$$$ SELLING CONDO CHEAP QUICK SALE $$$
- Earl of Mercia
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Re: $$$ SELLING CONDO CHEAP QUICK SALE $$$
Exactly I bought this Honda Click and have done 20,000 miles on it with my five kids doing the school run twice a day,now due to my wife’s gambling habits I can no longer afford the repayments can you buy it back off me for the price I paid you?Element6 wrote: ↑Thu Nov 23, 2023 1:15 pmThis 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)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.
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
- Earl of Mercia
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Re: $$$ SELLING CONDO CHEAP QUICK SALE $$$
Ok I won’t quote anyone here as I have better things to do than provoke arguments but…
Are there honestly people here that believe this apartment will be worth LESS than USD $50,000 in 8 years or thereabouts?
Are there honestly people here that believe this apartment will be worth LESS than USD $50,000 in 8 years or thereabouts?
- Earl of Mercia
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Re: $$$ SELLING CONDO CHEAP QUICK SALE $$$
Presumably your lodgings will be a sleeping bag on the riverside,as you rub your hands greedily watching the USD $313 roll in month after month?rogerrabbit wrote: ↑Thu Nov 23, 2023 2:19 pmHow 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?Doc67 wrote: ↑Thu Nov 23, 2023 9:49 amHe 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.Alex wrote: ↑Thu Nov 23, 2023 8:50 amYou're a financial advisor who cannot even spell "advisor" and you're asking ME for my credentials? Take a hike.Earl of Mercia wrote: ↑Thu Nov 23, 2023 12:36 amBecause I’m an International Financial Adviser how about you,how do you know it isn’t please qualify your credentials?
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.
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.
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%.
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Re: $$$ SELLING CONDO CHEAP QUICK SALE $$$
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.
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.
Re: $$$ SELLING CONDO CHEAP QUICK SALE $$$
It's all relative. Over time, all assets increase in value, including properties. The real trick is to find an asset suiting you, and your budget, to make some gains.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.
If you would have invested 1.800 USD in the S&P500 in Nov 2013 it would be worth 4.556 USD today, and you would have been the legal owner of the actual assets, not just the nominee or user of some legal construction to avoid Cambodian laws.
For now, despite the seller claiming he needs a quick sale, the legal ownership status of this property is still unknown, making it in-investable.
Re: $$$ SELLING CONDO CHEAP QUICK SALE $$$
I looked it up, and you're right, 10% is what I was quoted by an accountant last Sept.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.
- pissontheroof
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Re: $$$ SELLING CONDO CHEAP QUICK SALE $$$
Are there any other worthwhile investments here an old guy can do for a minor motherless child ?Kammekor wrote: ↑Fri Nov 24, 2023 9:19 amI looked it up, and you're right, 10% is what I was quoted by an accountant last Sept.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.
Now I got a fixed deposit in a joint named account for the little bugger but cambrodian rules say
cambrodians don’t have any rights to that kind of jazz until the age of 14 .
I tried to make him an appointment to join M’lop tapang when I die since he was born in sihanoukville
But they won’t do it and shirley they would give him back to his mom which would be terrible.
พิซออนเดอรูฟ ®
Re: $$$ SELLING CONDO CHEAP QUICK SALE $$$
I own a few properties and I struggle to see 10% p.a. return as real estate prices here are high compared to the spending power of most of the market.
A quick look on khmer24 rentals will show you a general trend of around 5% gross return which is very low compared to some other markets.
Perhaps my experience is distorted by largely owning landed properties rather than condos and apartments but even looking at condo rentals returns seem about the same.
In fact many landed properties do much worse. It is easy to find $2M -$3M properties renting for $5k to $10k. The flip side of this is capital gains on landed property have traditionally been much higher.
This is not to say 10% to 15% is not achievable but I don't think it is the norm
A quick look on khmer24 rentals will show you a general trend of around 5% gross return which is very low compared to some other markets.
Perhaps my experience is distorted by largely owning landed properties rather than condos and apartments but even looking at condo rentals returns seem about the same.
In fact many landed properties do much worse. It is easy to find $2M -$3M properties renting for $5k to $10k. The flip side of this is capital gains on landed property have traditionally been much higher.
This is not to say 10% to 15% is not achievable but I don't think it is the norm
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Re: $$$ SELLING CONDO CHEAP QUICK SALE $$$
Probably not, unless it collapses.Earl of Mercia wrote: ↑Fri Nov 24, 2023 1:16 am Ok I won’t quote anyone here as I have better things to do than provoke arguments but…
Are there honestly people here that believe this apartment will be worth LESS than USD $50,000 in 8 years or thereabouts?
But $50,000 certainly won't be worth anything like $50,000 is now in eight years.
- armchairlawyer
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Re: $$$ SELLING CONDO CHEAP QUICK SALE $$$
Yes exactly. Unless you are a genius like RogerR who can spot the 0.00001% of condos that produce a decent yield, don't buy a condo to rent out. Be very careful buying a condo to live in because of the incidental charges and costs and the massive oversupply.Element6 wrote: ↑Fri Nov 24, 2023 10:41 am I own a few properties and I struggle to see 10% p.a. return as real estate prices here are high compared to the spending power of most of the market.
A quick look on khmer24 rentals will show you a general trend of around 5% gross return which is very low compared to some other markets.
Perhaps my experience is distorted by largely owning landed properties rather than condos and apartments but even looking at condo rentals returns seem about the same.
In fact many landed properties do much worse. It is easy to find $2M -$3M properties renting for $5k to $10k. The flip side of this is capital gains on landed property have traditionally been much higher.
This is not to say 10% to 15% is not achievable but I don't think it is the norm
Also now is not a great time to buy anything but if you buy a nice piece of land at a reasonable price then sooner or later it will come good. Only problem is you have to use a nominee to buy it.
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