Best Asian Countries for 2020 Investments

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Best Asian Countries for 2020 Investments

Post by CEOCambodiaNews »

Best Countries to Invest in Asia for 2020
by Reid Kirchenbauer | Blog, Introduction
The other three countries on the list are Vietnam, the Philippines, and Indonesia.

Cambodia
Cambodia’s progress since the 1980s has been nothing short of amazing. Today, they’re one of Asia’s fastest growing economies – and one of the most business-friendly frontier markets on earth.

Foreigners face few restrictions in Cambodia. You can easily start a business and own 100% of it. Buying property in Cambodia is a solid investment choice as well, especially with real estate prices in Phnom Penh hovering around $1,000 per square meter.

That is practically unheard of in a capital city, let alone anywhere with an urbanization rate as high as Cambodia’s.

Our research, in fact, found only eight capital cities in the entire world where you can purchase freehold property at below $1,000/sqm. Cambodia’s capital of Phnom Penh joins cities such as Lagos, Nigeria and Karachi, Pakistan which remain far less developed in comparison.

Granted, Cambodia’s stock market is a very much a work in progress. It’s Asia’s smallest equity exchange with precisely five listed companies. You will find plenty of business and real estate opportunities here, but not much else.

It’s worth noting that Cambodia is highly dollarized, with the U.S. dollar being used for almost every major transaction.

We consider this a positive part of investing in Cambodia. Especially if you’re already holding dollars, since it removes any currency conversion fees that would normally come with buying assets in Asia.

Dollars are, generally speaking, less risky than the alternatives too. While the greenback does have a good number of critics, it’s still preferable to most exotic currencies in Asia. And almost certainly less risky than the Vietnamese Dong or Indonesian Rupiah.
https://www.investasian.com/2020/01/03/ ... asia-2020/
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Re: Best Asian Countries for 2020 Investments

Post by frizzie77 »

CEOCambodiaNews wrote: Sat Jan 04, 2020 12:36 pm real estate prices in Phnom Penh hovering around $1,000 per square meter.
Well, that alone gives an indication of how well-informed Mr. Kirchenbauer is. Where the hell did he get that figure from?
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Re: Best Asian Countries for 2020 Investments

Post by Kahuna »

Reid Kirchenbauer is the Founder of InvestAsian. He is among the world's foremost experts on frontier market investment and buying property in Asia.

According to his webiste, he is 28 year old former child actor from the USA who now runs a business in SE Asia. And you will be pleased to know the following Frizzie -
"I currently manage the world’s first and only frontier market property fund. That’s on top of a consulting service and InvestAsian.
Off the top of my head, I can quote you Cambodia apartment prices, help you open a brokerage account in Hong Kong from home, and give you Vietnam stock tips among many other things."

I think as you mentioned Frizzie his "finger on the pulse" re property per sq mr will see my dollars stay in my pocket.
It would be interesting to hear if anyone on the forum has heard of him or used his company before. If he's the world's only frontier marketing property fund then surely he is well known?
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Re: Best Asian Countries for 2020 Investments

Post by rogerrabbit »

Kahuna wrote: Sat Jan 04, 2020 10:34 pm Reid Kirchenbauer is the Founder of InvestAsian. He is among the world's foremost experts on frontier market investment and buying property in Asia.

According to his webiste, he is 28 year old former child actor from the USA who now runs a business in SE Asia. And you will be pleased to know the following Frizzie -
"I currently manage the world’s first and only frontier market property fund. That’s on top of a consulting service and InvestAsian.
Off the top of my head, I can quote you Cambodia apartment prices, help you open a brokerage account in Hong Kong from home, and give you Vietnam stock tips among many other things."

I think as you mentioned Frizzie his "finger on the pulse" re property per sq mr will see my dollars stay in my pocket.
It would be interesting to hear if anyone on the forum has heard of him or used his company before. If he's the world's only frontier marketing property fund then surely he is well known?
I have heard of him before. I think there has been some discussion about him / his website here before too. Not used his company but I do know his company owns some properties in Phnom Penh and I can believe his PP investments at least used to be profitable (and why not still be).
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Re: Best Asian Countries for 2020 Investments

Post by Doc67 »

rogerrabbit wrote: Sat Jan 04, 2020 10:56 pm
Kahuna wrote: Sat Jan 04, 2020 10:34 pm Reid Kirchenbauer is the Founder of InvestAsian. He is among the world's foremost experts on frontier market investment and buying property in Asia.

According to his webiste, he is 28 year old former child actor from the USA who now runs a business in SE Asia. And you will be pleased to know the following Frizzie -
"I currently manage the world’s first and only frontier market property fund. That’s on top of a consulting service and InvestAsian.
Off the top of my head, I can quote you Cambodia apartment prices, help you open a brokerage account in Hong Kong from home, and give you Vietnam stock tips among many other things."

I think as you mentioned Frizzie his "finger on the pulse" re property per sq mr will see my dollars stay in my pocket.
It would be interesting to hear if anyone on the forum has heard of him or used his company before. If he's the world's only frontier marketing property fund then surely he is well known?
I have heard of him before. I think there has been some discussion about him / his website here before too. Not used his company but I do know his company owns some properties in Phnom Penh and I can believe his PP investments at least used to be profitable (and why not still be).
He was trying to sell stakes in a property fund. Easy-in, but just try to get out of it!

This is him.... I think he might look a bit older now, but not much...

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Re: Best Asian Countries for 2020 Investments

Post by Mr.November »

I know of him and I am on his email shot list. And I don't think he is correct about Cambodian real estate, perhaps 10 years ago what he wrote was true with (prices $1000 per sq. meter), but today it's simply too expensive (purchase prices vs realistic rent). $2000+ per square meter is standard in Phnom Penh, and rents are $350 per month for an $80k apartment. This is not a good yield, especially that Cambodia is a developing nation. UK or Dubai both offer higher yields, why would anyone want to invest now in apartments in Cambodia is beyond me.

We operate a similar fund, in Mongolia, where we have been achieving a 22-25% net annual yield from rental for the last 3 years (22% in 2017, 24% in 2018, 28% in 2019). This type of fund is called a private REIT (Real Estate Investment Trust) where investors become shareholders of the company, which means also co-owners of the real estate that the company owns. We pay around $700-$800 per square meter in central locations of the capital city (Ulaanbaatar), buy only studios in new developments (up to 10 years old), refurbish them at a low cost to western standard and rent out/flip. Foreigners can own apartments, the same as in Cambodia. Just to give you a perspective to compare with Cambodia, we pay between $16,000 and $20,000 per studio apartment and rent them at $380-$430 per month. Refurbishment takes about $4000, tax on rent is 10%, and we have our own, small team of Mongolians operating in Ulaanbaatar that manage everything on the ground. We are currently looking for new investors to buy 2-3 more studios in the next 3 months.

The minimum investment is $25,000 (=1 apartment), we distribute returns (profits) quarterly by bank transfer, and we charge flat 10% as the management fee. The minimum time to lock funds is 1 year. To take the money out, we need 3 months' notice, so that we have the time to sell an apartment(s) at a good price or find an investor who will we transfer the shares to.

I don't do much PR as we have a limited capability to accept investors (we can buy/refurbish 2-3 at a time, and it takes approx. 3 months), and I see Reid Kirchenbauer also doesn't seem to be accepting investors... I wonder what his fund's returns for investors were in the last 3 years. Seems it's a secret.
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Re: Best Asian Countries for 2020 Investments

Post by pczz »

Mr.November wrote: Wed Jan 08, 2020 3:49 pm I know of him and I am on his email shot list. And I don't think he is correct about Cambodian real estate, perhaps 10 years ago what he wrote was true with (prices $1000 per sq. meter), but today it's simply too expensive (purchase prices vs realistic rent). $2000+ per square meter is standard in Phnom Penh, and rents are $350 per month for an $80k apartment. This is not a good yield, especially that Cambodia is a developing nation. UK or Dubai both offer higher yields, why would anyone want to invest now in apartments in Cambodia is beyond me.

We operate a similar fund, in Mongolia, where we have been achieving a 22-25% net annual yield from rental for the last 3 years (22% in 2017, 24% in 2018, 28% in 2019). This type of fund is called a private REIT (Real Estate Investment Trust) where investors become shareholders of the company, which means also co-owners of the real estate that the company owns. We pay around $700-$800 per square meter in central locations of the capital city (Ulaanbaatar), buy only studios, refurbish them at a low cost to western standard and rent out/flip. Foreigners can own apartments, the same as in Cambodia. Just to give you a perspective to compare with Cambodia, we pay between $16,000 and $20,000 per studio apartment and rent them at $380-$430 per month. Refurbishment takes about $4000, tax on rent is 10%, and we have our own, small team of Mongolians operating in Ulaanbaatar that manage everything on the ground. We are currently looking for new investors to buy 2-3 more studios in the next 3 months.

The minimum investment is $25,000 (=1 apartment), we distribute returns (profits) quarterly by bank transfer, and we charge flat 10% as the management fee. The minimum time to lock funds is 1 year. To take the money out, we need 3 months' notice, so that we have the time to sell an apartment(s) at a good price or find an investor who will we transfer the shares to.

I don't do much PR as we have a limited capability to accept investors (we can buy/refurbish 2-3 at a time, and it takes approx. 3 months), and I see Reid Kirchenbauer also doesn't seem to be accepting investors... I wonder what his fund's returns for investors were in the last 3 years. Seems it's a secret.
i cannot speak for Mongolia but many people have a caught a cold from this type of investment in the UK. The problem is liquidity.To pay out shareholders the properties need to be sold, and if a lot of shareholders bail at the same time then that is a lot of properties need selling in a hurry. Just do a quick scan of Rightmove, the main uk property website and see how many ex rental empty properties are being sold. This i think is mainly to dowith changes in taxation for landlords
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