Tropical Island Homes For Less Than $51,000

"The beaches of the islands off the coast of Phuket surpass anything I've seen in the Caribbean."

Dear Reader,

Nearing Phuket, the seascapes from the aircraft window are straight from an eastern fairytale...a tale of pirates and pearl farmers, monsters and magical fish. Rising from the jade-colored Andaman Sea are dozens of bizarre limestone rock formations. Clad in thick green foliage, some tower heavenwards like pillars...and tiny islands bask in the sunshine like a litter of sleeping dragons. As the stunning scenery seems designed for sheer escapism, perhaps this is the reason why Phang-Nga Bay was chosen for the James Bond film "The Man with the Golden Gun".

Phuket is Thailand's most sophisticated tropical island; an island of sparkling white sand beaches, waving coconut palms, boat trips and warm sunshine--low nineties Fahrenheit at least. It's not hard to understand why about 8,000 expats have settled here.

"A slam-dunk deal", says Ken Abday of Lifestyle Properties. "You can't go wrong." I wouldn't disagree. We're at the Boat Lagoon on the island's east coast, looking at 1,450-square-foot and 2,685-square-foot condos for 6.5 million baht ($165,000) and 8.8 million baht ($223,000) respectively. Apartments strung with bougainvillea...a cute stone lighthouse...upmarket shops and restaurants. This waterfront area reminds me of Trois Ilets in the French West Indies, though here the difference is that some yacht-owning residents can park their craft at their back doors.

Phuket has a huge range of properties. Small two-bedroom homes on the south and east side of the island--and apartments in touristy Patong--can be found for under 2 million baht ($51,000). On the other hand, you can pay over 32 million baht ($812,000) for a quality beachfront house on the west coast. And at the really top end, villas with four and five separate living pavilions are commanding prices of around $4 million.

No space here to list all the properties we got to see--including one development offering a guaranteed rental return of 6%--but I'll tell you more in the print edition of International Living.

Steenie Harvey
Roving Travel Writer, International Living

P.S. The Thai government has just announced the abolishment of yacht tax--in some instances it amounted to a crippling 200% for owners wishing to keep their boats in Thailand. Scrapping the tax is great news for both yachties and the Phuket marina industry. The Andaman Sea was made for sailing.

Editor's note: Subscribers to the print edition of International Living will be able to access Steenie's Thailand Journals in full from Monday. Steenie has delivered a brilliant overview of Thailand--for the vacationer, investor or potential resident. She's sorted out the property market, the laws governing property ownership, residence and business operations.