CHALONG BAY SEAVIEW POOL VILLA

CHALONG BAY SEAVIEW POOL VILLA

·       Location: Chalong

·       Bedroom: 3

·       Bathroom: 4

·       Build Up Area: 350 sqm

·       Land Plot: 688 sqm

·       Monthly Rent Rate: 380,000 THB

·       Annual Common Fee: 0.00 THB

·       Investment Cost: 58,000,000 THB  

CONFIDENTIAL INVESTMENT ANALYSIS REPORT

Project: Long-Term Rental Investment – CHALONG BAY SEAVIEW POOL VILLA

Property: 3-Bedroom Sea View Pool Villa, Chalong, Phuket, Thailand

Prepared For: Potential Investors

Prepared By: ONENESS WORK CO., LTD.

Disclaimer: This report is prepared for informational purposes only, based on the property details provided and publicly available market data as of the date indicated. While reasonable efforts have been made to ensure accuracy, estimations and projections are subject to market fluctuations and unforeseen circumstances. Potential investors are strongly advised to conduct their own independent due diligence, including legal and financial consultation, before making any investment decisions.

EXECUTIVE SUMMARY:

This report presents a comprehensive analysis of a proposed long-term rental real estate investment in a prime sea view pool villa located in Chalong, Phuket, Thailand. The analysis indicates a potentially viable investment opportunity driven by Phuket's resilient luxury property market, the specific attributes of the subject property, and a proposed strategic management approach facilitated by Oneness Work Co., Ltd.

The total estimated investment required is approximately THB 60,320,000, including acquisition costs. Based on a projected monthly rental rate of THB 380,000 and an estimated achievable occupancy of 85%, the property is projected to generate a Net Operating Income (NOI) of approximately THB 2,990,880 annually. This translates to an estimated Capitalization Rate (Cap Rate) of 5.16% and a Cash-on-Cash Return (assuming all-cash purchase) of 4.96%.

The business strategy leverages the expertise of Oneness Work Co., Ltd. for comprehensive management, mitigating operational risks for the investor. While inherent market risks exist, Phuket's established position as a premier international destination and the high-demand characteristics of luxury sea view villas provide a strong foundation for long-term capital appreciation and rental income generation. This investment is positioned for investors seeking stable returns from a tangible asset in a desirable location, managed professionally.

1.0 INTRODUCTION

This report provides a detailed investment analysis, business plan, and financial projections for the acquisition and operation of the "CHALONG BAY SEAVIEW POOL VILLA" as a long-term rental property. The objective is to evaluate the financial viability and strategic fit of this investment opportunity for potential investors seeking exposure to the Phuket real estate market.

1.1 Property Overview:

• Type: Sea View Pool Villa
• Location: Chalong, Phuket, Thailand
• Bedrooms: 3
• Bathrooms: 4
• Build Up Area: 350 sqm
• Land Plot: 688 sqm
• Key Features: Private Pool, Sea Views, Modern Construction, Strategic Location in Chalong Bay area.
• Purchase Price: THB 58,000,000

2.0 INVESTMENT ANALYSIS

A thorough evaluation of the investment requires consideration of the Phuket market context and the specific attributes of the property.

2.1 Market Context (Phuket, Thailand - Q2 2025):

• Tourism & Residency: Phuket remains a premier global destination, experiencing a robust recovery in tourism post-pandemic. There is a growing trend towards long-term stays and residency among expatriates and affluent remote workers, driving demand for high-quality rental properties.
• Luxury Segment: The luxury villa market, particularly properties with sea views and private pools, demonstrates resilience and commands premium rental rates. Demand originates from both international tourists and a growing domestic affluent population.
• Chalong Area: Chalong is strategically located, known for its large bay, pier (gateway to southern islands), yacht marinas, and diverse amenities (international schools, shopping centers, restaurants). While not a prime west-coast beach location, it appeals strongly to long-term residents, yacht owners, and those seeking convenient access to the island's infrastructure. Its sea views over the bay are a significant draw.

2.2 Property Specific Evaluation:

• Strengths:
• Desirable Attributes: Sea view, private pool, 3 bedrooms, and generous living space (350 sqm build, 688 sqm land) cater directly to the high-end long-term rental market.
• Location: Chalong offers unique advantages for certain demographics (yachting community, access to amenities). The sea view specifically enhances its appeal significantly over non-view properties.
• Zero Common Fees: The stated absence of annual common area fees (THB 0.00) directly improves the net operating income potential, although this necessitates careful budgeting for independent maintenance.
• New/Modern Build: Assuming the property is relatively new or well-maintained, reducing immediate capital expenditure on repairs.
• Weaknesses:
• Premium Price Point: The THB 58M investment cost requires significant capital outlay and necessitates achieving the high target rental rate to ensure adequate returns.
• Competition: The Phuket luxury rental market is competitive. Differentiation through service and property upkeep is crucial.
• Reliance on Long-Term Tenants: While potentially more stable, the long-term market may have smaller fluctuations but can be impacted by global economic shifts or visa regulation changes affecting expats.
• Opportunities:
• Capital Appreciation: Phuket real estate, particularly in desirable locations with unique features like sea views, has historically shown potential for long-term capital appreciation.
• Strong Rental Demand: Leveraging Phuket's global appeal and the specific demand for luxury villas for extended stays.
• Professional Management: Utilizing Oneness Work Co., Ltd. can enhance tenant satisfaction, optimize occupancy, and streamline operations.
• Threats:
• Market Volatility: Economic downturns or unforeseen events (like pandemics) can impact tourism and rental demand.
• Regulatory Changes: Potential changes in Thai property ownership laws, taxation, or visa regulations could affect the investment environment.
• Vacancy Periods: Achieving consistent year-round occupancy at the target rate is not guaranteed.
• Maintenance Costs: Potential for unexpected high maintenance costs, especially for pools, structures exposed to sea air, and landscaping (even without common fees).

3.0 BUSINESS PLAN

A clear strategy is essential for maximizing returns and mitigating risks associated with this rental property investment.

3.1 Objective: To acquire and operate the Chalong Bay Sea View Pool Villa as a profitable long-term rental property, generating consistent cash flow and achieving long-term capital appreciation.

3.2 Target Market:

• High-net-worth individuals seeking long-term residence (6 months+).
• Expatriate families or professionals relocating to Phuket.
• Yacht owners or enthusiasts requiring proximity to Chalong Pier and marinas.
• "Work from Paradise" remote executives demanding premium accommodation.

3.3 Marketing & Leasing Strategy:

• Utilize premium online real estate portals (local and international).
• Engage reputable local real estate agents specializing in luxury long-term rentals.
• Leverage Oneness Work Co., Ltd.'s network and marketing channels.
• Professional photography and videography to showcase the property's unique features (especially the sea view and pool).
• Targeted digital marketing campaigns.

3.4 Operational Strategy:

• Management: Outsource all property and tenant management functions to Oneness Work Co., Ltd. (details in Section 5.0).
• Maintenance: Implement a proactive maintenance schedule managed by Oneness Work Co., Ltd., covering pool, garden, pest control, air conditioning servicing, and general repairs. Allocate an annual budget for this.
• Tenant Screening: Implement rigorous tenant screening processes to ensure reliability and property care.
• Pricing: Regularly review market comparables to ensure the THB 380,000 monthly rate remains competitive yet maximized.

3.5 Exit Strategy:

• Hold the property for long-term rental income and capital appreciation (target holding period: 7-10 years).
• Continuously monitor market conditions in Phuket to identify opportune moments for a profitable sale.
• Leverage Oneness Work Co., Ltd.'s expertise to facilitate a future sale process.

4.0 FINANCIAL PROJECTIONS

(All figures in Thai Baht (THB). Based on provided data and market estimations as of April 25, 2025)

4.1 Total Investment Amount Required:

• Property Purchase Price: 58,000,000
• Estimated Acquisition Costs (Transfer fees, Stamp Duty, Legal Fees, Agent Commission share if applicable - estimated @ 4%): 2,320,000
• Estimated Total Initial Investment: 60,320,000

4.2 Projected Income:

• Proposed Gross Monthly Rental Rate: 380,000
• Potential Gross Annual Income (100% Occupancy): 380,000 * 12 = 4,560,000
• Estimated Vacancy & Collection Loss (Estimated @ 15%): 4,560,000 * 0.15 = 684,000
• Estimated Achievable Gross Annual Income (85% Occupancy): 4,560,000 - 684,000 = 3,876,000

4.3 Projected Annual Expenses:

• Property Management Fee (Estimated @ 12% of collected rent): 3,876,000 * 0.12 = 465,120
• Maintenance & Repairs (Pool, Garden, General - Estimated @ 0.5% of Purchase Price): 58,000,000 * 0.005 = 290,000
• Property Tax (Land & Building Tax): Estimated 30,000 (Subject to official valuation)
• Insurance (Building, Liability): Estimated 40,000
• Utilities (Owner responsibility during vacancies/shared): Estimated 10,000
• Contingency Fund: Estimated 50,000
• Common Area Fees: 0 (As provided)
• Total Estimated Annual Operating Expenses: 885,120

4.4 Net Operating Income (NOI):

• Estimated Achievable Gross Annual Income: 3,876,000
• Less: Total Estimated Annual Operating Expenses: (885,120)
• Projected Annual Net Operating Income (NOI): 2,990,880

4.5 Proposed Monthly Rental Rate Justification:

• The proposed rate of THB 380,000 per month is positioned at the premium end of the market.
• Justification: This rate is deemed achievable based on:
• The property's prime offering: Sea view, private pool, significant size (350sqm build/688sqm land), 3 bedrooms.
• Market Comparables: Analysis of similar high-end, sea view, pool villas in the Chalong area and wider Phuket targeting long-term rentals suggests this rate is competitive for the quality and features offered.
• Target Tenant Profile: Aimed at affluent individuals/families willing to pay a premium for quality, view, and location benefits specific to Chalong.
• Exclusivity and Privacy offered by a standalone villa.

4.6 Break-Even Point:

• Break-Even Occupancy (Operational):
• (Total Annual Expenses / Potential Gross Annual Income) * 100
• (885,120 / 4,560,000) * 100 = 19.41%
• This means the property needs to be rented for approximately 2.33 months per year (or 19.41% of the time) at the target rate just to cover the estimated annual operating expenses (excluding financing costs).
• Break-Even Point (Simple Payback Period - Time to Recoup Initial Investment):
• Total Initial Investment / Annual NOI
• 60,320,000 / 2,990,880 = 20.17 Years
• Note: This is a simplified metric and does not account for financing costs, taxes on income, or potential capital appreciation.

4.7 Financial Metrics:

• Capitalization Rate (Cap Rate):
• Annual NOI / Property Purchase Price
• 2,990,880 / 58,000,000 = 5.16%
• Analysis: A Cap Rate above 5% for a luxury sea view property in Phuket can be considered reasonable in the current market, indicating the income potential relative to the asset's value.
• Cash-on-Cash Return (CoC) - Assuming 100% Cash Purchase:
• Annual Pre-Tax Cash Flow (NOI in this case) / Total Initial Investment
• 2,990,880 / 60,320,000 = 4.96%
• Analysis: This represents the direct return on the cash invested in the first year. It's slightly lower than the Cap Rate due to inclusion of acquisition costs. This return does not account for potential property value appreciation.
• Gross Rent Multiplier (GRM):
• Property Purchase Price / Potential Gross Annual Income
• 58,000,000 / 4,560,000 = 12.72
• Analysis: A lower GRM generally indicates a better relationship between rent and price. 12.72 is within a typical range for desirable rental properties.
• Return on Investment (ROI) - Simple Year 1:
• (Annual NOI / Total Initial Investment) * 100
• (2,990,880 / 60,320,000) * 100 = 4.96%
• Note: True long-term ROI calculation should incorporate the holding period, financing structure, income tax implications, and eventual sale price (capital gains/losses).

5.0 ROLE OF SUPPORT PARTNER: ONENESS WORK CO., LTD.

A critical component of this investment's viability, particularly for passive investors, is the proposed engagement of Oneness Work Co., Ltd. as the comprehensive support partner. Their defined role significantly de-risks the operational aspects of the investment:

• Investment Management Administration: Overseeing the day-to-day administrative tasks associated with the property investment.
• Documentation & Government Liaison: Proactively managing all necessary paperwork, including applications, renewals, and compliance for permits, licenses, and any other requirements mandated by Thai government authorities.
• Relevant Paperwork Management: Handling contracts, leases, insurance documentation, and other investment-related administrative tasks efficiently.
• Property Maintenance & Upkeep: Contracting, supervising, and managing all routine and ad-hoc maintenance (pool, garden, technical systems, cleaning between tenancies) to ensure the property remains in premium condition.
• Rental Income & Financial Administration: Managing timely rent collection from tenants, handling security deposits, paying operational expenses from collected revenues, and providing transparent financial reporting (income/expense statements) to the investor.
• Future Sale Facilitation: When deemed appropriate by the investor, leveraging their market knowledge and network to assist in marketing and facilitating a profitable sale of the property, coordinating viewings, negotiations, and closing procedures.

The involvement of Oneness Work Co., Ltd. provides essential local expertise, operational efficiency, and ensures compliance, allowing investors to focus on strategic oversight rather than day-to-day management challenges.

6.0 INVESTOR PERSUASION: OPPORTUNITY & MITIGATION

This investment proposal presents a compelling opportunity to acquire a premium, tangible asset in one of the world's most sought-after destinations.

Key Investment Highlights & Opportunities:

• Prime Asset Quality: A sea view pool villa represents the pinnacle of Phuket's desirable real estate, commanding premium rents and holding strong potential for value retention and appreciation.
• Strong Yield Potential: The projected Cap Rate of 5.16% and Cash-on-Cash return of 4.96% (all-cash basis) offer attractive returns compared to many alternative passive investments in the current economic climate.
• Resilient Market: Phuket's diverse appeal (tourism, long-term residency, retirement) provides a relatively stable demand base for high-quality rental properties.
• Professional Turnkey Management: The integrated support from Oneness Work Co., Ltd. offers a hassle-free investment experience, crucial for overseas or non-local investors.
• Inflation Hedge: Real estate ownership traditionally serves as a hedge against inflation through potential appreciation and the ability to adjust rental rates over time.
• Tangible Asset Security: Direct ownership of a physical property provides a level of security often preferred over purely financial instruments.

Risk Mitigation Strategies:

• Market Risk: Diversification within Phuket's appeal (tourism vs. long-term) and the inherent desirability of sea view properties mitigate localized downturns. Long-term focus reduces susceptibility to short-term fluctuations.
• Vacancy Risk: Mitigated through competitive pricing, proactive marketing by Oneness Work Co., Ltd., maintaining the property to high standards, and targeting the stable long-term rental segment. The projected 85% occupancy is conservative.
• Operational Risk: Largely mitigated by outsourcing management to the experienced team at Oneness Work Co., Ltd., covering maintenance, tenant relations, and administration.
• Regulatory Risk: Oneness Work Co., Ltd.'s role includes staying abreast of and managing compliance with local regulations, minimizing potential legal or administrative hurdles.
• Financial Risk: The all-cash purchase assumption eliminates leverage risk. Prudent expense budgeting and contingency funds address potential cost overruns.

7.0 CONCLUSION AND RECOMMENDATION

The proposed investment in the CHALONG BAY SEAVIEW POOL VILLA presents a strategically sound opportunity to capitalize on the enduring appeal of Phuket's luxury real estate market. The property's intrinsic qualities – sea view, pool, size, and location relevant to specific demographics – align well with the demand for premium long-term rentals.

The financial projections indicate a viable return profile, with a Cap Rate exceeding 5% and positive cash flow potential. While the initial investment is substantial, the combination of potential rental income and long-term capital appreciation prospects offers a compelling value proposition.

The critical success factor, beyond the property itself, is the robust operational framework provided by Oneness Work Co., Ltd. Their comprehensive management role significantly reduces the burden and risk for the investor, making this a potentially attractive passive investment vehicle.

Based on this analysis, the investment is recommended for consideration by investors with a long-term outlook seeking stable income generation and capital growth from a high-quality real estate asset in a globally recognized destination, provided they accept the inherent risks associated with real estate investment and are comfortable with the required capital outlay. Further independent due diligence is, as always, advised.

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