purchase where I would definitely not try to go it alone and I'd only use a company whose reputation I trust. I now need to investigate further the legal aspects of buying in Thailand but I would like to go on an inspection visit when the rainy season ends."

If you would like House Hunter's help, write to House Hunter, The Independent, 191 Marsh Wall, London E14 9RS, or e-mail with full details: househunter@independent.co.uk