Realestate bubble
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Re: Realestate bubble
pauladams wrote: ↑Mon May 14, 2018 3:32 pm I’ll be honest I’ve not actually thought about it. I don’t personally get involved in the technical side that much. I’m just the front man. Get the deal done! (Which isn’t that hard to be fair)
Personally I’d imagine because of the current upward trend people are less adverse to risk so I’d say it just personal choice. That will change.
My colleague deals with that side of things as I’m not a lawyer and my Chinese isn’t as good as his, especially in the technical side, and he’s from PRC!
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Make hay while the sun shines
- lostjeremy
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Re: Realestate bubble
We didn't buy a home here for quite a few years because I kept telling myself the bubble is gonna go boom.
We went ahead and bought/built a place about 6 months ago.
Now we are already getting multiple offers of 20%-40% more than what we paid. Partly because theres a rumor that Aeon Mall #3 will be built nearby in the next 5-7 years.
I have investment properties outside Cambodia and we bought the place to be our home, not as an investment but if the offers keep rising I may start considering them.
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We went ahead and bought/built a place about 6 months ago.
Now we are already getting multiple offers of 20%-40% more than what we paid. Partly because theres a rumor that Aeon Mall #3 will be built nearby in the next 5-7 years.
I have investment properties outside Cambodia and we bought the place to be our home, not as an investment but if the offers keep rising I may start considering them.
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- Duncan
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Re: Realestate bubble
Your problem is, although you may get 20 to 40% more than you paid for it, you will find when you look for something else you like they will have also gone up 50 % more.lostjeremy wrote: ↑Mon May 14, 2018 7:10 pm We didn't buy a home here for quite a few years because I kept telling myself the bubble is gonna go boom.
We went ahead and bought/built a place about 6 months ago.
Now we are already getting multiple offers of 20%-40% more than what we paid. Partly because theres a rumor that Aeon Mall #3 will be built nearby in the next 5-7 years.
I have investment properties outside Cambodia and we bought the place to be our home, not as an investment but if the offers keep rising I may start considering them.
Sent from my CPH1605 using Tapatalk
One solution is only buy properties the you can not only live in, but can also get a return from,, whether that be by rent or a business.
Cambodia,,,, Don't fall in love with her.
Like the spoilt child she is, she will not be happy till she destroys herself from within and breaks your heart.
Like the spoilt child she is, she will not be happy till she destroys herself from within and breaks your heart.
- lostjeremy
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Re: Realestate bubble
Not a problem for me...Duncan wrote:Your problem is, although you may get 20 to 40% more than you paid for it, you will find when you look for something else you like they will have also gone up 50 % more.lostjeremy wrote: ↑Mon May 14, 2018 7:10 pm We didn't buy a home here for quite a few years because I kept telling myself the bubble is gonna go boom.
We went ahead and bought/built a place about 6 months ago.
Now we are already getting multiple offers of 20%-40% more than what we paid. Partly because theres a rumor that Aeon Mall #3 will be built nearby in the next 5-7 years.
I have investment properties outside Cambodia and we bought the place to be our home, not as an investment but if the offers keep rising I may start considering them.
Sent from my CPH1605 using Tapatalk
One solution is only buy properties the you can not only live in, but can also get a return from,, whether that be by rent or a business.
I had zero plans on selling when we purchased.
I bought it to give my kids a nice home in a good area, not for business.
If I ever do sale it means we are leaving PP.
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- armchairlawyer
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Re: Realestate bubble
Glad to have your sympathy, but I'm not really involved since I would never do business from Cambodia.armchairlawyer wrote: ↑Mon May 14, 2018 8:50 pmMmm, yes. That will hurt a bit. You have my sympathy.
Maybe you can explain to me why Cambodia would choose to make imports from China at least 1% more expensive while the profit on exports will be 1% less. Because of the convenience of using the RMB? To please china? Why would a country voluntarily choose to do this? I am not even talking about the costs involved for all the banks, and the government, to make a conversion from the USD to the RMB in their systems.
- armchairlawyer
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Re: Realestate bubble
Again, I am putting forward Gave's view which I don't say is the only view, although I find it quite compelling. Dedollarisation is a political as well as an economic issue. Use of the dollar causes significant economic problems for China and understandably they want to switch away from it. Switching also suits China's geopolitical aims. China has the political and economic clout to pursue this policy in many parts of Asia (and elsewhere). As the dollar strengthens there will be more support for dedollarisation in Asia because of the problems that strength will cause. Fast forward a year or so, as the dollar weakens due to its loss of reserve currency status, dedollarisation will be a natural consequence of that loss of status. The costs to which you refer will diminish as the dollar stops being used. After all, the dollar is not an Asian currency, there is no reason for it to be used in Asia beyond lack of trust in other currencies.Kammekor wrote: ↑Tue May 15, 2018 7:51 am
Maybe you can explain to me why Cambodia would choose to make imports from China at least 1% more expensive while the profit on exports will be 1% less. Because of the convenience of using the RMB? To please china? Why would a country voluntarily choose to do this? I am not even talking about the costs involved for all the banks, and the government, to make a conversion from the USD to the RMB in their systems.
- armchairlawyer
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Re: Realestate bubble
Can you say to what extent buyers of condos and land are doing so with money borrowed from Cambodian banks? Or is it always cash in hand?
- frank lee bent
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Re: Realestate bubble
interesting thread
Re: Realestate bubble
Popular belief is the Chinese come with bags of cash but in reality that’s not practical. I personally deal with large value lots (Could be 1000 sq or 100,000 sq - both $1 million) and often a deposit is left 10% to 30%. The locals usually pay cash but the Asians bank draft, which is what we prefer.armchairlawyer wrote: ↑Tue May 15, 2018 8:17 pmCan you say to what extent buyers of condos and land are doing so with money borrowed from Cambodian banks? Or is it always cash in hand?
The locals always ask for the hard title before they’ve paid the total and always want to pay the minimum deposit - because they’ve often got buyers themselves lined up who want to see the hard title (which has caused issues, take the Serendipity Road plot (Top Cat, Ana Travel etc) as an example - and don’t have the cash themselves.
Asian (Chinese) drive hard bargains and are quite aggressive.
To answer your question; I’m not aware that non residents can get bank loans unless they have property which is not actually owned by them. If they have residency and assuming the cash to do it then they don’t need loans. China banks offer better rates than Cambodian banks on loans anyway.
Can’t say if locals do. It’s very hard to work out where they get their money from! One guy, who looks like a beggar (but drives a old shitty Lexus) paid cash and all the money was small denominations and old $!
He also owns a well know hotel downtown I believe which is occupied by barangs that I’ve heard he wants out but they are staying put!
Trouble is he doesn’t want to sell but rent so he’s screwed as they have a solid lease, and probably more liquid cash.
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