Kuroneko wrote: ↑Fri Dec 24, 2021 10:04 am

phuketrichard wrote: ↑Fri Dec 24, 2021 8:12 am in a few years there will be a massive amount of empty /for sale condos and the prices for resale will drop.
better putting ur $$ in Prasac at 7.25 % return.

Exactly right, Ten years ago I was going to buy a new condo, but in the end I ended up renting fully furnished and serviced. In retrospect it was the best deal. All maintenance and replacements are included in the rent, and looking round there are a lot of nice condos now at good prices that would make my place a unattractive sale option. Buying a condo here is like buying a new car and expecting to sell it at a much higher price ten years later than you originally paid for it.

mannanman wrote:

Kuroneko wrote: ↑Fri Dec 24, 2021 10:04 am

phuketrichard wrote: ↑Fri Dec 24, 2021 8:12 am in a few years there will be a massive amount of empty /for sale condos and the prices for resale will drop.
better putting ur $$ in Prasac at 7.25 % return.

Exactly right, Ten years ago I was going to buy a new condo, but in the end I ended up renting fully furnished and serviced. In retrospect it was the best deal. All maintenance and replacements are included in the rent, and looking round there are a lot of nice condos now at good prices that would make my place a unattractive sale option. Buying a condo here is like buying a new car and expecting to sell it at a much higher price ten years later than you originally paid for it.

So how much is that condo worth now?

Bitte_Kein_Lexus wrote: ↑Fri Dec 24, 2021 8:10 pm

mannanman wrote:

Kuroneko wrote: ↑Fri Dec 24, 2021 10:04 am

phuketrichard wrote: ↑Fri Dec 24, 2021 8:12 am in a few years there will be a massive amount of empty /for sale condos and the prices for resale will drop.
better putting ur $$ in Prasac at 7.25 % return.

Exactly right, Ten years ago I was going to buy a new condo, but in the end I ended up renting fully furnished and serviced. In retrospect it was the best deal. All maintenance and replacements are included in the rent, and looking round there are a lot of nice condos now at good prices that would make my place a unattractive sale option. Buying a condo here is like buying a new car and expecting to sell it at a much higher price ten years later than you originally paid for it.

So how much is that condo worth now?

Likely much higher. If truly ten years ago, then he's making stuff up to make himself feel better about not pulling the trigger, or it was a really bad condo in a bad area or something. Truth be told, condos ten years ago weren't that great though. I'd say investing in the right condo is worth it.

rogerrabbit wrote: ↑Fri Dec 24, 2021 9:16 pm

Bitte_Kein_Lexus wrote: ↑Fri Dec 24, 2021 8:10 pm

mannanman wrote:

Kuroneko wrote: ↑Fri Dec 24, 2021 10:04 am

phuketrichard wrote: ↑Fri Dec 24, 2021 8:12 am in a few years there will be a massive amount of empty /for sale condos and the prices for resale will drop.
better putting ur $$ in Prasac at 7.25 % return.

Exactly right, Ten years ago I was going to buy a new condo, but in the end I ended up renting fully furnished and serviced. In retrospect it was the best deal. All maintenance and replacements are included in the rent, and looking round there are a lot of nice condos now at good prices that would make my place a unattractive sale option. Buying a condo here is like buying a new car and expecting to sell it at a much higher price ten years later than you originally paid for it.

So how much is that condo worth now?

Likely much higher. If truly ten years ago, then he's making stuff up to make himself feel better about not pulling the trigger, or it was a really bad condo in a bad area or something. Truth be told, condos ten years ago weren't that great though. I'd say investing in the right condo is worth it.

This. Also up to 2018/19 the rents were pretty high in PP. With 1br unit in a good location you could easily get $1000/month. If you bought 10 years ago, you probably could have make big proportion back in first 5 years if not the whole investment.

Edit. Here is actual real life example with facts instead of opinions. The first L Residence condo on Street 440 in Toul Tompong area. Back in 2014 studio units sold for under 40k (33k on lower floor and 40k on highest floors. From 2014 to 2019 long term rents in that building were around $500. Occupancy in the building was 90%. Now days realistic rent imo is $200-250 (though I see some people are still asking even $450). The building still has very high occupancy.

In that building there are few airbnb units. In this example unit last 12 months occupancy rate was 71% with average daily rate of $29. 260x29 = $7540 / year.



So if you rented long term first 5 years you made 11*5*500 = $27500. Since then if you have been doing short term rental $15080. So total in 7 years $42580 with an $36500 investment. That is 16.66% ROI. Of course in this calculation I didn't take account cost of running airbnb but I did calculate long term with 11 months / year only to count some long term expenses and unoccupancy. So the real ROI is slightly lower but still it's pretty great.

Cooldude wrote: ↑Fri Dec 24, 2021 11:10 pm As an annualized return, it's around a 2.5% ROI during a period when banks and MFIs were offering 8% ROI on a one year term deposit with absolutely zero headaches of managing a property.

Bitte_Kein_Lexus wrote: ↑Fri Dec 24, 2021 9:50 pm I don't think "easily get 1k" is realistic, especially averaged out over the course of ten years. Still, say it cost 50k ten years ago, and instead he rented out for $400/m, that's 48k down the drain that was never invested. The condo would essentially be paid for by now, even if you factor in 5% for repairs or whatever. That's not even counting the appreciation of the condo's worth.l obviously Reading it again, I'm now assuming he only lives here one or two months per year, which in that case maybe makes a bit more sense. Still an odd statement to say real estate won't go up, especially in a place like Cambodia. The risk is obviously higher as a foreigner, but that goes for any investment.