Ultimate guide to Cambodia property investment 2018
Cambodia property investment Guide
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.
Why you should invest in Phnom Penh?
- 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
Phnom Penh rental yields
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.
Property purchase process in Cambodia- A foreigner’s guide to invest
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.
How much does cost for property taxes in Cambodia?
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
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.
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
The peak retail mall in Cambodia
- 10 year rental guaranteed
- 5 years mutual agreement
- 100% upfront payment discount
- Loyalty discount
Reasons to invest in the peak
- 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
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
Cost matters a lot
- 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
Buying costs in the Cambodia
Ongoing money of having Cambodia property
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.
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