Buying Vs Renting apartments in PP

Ask us anything. Cambodia Expats Online has a huge community of long-term expats that can answer any question you may have about life in Cambodia. Have some questions you want to ask before you move to Cambodia? Ask them here. Our community can also answer any questions you have about how to find a job or what kind of work is available for expats in Cambodia, whether you're looking for info about Phnom Penh, Siem Reap, or anywhere else in the Kingdom. You're also welcome to ask about visa and work permit questions as well, as the immigration rules change often, especially since COVID-19. Don't be shy, ask CEO's community anything!
Funflyer
Expatriate
Posts: 86
Joined: Sun Feb 03, 2019 10:55 am
Reputation: 21
Australia

Buying Vs Renting apartments in PP

Post by Funflyer »

I guess the first question is - can foreigners buy apartments and if so what about ground floor like the ground floor of a shop-house? Then what about the pros and cons of renting Vs buying? which way is better?
User avatar
timmydownawell
Expatriate
Posts: 3626
Joined: Tue Mar 22, 2016 12:50 pm
Reputation: 1454
Cambodia

Re: Buying Vs Renting apartments in PP

Post by timmydownawell »

Foreigners can only legally buy condos in strata developments. There are (unconstitutional) ways around it though. And there are so many thousands of apartments currently under construction it might not be a wise investment.
You must walk in traffic to cross the road - Cambodian proverb
User avatar
cptrelentless
Expatriate
Posts: 3033
Joined: Wed Jul 01, 2015 11:49 am
Reputation: 565
Location: Sihanoukville
Korea North

Re: Buying Vs Renting apartments in PP

Post by cptrelentless »

You can't buy the bit touching the dirt, or the dirt itself, so no ground floor. As to the pros and cons, how long are you planning on staying? There's a bit of a housing bubble going on, if you play it right you could make a fair amount of cash. How much faith do you have in China?
Funflyer
Expatriate
Posts: 86
Joined: Sun Feb 03, 2019 10:55 am
Reputation: 21
Australia

Re: Buying Vs Renting apartments in PP

Post by Funflyer »

If I buy it would most likely be "forever" rather as an investment as such but a little capital appreciation wouldn't go amiss as plans do sometimes change!
User avatar
Clutch Cargo
Expatriate
Posts: 7740
Joined: Mon Mar 26, 2018 3:09 pm
Reputation: 5999
Cambodia

Re: Buying Vs Renting apartments in PP

Post by Clutch Cargo »

Tombain51 wrote: Mon Mar 04, 2019 4:23 pm If I buy it would most likely be "forever" rather as an investment as such but a little capital appreciation wouldn't go amiss as plans do sometimes change!
When I reflect on what's happened in just the last 6 years for example...the pace of change, development, attitudes, the chinese etc I'm not sure whether I will necessarily want to live here in another 6 years on. Hence, I'm somewhat reluctant to make any big real estate purchase decisions..especially as it's not cheap anymore in PP..renting you at least keep your options open.

Also, will they tighten down more on foreigner visas in the future as the thais have done?

You might want to reconsider 'forever' depending on your circumstances.
User avatar
armchairlawyer
Expatriate
Posts: 2490
Joined: Sat Aug 29, 2015 1:43 pm
Reputation: 1503
Cambodia

Re: Buying Vs Renting apartments in PP

Post by armchairlawyer »

timmydownawell wrote: Mon Mar 04, 2019 3:54 pm Foreigners can only legally buy condos in strata developments.
Correct. And they must have been constructed after the law permitting this was introduced in 2009. Buying an upper floor of anything else gets you only the right of possession, not ownership. This is not necessarily a problem as many units have been bought and sold on this basis. A while back it became a problem in Daun Penh, presumably in order to stimulate demand for all the new condos being built in PP.
In the early years after 2009 condos had a very high value compared to the rest of the market (due to their scarcity). The differential has been reducing over time and with all the construction going on, it may well reduce a lot further.
Most successful land purchases by barangs seems to have been based on happy marriages to trustworthy Khmers.
A small number of barangs have purchased citizenship but I believe the price for that has gone up a lot since those guys bought.
Funflyer
Expatriate
Posts: 86
Joined: Sun Feb 03, 2019 10:55 am
Reputation: 21
Australia

Re: Buying Vs Renting apartments in PP

Post by Funflyer »

I like your comment >>>happy marriages to trustworthy Khmers" Trouble is I've been bitten before and once bitten twice shy! You just never know what might happen further on down the road as I've learned the hard way.
gaplem
Expatriate
Posts: 75
Joined: Fri Aug 03, 2018 1:53 am
Reputation: 3
Singapore

Re: Buying Vs Renting apartments in PP

Post by gaplem »

All overpriced compared to what you can buy in Thailand.
explorer
Expatriate
Posts: 2417
Joined: Sat Apr 14, 2018 9:37 pm
Reputation: 768
Australia

Re: Buying Vs Renting apartments in PP

Post by explorer »

You would get better value for money in Australia.

Also, in Cambodia a lot of people get scammed. In Australia, laws are enforced.
## I thought I knew all the answers, but they changed all the questions. ##
pczz
Expatriate
Posts: 3204
Joined: Sun Mar 22, 2015 1:00 pm
Reputation: 807
Location: phnom penh
Great Britain

Re: Buying Vs Renting apartments in PP

Post by pczz »

Tombain51 wrote: Mon Mar 04, 2019 4:23 pm If I buy it would most likely be "forever" rather as an investment as such but a little capital appreciation wouldn't go amiss as plans do sometimes change!
You can only nuy a condo in strata development now. Condos generally do not appreciate becaue when you want to sell there will be a new cheaper one with all new stuff in it. Juat look at Bangkok and Pattaya. The only way to make money is to flip them wuick, within 3 years and do something secial.
In Thailand there is a lot of old stuff you can pick up cheap to flip but here its nuts.
For example in Barnsley in uk you can but a 2 bed house for about the prce of a condo here and get 1-% rental return.
bear in mind these blocks have no sink fund and few residents. One over the chiners bridge ups the maintenance charges with monotonous regularity. Just wait till place needs decorating or lifts replaceing.
I suspect buying a condo as a westerner in Cambodia is probably a slower way of losing money that buying a bar, but just as effective
Post Reply Previous topicNext topic
  • Similar Topics
    Replies
    Views
    Last post

Who is online

Users browsing this forum: Doc67, ExPenhMan, Phazor11387, Zyzz and 339 guests