Buying Land in the Province

Provincial living: homesteading, farming, gardening, self-efficiency and animal husbandry.
bittermelon
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Re: Buying Land in the Province

Post by bittermelon » Tue Jan 01, 2019 9:18 am

"Many foreigners who have bought real estate in Cambodia have paid more than they should have. If you get a Cambodian to negotiate for you, they normally get a secret commission, so the price may be higher."

Yeah, I work with a Cambodian Kiwi. I had just read that 7000-17000 thing you posted earlier and got talking about land to him- he told me pretty much the same thing- unprompted. Sure people will say, "no problem with that that's capitalism etc" which is true. But for me it's definitely worth knowing so that one could try and cut out the middleman.
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clutchcargo
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Re: Buying Land in the Province

Post by clutchcargo » Tue Jan 01, 2019 9:51 am

Many foreigners who have bought real estate in Cambodia have paid more than they should have. If you get a Cambodian to negotiate for you, they normally get a secret commission, so the price may be higher.

I heard of one place where the seller got $7000, the buyer paid $17000, and $10000 was commission.
I guess it depends whether you trust your khmer negotiator to be working for your interests or not.

On the other hand, if you cut the middle man out, aren't you open fodder anyway to be ripped off as a barang?
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Kammekor
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Re: Buying Land in the Province

Post by Kammekor » Tue Jan 01, 2019 9:54 am

explorer wrote:
Tue Jan 01, 2019 9:09 am
bittermelon wrote:
Tue Jan 01, 2019 5:57 am
Does anybody have any idea regarding current land prices. I gather they have gone up everywhere.
Prices have gone up.

Some real estate in Cambodia is more expensive than real estate in Australia.

The bubble will burst one day. I dont know when.

Prices vary from place to place. You need to look at each place on its merits. Compare a number of different places.

Many foreigners who have bought real estate in Cambodia have paid more than they should have. If you get a Cambodian to negotiate for you, they normally get a secret commission, so the price may be higher.

I heard of one place where the seller got $7000, the buyer paid $17000, and $10000 was commission. There are laws against this in Australia.

Land in Cambodia is sometimes sold by the lineal meters of frontage. Not by the square meter. But you can convert.
10000 USD commission over a 7000 USD sale seems a bit steep. 5-10% is more common I think. When I bought the land for my house in the province I paid 3.200 USD and the commission was 100$.

In the provinces it's very common to sell by the meter of the front, but this doesn't mean they will sell just a part. It's just a way of displaying the price.

In major towns land prices are outrageous now. For instance in my town in Ratanakiri for a 20 x 40 m plot the price can be over 400k usd. While the plot is in the center of town, on the large scale of things it's still an extremely remote place, with pretty difficult access to the rest of the world. For that price you get very little people passing by, a so so road, no access to clean water, no access to electricity, no access to some kind of sewage system...... How people think they will ever be able to start a profitable business on that piece of land other than selling it with a profit is beyond me.
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Re: Buying Land in the Province

Post by explorer » Tue Jan 01, 2019 9:58 am

bittermelon wrote:
Tue Jan 01, 2019 9:18 am
"Many foreigners who have bought real estate in Cambodia have paid more than they should have. If you get a Cambodian to negotiate for you, they normally get a secret commission, so the price may be higher."

Yeah, I work with a Cambodian Kiwi. I had just read that 7000-17000 thing you posted earlier and got talking about land to him- he told me pretty much the same thing- unprompted. Sure people will say, "no problem with that that's capitalism etc" which is true. But for me it's definitely worth knowing so that one could try and cut out the middleman.
If a foreigner goes to buy land, the seller will normally ask a much higher price. So you are also likely to get ripped off doing the deal yourself.

When I meet Cambodians who have bought land and built a house, I often ask them how much they paid for it. This may give you a better idea. Many Cambodians build a brick house for around $10000. This is often a bit smaller than a foreigner may want.

I suggest comparing several different blocks. The price of more than one may be inflated.

Maybe get a Cambodian to inquire about the price initially, so they dont know it is for a foreigner, but not be involved in the deal. They may still negotiate a commission.
## I thought I knew all the answers, but they changed all the questions. ##
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Kammekor
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Re: Buying Land in the Province

Post by Kammekor » Tue Jan 01, 2019 10:00 am

clutchcargo wrote:
Tue Jan 01, 2019 9:51 am
Many foreigners who have bought real estate in Cambodia have paid more than they should have. If you get a Cambodian to negotiate for you, they normally get a secret commission, so the price may be higher.

I heard of one place where the seller got $7000, the buyer paid $17000, and $10000 was commission.
I guess it depends whether you trust your khmer negotiator to be working for your interests or not.

On the other hand, if you cut the middle man out, aren't you open fodder anyway to be ripped off as a barang?
If you are really interested in buying land, you should spend some time around the place. At least a few days.
Since prices of sales are not recorded in a central place you will have to ask around about past sales prices. Most locals are pretty aware of the current prices of land, and you will need to make sure you get access to the info before even thinking about making an offer.

You should also make sure you are fully aware what the actual status of the land is. In Ratanakiri for instance it's not uncommon people have been using state land for a while, and they were never abandoned until now. If they put the land up for sale you can buy it but you will never become the legal owner. The village chief will happily hand over a soft title in return for a decent fee from the seller, but that's hardly providing you with any protection.

The status of the land is local knowledge available too. Ask around.
explorer
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Re: Buying Land in the Province

Post by explorer » Tue Jan 01, 2019 10:04 am

clutchcargo wrote:
Tue Jan 01, 2019 9:51 am
I guess it depends whether you trust your khmer negotiator to be working for your interests or not.
A Cambodian who you may know well, who is very kind and helpful, who you genuinely trust, may still get a secret commission. It is normal to do that type of thing in Cambodia.
## I thought I knew all the answers, but they changed all the questions. ##
bittermelon
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Re: Buying Land in the Province

Post by bittermelon » Tue Jan 01, 2019 10:23 am

I guess a "soft title" is something like a "right to occupy" in N.Z. Not really legally enforceable- just depends on goodwill of the seller?
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Re: Buying Land in the Province

Post by timmydownawell » Tue Jan 01, 2019 10:30 am

bittermelon wrote:
Tue Jan 01, 2019 10:23 am
I guess a "soft title" is something like a "right to occupy" in N.Z. Not really legally enforceable- just depends on goodwill of the seller?
1) HARD TITLE:

Hard title is the strongest form of property ownership in Cambodia and the best Cambodia Land Title.
Hard titles are an ownership certificate provided by the Land Management and Planning office.
Hard titles contain detailed information that has been duly recognised and certified at a national level with the Ministry of Land and a cadastral office.
A Transfer tax of four percent applies when a hard title transaction occurs.

2) SOFT TITLE:

Soft title is the most common form of ownership and the most commonly issued Cambodia land title.
It is a Cambodian land title that is recognised at the local government level.
Soft titles are provided by the local Sangkat or District office and are not registered at a national level – but are still considered a possessory status.
The majority of property transactions still occur with soft titles to avoid ownership transfer taxes and fees.
However, most new major development projects are being transacted with hard titles as these are the most durable Cambodia land title.

https://www.realestate.com.kh/guides/ca ... d-for-all/
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Re: Buying Land in the Province

Post by Barang chgout » Tue Jan 01, 2019 11:40 am

If a foreigner goes to buy land, the seller will normally ask a much higher price. So you are also likely to get ripped off doing the deal yourself.
...

If a foreigner goes to buy land, he will find he can't because he's a foreigner....

FTFY!

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