Beach Resort Business for Sale in Saracen Bay on Samloem
- basta.binici
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Re: Beach Resort Business for Sale in Saracen Bay on Samloem
It may not make sense to your budget. Yet, if this is a big cost according to your business plan to develop 4 hectares land, then you shall alter that plan. Investors in Cambodia aren't thinking like you. Chinese investors are even paying a 5 months deposit (for 16th to 20th years of contract because general rule is to pay 1 month deposit for each year of land rental contract) more to complete it to 20 years. More than 90% of land tenants just ask if 15 years is possible. This includes developers of high rise office buildings.Kammekor wrote: ↑Sun Aug 16, 2020 11:34 amDoing major developments on a 16 year lease doesn’t make sense. Buildings are typically written off in 30 years of more. If you have to write it off in 16 years your costs will double, and I doubt the tax department will allow you to do so because your profit will be significantly reduced by this.basta.binici wrote: ↑Sat Aug 15, 2020 8:57 pm16 years is a big time and people can calculate that the cost of construction divided by 192 months is a cost just like a rent concerning the size of the land and development. So many buildings (especially hotels) in Sihanoukville are rented for 15 years. Even last years of these leases are sold at the end.armchairlawyer wrote: ↑Thu Aug 13, 2020 11:49 amTrue. The land is not for sale, however. It's just a lease. And btw, surely nobody would develop the site without owning the freehold or a lease a lot longer than 16 years?Dunderhead wrote: ↑Sat Aug 08, 2020 5:59 pm I think the owners of most of these land plots are probably very wealthy. As such the price will probably remain totally out of touch with the new reality (tourists are never coming back in large numbers) and there will never be a sale.
I was at Saracen Bay two weeks ago. It was lovely and quiet. Great time to visit. No hurry though, even the most optimistic Thai operators are saying 2022 at the earliest for any tourism recovery. There were plenty of boats, all small speedboats so you get there quickly. The main problem, there was nowhere to relax in the daytime except in the hot sun, maybe beach umbrellas are banned.
Maybe some non pro running a few wooden bungalows will be interested, but nobody With serious plans will give a 16 year lease even a second look.
Re: Beach Resort Business for Sale in Saracen Bay on Samloem
Must be a great way to launder money, building high rise office buildings on another person's land.basta.binici wrote: ↑Sun Aug 16, 2020 12:25 pm
It may not make sense to your budget. Yet, if this is a big cost according to your business plan to develop 4 hectares land, then you shall alter that plan. Investors in Cambodia aren't thinking like you. Chinese investors are even paying a 5 months deposit (for 16th to 20th years of contract because general rule is to pay 1 month deposit for each year of land rental contract) more to complete it to 20 years. More than 90% of land tenants just ask if 15 years is possible. This includes developers of high rise office buildings.
- basta.binici
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Re: Beach Resort Business for Sale in Saracen Bay on Samloem
It is about calculation of revenue vs expenses. Even renting the building with extra rent makes sense. The investors let individual offices or hotels or apartments or use the property for their business.Kammekor wrote: ↑Sun Aug 16, 2020 3:36 pmMust be a great way to launder money, building high rise office buildings on another person's land.basta.binici wrote: ↑Sun Aug 16, 2020 12:25 pm
Commercial spacre rent rates are high.
It may not make sense to your budget. Yet, if this is a big cost according to your business plan to develop 4 hectares land, then you shall alter that plan. Investors in Cambodia aren't thinking like you. Chinese investors are even paying a 5 months deposit (for 16th to 20th years of contract because general rule is to pay 1 month deposit for each year of land rental contract) more to complete it to 20 years. More than 90% of land tenants just ask if 15 years is possible. This includes developers of high rise office buildings.
- armchairlawyer
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Re: Beach Resort Business for Sale in Saracen Bay on Samloem
You gotta love the eternal optimism of realtors. Just remember who pays them!
Meanwhile CBRE produced a detailed report last month. They are putting as brave a face on the market as they can and, although they report downturns in almost every sector, it might be an idea to be cautious with their data on price and rental levels. Slide 54 is interesting. Kampot and Kep not as cataclysmic as everywhere else.
https://images.cbre.com.kh/2020/07/2020 ... e-Deck.pdf
Meanwhile CBRE produced a detailed report last month. They are putting as brave a face on the market as they can and, although they report downturns in almost every sector, it might be an idea to be cautious with their data on price and rental levels. Slide 54 is interesting. Kampot and Kep not as cataclysmic as everywhere else.
https://images.cbre.com.kh/2020/07/2020 ... e-Deck.pdf
- phuketrichard
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Re: Beach Resort Business for Sale in Saracen Bay on Samloem
52 u mean.
yea
kep & kampot are kicking ass
yea
kep & kampot are kicking ass
In a nation run by swine, all pigs are upward-mobile and the rest of us are fucked until we can put our acts together: not necessarily to win, but mainly to keep from losing completely. HST
- Powaline_Digi
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Re: Beach Resort Business for Sale in Saracen Bay on Samloem
Sorry lads, I withdraw my comment that Bini Binici is untrustworthy. Carry on.Freightdog wrote: ↑Sun Aug 09, 2020 10:51 pmIs this a troll type statement, or something that you can qualify?
If the former, then I’m sure it will end up where it deserves
- newkidontheblock
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Re: Beach Resort Business for Sale in Saracen Bay on Samloem
Give basta.binici a break. He is doing his job. Maybe on the wrong forum to advertise, but still, he’s got a good work ethic. And especially thick skin to survive the keyboard warriors on this forum.
But I liked the insight into the Chinese investing hordes.
Please share more about what the new masters are thinking in real estate investments.
But I liked the insight into the Chinese investing hordes.
Please share more about what the new masters are thinking in real estate investments.
- basta.binici
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Re: Beach Resort Business for Sale in Saracen Bay on Samloem
Thank you for your kind comments. Still getting used to it but so nice people around and I am glad to be here.newkidontheblock wrote: ↑Sun Aug 23, 2020 12:40 am Give basta.binici a break. He is doing his job. Maybe on the wrong forum to advertise, but still, he’s got a good work ethic. And especially thick skin to survive the keyboard warriors on this forum.
But I liked the insight into the Chinese investing hordes.
Please share more about what the new masters are thinking in real estate investments.
Be prepared for unique projects. Not just Chinese but also Western investors are looking for land and property at the beaches of Cambodia. The demand after corona is low as it is lower in every country but there are serious investors. On that level, investors nationality hardly matters. They are mostly after quick return on investment.
For beach zones: the target clients' economical level will rise up each year. Royal Sands hotel had high occupancy levels at belated Khmer new year holiday. For Chinese tourism, there is a data of last years which shows that the Chinese people going outside China each year will exceed the population of USA and Chinese tourists spend money much more than anoy other country's tourists at the same economical level.
Other projects include transferring some manufacture to Cambodia and use the port as the new hub.
For Phnom Penh. Definitely next Bangkok. I hope no highways that block the sunlight.
There are Japanese and Korean companies as well. Cambodia is a growing market with benefits. There is a high demand last years.
- xX.TROPA.Xx
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Re: Beach Resort Business for Sale in Saracen Bay on Samloem
That's good for you then, business must be booming!basta.binici wrote: ↑Sun Aug 16, 2020 12:25 pmIt may not make sense to your budget. Yet, if this is a big cost according to your business plan to develop 4 hectares land, then you shall alter that plan. Investors in Cambodia aren't thinking like you. Chinese investors are even paying a 5 months deposit (for 16th to 20th years of contract because general rule is to pay 1 month deposit for each year of land rental contract) more to complete it to 20 years. More than 90% of land tenants just ask if 15 years is possible. This includes developers of high rise office buildings.Kammekor wrote: ↑Sun Aug 16, 2020 11:34 amDoing major developments on a 16 year lease doesn’t make sense. Buildings are typically written off in 30 years of more. If you have to write it off in 16 years your costs will double, and I doubt the tax department will allow you to do so because your profit will be significantly reduced by this.basta.binici wrote: ↑Sat Aug 15, 2020 8:57 pm16 years is a big time and people can calculate that the cost of construction divided by 192 months is a cost just like a rent concerning the size of the land and development. So many buildings (especially hotels) in Sihanoukville are rented for 15 years. Even last years of these leases are sold at the end.armchairlawyer wrote: ↑Thu Aug 13, 2020 11:49 amTrue. The land is not for sale, however. It's just a lease. And btw, surely nobody would develop the site without owning the freehold or a lease a lot longer than 16 years?Dunderhead wrote: ↑Sat Aug 08, 2020 5:59 pm I think the owners of most of these land plots are probably very wealthy. As such the price will probably remain totally out of touch with the new reality (tourists are never coming back in large numbers) and there will never be a sale.
I was at Saracen Bay two weeks ago. It was lovely and quiet. Great time to visit. No hurry though, even the most optimistic Thai operators are saying 2022 at the earliest for any tourism recovery. There were plenty of boats, all small speedboats so you get there quickly. The main problem, there was nowhere to relax in the daytime except in the hot sun, maybe beach umbrellas are banned.
Maybe some non pro running a few wooden bungalows will be interested, but nobody With serious plans will give a 16 year lease even a second look.
- armchairlawyer
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Re: Beach Resort Business for Sale in Saracen Bay on Samloem
Why do you say he needs a break? The only poster who was rude, just withdrew his comment.newkidontheblock wrote: ↑Sun Aug 23, 2020 12:40 am Give basta.binici a break. He is doing his job. Maybe on the wrong forum to advertise, but still, he’s got a good work ethic. And especially thick skin to survive the keyboard warriors on this forum.
But I liked the insight into the Chinese investing hordes.
Please share more about what the new masters are thinking in real estate investments.
OTOH, we need to consider that someone might fall for Basta's rosy sales pitches and end up losing money. Like any realtor he is representing the seller and he is motivated to make his pitch accordingly. It's only right and proper that we challenge his statements where appropriate. The data I linked comes from another realtor who is not impartial either but is professional enough to present solid data, and it paints a much less rosy picture than does Basta.
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