So after living in Cambodia for two years I've decided south east Asia is for me. But being from the uk.....I can't own land

So if I can own a condo, my plan is, to save my pennies until I have enough for a deposit, HOPEFULLY be able to get a mortgage, and get the ball rolling on being a property owner.

Now I looked into it and it looks like I could get a place and pay off the mortgage within 10 years......my thoughts are, once I own it I could rent it out, keep it as a holiday home, or maybe sell it and upgrade.

Now if I plan on living in it I'm not too worried about it depreciating because I'll want it for the long-term. I just want to know what the risks are. Should I maybe consider doing the same thing but in Thailand or Vietnam?? The visa process is so much easier here I'm thinking Cambodia is a good choice, are the neighbouring countries a better idea??? I work online so I can take my work anywhere really so I don't HAVE to buy here. I've become quite accustomed to this country now, I can see myself sticking around.

Thanks in advance for the advice!! Surviving in this country has been a little easier thanks to the words of wisdom on this site, hopefully you'll be able to save me from making a shit investment also

i might be wrong, but how would you get a mortgage being a non Cambodian in Cambodia?

I know for Thailand you cant get one unless your employed, paying tax's, holding the correct visa and even than you need a local to co sign and most banks still wont give ya one. working "online" i am sure you dont have the correct visa

having built and owned a home in Thailand an building now in Cambodia i can tell ya,
RENT unless u have a local family ( wife, kids)

phuketrichard wrote: ↑Fri Sep 10, 2021 8:15 am i might be wrong, but how would you get a mortgage being a non Cambodian in Cambodia?

I know for Thailand you cant get one unless your employed, paying tax's, holding the correct visa and even than you need a local to co sign and most banks still wont give ya one. working "online" i am sure you dont have the correct visa

having built and owned a home in Thailand an building now in Cambodia i can tell ya,
RENT unless u have a local family ( wife, kids)

Also isn't the whole "own a condo" thing based on a loophole in the law?
As with many other things in this part of the world, I wouldn't put more money into something like that than I could afford to part with.

when buying a condo there are many things you have to consider.

1. Location & surroundings.
A newer, higher, larger condo might be build next to yours an a few years.
Infrastructure around your condo. Amount and quality. The beautiful lake you see from your window most probably won't be there in five or ten years.
Exposition. Power use will highly depend on the exposition of your condo. Build quality is also a factor.

2. Build quality
Sometimes hard to determine. I find many condo's deteriorate really fast, maintenance is non existent making five year old buildings sometimes look much older. What's the quality of the wall separating the condo's? Some condo's can be quite noisy. The lay-out of condo's can be quite silly too, with a wet toilet after you shower, a fan blowing wet air from your bathroom into your living room, or just in in the ceiling, a kitchen without decent extractor hood connection etc etc. Can you open the windows?

3. Maintenance and fees
Cambodian buildings look great, when new, but degrade very fast. What are the fees? Who manages the funds? What is the money spent on?

4. Facilities
How is the power supply, is there a back up? How much will you pay for your power? Is the water pressure OK? Are there facilities in case of a fire? A decent stairway, sprinklers? Fire trucks probably won't be able to reach beyond the 8th floor or so. Parking space?

5. Title
Make sure you buy a condo which you can own in your own name, and not through some shady construction which I am sure the seller, the middleman and some acquaintances of yours will consider 'safe'.

6. Mortgage
Why would you want a mortgage? Did you check for the interest rates in Cambodia? If you can't pay for it out of your own pocket, maybe forget it.

7. Renting out....
To legally rent out your condo you'll have to wade to Cambodian bureaucracy. Be careful what you wish for.

I am sure there's quite something to add to this initial list.

'The bridge' is considered one of higher quality condo's around. Book a room in the Bridge hotel, will cost you about 30 bucks, and stay in one of those rooms for one day. Look for good and bad qualities. Then think again.

Don't do it to yourself. Rent, and always be ready to leave at short notice.

Bongmab69 wrote: ↑Fri Sep 10, 2021 10:47 am 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

Yes, 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.

Kammekor wrote: ↑Fri Sep 10, 2021 10:52 am

Bongmab69 wrote: ↑Fri Sep 10, 2021 10:47 am 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

Yes, 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

If you need mortgage then probably you are better off renting. Interest rates are way too high here and it might be difficult to get mortgage. There is no law that foreigner cannot get mortgage but usually banks here don't give loans to foreigners. Some developers have deals with banks and when buying condo there is a chance they are ok with it though. But usually they do require that you have a job here and your visa etc permits are done correctly.

If you don't need mortgage then fine. Just find a good deal in a great location. Cities are growing so you can still get a place with a decent price in good location that hold value in long run due to it's location. Properties don't appreciate same way here as they probably do back in home. Usually it's other way round, the value most likely decreases unless your property is in great location.

Kammekor had good points. Though renting out legally is not hassle at all.

Doc67 wrote: ↑Fri Sep 10, 2021 11:03 am

Kammekor wrote: ↑Fri Sep 10, 2021 10:52 am

Bongmab69 wrote: ↑Fri Sep 10, 2021 10:47 am 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

Yes, 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

600$ 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.