Portfolio of overseas real estate koh samui
The returns for each portfolio are calculated based on two main parameters: rental income and potential growth in asset value. This is a rough estimate based on current data from the Samui real estate market.
Rental Yield: This is the main component of profitability, especially for properties that are rented out.
Calculation formula:
For Koh Samui:
- Short-term rentals: (tourists, seasonal demand): 8–12% annually.
- Long-term rentals: (expats, remote workers): 4–8% annually.
Capital Appreciation: The increase in the value of real estate or land over time.
- The average growth rate for land and properties on Koh Samui is 5–10% per year, depending on location and market conditions.
- For instance, sea-view land plots or villas in premium areas (Choeng Mon, Bophut) tend to show higher growth rates.
Conservative investment overseas portfolio (Focus on stability and minimal risks)
- Purpose: Preservation of capital and stable rental income.
- Portfolio value: $297,000
Composition:
New Condo on Bangrak (Anava Koh Samui) – $91,000
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- Close to the beach, good liquidity and a steady stream of tenants (tourists and expats).
Townhouse in Bangrak – $206,000
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- Attractive for long term rentals to families or remote workers.
Examples of calculating returns:
Conservative Portfolio:
Condo on Bangrak ANAVA Koh Samui – from $91,000 :
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- Average rental cost: $500
- Annual rent (8%): $6,000
- Growth in value (5%): $2,650
- Final yield: ($6,000+$2650)/$91,000×100=9.5%
(but taking into account risk and expenses the forecast is reduced to 5-8%)
Townhouse in Bangrak – $206,000
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- Average rental cost: $750-800
- Annual rent (4.5%): $9,600
- Value growth (5%): $10,300
- Final yield: ($9,600+$10,300) / $206,000×100=9.6%
(but taking into account risk and expenses the forecast is reduced to 5-8%)
Total portfolio yield:
- Optimistic forecast: from 9.5%
- Pessimistic forecast: 5-8%
Moderate portfolio (Balance of income and risk)
- Goal: Capital appreciation through rental income and appreciation potential.
- Portfolio value: $964,750
Composition:
2 bedroom villas for sale Bophut – $249,805
- Attractive to tourists, high short term rental rates
- The planned completion date is spring 2025
- Guaranteed ROI 10%!
3-bed villa for sale- Bophut – $399,113
- Potential for construction and resale or rental
- The planned completion date is spring 2025
- Guaranteed ROI 10%!
3-Bed Villa for Sale in Choeng Mon – $315,845
- Investments for the purpose of renovation and resale
- Potential yield on sale 20%
Examples of calculating returns
Conservative Portfolio:
2 bedroom villas for sale Bophut – $249,805
Step 1: Increase in real estate value
5% increase: $249,000×1.05=$260,450
Step 2: Guaranteed ROI
The guaranteed rental income (ROI) is 10% per year. This means that the villa will generate 10% of its value each year in rent.
10% ROI from $249,000: $249,000×0.10=$24,900 per year
Step 3: Total Yield
To calculate the total return for the year, you need to take into account both appreciation and rental income.
For a 5% increase:
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- Value gain: $11,450.
- Rental income: $24,900.
The total return for the year (from value increment and rental income) would be:
($11.450+$24.900 / $249.000) *100 = 14.5%
(but taking into account risk and expenses the forecast is reduced to 10-12.5%)
3-bedroom villas for sale Bophut – $399,113
Step 1: Increase in real estate value
5% increase: $399,113×1.05=$419,000
Step 2: Guaranteed ROI
The guaranteed rental income (ROI) is 10% per year. This means that the villa will generate 10% of its value each year in rent.
10% ROI from $399,113: $399,113×0.10=$31,911 per year
Step 3: Total Yield
To calculate the total return for the year, you need to take into account both appreciation and rental income.
For a 5% increase:
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- Value gain: $19,890.
- Rental income: $31,911.
The total return for the year (from value increment and rental income) would be:
($19,890+$31.911 / $319,113) *100 = 16.2%
(but taking into account risk and expenses the forecast is reduced to 12-14.5%)
3-Bed Villa for Sale in Choeng Mon – $315,845
Step 1: Buying a villa $315,845
Step 2: Renovation for subsequent sale: additional investment $97,200 – $138,800 (depends on the cost of materials and degree of renovation)
Step 3: Sale of the villa with 20% profit ($315,845+$138,800) +20% = $545,570
(but taking into account risk and expenses the forecast is reduced to 15-18%)
Total portfolio yield:
- Optimistic forecast: 16,9%
- Pessimistic forecast: 10-13%