Element6 wrote: ↑Thu Nov 23, 2023 1:15 pm

armchairlawyer wrote: ↑Thu Nov 23, 2023 12:27 pm Hong Piv claimed to have paid $5,648,376 to buy the homes back from 458 customers and added that the number will continue to grow.

This is about $12.3k per buyback, which I first thought was low. However, on an $80k house with 50% remaining to pay, it represents a 78% valuation, which is very generous (very speculative calculations, I know)

If you can get 50% of your house value back after a repossession, I think you are doing very well.

I could imagine that many locals get in to this situation and protest not realizing that most of the payments they have made would have gone to interest and not equity reduction. The same like many poor unfortunate individuals in many countries

rogerrabbit wrote: ↑Thu Nov 23, 2023 2:19 pm

Doc67 wrote: ↑Thu Nov 23, 2023 9:49 am

Alex wrote: ↑Thu Nov 23, 2023 8:50 am

Earl of Mercia wrote: ↑Thu Nov 23, 2023 12:36 am

Alex wrote: ↑Wed Nov 22, 2023 10:02 pm

How do you know that a condo unit in Phnom Penh - or this particular condo unit in Phnom Penh - is and will continue to be an appreciating asset?

From what I've seen, I have my doubts. I'd rather rent in Phnom Penh and invest elsewhere.

Because I’m an International Financial Adviser how about you,how do you know it isn’t please qualify your credentials?

You're a financial advisor who cannot even spell "advisor" and you're asking ME for my credentials? Take a hike.

While I don't trust self-proclaimed experts on anonymous internet forums, which has served me very well, I know that I can trust my own eyes. I've stayed at several "high-end" condos that were already starting to fall apart a few short years after construction and are lacking some features that would be considered essentials elsewhere. That many condos are ghost towns (including the one we're discussing here, by the OP's own account) doesn't exactly instill me with confidence either.

He hasn't even factored in the opportunity cost of tying up $50k in a PP Condo. Such as putting your $50k in Prasac @ 8%, which yields $4000pa, which after 6% tax, pays out ~$313 per month, every month, on the dot.

If Prasac is too risky for you (yet a PP condo isn't?) then you can ~4/5% in USD in one of the big banks in Singapore.

How do you live at Prasac? I thought the adviser was talking about living in unit himself. Are you able to rent your "dream" apartment with $313 / month in Phnom penh?

Anyways 4%-5% in Cambodian rental market is considered very weak. It should be minimium of 10% really. In most cases you are looking 12%-15%.

Tootsfriend wrote: ↑Fri Nov 24, 2023 7:48 am In the short terms properties will go up and will go down, but if you look at them over the longer period and average them out they will always go up. My view on condo's is they are a very bad investment from whichever way you look at them.

One property in Takhmau I bought 10 years ago has increased from $70,000 to around $150,000 now, which is an increase of $8,000 per year.

The other property in PP bought 16 years ago has increased from $145,000 to $600,000 or more, an yearly increase of about $28,000 per year. and over the same time as returned my original investment in the way of rent.

One property in Australia bought 22 years ago for A$ 200,000 is now worth $600,000 [ as the identical property next door sold 18 months ago for $585,000 ] A yearly increase of $18,000.

Of the other 9 properties I have bought / sold in NZ / OZ in my lifetime, I have only lost money on one and that was due to a divorce.

rogerrabbit wrote: ↑Thu Nov 23, 2023 9:06 pm

Tax for rentals is 14% for foreigners and 10% for locals. Capital gains tax (20%) you pay if you sell your unit and get profit from it.

Kammekor wrote: ↑Fri Nov 24, 2023 9:19 am

rogerrabbit wrote: ↑Thu Nov 23, 2023 9:06 pm

Tax for rentals is 14% for foreigners and 10% for locals. Capital gains tax (20%) you pay if you sell your unit and get profit from it.

I looked it up, and you're right, 10% is what I was quoted by an accountant last Sept.