Hold or Sell

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Mojo
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Hold or Sell

Post by Mojo » Thu Jul 18, 2019 8:32 am

My Khmer wife and I bought place in a Borey Peng Huoth a few years back with the expectation we’d live there after I retired, which I expected to have happened by now. But life happens sometimes and after retiring from my last position, I was offered a job in Malaysia that was too good to refuse and is likely to continue for quite a few years.

I’m trying to decide if we should hold on to this place or sell it now and buy again later. There seems to be a lot of changes in the Kingdom, e.g. government less friendly, Chinese influx and so on, that makes me a wonder whether Cambodia will be a good option in 5-7 years. We were married in Singapore, so the marriage isn’t recognized in Cambodia.

I’m also concerned about the place being overbuilt and a real estate bubble bursting. I didn’t buy the place as an investment, but I don’t want to end up with something worth much less than I paid for it.

Understanding none of you have crystal balls, I’d still appreciate your opinions. Thanks.
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Duncan
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Re: Hold or Sell

Post by Duncan » Thu Jul 18, 2019 9:23 am

You haven't said if the place is empty [ which means its deteriorating cause no-one is maintaining it ] or rented out earning a return on your money. As the price of such properties go up, developers just build more and more at a much cheaper cost, so I have doubts that your property will go up much more in the years to come but in my 16 years here I have never seen any sign of property prices go down.
Aside from that, if you sold it , and after you have paid a R/Estate agent fees, government taxes and transfer fees , what would you do with the money to earn a return that would be better and safer than hiding it under your mattress.
Cambodia,,,, Don't fall in love with her.
Like the spoilt child she is, she will not be happy till she destroys herself from within and breaks your heart.
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phuketrichard
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Re: Hold or Sell

Post by phuketrichard » Thu Jul 18, 2019 9:31 am

IF, you dont need the money to buy something else, hold on to it
rent it out

I would imagine resale values on properties don't go up much as they keep building more properties and everyone wants something new, so little demand for older properties, unless the price is right
In a nation run by swine, all pigs are upward-mobile and the rest of us are fucked until we can put our acts together: not necessarily to win, but mainly to keep from losing completely. HST
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A10
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Re: Hold or Sell

Post by A10 » Thu Jul 18, 2019 11:18 am

Just my opinion, but as someone who has a place there (hi neighbor), we're not selling and hanging on to ours even though we don't plan on living there much longer (as in we're moving likely by the end of this month).

My reasoning is simple, if a middle class or richer Khmer person wants a cleaner decent community with some infrastructure in place and their own "plot of land", there's really only one option for them, and that's in a community like Peng Houth. It's not like there are other options for people to go to in other countries so even if the relative bubble pops, I don't see prices staying down anytime soon because of the massive clusterfuck that is Phnom Penh.

So as the massive influx of people trying to make things happen in the city begins to wear people to wits end and they want somewhere else to move, you're not going to have enough houses for them to buy into. There's very few "built" communities that actually function here, and even in front of our complex this morning the traffic was downright ridiculous (I couldn't get out onto NH1 for nearly an hour so I literally turned around and walked to work today), and since there aren't a ton of people planning ahead and creating communities that have useably big roads, zoning regulations etc., places like Peng Houth are going to be in very short supply in the near future and I only suspect the prices to move even higher.

My take, as an actual Borey owner.
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frank lee bent
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Re: Hold or Sell

Post by frank lee bent » Thu Jul 18, 2019 11:23 am

The bubble has already commenced to burst according to a source which cannot be named here.

It seems fraud of some 300 million is alleged against a major developer named today as under arrest.

Namely the director of Enarita Development.
davegorman
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Re: Hold or Sell

Post by davegorman » Thu Jul 18, 2019 12:26 pm

I don’t own property or land in KOW but I’ve noticed you get three opinions, which is why I’m not giving one.

Firstly, those, like me, who don’t own a condo/land and give perspective and reasons why you should and that inevitably contains the words “bubble” and “oversupply” etc.
Secondly, those who do own land/condo and will give some good arguments for and against, depending where it’s located and if, lucky you, you don’t need the cash. Which makes a huge difference to your views.
Thirdly, people in realty or in the process of selling. Don’t trust their opinion!
angkorjohn2
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Re: Hold or Sell

Post by angkorjohn2 » Thu Jul 18, 2019 1:21 pm

Mojo wrote:
Thu Jul 18, 2019 8:32 am
My Khmer wife and I bought place in a Borey Peng Huoth a few years back with the expectation we’d live there after I retired, which I expected to have happened by now. But life happens sometimes and after retiring from my last position, I was offered a job in Malaysia that was too good to refuse and is likely to continue for quite a few years.

I’m trying to decide if we should hold on to this place or sell it now and buy again later. There seems to be a lot of changes in the Kingdom, e.g. government less friendly, Chinese influx and so on, that makes me a wonder whether Cambodia will be a good option in 5-7 years. We were married in Singapore, so the marriage isn’t recognized in Cambodia.

I’m also concerned about the place being overbuilt and a real estate bubble bursting. I didn’t buy the place as an investment, but I don’t want to end up with something worth much less than I paid for it.

Understanding none of you have crystal balls, I’d still appreciate your opinions. Thanks.
Which of the BPH was it in? I'd say they are some of the better constructed places and more likely to hold their value. I sincerely doubt you would lose money as more and more infrastructure is being built near several of the BPH developments. If you are in no need to sell I would advise to hang on - you could even rent it out.
davegorman
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Re: Hold or Sell

Post by davegorman » Thu Jul 18, 2019 1:50 pm

Oops sorry about the link. Forgot.
Adam Xie
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Re: Hold or Sell

Post by Adam Xie » Thu Jul 18, 2019 3:17 pm

Just my opinion, for your kind of case, beside than economic factors, there is one critical thing you must consider: Is there a trust worthy person that can help you to look after your properties or not?
If you can find one, (for example your wife's good relative), you probably want to keep it and lease out to earn a monthly income, why, because:
1. Lease price expect to continues grow in next few years, because more and more Chinese is flowing in to Kingdom and they prefer to rent Villa than Condo (Condo leasing price is now crazy).

2. Reputation for Property in Borey PH is not bad, as PH is the Borey that has the best (or second best) landscape and green ratio in Cambodia, and their property team is doing good job for regular maintenance to public area, (but for interior will need your house keeper to check regularly)
But if you can't find one, better off selling it, because:
1. Your house may end up become some other person's property or being used for collateral for some loans from unlicensed loan provider (although property in borey usually has much better paper work than properties outside Borey, but things like this still does happen)
2. in the worst situation I can imagine , if whoever able to used your property for the loan and can't paid up the loan on time, your property may be ordered by court to transfer to the unlicensed loan provider in order to pay off the loan ( those unlicensed providers can always find their ways create document and bribe the court to make this thing happen)
3. PH property price has increased at least around 30% (some area even 50%) in last few years.
That’s all for my options, if any reference above is not correct, please share with me as well.
Adam Xie
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Re: Hold or Sell

Post by Adam Xie » Thu Jul 18, 2019 3:24 pm

About your marriage certificate, in my understanding, currently there is no law that allow government to issue marriage certificate to couples based on their marriage certificate obtained oversea.
Its different driving license.

In order to obtain an legitimate marriage certificate with your wife,you twoneed to go through the whole application process as you never married, after you pass the process, you will get an official marriage certificated issued by Cambodia Government.
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