ROI (Return on Investment)

Definition

Annualized return on investment combining rental income (cash-flow) and capital gains from resale (capital gain). Simplified formula: 5-year ROI = (5-year cash-flow + (resale price - purchase price - expenses)) / purchase price. A well-purchased property in Thailand typically offers 6% net yield plus 2 to 4% annual capital appreciation, resulting in a total ROI of 8 to 10% per year. Current best-performing locations are East Pattaya (Bang Saray, Na Jomtien) and Phuket East (Cherng Talay).