Should I buy a condo in Cambodia??
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Re: Should I buy a condo in Cambodia??
Personally in a country like Cambodia I wouldn’t buy any condo being priced over a 1000 USD the sqm. So that kinda limits the options.
Re: Should I buy a condo in Cambodia??
In the West the extremely low interest caused a bubble in almost everything, including real estate. Here there are other causes.clutchcargo wrote: ↑Fri Sep 10, 2021 2:24 pm . Contrast that with many western countries where prices of real estate have gone through the roof and arguably expensive and could be due for a correction. OTOH some may say for example that prices in PP were already too high to begin with before covid so I dunno. Nevertheless, I do think there's a lot of potential for growth longer term here.
Re: Should I buy a condo in Cambodia??
@AndyKK you misunderstand...foreigners can only own 70% of the total space in a Strata Titled condominium building... not 70% of the individual apartment.
- Bitte_Kein_Lexus
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Re: Should I buy a condo in Cambodia??
If you need to save for years for a downpayment and then STILL need a 10 year mortgage, I'd say just rent.
Ex Bitteeinbit/LexusSchmexus
Re: Should I buy a condo in Cambodia??
Thank you for clearing that up for me, I had totally misunderstood the percentages and who owned what. I suppose on the other hand that would mainly fall into place with foreigners not being able to own ground level. But why is it so, that foreigners are not treated on the same level when making such an investment, and how does it benefit the Cambodians?
Always "hope" but never "expect".
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Re: Should I buy a condo in Cambodia??
IMO it's a question of LAND - and the idea that Cambodian land (should?) belong to Cambodians, not foreigners. Anyway, that's how I see the reasoning behind the strata title laws. They want the investment and the money from foreigners, and someone has to buy all these new condos and development projects. Cambodians are not going to buy them all. So, keep the land and sell off the condos - win-win, as they say.AndyKK wrote: ↑Sat Sep 11, 2021 1:19 amThank you for clearing that up for me, I had totally misunderstood the percentages and who owned what. I suppose on the other hand that would mainly fall into place with foreigners not being able to own ground level. But why is it so, that foreigners are not treated on the same level when making such an investment, and how does it benefit the Cambodians?
However, the rules are not the same if you have astronomical sums to invest. That's a whole different game.
- newkidontheblock
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Re: Should I buy a condo in Cambodia??
Those with astronomical sums to invest are often granted Cambodian citizenship. No further pesky rules that discriminate against foreigners to deal with.
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Re: Should I buy a condo in Cambodia??
Well my thought is that if I live in the apartment out here I'll be able to live in it saving me money on rent. I've also found some places with 0% down payment.Bongmab69 wrote: ↑Fri Sep 10, 2021 10:47 am I was thinking about the same for much time, bus as nobody really told me: thats a good idea, buy one overhere, i did it my way: Bought in Spain a seaside condo (cheaper then in PP) and rent that-one, from the money i make overthere, i rent something in PP. Spanish buiding is shit also, but probably better then PPs. And its 100% on my name (but also in spain, be carefull with that). Its only 2h flight away from my homecountry, can go anytime, no visa needed (i am not UK). Other 2 questions, whats the interest rate in PP at the moment, i have seen strange things before, it looked cheap, but later i found out they speak in % per month, and not per year !! And working on-line, you need a special visa for that ?? in fact i am running my bussiness also online, can do it from any-place in the world, but officially i am registered and pay taxes in my home-country. In Spain for example, my spannish bank ask me every 2 year a copy from the pesonal-tax-bill i receive in my country, to make sure i dont have to pay it in Spain, if not in time, they just block my bank-account (the governement), and thats very normal overthere !! ??
I was considering getting a place in Spain / Portugal. You say you rent it out and make a return high enough to fund your rent out here??
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Re: Should I buy a condo in Cambodia??
Hmmm that's a point. But once I own an apartment outright it becomes passive income for life assuming I can rent it out....Kammekor wrote: ↑Fri Sep 10, 2021 11:09 am600$ per month will rent you a decent condo, put 600$ more in the bank monthly @ 6% and you wont end up with a condo but with about 100k worth of savings and freedom.Doc67 wrote: ↑Fri Sep 10, 2021 11:03 amKammekor wrote: ↑Fri Sep 10, 2021 10:52 amYes, it's common to advertise interest per month on loans, so be careful. Interest rates here are extremely high compared to the West, for savings as well as loans.
If you can get 6-7% on your savings, you can make an estimated guess how much they will charge you for a mortgage loan.Now I looked into it and it looks like I could get a place and pay off the mortgage within 10 years
Every $100,000 borrowed @10% on a 10 year repayment loan will cost him $1321 a month. And $150,000 (assuming a $50k deposit) wont get much of a condo in anywhere decent in PP.
https://edfinancial.com/TOOLS/Loan-Repayment-Calculator
Thing is do I do that in a more stable country and rent it out while renting here.
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Re: Should I buy a condo in Cambodia??
Well to clarify on a few points. I've got a girlfriend I plan to settle down with....but am not stupid enough to get a place in her name. I'm a credible teacher out here and plan to stay for years to come.....so if I'm renting anyway surely buying a place saves me from renting which is just dead money. I'm happy to just live in it with the hope that further down the line I will be able to rent it out if I plan on moving or re-investing.clutchcargo wrote: ↑Fri Sep 10, 2021 2:24 pm I'm not sure whether the OP intends this for investment or to live in, or whether he meant living first and then rent out later. I think it matters a lot what the intent is for the OP's decision making.
Personally, I'm generally not a fan of condos and units pretty much anywhere. Unless they are exclusive or rare, they mostly make lousy investments relative to house and land..I found out the hard way from experience. Over time buildings depreciate whilst land generally appreciates. Technically, altho not in KOW, you own only a fraction of the land with a condo. But, unfortunately that is the only way to invest in your name in KOW as a foreigner unless you use other dubious 'loophole' methods to buy other types of property.
OTOH Warren Buffett once said that it is wise for investors to be “fearful when others are greedy, and greedy when others are fearful” and when there is so much doom and gloom around here with pandemic restrictions, businesses closing and no tourists, now might logically be a very good time to drive a hard bargain and snap up a great deal. But boy, I reckon you'd have to do a lot of research around real estate values in the areas you intend to buy. I presume you can't look up a register online of previous sales as you might in another country. Contrast that with many western countries where prices of real estate have gone through the roof and arguably expensive and could be due for a correction. OTOH some may say for example that prices in PP were already too high to begin with before covid so I dunno. Nevertheless, I do think there's a lot of potential for growth longer term here.
The other thing I'd be wary of is that you pretty much don't have long term certainty about residency here. You are a guest in the country and cannot become a permanent resident. If the authorities decide to crack down on the visas and associated extensions for foreigners that could be a deal breaker. Depends on your situation though coz myself being a retiree with a good source of income from my home country and not a burden on society lol, I daresay I may have more surety than most but still an issue as far as committing money investments here imo.
So far I think I've found some places that actually have 0% down payment. So I move straight in and start paying a mortgage. Failing that I can get a 10 percent mortgage and realistically have the money ready by mid/end of 2022.
My main thought is now, if I want back onto the property ladder, do I invest here and live in it saving me on rent. Or buy a place in Europe, rent it out, and have a nest egg ticking away elsewhere.
Really need to take some serious thought here because I would hate for it to all fall to shit and have a worthless apartment and no savings.
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