Ultimate guide to Cambodia property investment 2018

Cambodia property investment Guide

Probably, the Cambodia is one of the best places for both businesses and real estate property buyers. In terms of investment opportunities, the current year 2018 can be a very thrilling year for Cambodia. This is because; you can find a lot of retail malls as well as high rise residential condominiums available for sale. Even the investors and experts in the property field are very optimistic about the development of the real estate market in 2018.

When you want to gain the valuable investment insights or would like to purchase the property in Cambodia, you can simply download the ultimate free guide to the Cambodia property investment for 2018 right now. In terms of financial growth, the Cambodia is a small country in the heart of Southeast Asia that has leapt forward.

Actually, the Cambodia property is one of the awesome ways to gain profit from the unparalleled rise of the nation. This Cambodia is under the radar of several investors, so this is quickly changing as well. Now, it is possible to purchase the property in Cambodia for just $50, 000 and put $20, 000 worth of renovation into it and then gain it to be worth of $100, 000 on the market.

Apart from this, there are some mid-sized towns available in the capital of Cambodia such as Phnom Penh that are becoming booming with the construction, activity and development of the nation that becomes more famous. In recent days, the Chinese investors are assembling to Phnom Penh and made this as a permanent investment destination for South Koreans, Southeast Asians, Westerners, Japanese and Taiwanese.

Comprehensive List of Penthouse in Singapore

Get the best deals in the most luxurious and extravagant penthouses in Singapore.

Absolutely, the Cambodia is one of the most popular, exciting and undiscovered countries for the property investment in the world. Actually, the Cambodia property market is a distinction between the soft titles and hard titles. Both of them provide a legal freehold status and it should be owned by either a Cambodia or a Cambodia company as well. But, there are some major important variations over there.

Why you should invest in Phnom Penh?

The Phnom Penh is an economic center of Cambodia that explains for the biggest portion of the Cambodian economy. One of the greatest ideas to be considered for investing in Cambodia is accurate due diligence. Most of the real estate investors in Cambodia can usually hire a lawyer in order to talk with the neighbors, look via the land registry and also confirm that the seller of soft title property is certainly the honest owner without any burden. Below are the top reasons why you invest in the Peak Phnom Penh that includes:

  • One of the fastest developing economies in the world
  • Strategically located between India and China
  • Increasing literacy rate that already exceeded 75%
  • No capital gain tax or stamp duty sellers
  • Best qualities for maritime trade
  • Very powerful GDP growth
  • Enhancing the transportation connectivity
  • Youthful residents and workforce
  • Three international airports
  • Well capitalized, conventional and banking system
  • Robust economic growth will happen, because of urbanization over the future decades
  • An opportunity to buy a piece of prime freehold land at affordable prices
  • Pro-business government and favorable investment climate
  • High rental yield with the existing rates at 8 to 11% per annum
  • Awesome location right in the heart of Phnom Penh’s CBD
  • No tradition of government subsidies and bailouts
  • Maximize the leverage- foreign investors can get bank financing up to 50%
  • Developing country with the improving foreign direct investments and high economic activity from China, Japan, Europe and Korea

The List of Overseas Property Investment

Allowing you to start receiving Full Passive Rental Income with 0 Monthly Instalment and ABSD with much faster capital appreciation!

Phnom Penh rental yields

The Cambodia has several kinds of properties that are suitable for investors who seek the rental returns such as flats, villas, shop houses, condos and apartments. In reality, picking the right properties for the right tenants can be time-consuming, if you cannot understand the existing rental market demand as well as supply. So, you have to be very careful in investing on the big amount of money into a property that nobody will rent.

In terms of rental returns, purchasing flat houses in Phnom Penh will earn more between $350 and $550 per month anywhere. Also, you can earn between $450 and $550 per month for two bedroom flats and renovated one around the central Phnom Penh. As a common rule in Cambodia, the reasonable rental properties tend to impress a lot of tenants than the costlier ones. Hence, if you aim to obtain the higher rental yields, you can purchase a shop house in the prime location of the central Phnom Penh such as Chamkarmon and Daun Penh.

 

Otherwise, you should also search around the budget condos that cost around $20 to $80k in the minimal central districts of Phnom Penh. However, these kinds of properties are able to rent by the locals who are working in this city. But also, these assets have a safer rental yield. Buying rental property in Phnom Penh is likely to obtain the best monthly returns in the rentals from the locals to experts. The only thing you have to do is to obtain strata tile, so only your ownership is guaranteed.

For beginners who are ready to invest in the Cambodia property, the perfect real estate agent is a must have option. Finding the best quality agent is a quite daunting task. This is because; usually locals do not use the property agents in Cambodia, rather only foreigners can require the agent. The Cambodians usually find their properties for buying and selling via the local circles as well as the word of mouth. If you are a foreign buyer, many agents can simply do this process more possibly.

Condos That Are Near to MRT Stations

Get a detailed list of the best condos located at walking distance from MRT stations,

Cambodia’s policy on foreign real estate investors

The great thing about Cambodia is not only allowing the foreign investment, but also motivates it possibly more than anywhere as well in Southeast Asia. Generally, setting up any kind of business with 100% foreign ownership is very simple. The one year multiple entry visas can takes around $250 and you can live there for a long term in a few days as simple and cost-effective as possible.

For the ownership of real estate, the foreigners can have strata titles for the condominium units in their own house. But, these strata titles are not applicable for either buy house or land apartments. The common agreement is that the new condominium units are highly priced as well. Once you decide to invest on Cambodia apartments, you just want to find the great deals in the elder shop house apartments missing over from the colonial period. For the active buyers, the plots of land with potential growth are very promising.

However, these things are quite difficult for these dual kinds of property, because the foreigners cannot own anything directly except the condominium unit. As a foreigner, either you should set up a nominee agreement enforced with many various kinds of contracts along with the Cambodian citizen or a make a Cambodian land-holding company. This land holding company is legally very safe, but it needs the licensing fee annually as well as monthly tax filing. Still now, the profits can be value the effort and costs, if you are purchasing the real estate in Cambodia.

Property purchase process in Cambodia- A foreigner’s guide to invest

Of course, the foreigners can enjoy the freehold ownership as well as the entire control throughout their properties, if the things have done perfectly. But it is very much essential, specifically for the soft title properties to talk with the neighbors and search via the public records of a land office. When you are buying a property, you can make sure that there are no other claims over the property.

It is also much important to remember that the foreigners cannot own the hard title or soft title properties legally in their own name, but they can only buy strata titles. If you do not want to integrate or create a real estate holding company, the only option for you is to pick the right local nominee for holding your property on your behalf as well as bind him with many contracts. However, this would require some help from the attorney.

Condos That Are Near to MRT Stations

Get a detailed list of the best condos located at walking distance from MRT stations,

Transaction costs

Usually, the cadastral officers will charge a transaction cost on the contract that is totally different to the original price in addition to 4%. Also, there is service fee need to pay for the cadastral office that ranges around US$800 to US$1000. However, this includes the entire service fees.

How much does cost for property taxes in Cambodia?

Basically, the annual taxes are very lesser in Cambodia. The annual property taxes are just 0.1% of the market value of a property in addition of 100, 000, 000, but these taxes are frequently not even payable at all. For residents, the income taxes for rental are 14%, while for non-residents; the income taxes for rental are at a higher 20%.

In many cases, there are different deductions available that almost give these rates down considerably. On the other hand, the unused land is taxed at a very top rate of 20% of its market every year. Due to this, the investors cannot land back in Cambodia without even paying the unreasonable amount of taxes. Also, any land purchases can be developed immediately; otherwise it can be used as soon as possible. Below are types of taxes and fees in which the landlord or owner should take note of while selling or buying real estate in Cambodia:

  • Property tax
  • Transfer tax
  • Rental tax
  • VAT

Ongoing cost

Setting up the costs for Cambodia foreign property between $4, 000 to $12, 000 is based on which lawyer you use. Another important thing to be taken into your consideration is tax obligation. It not only you need to submit the quarterly or monthly tax statements, but also you have to hit with 20% company profit tax, when you buy or sell any assets held by the company. Setting up the high cost and associated with ongoing cost can only recommend this structure to the clients who are looking for the potential investment in addition of USD$1, 000, 000.

Condos That Are Near to MRT Stations

Get a detailed list of the best condos located at walking distance from MRT stations,

Insurance

Before putting up any new building in Cambodia, the insurance may helps to guarantee the investors and also validate the safety as well as quality of the construction projects. These constructors are expected to abide and self-regulate by building codes from some other countries and also prove the top quality of their construction projects. Therefore, the high property insurance protection is a best sign that reflects the attitude and awareness of the developer towards the quality, construction and also a safe design.

Property maintenance and management in Phnom Penh

Due to rapid increase of buildings in Phnom Penh, the ownership development has changed the landscape of property management and investment in this city. The course of investment is one of the key considerations for managing the property building. Some of the best practices for maintaining the property building in Phnom Penh are given below:

  • Best practices
  • Statutory provisions
  • Perfect mindset

Condos That Are Near to MRT Stations

Get a detailed list of the best condos located at walking distance from MRT stations,

The peak retail mall in Cambodia

The peak retail mall is a heart of Phnom Penh, the capital city of Cambodia. The new Cambodian property peak is a luxurious and premium development that consists of retail, residential, office, five star hotels along with the total number of 1014 apartments. The peak shoppes provide the investors a wonderful chance to invest into this commercial unit in Phnom Penh. These peak shoppes are one of the limited shopping malls available for sale in Phnom Penh that would be professionally managed by the capital land. The most impressive investment opportunity and sales package at peak retail mall are including:

  • 10 year rental guaranteed
  • 5 years mutual agreement
  • 100% upfront payment discount
  • Loyalty discount

Reasons to invest in the peak

Now, many individuals are investing in the peak markets for various reasons. But, the decision to invest in peak is coming with the specific risks. This means that not all the investments are working well; rather you may lose some money. Without any risk, you will get no chance to earn the best returns that can greatly helps to develop your health. Some of the reasons to invest in the peak are,

  • Achieve independence and self-determination
  • Earn money on your money
  • Help causes important to you
  • Leave a legacy to your heirs

Investing in the Cambodia real estate agent

When it comes to investing in Cambodia, there are some positive and negative aspects of property. Regardless of your outlook on the future’s cost, denominating your property in a greenback is much better than several other Asian currencies. Some of the neighborhoods in Cambodia let the foreigners to buy the soft title properties under their own name without even forming a company or finding a nominee.

There are lots of choices available to select from, so it can be a quite daunting task for choosing the best one. For this reason, you have decided to make an ultimate guide to buy the Cambodia property that helps you doing a property search depends on your needs. Below are some important things to consider while investing in the Cambodia property that includes:

Planning your purchase

In reality, there are plenty of reasons why many people need to have a property in the Cambodia. Some people are considered it as a worthwhile investment and others may simply need to live over there. But, if you are deciding to have a Cambodia property, it is much essential that you must definitely know your main purpose. Initially, you should start your property search and need to find what you are searching for:

  • Find the place where you need to purchase a Cambodia property
  • The type of property you are searching for
  • The number of bedrooms and bathrooms you want
  • The amount of money you are willing to invest

Condos That Are Near to MRT Stations

Get a detailed list of the best condos located at walking distance from MRT stations,

Cost matters a lot

On the other hand, the foremost thing you need to do in your Cambodia property buying is getting your money ready. When you are buying a property, having extra costs is normal. If you are relocating to anywhere, you must think carefully about how would you going to supply your requirements, once you have arrived over there. First of all, you need to understand the percentage of currency exchange and it considerably affect your property’s cost is much essential. Therefore, understanding it in advance will also be an added benefit for you. Below are some of the useful financial ideas to consider that include:

  • Monthly installment
  • The total amount of money you have to purchase a property
  • If you buy with home loan, make sure how much would be your monthly payments and also how many pledges will you require
  • The money that is associated with buying a property

Currency exchange

For every buyer or investor, the currency exchange is an essential thing to consider, particularly at the end stage. Finding an inappropriate currency is not at all a big problem, because there are plenty of currency specialists available to provide a smooth as well as a safe procedure and the companies are controlled by the financial conduct authority in the UK. In any one of these ways, when you buy a Cambodia property, most of them tend to commit two common mistakes such as they are paying too much than the actual amount and they do not lock their money rate sufficient in a buying process.

Buying costs in the Cambodia

The buying costs of Cambodia properties are not as high as you might think. In fact, if they need to sell their property, the local agency in Cambodia charges around 3% commission in order to take care of the whole selling process. On the other hand, the tax rates are very low. Despite the fact, they have been rising for the investment property and then extra 3% stamp duty for all the investments and properties as well.

Ongoing money of having Cambodia property

Management fee

When you buy an apartment or a property in Cambodia, you would need to include the management fees within your budget. This management fee will completely base on your property. Usually, you have to pay around 8% to 12% management fee. In recent years, the amount has been increased.

Insurance

When you are buying a Cambodia property that has a bank loan, your lender will guide you to have a building insurance to cover the structure of your property against the flood, fire and other major damages.

Easy buying process

Before you are making a deal on the specific property investment in Cambodia, you can make sure to confirm that the mortgage lender can lend you money. If you wish to make your property buying process a lot simpler, you just take a look at these steps given below:

  • Receive a mortgage in principle
  • Search for a solicitor to help
  • Report and home survey
  • Making a bid
  • Agreeing to your building contract
  • Completing the final step

Pros of buying a Cambodia property

When you are planning to buy a Cambodia property, there are some advantages for you that include:

  • Stable rental yield
  • Historic low conversion rate
  • Easily establish the country
  • Loan financing up to 70%
  • Low interest rate from 3.5 to 4.5

·      Find the rental management that comes with a package

Conclusion

Therefore, the Cambodian investors are tending to invest in the larger cities. This is mainly because of the best tradition as well as education. In the smaller cities, the speculators are ensured that the costs of property will rapidly increase. It not only that, but also, you will absolutely find a property with the best rental yield. Hope, this ultimate guide to Cambodia property investment 2018 will surely helps for every reader and also helps in hand on finding the best property in Cambodia.

 

Let’s Start Something new Say Hello!

Excepteur sint occaecat cupidatat non proident, sunt in culpa qui officia deserunt mollit laborum. Sed ut perspiciatis unde omnis.

Summary
Review Date
Reviewed Item
This is very effective guide for me, however i want to invest property in Cambodia and this article is help me to buy a property on Cambodia with full guide line.
Author Rating
51star1star1star1star1star
error: Content is protected !!