Buying Vs Renting apartments in PP

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Tombain51
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Buying Vs Renting apartments in PP

Post by Tombain51 » Mon Mar 04, 2019 3:51 pm

I guess the first question is - can foreigners buy apartments and if so what about ground floor like the ground floor of a shop-house? Then what about the pros and cons of renting Vs buying? which way is better?
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timmydownawell
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Re: Buying Vs Renting apartments in PP

Post by timmydownawell » Mon Mar 04, 2019 3:54 pm

Foreigners can only legally buy condos in strata developments. There are (unconstitutional) ways around it though. And there are so many thousands of apartments currently under construction it might not be a wise investment.
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Re: Buying Vs Renting apartments in PP

Post by cptrelentless » Mon Mar 04, 2019 4:08 pm

You can't buy the bit touching the dirt, or the dirt itself, so no ground floor. As to the pros and cons, how long are you planning on staying? There's a bit of a housing bubble going on, if you play it right you could make a fair amount of cash. How much faith do you have in China?
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Re: Buying Vs Renting apartments in PP

Post by Tombain51 » Mon Mar 04, 2019 4:23 pm

If I buy it would most likely be "forever" rather as an investment as such but a little capital appreciation wouldn't go amiss as plans do sometimes change!
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Re: Buying Vs Renting apartments in PP

Post by clutchcargo » Mon Mar 04, 2019 4:56 pm

Tombain51 wrote:
Mon Mar 04, 2019 4:23 pm
If I buy it would most likely be "forever" rather as an investment as such but a little capital appreciation wouldn't go amiss as plans do sometimes change!
When I reflect on what's happened in just the last 6 years for example...the pace of change, development, attitudes, the chinese etc I'm not sure whether I will necessarily want to live here in another 6 years on. Hence, I'm somewhat reluctant to make any big real estate purchase decisions..especially as it's not cheap anymore in PP..renting you at least keep your options open.

Also, will they tighten down more on foreigner visas in the future as the thais have done?

You might want to reconsider 'forever' depending on your circumstances.
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armchairlawyer
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Re: Buying Vs Renting apartments in PP

Post by armchairlawyer » Mon Mar 04, 2019 5:01 pm

timmydownawell wrote:
Mon Mar 04, 2019 3:54 pm
Foreigners can only legally buy condos in strata developments.
Correct. And they must have been constructed after the law permitting this was introduced in 2009. Buying an upper floor of anything else gets you only the right of possession, not ownership. This is not necessarily a problem as many units have been bought and sold on this basis. A while back it became a problem in Daun Penh, presumably in order to stimulate demand for all the new condos being built in PP.
In the early years after 2009 condos had a very high value compared to the rest of the market (due to their scarcity). The differential has been reducing over time and with all the construction going on, it may well reduce a lot further.
Most successful land purchases by barangs seems to have been based on happy marriages to trustworthy Khmers.
A small number of barangs have purchased citizenship but I believe the price for that has gone up a lot since those guys bought.
Tombain51
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Re: Buying Vs Renting apartments in PP

Post by Tombain51 » Mon Mar 04, 2019 5:45 pm

I like your comment >>>happy marriages to trustworthy Khmers" Trouble is I've been bitten before and once bitten twice shy! You just never know what might happen further on down the road as I've learned the hard way.
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Re: Buying Vs Renting apartments in PP

Post by gaplem » Mon Mar 04, 2019 7:01 pm

All overpriced compared to what you can buy in Thailand.
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Re: Buying Vs Renting apartments in PP

Post by explorer » Mon Mar 04, 2019 7:30 pm

You would get better value for money in Australia.

Also, in Cambodia a lot of people get scammed. In Australia, laws are enforced.
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Re: Buying Vs Renting apartments in PP

Post by pczz » Mon Mar 04, 2019 7:57 pm

Tombain51 wrote:
Mon Mar 04, 2019 4:23 pm
If I buy it would most likely be "forever" rather as an investment as such but a little capital appreciation wouldn't go amiss as plans do sometimes change!
You can only nuy a condo in strata development now. Condos generally do not appreciate becaue when you want to sell there will be a new cheaper one with all new stuff in it. Juat look at Bangkok and Pattaya. The only way to make money is to flip them wuick, within 3 years and do something secial.
In Thailand there is a lot of old stuff you can pick up cheap to flip but here its nuts.
For example in Barnsley in uk you can but a 2 bed house for about the prce of a condo here and get 1-% rental return.
bear in mind these blocks have no sink fund and few residents. One over the chiners bridge ups the maintenance charges with monotonous regularity. Just wait till place needs decorating or lifts replaceing.
I suspect buying a condo as a westerner in Cambodia is probably a slower way of losing money that buying a bar, but just as effective
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