The Teak Villa (Unit A), Pasak, Phuket,

THE TEAK VILLA (UNIT A)

·       Location: Pasak

·       Bedroom: 3

·       Bathroom: 4

·       Build Up Area: 391 sqm

·       Land Plot: 313 sqm

·       Monthly Rent Rate: 190,000 THB

·       Annual Common Fee: 46,950 THB

·       Investment Cost: 28,000,000 THB  

CONFIDENTIAL INVESTMENT ANALYSIS REPORT

Project: Long-Term Residential Rental Investment – The Teak Villa (Unit A), Pasak, Phuket, Thailand

Prepared For: Prospective Investors

Prepared By: ONENEEE WORK CO., LTD.

Disclaimer: This report is prepared for informational purposes only and does not constitute an offer or solicitation to buy or sell any security or investment 1 product. Investment decisions should be based on the investor's own due diligence, objectives, and risk tolerance, potentially in consultation with their independent financial advisor. Market conditions and projections are subject to change. 

1. Executive Summary

This report details a compelling long-term real estate investment opportunity involving the acquisition of The Teak Villa (Unit A), a high-quality residential property located in the desirable Pasak area of Phuket, Thailand. The total required investment is 28,000,000 THB. Based on current market analysis and a proposed monthly rental rate of 190,000 THB, the property is projected to generate a strong Net Operating Income (NOI) and offers attractive potential returns, estimated with a preliminary Capitalization Rate (Cap Rate) of approximately 5.94%. The investment strategy focuses on securing stable, long-term tenants, leveraging Phuket's robust expatriate and affluent domestic market. Operational management, including administration, compliance, maintenance, and financial oversight, will be expertly handled by Oneness Work Co., Ltd., minimizing investor involvement and maximizing efficiency. This investment presents a well-defined path to generating consistent rental income and potential capital appreciation in one of Southeast Asia's premier real estate markets.

2. Investment Opportunity Overview

Phuket remains a globally recognized destination, attracting tourism, long-term expatriates, and digital nomads, driving consistent demand for high-quality residential rentals. The Pasak area, specifically, is highly sought-after due to its strategic location offering tranquility while remaining proximate to key amenities such as Boat Avenue, Porto de Phuket, Laguna Phuket complex, international schools, and beaches.

The subject property, The Teak Villa (Unit A), represents a modern, well-appointed 3-bedroom, 4-bathroom villa with significant living space (391 sqm build-up on a 313 sqm plot). This type of property is particularly appealing to expatriate families or professionals seeking premium long-term accommodation. The investment thesis centers on acquiring this asset for 28,000,000 THB and operating it as a long-term rental property to generate stable cash flow and benefit from potential long-term capital appreciation inherent in the Phuket real estate market.

3. Property Details

• Property Type: Residential Villa (Unit A)
• Designation: The Teak Villa
• Location: Pasak, Cherngtalay, Phuket, Thailand
• Bedrooms: 3
• Bathrooms: 4
• Build Up Area: 391 sqm
• Land Plot Area: 313 sqm
• Condition: Assumed to be in excellent, rentable condition (Subject to Due Diligence/Inspection)
• Target Market: Expatriate families, professionals, affluent long-term residents.

4. Market Analysis

The long-term rental market in the Pasak/Cherngtalay area remains robust. Demand is driven by:

• Expatriate Community: Proximity to international schools and lifestyle amenities makes it a prime choice for foreign families.
• Lifestyle Appeal: Access to high-end retail (Boat Avenue, Porto de Phuket), restaurants, beaches (Bang Tao, Layan), and recreational facilities (Laguna Golf).
• Workforce: Professionals working in the hospitality, real estate, and international business sectors often seek long-term, high-quality housing in this vicinity.
• Limited Supply: While new developments occur, premium villas like The Teak Villa in established, desirable locations command strong rental rates and occupancy.

Current market comparables support the proposed rental rate of 190,000 THB per month for a property of this size, quality, and location.

5. Investment Analysis

This investment involves the outright purchase of the property. The analysis focuses on the potential income generation and return metrics based on long-term rental operation.

• Strengths:
• Prime location in Pasak.
• High-quality build and ample living space.
• Strong target demographic for long-term rentals.
• Potential for capital appreciation in the Phuket market.
• Turnkey management solution via Oneness Work Co., Ltd.
• Weaknesses/Risks:
• Market fluctuations affecting occupancy or rental rates.
• Potential for unexpected maintenance costs.
• Regulatory changes impacting property ownership or taxation (Mitigated by Oneness Work Co., Ltd.'s expertise).
• Reliance on a single asset class in a specific geographic location.
• Overall Assessment: The specific attributes of the property align well with market demand. With professional management and conservative financial projections, the investment appears viable and potentially profitable.

6. Business Plan

• Objective: To acquire and operate The Teak Villa (Unit A) as a profitable long-term rental property, generating consistent cash flow and achieving capital appreciation over the holding period.
• Strategy:
• Acquisition: Complete the purchase for 28,000,000 THB.
• Tenant Acquisition: Market the property to the target demographic (long-term expatriates/professionals) via established real estate channels and Oneness Work Co., Ltd.'s network. Aim for minimum 12-month lease agreements.
• Property Management: Engage Oneness Work Co., Ltd. for comprehensive management services (detailed in Section 8).
• Maintenance: Implement a proactive maintenance schedule managed by Oneness Work Co., Ltd. to preserve property value and tenant satisfaction.
• Financial Management: Utilize Oneness Work Co., Ltd. for rent collection, expense payment, and financial reporting.
• Exit Strategy: Periodically evaluate market conditions for potential profitable resale, facilitated by Oneness Work Co., Ltd. The primary focus is long-term hold, but opportunistic exit will be considered.

7. Financial Projections

(Note: These projections are estimates based on available data and standard assumptions. Actual results may vary. Calculations assume a full year of operation after initial setup/tenant placement delays, if any. A conservative occupancy assumption is used for income calculation).

• A. Total Investment Amount Required:
• Property Purchase Price: 28,000,000 THB
• Note: This excludes potential closing costs, transfer fees, and initial setup expenses which should be budgeted separately (estimate ~3-5% buffer).
• Total Initial Capital Outlay (Property): 28,000,000 THB
• B. Projected Annual Income:
• Proposed Monthly Rental Rate: 190,000 THB
• Gross Potential Annual Rent: 190,000 THB/month×12 months=2,280,000 THB
• Less Vacancy/Collection Loss Allowance (Conservative Estimate: ~8.33%, equivalent to 1 month vacancy/year): 190,000 THB
• Effective Gross Income (EGI): 2,090,000 THB
• C. Projected Annual Expenses:
• Annual Common Area Fee: 46,950 THB (Given)
• Property Management Fee (Estimate: 10% of EGI): 0.10×2,090,000=209,000 THB
• Routine Maintenance & Repairs (Estimate: 5% of EGI): 0.05×2,090,000=104,500 THB
• Property Tax (Land & Building Tax - Estimate: ~0.15% of Investment Cost): 0.0015×28,000,000=42,000 THB
• Building Insurance (Estimate): 25,000 THB
• Contingency/Miscellaneous: 15,000 THB
• Total Estimated Annual Expenses: 442,450 THB
• D. Net Operating Income (NOI):
• NOI = EGI - Total Annual Expenses
• NOI = 2,090,000−442,450=1,647,550 THB
• E. Rental Rate Justification:
• The proposed 190,000 THB/month rate is determined based on:
• Analysis of comparable 3-bedroom luxury villas currently listed for long-term rent in the Pasak/Cherngtalay area.
• The property's specific attributes: generous build-up area (391 sqm), modern amenities (implied), 3 bedrooms/4 bathrooms, and prime location.
• Prevailing demand dynamics for premium long-term rentals in Phuket.
• This rate positions the property competitively within the upper tier of the market, attracting discerning tenants seeking quality and location.
• F. Break-Even Point:
• Operating Expense Break-Even (Occupancy): The occupancy level needed to cover annual operating expenses.
• Break-Even Occupancy = Total Annual Expenses / Gross Potential Annual Rent
• Break-Even Occupancy = 442,450/2,280,000≈19.4%
• This means the property needs to be rented for approximately 12×0.194≈2.33 months per year to cover annual operating costs.
• Simple Payback Period (Time to recoup initial investment from NOI, ignoring financing, taxes, appreciation, and time value of money):
• Payback Period = Total Investment Cost / Annual NOI
• Payback Period = 28,000,000/1,647,550≈17.0 years.
• This is a simplistic measure; actual time to profitability and return depends heavily on financing structure, appreciation, and rent growth.
• G. Financial Metrics:
• Capitalization Rate (Cap Rate): Measures the rate of return based on expected income.
• Cap Rate = Annual NOI / Total Investment Cost
• Cap Rate = 1,647,550/28,000,000≈0.0588
• Cap Rate ≈5.88%
• Analysis: A Cap Rate approaching 6% for a prime residential asset in Phuket is considered attractive in the current market environment, indicating solid income potential relative to the purchase price.
• Cash-on-Cash Return (CoC - Assuming 100% Cash Purchase): Measures the annual pre-tax cash flow relative to the total cash invested. In an all-cash purchase scenario with no debt service, this equals the Cap Rate.
• Cash-on-Cash Return ≈5.88% (Annual Pre-Tax Cash Flow / Total Cash Invested)
• Gross Rent Multiplier (GRM): A simpler metric relating price to gross income.
• GRM = Total Investment Cost / Gross Potential Annual Rent
• GRM = 28,000,000/2,280,000≈12.28
• Analysis: A lower GRM generally indicates a better value proposition from an income perspective. 12.28 is within a reasonable range for this asset class and location.
• Return on Investment (ROI - Illustrative Year 1 including appreciation): Requires assumptions about property value growth. Assuming a conservative 3% annual appreciation:
• Year 1 Appreciation = 28,000,000×0.03=840,000 THB
• Total Year 1 Return = NOI + Appreciation = 1,647,550+840,000=2,487,550 THB
• Illustrative Year 1 ROI = Total Year 1 Return / Total Investment Cost
• Illustrative Year 1 ROI = 2,487,550/28,000,000≈0.0888
• Illustrative Year 1 ROI ≈8.88% (Subject to actual market appreciation)

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

Oneness Work Co., Ltd. will function as the integral operational arm for this investment, providing comprehensive support to ensure seamless management and compliance, thereby minimizing the administrative burden on the investor. Their specific roles include:

• Investment Management Administration: Handling the day-to-day administrative tasks associated with the property investment.
• Documentation & Government Liaison: Managing all required paperwork, including applications for necessary permits and licenses, and liaising effectively with relevant Thai government authorities to ensure full compliance.
• Investment Paperwork: Overseeing contracts, leases, and other essential investment-related documentation.
• Property Maintenance & Upkeep: Coordinating and supervising all necessary maintenance, repairs, and cleaning to ensure the property remains in excellent condition, protecting its value and ensuring tenant satisfaction. This includes managing routine upkeep and responding to tenant maintenance requests.
• Financial Administration: Managing the collection of rental income, payment of all property-related expenses (common fees, taxes, maintenance invoices, etc.), and providing regular, transparent financial statements to the investor.
• Future Sale Facilitation: Should the investor decide to exit the investment, Oneness Work Co., Ltd. will leverage its market expertise and network to manage the marketing and sales process, aiming to achieve a profitable sale.

The engagement of Oneness Work Co., Ltd. provides professional oversight and local expertise, crucial for navigating the Thai real estate market effectively.

9. Investor Persuasion: Opportunity and Mitigation

This investment in The Teak Villa (Unit A) offers a strategic entry into the lucrative Phuket long-term rental market.

Key Opportunities:

1. Prime Location: Pasak is a highly desirable, established residential area ensuring consistent tenant demand and underpinning property value.
2. High-Quality Asset: The villa's size, features, and assumed condition cater to the premium segment of the long-term rental market, justifying the target rental rate.
3. Strong Projected Returns: The calculated Cap Rate of ~5.88% indicates solid income potential, competitive within the Phuket market. Combined with potential capital appreciation (illustrative total ROI ~8.88%+ in Year 1), the overall return profile is attractive.
4. Stable Income Stream: Long-term leases provide more predictable income compared to short-term holiday rentals, reducing turnover and vacancy risk.
5. Professional Turnkey Management: Oneness Work Co., Ltd. provides comprehensive support, removing operational complexities and leveraging local expertise for efficient management and compliance. This significantly de-risks the investment from an operational standpoint for overseas or passive investors.
6. Market Resilience: Phuket's diverse appeal and established infrastructure lend resilience to its real estate market over the long term.

Risk Mitigation:

1. Vacancy Risk: Mitigated by conservative income projections (assuming ~1 month vacancy/year), targeting long-term leases (12+ months), and leveraging Oneness Work Co., Ltd.'s marketing reach.
2. Market Risk: While market downturns are possible, the investment focuses on a premium property in a prime location, typically more resilient than lower-tier markets. Long-term hold strategy buffers against short-term fluctuations.
3. Maintenance Costs: Mitigated by including a dedicated budget line item, proactive maintenance scheduling by the management partner, and focusing on a relatively new/well-maintained property (assumption).
4. Regulatory Risk: Mitigated by engaging Oneness Work Co., Ltd., experienced in Thai legal and regulatory requirements for property investment and management.

10. Conclusion and Recommendation

The acquisition of The Teak Villa (Unit A) in Pasak, Phuket, represents a sound investment opportunity for generating long-term rental income and achieving potential capital appreciation. The property's intrinsic qualities – location, size, and type – align perfectly with the demands of the target rental market. Financial projections, based on prudent assumptions and current market data, indicate attractive returns with a Cap Rate of approximately 5.88%.

The partnership with Oneness Work Co., Ltd. provides an essential layer of professional management, handling all operational, administrative, and compliance aspects, making this an ideal investment for individuals seeking exposure to the Phuket real estate market without direct operational involvement.

Recommendation: Based on this analysis, we recommend proceeding with due diligence and acquisition of The Teak Villa (Unit A) for long-term rental investment, contingent upon satisfactory property inspection and final legal review. This venture offers a compelling blend of income generation and growth potential within a robust and desirable market.

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