5 mistakes when investing in overseas real estate on the example of Phuket and how to avoid losses

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Why is it so important to start with the right approach?

Most new investors focus on one thing: how to make money faster. But in reality, investing in real estate is not about beautiful renders and the promised 12% per annum. This is about strategy, risk control and systems thinking.

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In this article, we'll look at 5 of the most common mistakes investors make in the real estate market in Thailand— and especially in Phuket. This island has become one of the most popular locations where more and more people decide to buy property in Phuket — both for living and for investing in apartments and villas.

Mistake # 1: Emotional investing in Phuket real estate: how not to lose money

Phuket is a heavenly place where it's easy to fall in love with the project. Panoramic windows, a villa by the sea, an infinity pool, a discount at the pressure stage — it seeds that this is good luck.

But colorful presentations often hide problems:

• land may not be legally registered;
• the developer has no completed projects;
• the object is built on words, not in reality;
• rental demand is not confirmed, but only expected.

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How to avoid mistakes

Evaluate projects not by appearance, but by business indicators: land status, developer experience, infrastructure readiness, real demand for rent.

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Mistake #2: Chasing profitability without assessing risks

When you see a promise of 12— 15% per annum on the project's website, it immediately catches your attention. There is a feeling that you can quickly recover investments and start earning money. But pretty numbers often have nothing but marketing behind them.

This is especially important to understand if you are planning to invest in apartments in Phuket and expect a stable rental yield in Thailand. This is a complex calculation that should take into account:

• real demand for rent at the location, not “expected growth”;
• who will manage the facility — an experienced operator or a “future company” without a portfolio;
• whether the calculations take into account downtime, commissions, taxes and maintenance costs;
• what happens after the guaranteed program ends (if any).

High profitability is possible. But it is important to understand what is behind these figures and how they will work in 3-5 years, not just in the first season.

How the sustainable model works

Let's take the Laya project near Layan Beach, in one of Phuket's most prestigious locations. It offers 5 years of guaranteed income and is managed by an international 5-star brand.

But the main advantage of the project is not the guarantee, but what happens after it. A location with constant tourist traffic, a high level of service, and operator recognition — all this creates a steady demand for rent. This means that after the end of the program, income can not only remain, but also grow.

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Mistake #3: Investing all your capital in one object

One of the most common and dangerous mistakes is to invest all your investment capital in one unit of real estate. At first glance, this seeds logical: one unit, one deal, fewer organizational tasks. Especially if the budget allows you to buy, for example, a spacious villa for $500,000, why not get the “best” right away?

But in practice, this concentration creates increased risks:

• you depend on one rental scenario (for example, only short-term rentals);
• if the property is idle, you lose all income;
• you cannot flexibly adapt to the market or seasonality;
• Exiting an investment is becoming more difficult (it is more difficult to sell an expensive property than a middle-class liquid unit).

What does a reasonable capital allocation look like?

It is more rational not to “invest once and for a long time”, but to build a balanced portfolio, even from more affordable properties. This approach is especially relevant if you want to understand where to invest $100,000 in Phuket real estate with reasonable diversification and a clear strategy. For example:

• $120,000 apartments with constant demand from digital nomads;
• $160,000 unit at Nai Yang Beach with high demand during high season;
• property in a prestigious location with a strong brand and guaranteed profitability.

This approach reduces risks, increases flexibility, and opens up more strategies in the future: you can adapt the rental model, reinvest your profits, or withdraw partially by selling only one of the units.

Mistake #4: No exit plan

Many investors focus only on rental income — and don't think at all about how they're going to exit the investment. Meanwhile, the exit is the moment when you record the result: profit, loss, or capital stagnation.

The real estate market in Phuket is dynamic, but not everything is equally liquid. Properties without a clear buyer profile or in overheated areas can be sold for years. Especially if it's a non-standard layout, an unobvious location, or an overpriced entry price.

What to consider when choosing an object

The right approach is to assess liquidity at the start:

• How popular and understandable is your property for the next wave of customers?
• Does the district have development potential and new infrastructure?
• Does the project have recognition, brand, and reputation—things that strength confidence in the secondary market?

Examples of liquid properties in Phuket

• Laguna Lakelands is a new quarter in the island's largest resort cluster, with continued development, schools and infrastructure. It is easy to resell such properties — demand is generated automatically.
• Skypark Laguna is an affordable apartment with full access to Laguna's infrastructure. A good choice for both tenants and future investors.
• Angsana Oceanview Residences are beachfront facilities under the Banyan Tree brand. Limited supply, high class, trust in the operator — all this increases the chances of selling quickly and profitably.

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Mistake #5: Investing in Phuket Real Estate Without a System

One of the key reasons for inefficient real estate investments is the lack of a clear decision-making system. Many investors start by looking for a specific property, focusing on visual material, agent advice, or advertising promises. As a result, an asset is acquired without a clear understanding of its role in the overall investment strategy.

The “choose what you like” approach may work when buying a home for personal use, but in investments it leads to lower profitability and increased risk.

Why a structure is needed

An investor does not need a separate object, but a system in which each asset corresponds to:

• investment goals (income, capital growth, diversification);
• investment period;
• acceptable risk level;
• exit plan.

Without a clear portfolio model, it is difficult to objectively assess the project's potential, compare it with alternatives and anticipate critical scenarios.

How Insight Estate's analytical approach works

At Insight Estate, we have built a systematic approach to real estate investments:

• we evaluate objects according to 100+ parameters;
• we analyze 4 key areas: investment security, profitability, location and living comfort;
• we build personalized strategies for goals, budget and acceptable risk level.

How to avoid mistakes

Real estate investment is a tool that can generate a stable income and confidence in the future. Especially if you're planning invest in apartments in Phuket or are you looking for real estate in Thailand for investment with real profitability. But all this is possible only with a thoughtful and systematic approach.

Our goal at Insight Estate is to make this path clear, transparent and comfortable.

If you want to understand where to start, how to avoid risks and what formats are right for you, write to us and we will send you a step-by-step guide to rational investment in resort real estate.

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👉 “What to choose: a villa or a condo in Phuket”

👉 Phuket districts for living and investing: an overview of the best places to buy real estate

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