: BAN CHUANCHERN, Koh Kaew, Phuket

BAN CHUANCHERN

·       Location: Kohkeaw

·       Bedroom: 4

·       Bathroom: 2

·       Build Up Area: 250 sqm

·       Land Plot: 400 sqm

·       Monthly Rent Rate: 110,000 THB

·       Annual Common Fee: 42,000 THB

·       Investment Cost: 15,500,000 THB  

Investment Analysis Report: Long-Term Rental Property

Property: BAN CHUANCHERN, Koh Kaew, Phuket, Thailand

Prepared For: Potential Investors

Prepared By: ONENESS WORK CO., LTD.

CONFIDENTIAL

Executive Summary:

This report provides an in-depth analysis of a long-term rental investment opportunity concerning "BAN CHUANCHERN," a 4-bedroom, 2-bathroom residential property located in the sought-after Koh Kaew area of Phuket, Thailand. The total investment required for acquisition is 15,500,000 THB. The property features a substantial land plot of 400sqm and a built-up area of 250sqm.

Based on current market conditions (Q2 2025) and the property's specific configuration, a monthly rental rate of 110,000 THB is projected, resulting in a Gross Annual Income (GAI) potential of 1,320,000 THB. After accounting for an estimated vacancy factor (8.33%) and projected annual operating expenses (including common fees, management, maintenance, taxes, insurance) approximating 274,700 THB, the Net Operating Income (NOI) is forecast at 935,300 THB per annum.

Significantly, this financial structure yields highly attractive initial return metrics: an estimated Capitalization Rate (Cap Rate) of 6.03% and a Gross Rental Yield of 8.52%, assuming an all-cash purchase. The operational break-even point is calculated at approximately 20.8% occupancy. The investment benefits substantially from the comprehensive support partnership with Oneness Work Co., Ltd., who will manage all administrative, legal, operational, maintenance, and financial aspects, including facilitation of any future profitable exit.

While the property presents a functional limitation with only two bathrooms for four bedrooms, this appears adequately factored into the acquisition price, resulting in a compelling yield proposition. This investment offers an attractive entry point into the prime Koh Kaew market with strong initial returns and potential for value enhancement. We recommend this opportunity for serious consideration by investors seeking higher yields in a prime location, subject to final due diligence.

1. Introduction:

This report evaluates the investment potential of acquiring "BAN CHUANCHERN," a residential house in Koh Kaew, Phuket, specifically for long-term rental income generation. The analysis, current as of April 24, 2025, covers the pertinent market dynamics, a detailed assessment of the property itself, the proposed operational strategy, comprehensive financial forecasts, and the critical role of our designated support partner, Oneness Work Co., Ltd.

• Property: BAN CHUANCHERN
• Location: Koh Kaew, Phuket, Thailand
• Type: House / Villa
• Bedrooms: 4
• Bathrooms: 2
• Build Up Area: 250sqm
• Land Plot: 400sqm
• Investment Cost: 15,500,000 THB

2. Market Overview - Phuket Real Estate:

Phuket's real estate market continues to demonstrate resilience and attract international interest. Key factors underpinning the long-term rental sector include:

• International Community: A stable and diverse expatriate population seeking quality housing.
• Educational Institutions: Proximity to leading international schools is a primary driver for family relocations.
• Marine Infrastructure: World-class marinas attract a dedicated community of yacht owners and marine professionals.
• Lifestyle & Connectivity: Ongoing appeal as a high-quality lifestyle destination with excellent international connections.

The Koh Kaew area remains a focal point for premium residential living due to its strategic advantages:

• School Proximity: Unmatched access to British International School Phuket (BISP).
• Marina Access: Immediate proximity to Boat Lagoon and Royal Phuket Marina.
• Central Location: Convenient travel times to the airport, Phuket Town, major shopping centres, and healthcare facilities. This concentration of amenities makes Koh Kaew a consistently high-demand location for expatriate families and professionals, supporting strong rental values, albeit with variations based on property specifications.

3. Investment Analysis:

"BAN CHUANCHERN" presents a unique profile within the Koh Kaew market:

• Strengths:
• Prime Location: Situated in the highly desirable Koh Kaew area, benefiting from all associated locational advantages (schools, marinas, access).
• 4 Bedrooms: Meets the demand for family-sized accommodation prevalent in this area.
• Large Land Plot: The 400sqm plot offers significant outdoor space, a desirable feature for families, potentially exceeding that of newer builds on smaller plots.
• Attractive Investment Entry Point: At 15,500,000 THB, it offers a lower capital threshold to enter the premium Koh Kaew market compared to properties with more conventional configurations.
• High Initial Yield Potential: Financial projections indicate a strong Cap Rate (see Section 5).
• Weaknesses:
• Limited Bathrooms: The 4-bedroom / 2-bathroom ratio is functionally limiting and below current market expectations for premium family homes. This is the property's primary drawback.
• Moderate Build Area: 250sqm is adequate but not expansive for a 4-bedroom home, particularly relative to the large land size.
• Potential Age/Condition: The configuration and price point might suggest an older property potentially requiring modernization, particularly bathrooms, to maximize tenant appeal and rental potential.
• Opportunities:
• Value-Add Renovation: Significant potential exists to enhance value and rental income by adding a bathroom or renovating existing ones, subject to feasibility and planning approvals.
• Target Niche Tenants: Attract families or groups prioritizing outdoor space and location over internal luxury or bathroom count.
• Competitive Rental Pricing: Leverage the lower acquisition cost to offer a competitive rental rate within Koh Kaew, potentially ensuring quicker occupancy.
• Threats:
• Market Resistance to Configuration: Difficulty attracting tenants or achieving the target rent due to the 2-bathroom limitation, potentially leading to higher vacancy rates.
• Competition: Direct competition from properties offering more bathrooms or newer finishes within Koh Kaew or nearby areas.
• Renovation Uncertainties: If renovation is pursued, potential for cost overruns, delays, or unforeseen structural issues.

4. Business Plan:

• Objective: To achieve consistent long-term rental income by positioning "BAN CHUANCHERN" effectively within its Koh Kaew niche, leveraging its strengths (location, land size, bedroom count) while managing the limitation (bathroom count), and potentially exploring value-add renovations.
• Target Tenant Profile: Families strongly prioritizing Koh Kaew location (school proximity) and generous outdoor space, who are accepting of the 2-bathroom configuration, potentially due to budget constraints relative to higher-spec local properties. May also suit professional sharers.
• Marketing & Leasing Strategy:
• Emphasize the key strengths: 4 bedrooms, large 400 sqm land plot/garden, prime Koh Kaew location near BISP/marinas.
• Be transparent about the 2-bathroom configuration in all marketing materials to manage expectations.
• Utilize online portals, local real estate agents, and the Oneness Work Co., Ltd. network.
• Price competitively at 110,000 THB/month to reflect the configuration while capitalizing on the location.
• Standard rigorous tenant screening process.
• Operations & Management: Full operational management by Oneness Work Co., Ltd., including tenant liaison, maintenance (addressing potential age-related issues proactively), financial administration, and potentially overseeing approved renovation projects.

5. Financial Projections:

(Note: All figures in Thai Baht (THB). Based on market conditions as of April 24, 2025. Assumes an all-cash purchase for ROI metrics; financing impact not included.)

• A. Total Investment Amount Required:
• Purchase Price: 15,500,000
• Note: Investors must allocate additional funds (estimated 3−6%) for transaction costs (transfer fees, stamp duty, legal services), which are excluded from the performance calculations below.
• B. Projected Income:
• Proposed Monthly Rental Rate: 110,000 (Justified below)
• Gross Annual Income (GAI): 110,000/month×12months=1,320,000
• Vacancy Allowance (Estimate 8.33% or ~1 month/year): 1,320,000×0.0833=110,000
• Effective Gross Income (EGI): 1,320,000−110,000=1,210,000
• C. Projected Expenses (Annual):
• Annual Common Area Management Fee: 42,000 (Given)
• Property Management Fee (Estimate 10% of EGI): 0.10×1,210,000=121,000
• Maintenance & Repairs Reserve (Estimate 7% of EGI): 0.07×1,210,000=84,700
• Property Tax (Land & Building Tax): Estimate 12,000 (Subject to official assessment)
• Building Insurance: Estimate 15,000
• Total Annual Operating Expenses: 42,000+121,000+84,700+12,000+15,000=274,700
• D. Net Operating Income (NOI):
• NOI = EGI - Total Annual Operating Expenses
• NOI = 1,210,000−274,700=935,300
• E. Proposed Monthly Rental Rate Justification:
• The rate of 110,000 THB/month is strategically positioned. It acknowledges the prime Koh Kaew location, 4 bedrooms, and large land size, but makes a concession for the significant limitation of having only 2 bathrooms.
• This pricing aims to be competitive within Koh Kaew, attracting tenants who prioritize the location and space over a higher bathroom count, thus mitigating potential vacancy risks associated with the configuration.
• Oneness Work Co., Ltd. concurs this rate is realistic given the property's specific characteristics within the current Koh Kaew market.
• F. Break-Even Point:
• Operational Break-Even (Occupancy): Expense coverage relative to potential income.
• Calculation: Total Annual Expenses / Gross Annual Income
• 274,700/1,320,000≈0.208 or 20.8%
• Interpretation: Requires approximately 2.5 months (12×0.208) of rent per year to cover annual operating costs (excluding finance).
• Investment Recoupment Break-Even (Time - Simple Payback): Time for NOI to equal initial investment (basic measure).
• Calculation: Total Investment / Annual NOI
• 15,500,000/935,300≈16.57 years
• Interpretation: Suggests a relatively faster payback period compared to higher-priced properties with similar NOI, driven by the lower initial investment.
• G. Financial Metrics:
• Gross Rental Yield: GAI / Total Investment
• 1,320,000/15,500,000≈0.0852 or 8.52%
• Capitalization Rate (Cap Rate): Annual NOI / Total Investment
• 935,300/15,500,000≈0.0603 or 6.03%
• Analysis: A projected Cap Rate exceeding 6% is highly attractive in the current Phuket market, especially for a property in Koh Kaew. This suggests the market price adequately reflects the bathroom limitation, offering strong initial returns to the investor.
• Cash-on-Cash Return (CoCR - Assuming All-Cash Purchase): Annual Pre-Tax Cash Flow (NOI) / Total Cash Invested
• 935,300/15,500,000≈0.0603 or 6.03%
• Analysis: Matches the Cap Rate for an all-cash purchase. This strong initial yield is a key feature of this specific investment opportunity.

6. Role of Support Partner: Oneness Work Co., Ltd.

Oneness Work Co., Ltd. provides an indispensable framework for managing this investment effectively and mitigating risks. Their comprehensive role includes:

• Investment Management Administration: Delivering structured oversight, transparent performance reporting, and strategic investment advice.
• Documentation & Government Liaison: Managing all Thai legal and administrative requirements, including property and potential business registrations, permits, licenses, and ensuring full compliance with authorities.
• Investment Paperwork Management: Secure and organized handling of all critical documents (deeds, contracts, tax forms).
• Property Maintenance & Upkeep: Implementing proactive maintenance schedules, managing repairs efficiently, potentially overseeing value-add renovations if undertaken, and ensuring the property, including its large garden, is well-maintained.
• Rental Income Collection & Financial Administration: Managing tenant financials (rent collection, deposits), payment of property expenses, and providing clear, regular financial accounting and income distribution.
• Facilitation of Future Profitable Sale: Offering market analysis, strategic sales planning, negotiation, and transaction management to optimize the investor's exit when the time is right.

7. Investor Persuasion:

"BAN CHUANCHERN" presents a unique and compelling investment case within the desirable Koh Kaew market:

• Exceptional Initial Returns: The projected Cap Rate of 6.03% stands out, offering a higher initial yield than typically found in properties of this size in such a prime location.
• Prime Location Access at Lower Cost: Provides entry into the coveted Koh Kaew residential market, driven by top schools and marinas, at a significantly lower capital investment than comparable 4-bedroom properties with more bathrooms.
• Desirable Land Component: The large 400 sqm land plot is a valuable asset, offering attractive outdoor living space highly sought by families.
• Value-Add Potential: The configuration limitation (2 bathrooms) presents a clear opportunity for future renovation to potentially unlock significant rental uplift and capital appreciation.
• Professional End-to-End Management: Oneness Work Co., Ltd. provides a complete solution, mitigating operational hassles and leveraging local expertise to manage the property effectively, including navigating its specific configuration challenges and opportunities.

While acknowledging the 4 bed/2 bath configuration requires targeted tenant marketing, the attractive pricing and resulting high yield make this a strategically interesting opportunity for investors seeking strong cash flow and potential upside in a premium Phuket neighbourhood.

8. Conclusion & Recommendation:

The investment analysis of "BAN CHUANCHERN" reveals a property with a notable functional limitation (2 bathrooms for 4 bedrooms) but which compensates with a prime Koh Kaew location, large land plot, and, most significantly, a highly attractive projected initial return (Cap Rate 6.03%). The lower investment cost of 15,500,000 THB provides a more accessible entry point into this premium market segment.

The property's success hinges on effective marketing to tenants prioritizing location and land over bathroom count, and potentially on a future value-add renovation strategy. The comprehensive management provided by Oneness Work Co., Ltd. is crucial for navigating these aspects successfully.

Given the strong projected yield and strategic location, we recommend this investment for serious consideration, particularly for investors comfortable with the property's specific configuration or interested in its inherent value-add potential. Final decision should be contingent upon satisfactory due diligence, including assessment of renovation feasibility and costs if that path is contemplated.

9. Contact Us:

For inquiries about investment, please contact:

Pongsak Chanyu : Mob/WhatsApp: +66 62 329 5687

Nikhil Jain : Mob/WhatsApp: +66 82 240 0046

Oneness Work Co., Ltd.

Phuket @ Town, Surin Rd., Mueang,

Phuket, 83000 THAILAND

onenessworkgroup@gmail.com