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(The Ministry of Land Management, Urban Planning and Construction / Phan Soumy)What is a property title?A title or ‘deed’ is an official document confirming who owns the property, its location, and what rights the property owner enjoys. It should be noted that a significant percentage of land in Cambodia is not registered with the National Land Office and has no official land title certificate to secure the land on behalf of the owner.During the civil war period between 1975 and 1979, all Cambodian land title records were destroyed. This made any definitive proof of property ownership impossible after the war. A land law was passed in 1992 to establish the groundwork for land ownership, but it wasn't until its 2001 revision that allowed private ownership of land in Cambodia. The 2001 Land Law allowed for the creation of a land registry system enabling the issuance of Cambodia land titles. To date, over two million Cambodian land titles have been issued to citizens.Property ownership can now be secured by one of three forms of Cambodia land title: Hard title, Soft title, and Private Ownership in Co-owned Buildings – also known as Strata Title. In addition, an LMAP title is also now available.One of the most frequently asked questions is "Can foreigners own land or landed property in Cambodia?" The quick answer is No. The Cambodian Constitution prohibits foreign nationals from owning land and landed properties in the country.There are, however, indirect mechanisms of "ownership" such as the Nominee structure and Land concessions for development. Visit our guide to Property Ownership Mechanisms for Foreigners in Cambodia for more information.Hard Title in CambodiaHard titles are the most secure proof of property ownership and are considered the best Cambodian land title.Hard titles are certification of ownership provided by the Cambodian Land Management and Planning office. Hard Titles also include detailed information recognised and certified at a national level by the Ministry of Land and the Cadastral Office. It should be noted that a transfer tax applies when hard title transactions occur.A quick summary of what is a Hard Title in Cambodia:The Hard title is the strongest form of property ownership in Cambodia.In the rare occurrence that a disputed land has both a Hard Title and a Soft Title, the owner of the Hard Title will win the dispute.A Hard title is a land ownership certificate provided by the Land Management and Planning office.Hard titles contain detailed information that has been duly recognised and certified at a national level with the Ministry of Land and the concerned cadastral office.A Transfer tax of 4% per cent will be paid based on the total property value upon the facilitation of the Hard Title transfer.The facilitation of a Hard Title transfer usually takes up to 12 weeks.Foreign nationals are constitutionally prohibited from obtaining Hard Titles. By extension, this prohibits foreign nationals from owning land and landed properties in Cambodia.Soft Title in CambodiaA Soft Title is the most commonly issued Cambodian land title. The Soft Title, however, is only recognised at the local government level. Soft titles are provided at the local Sangkat or district office and are not registered at a national level.The Sangkat (commune) or Phum (village) chief will issue a letter of possessory rights, which refers to the right of “possession” of property. A person is in “possession” of the property when she/he physically occupies the property but is not the owner of the land as recognised by the authority.Although not as secure as a Hard title, they are still considered evidence of possession. Historically, many land transactions have occurred as soft titles to avoid transfer taxes and fees. However, most new major developments are being transacted with hard titlesA quick summary of what is a Soft Title in Cambodia:A Soft Title is the most common form of ownership and the most commonly issued Cambodian land title as the transfer taxes and fees are cheaper than a Hard Title.It is estimated that 85% of Cambodian property owners only have Soft Titles to back up their property claims.It is a Cambodian land title that is recognised at the local government level (Sangkats & Khans).Soft Titles are provided by the local Sangkat or District office and are not registered at a national level - but are still considered a valid legal document of ownership. Soft Titles are relatively cheaper and quicker to acquire for Cambodians.Estimated to take anywhere between 10 to 12 working days to process.Foreign nationals are prohibited from owning a Soft Title. By extension, this prohibits foreign nationals from owning land and landed properties in CambodiaCambodian Strata TitlePrivate ownership in co-owned (strata) buildings is a recently introduced form of property title that also allows foreigners to legally own property in Cambodia.Co-owned buildings or Strata-titled buildings are defined as buildings in which several owners reside, consisting of some parts that are the exclusive ownership of each co-owner (private units), and some other parts that are common spaces for the common use of co-owners (common areas).A quick summary of what a Strata Title in Cambodia is:A Strata Title is a special title commonly used for condo unit purchases that is available to both Cambodian nationals and foreign nationals.There are other mechanisms not necessarily involving a Strata Title available for property ownership for Foreign nationals which you can see in our investment guide.Strata Titles can only be granted if the property in question satisfies these criteria: Only applicable to buildings constructed in 2010 and beyond.Foreigners can only own 70% of the total surface area of the building or property.Strata Titles cannot be issued for properties on the ground floor and/or underground.Strata Titles cannot be issued for any property within 30km of the nearest land border.Private Ownership in co-owned buildings (also known as Strata Title) is the most recent form of ownership and allows foreigners to legally own property in Cambodia.Strata Title is a less common Cambodia land title, but the numbers issued are growing fast.Most new condo development projects offer this type of title to accommodate foreign demand to own property in Cambodia.The Law on Foreign Ownership’ was promulgated on 24 May 2010. This law limits foreign ownership to co-owned buildings. Foreigners still cannot own land, as it is unconstitutional.Strata Titles are issued by the Ministry of Land Management, Urban Planning, and Construction. This means Strata Titles are recognized on a national level.A Transfer tax of 4% percent will be paid based on the total property value upon the facilitation of the Strata Title transfer.LMAP Title in CambodiaTo improve land tenure security, a titling system called LMAP (Land Management and Administration Project) has been introduced in Cambodia.Based on official GPS coordinates, land plots are being registered throughout the country. Should an LMAP title exist for your property already, the borders have been agreed upon between neighbouring parties and are less prone to dispute.A quick summary of what is an LMAP Title in Cambodia:The LMAP Title is another property ownership title issued and recognised on a national level by the Ministry of Land Management, Urban Planning and Construction (MLMUPC) - along with the relevant cadastral offices.The main difference between the LMAP Title from a Hard Title is its inclusion of the exact GPS coordinates that determine the boundaries of the property in question.LMAP Titles can only be obtained on land that has been indexed on a cadastral map. So, if a plot of land has not yet been indexed, the LMAP Title cannot be issued for that property.If the MLMUPC is presently undergoing the necessary LMAP titling process in your village or area where you live, this means you only need to follow what your local authority informs you to do once the project is completed. It is their obligation to communicate with you.It is possible to own a Hard Title without an LMAP Title due to the above-mentioned limitation.A Transfer tax of 4% per cent will be paid based on the total property value upon the facilitation of the LMAP Title transfer.Foreign nationals are not permitted to own an LMAP title. By extension, this prohibits foreign nationals from owning land and landed properties in Cambodia.How to Transfer A Property Title in CambodiaWhen you purchase property or land in Cambodia, it is critical to obtain outright ownership in order to feel secure about your new asset. To complete the process for transferring land titles of ownership, there are particular steps that need to be followed, documents that need to be obtained, as well as the necessary consultations with relevant agencies.Step 1: Verify the title certificate with the relevant Land OfficeThe buyer will first need to verify the land title certificate with the Land Office at the Ministry of Land Management, Urban Planning and Construction (MLMUPC), to check for any debts or other claims to the property.This process requires:The buyer must obtain the original title certificate from the seller to verify their genuine ownership.The buyer will then verify the title certificate with the Land Office at the MLMUPC.The Land Office will inform the buyer if there are any liens (debts), mortgages, or other claims registered to that property.Relevant Government Agency: Land Office at MLMUPCEstimated time to completion: This takes approximately 10 days (should occur simultaneously to steps 2 and 3)Step 2: Obtain information on the propertyThe buyer must then obtain information on the property from the relevant Commune Council Official. This involves the buyer contacting the village chief or the Commune Council Official in which the property is located to obtain information about the land/property. In addition to this, an official search of the title should take place at the Khan/District Land Office.Relevant Government Agency: Commune Council (Relevant District/Khan office in your property’s area)Estimated time to completion: This should take approximately 10 days (we advise that this be done in parallel to Steps 1 and 3)Step 3: Obtain the certificate of incorporation and official documents from the sellerIf the landowner is a legal entity, the buyer must obtain;A copy of the ID of the shareholder, or person acting on behalf of the company.A certified/notarised copy of the Certificate of Incorporation of the seller’s company as issued by the Ministry of Commerce.Any other official documents from the seller relating to the company and the transaction.All of these documents are needed to verify the accuracy and identity of the company name appearing on the title certificate. Further documents needed to verify the seller’s authorisation to transfer the property to the buyer are;A special power of attorney.A Resolution signed by the Board of Directors from that company authorising the named individual (seller) to represent the company at the Land Office (MLMUPC).A power of attorney specifically stating that the seller can bring into effect that Resolution to transfer land titles of ownership to the buyer.Relevant Government Agency: Ministry of CommerceEstimated time to completion: This process should take around 10 days (should occur simultaneously with steps 1 and 2)Step 4: Apply for registration at the District Land Office (MLMUPC)When the buyer and seller, whether they are as an individual or a company wish to complete the property transaction, they must go together to the District Land Office at the MLMUPC to arrange, prepare, and sign the relevant documents.The documentation needed for this step is:The Company’s statute.The Company’s Certificate of Incorporation (obtained in Step 3).Both of the Power of Attorney documents (obtained in Step 3).The original Title Certificate held by the seller must be presented to the District Land Office at the time of signing the deed, in order to have the name of the new owner officially inserted on the document.Relevant Government Agency: District Land Office, MLMUPC (District Land Office of the Ministry of Land Management, Urban Planning & Construction)Estimated time to complete the step: This step takes between 20 and 30 days.Step 5: Pay transfer taxA transfer tax of approximately 4 per cent of the total value of the property is paid to the Ministry of Economy and Finance at the General Department of Taxation, in the district that the transferred property resides. A tax receipt is then issued to prove that the property transfer tax has been paid.In Phnom Penh, however, this tax is not assessed based on the true transacted value of the property; but, rather, based on a schedule of the price of property determined by the Phnom Penh Municipality. The assessed valuation by the Phnom Penh Municipality is based upon factors such as; the total number of square meters, the land’s location, use, potential use, and other variables.To put this quite simply the transfer tax is not based on the actual price of the land which is sold, which is usually the case, rather it is based on the assessed value made by the Phnom Penh Municipal office, which may be higher than the tax rates in other provinces.If the land is more than 1200 sqm, the surplus of the land will also be subject to “unused land tax.” For land less than 1200 sqm, the unused land tax is not applicable. The time for the General Department of Taxation to complete the calculation of transfer tax will depend on the location of the land and its size.Relevant Government Agency: General Department of TaxationEstimated time to complete the step: This process should take around 1 dayStep 6: Return to the cadastral office to complete the registration processAfter all relevant taxes are paid, the parties may return to the cadastral office at the District Land Office of the Ministry of Land Management, Urban Planning & Construction (MLMUPC) and sign/thumbprint an MLMUPC form for buying/selling real property, as filled in by MLMUPC official.The signing/thumbprinting must be witnessed by a local authority such as the commune chief, who will also give their thumbprint. These procedures are based on Land Law Articles; 65, 244 and 245. Land Law Article 69 bars the transfer of property unless all necessary taxes are paid. The documentation provided should include payment receipts of the transfer tax (obtained in Step 5).Step 7: Obtain the certificate of title from the Municipal Land OfficeObtain the certificate of title from the Municipal Land Office: The Khan/District land office forwards all the “transfer documents” to the Municipal Land Office where it issues the final Certificate of Title in the new owner’s name. It is now registered.Stay up-to-date on the real estate industry in Cambodia and get real-time updates on real estate news as they happen. Download the Realestate.com.kh App now!Article by:

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A guide for visiting Phnom Penh

June 6, 2022, 5:07 p.m.

A trip to Cambodia is unlike any other journey you’ve taken before. Every year, more than five million tourists visit “The Kingdom of Wonder.” In some ways, however, it’s still off the beaten path. For a closer look at the hard stats of tourism in the Kingdom, check out our Investment Guide 2019.As Cambodia’s capital and commercial centre, Phnom Penh receives the lion’s share of the country’s tourists. The city has shed its previously infamous reputation and is now a peaceful and welcoming country. To learn more about each of the capital’s districts, check out all of our Phnom Penh Location Profile.But, in general, here are your options for getting to Phnom Penh, staying here, and finding exciting things to do while you stay.How to reach Phnom PenhNo matter how long you decide to stay in Cambodia’s capital, you will probably arrive by air. The Phnom Penh International Airport, which is located some seven km from the city centre, is the Kingdom’s main airport. AirAsia has daily low-cost flights to Phnom Penh from Bangkok in Thailand, the Philippines’ capital of Manila, and Malaysia’s Kuala Lumpur. The budget carrier Jetstar Asia has a daily route connecting Phnom Penh and Singapore. Emirates and Qatar Airways both over services to the Middle East with stopovers. Direct flights to and from China are now nearly ubiquitous as well.If you’re looking for a more affordable way to traverse the region, bus services are often the best option. Giant Ibis, Phnom Penh Sorya Transport, Kumho Samco, and Capitol Bus are some of the companies offering routes around the region.Where to stayThe sheer amount of rooming options in the capital can be daunting. It can be easier to decide on a district first and find something there to suit your needs. When it comes to visiting Phnom Penh, knowing what districts and where they are can make your visit a lot more convenient!Daun Penh is one of the best districts to stay in as it is home to Wat Phnom, the Royal Palace, the National Museum, and tons of great riverside bars and restaurants. Chamkarmon is the other big area for tourist accommodations. BKK1, often referred to as Phnom Penh’s foreigner quarter is in Chamkarmon. Russian Market can be a great area to find affordable rooms, and Chamkarmon’s Tonle Bassac area has plenty of boutique hotels.Here are the basic types of accommodations you will find in Phnom Penh from most luxurious to most affordable:Luxury hotels in Phnom PenhThese hotels will offer everything you could hope for as far as amenities. Pools, spa facilities, drivers, and deluxe rooms are par for the course here. Raffles Le Royal, Sofitel Phnom Penh, and The Great Duke (formerly InterContinental Phnom Penh) are some of the big names in this category and would likely make your visit to Phnom Penh more comfortable. Rooms at this level will usually cost around $200 to $300 per night.Boutique hotels in Phnom PenhBuilding space in the city can often be limited. Because of that, many smaller boutique hotels have popped up over the last decade. Frangipani Living Arts Hotel & Spa, Plantation - Urban Resort & Spa, and Sun & Moon Urban Hotel are some well-known names in the boutique hotel industry.In this category amenities and prices and vary quite a bit. Many offer pools or rooftop bars. Some can be found for as little as $25 a night and some of the larger ones will have rooms closer to $100 per night. AirbnbWell-seasoned travelers will be familiar with Airbnb, the app that allows people to lease out empty rooms or even entire apartments to visitors. As of the writing of this article, there were more than 300 offerings in Phnom Penh on Airbnb. The average price for accommodations on the app is $60 per night, but places as cheap as $10 or as much as $550 per night are also on offer.Using the app can be beneficial if you are looking for specific features such as a pool, breakfast buffet, or included parking.GuesthousesMany budget guesthouses in Cambodia get a bad rap for their bare-bones offerings. Great places can still be found on a shoestring budget, however. A dorm-style shared room can easily be found for around $10 a night. Many places will offer private rooms as well and can range in price from $15 to $40 depending on whether you want air conditioning or just a fan. With most accommodations in Cambodia, it’s possible to simply walk in and get a room. It never hurts to reserve a room ahead of time, however.What to see and doIf you want to learn more about Buddhism during your visit to Phnom Penh, you'll be glad to know pagodas, or wats, are dotted around the city. Each offers something a little different as far as architecture or landscape. Wat Phnom is where most tourists pay a visit. The Silver Pagoda, adjacent to the Royal Palace is also worth a visit.History is also inescapable in Phnom Penh. The Tuol Sleng Genocide Museum and Choeung Ek Killing Fields are both must-see sites in the capital. Here you will learn all about the tragedies of the Khmer Rouge regime.The Royal Palace, National Museum, and Independence Monument are also spots that shouldn’t be missed. For those who want to architecture from the French colonial era, there is a guided tour of the best structures, including the General Post Office, Commissariat (Old Police Station), FCC Hotel, and Phnom Penh Railway Station.For the environmentally-minded, be sure to take a day to visit Tamao Rescue Center in nearby Takeo province. Tours there can be booked for $40 a person and include transportation.Shopping optionsWhile Bangkok may still hold the crown as Southeast Asia’s mall Mecca, Phnom Penh is catching up. Aeon Mall, the first of its kind in the country, now has a second location in the northern Sen Sok district and AEON Mall 3 in southern Meanchey district.Other shopping centres include Sorya Center, Makro Mall, Sovanna Shopping Center, Central Mall, and City Mall. For a taste of local shopping, check out Central Market, Russian Market, or O’Russey Market. If you’re looking for a Western-style convenience store, however, look for Super Duper, Lucky, or Circle K.Food and nightlifePhnom Penh has an excellent array of restaurants and other food establishments serving everything from local fares to Western dishes. Sovanna Restaurant is near Independence Monument and is a popular location for affordable Khmer food. Romdeng is good if you’re willing to spend a little more and eat elevated local dishes. Note, they also serve as a training restaurant for Cambodian youth.And the city won’t disappoint if you’re looking for vibrant nightlife, either. Small bars along street 308, dubbed “Bassac Lane”, usually attract the expat crowd. Alchemy Gastropub near Russian Market is another relaxing hangout.Looking for dancing and nightclubs? Head to the places along street 51 such as Pontoon, Heart of Darkness, or Reggae Bar where the tunes never stop. Don’t worry about getting hungry; the streets are full of carts selling late-night eats.Getting aroundThe traditional tuk-tuk is the most commonly available public transport option in the city. Most busy street corners will have a few parked waiting for customers. If you’re alone, single motorbikes, called motodops, are also willing to take you wherever you are going.Since negotiating prices for rides can cause stress, many people in the city are now using ride-hailing apps like Grab (Southeast Asia’s answer to Uber), its local competitor PassApp, or a new entry into the market, LM Cars - a car service app with a very professional setup. You can book anything from an autorickshaw to a van with these apps and the fare is already calculated. The city’s newly expanded bus routes run across the city, but can be difficult to navigate for tourists. Many adventurous travelers often choose to rent their own motorbike or bicycle so they can cruise around the city at their leisure. This isn’t for the faint of heart, however. City traffic can get a bit hairy, so ride at your own risk and always wear a helmet.EmergenciesCambodia does have respectable, international-standard hospitals and clinics. Most of these are found in Phnom Penh and include the government-run Calmette Hospital, Sunrise Japan Hospital, and the privately-operated Royal Phnom Penh Hospital, an affiliate of Thailand’s renowned Bangkok Hospital group.There are also numerous pharmacies and other establishments selling medicines around town. U-Care Pharmacy and Pharmacie De La Gare have the best reputations and are expat favourites.How many can say they experienced Cambodia?Realestate.com.kh is a site that focuses on the buying, selling, and renting of property. With that knowledge, however, we’ve got a unique perspective on what it’s like to live and even stay in the city temporarily. Cambodia is a country like no other in the world. The architecture, colours, and lifestyle don’t exist anywhere else. Because of that, a trip to the Kingdom is like no other trip you will ever take in your life.

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Can a foreigner buy land in Cambodia?

June 6, 2022, 10:52 p.m.

Realestate News

Foreign direct ownership of land is prohibited by Cambodian law. However, there are legal mechanisms that allow foreigners and foreign entities to indirectly own and operate land within the Kingdom.Brief History of Land Ownership in CambodiaPrivate ownership of land only became possible in 1992 when the Cambodian Government passed the land law. The local Sangkat issue Soft Title to Cambodians, which is not a full guarantee of ownership and has thus been being exchanged in favor of the nationally-recognized Hard Title.In 2001 the new Land Law came into effect, further strengthening an individual’s right to property ownership and since then, many changes have been made in order to accommodate a more dynamic market that would benefit the economy and the people.It may seem like a lot to take in, but talking about the land ownership law in Cambodia doesn’t always have to be a heavy topic. Here, Realestate.com.kh breaks down things you need to know to be able to invest inland.Since the redistribution of land in 1992, ownership of land can now be held in Cambodia by means of the different titles available. These include hard titles, soft titles, strata titles, and LMAP titles. These serve as official proof of ownership in the Kingdom. But what’s interesting about Cambodian land titles is that even if some titles are recognized nationally, some titles are also only recognized at the local government level.Foreign ownership mechanisms for land in CambodiaThe Land Law of Cambodia prohibits foreigners from directly owning property in the country except through a strata title. But strata titles for residential units are only usually made in co-owned buildings and not land. Fortunately, there are ways foreigners have been able to secure land in Cambodia.Via a Khmer nominee or licensed trust companyThis method will require foreign investors to “nominate” a person with Cambodian citizenship to be the legal owner of the land to be purchased. A ‘trust agreement’ will be formed between the two entities wherein the nominee will agree to hold the property in their name. This method is arguably the most common form of owning land for foreigners due to its straightforward approach and low associated costs. However, it is not a method advised if an investor does not have anyone they can trust to hold their investment.Alternatively, investors looking to go down this route can do so through a licensed trust company in Cambodia. In January 2019, the Royal Government of Cambodia promulgated the Trust Law (the “Trust Law”) strengthening the regime of trusts in the legal system which commenced in 2013. Trust companies allow foreigners to legally own land in Cambodia in their stead. This method is advised for investors who are looking for a licensed service provider liable to legal authorities.Forming a land holding companyA Land Holding Company (LHC) can be formed by a foreigner looking to buy land through a joint venture with a Cambodian. By law, the foreigner has to take up the minority stake up to 49% while the Cambodian partner takes up the majority stake at least 51%. This may seem like a significant caveat for a foreigner looking to go this route, but control of the LHC may fully be granted to the minority stakeholder (the foreigner) through company bylaws, special power of attorney, or other legal instrumentations.The only real drawback of this approach is the cost of registration fees, administration costs, and tax burdens levied on the company and property.Government concessionLand concessions are a means to owning property as a foreigner under an agreement with government authorities. This allows foreigners to legally occupy, utilize and exercise rights over the land in question.The Cambodian government usually grants these concessions through Economic Land Concessions (ELC) and are usually allocated for agricultural and industrial developments. These concessions can be extended through a long-term leasehold. Investors must apply for ELCs through the Ministry of Agriculture, the Council for the Development of Cambodia (CDC), and local provincial authorities will then approve the application after investigating the social and environmental effects of the concession.Once initial approvals have been met, the application will go to the office of the Prime Minister where it will be endorsed to the Ministry of Agriculture and become a formal concession agreement. This process may take anywhere from 6 to 9 months.Marrying a CambodianAnother straightforward way of owning land that is not too dissimilar to the previously mentioned nominee structure. Foreigners married to a Cambodian are allowed to purchase land in the Kingdom, however, the name on the land title will only have the Cambodian spouse's name.If you wish to marry a Cambodian, Realestate.com.kh advises you to consult the Cambodian embassy in your home country or consult your home country's embassy if you are already residing in the Kingdom.Becoming a Cambodian citizenThe land ownership laws of Cambodia make the right to own land in their name exclusive to Cambodian citizens. Fortunately, like most countries, it is possible for a foreigner to acquire a Cambodian citizenship, making it arguably the most direct, and consequently, most secure way of owning land in Cambodia. If you wish to pursue this route, you can check B2B Cambodia's guide below.How to obtain Cambodian citizenshipSo, What Kind of Title Do I Need to Get?Hard titles are the strongest type of proof of ownership. It’s given by the Land Management and Planning Office. It contains information that’s recognized by the Ministry of Land and the cadastral office at a national scale. A transfer tax of 4% is paid when a property with a hard title is sold.A Strata Title is also a form of a Hard Title but is most commonly given on newer developments. Strata title holds that foreigners are not allowed to acquire a grounded unit and that foreign ownership is limited to 70% of units in any co-owned building.Soft titles are the most common issued titles in Cambodia. It’s registered and only recognized at the local government level and given by the district office.Land Management and Administration Project Title are considered the safest kind of land title because it uses GPS to allocate land plots. This accurately shows the boundaries of purchased land.How Do I Know What Type of Title I Have?Soft titles typically refer to three documents that can show proof of ownership. These are the application for land occupation, a local government acknowledging the letter of transfer, or a simple private sale-purchase agreement.An application for land occupation is the request made by the possessor of land to the local authorities. A letter of transfer that’s acknowledged by local authorities is a document of transfer that the Chief has acknowledged and signed. While the simple private sale-purchase agreement is an agreement made only between the buyer and seller.Hard titles also refer to three certificate types. These are the Certificate of Land Use and Occupation Rights, Certificate of Immovable Property Possession, and the Certificate of Immovable Property Ownership.Certificate of Land Use and Occupation Rights are called “chicken feather titles” because it has an image of a feather printed on them. This refers to titles issued to owners before the enactment of the land law.The Certificate of Immovable Property Possession is given if the land registration was initiated by an owner in an area where the systematic land registration hasn’t been conducted yet by the government. This is known as “sporadic land registration”. This document usually doesn’t have the map of the property included.The Certificate of Immovable Property Ownership is given after a systematic land registration by the government. Unlike the Certificate of Immovable Property Possession, it has a map showing the land’s location and boundaries.If you are unsure of what the different property titles are, you can learn more in our guide to property titles.Guide to Property Titles in CambodiaWhat if I Want to Get a Hard Title For Security?In a recent breakfast meeting organized by Sciaroni & Associates, Sereyrath Kiri -- an associate of the firm -- saying that soft titles can be made into hard titles via a sporadic land registration. Kiri also mentioned that the cost to do so depends on the location and size of the property.How Do Foreigners Legally Protect Their Land Ownership?Locals may be more secure in just getting a Hard Title and avoiding scams. Foreigners, on the other hand, will need to deal with a few more security details for them to safeguard their land. But it’s not as complex as people think.When a property is owned through a Khmer nominee, foreigners should enter a nominee agreement with the Cambodian citizen. The Khmer nominees should also grant foreigners a long-term lease. A mortgage should be made and registered on the title. Foreigners should also hold the original title. To prevent any misunderstandings in the event of an accident or death, the nominee should also prepare a will or supporting documents.Should ownership fall on a landholding company, it is important to enter into nominee protection documents. The company should be required to grant the foreigner a long-term lease. Similar to the first scenario, a mortgage should be taken and registered on the title, and a will or supporting documents should also be prepared.Like most countries, laws in Cambodia continue to evolve to accommodate the demand of both local and international investors. So, knowing these things and keeping yourself updated may keep you from a whole lot of trouble in the future and even bring you a proper return of investment.Looking to buy land in Cambodia? Click here

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Overview of property taxes in Cambodia

June 7, 2022, 6:36 a.m.

Realestate News

Property Buyers & Sellers Advice

Gaining a basic understanding of property taxes in Cambodia is important for property owners, sellers, and buyers in the country. Knowledge of these important obligations will not only make transactions easier but also help everyone avoid unnecessary costs and penalties.This guide is designed to give you a basic understanding of obligations so you don’t go in blind into Cambodia’s ever-expanding property market!Overview of Property Taxes in Cambodia:Cambodia has a 0.1% Property Tax applied on Immovable PropertiesProperty Taxes must be paid every year around SeptemberProperties below $25,000 (100 Million KHR) are exempt from Property TaxAgricultural land, industrial, and state-owned lands are exempt from Property TaxLocal tax offices have a valuation matrix called the Tax Base for specific property types and sizes within their jurisdiction, this factors into the final Property Tax that has to be paid.How much is Property Tax in Cambodia?Property taxes in Cambodia are officially referred to as “Tax on Immovable Property” (TOIP) and levies an annual tax of 0.1% on properties that have a value of more than $25,000 (100 million KHR). The term “Immovable Property” includes plots of land, infrastructure on land, and buildings.NOTE: Properties valued under $25,000 are exempt from paying the Property TaxProperty Tax is generally calculated by the following formula:(80%*(tax base)-$25,000)*0.1% = Property TaxSample calculation:Mr. Ivanov owns a reinforced concrete building with 3 floors with each floor having 15m x 25m of floor size. Mr. Ivanov consulted with the Property Valuation Commission and retrieved the following Tax Base relevant to the property:Land price per sqm$1,000Ground floor per sqm$250First-floor per sqm$200Second-floor per sqm$150 Mr. Ivanov’s 3-storey building’s property tax can then be calculated like this:Land price25m x 40m x $1,000$1,000,000Ground floor15m x 25m x $250$93,750First-floor15m x 25m x $200$75,000Second-floor15m x 25m x $150$56,250 Tax Base of Mr. Ivanov’s property: $1,225,000. Let’s take this Tax Base and apply the Property Tax formula.(80%*($1,225,000)-$25,000)*0.1% = $955 will be the Property Tax Mr. Ivanov has to pay every year for his 3-storey building.What is a Tax Base and how is it calculated?A Tax Base is a price per square metre for a certain property type assessed by the Ministry of Economy and Finance. Here is a table of the Tax Base for properties located in Daun Penh, Chamkarmon, 7 Makara, and Toul Kork as of 2018:TAX BASE AS OF 2018TYPE OF BUILDINGPart of buildingBuilding age less than 10 years (USD/sqm)Building age over 10 years (USD/sqm)Reinforced concrete frameworkSemi-permanent structureCondoReinforced concrete frameworkSemi-permanent structureCondoBasement$200$200$200$180$180$180Ground floor (E0)$250$120$600$200$100$500First floor (E1)$200$100$600$150$80$500Second-Fifth floor (E2-E6)$150$80$600$100$60$500Six-Tenth floor (E6-E10)$700$700$700$600$600$600Eleventh floor onwards (E11)$800$800$800$700$700$700 Registration Tax (a.k.a. Transfer/Stamp Tax)The Registration Tax (a.k.a. Transfer/Stamp Tax) is the tax paid for transferring property ownership or right occupancy of land that does not have a standing building on top. This is a 4% tax derived from the Tax Base of the property in question.This property-related tax is crucial to know if you’re someone looking to buy or sell property in Cambodia. Sellers are generally the ones shouldering the transfer tax, though it can go either way - this is best discussed in clear terms with whoever you may be transacting with.NOTE: Properties transferred to direct kin via inheritance are exempted from the Registration Tax. The relevant Prakas states “transfers between spouses, parents, and children, or grandparents and grandchildren, will no longer require this tax”Calculation formula: (Tax Base*4%) = Registration TaxSample calculation: ($100,000*4%) = $4,000 Registration TaxProperty Tax on Rental PropertyLocals and foreigners who own and rent out their properties need to pay Rental/Income Tax every year. A foreign investor who buys property here and rents it out needs to pay 14% of the gross rate annually while locals have to pay 10%.Property Tax on Unused LandThe Unused Land Tax is a 2% tax levied on bare plots of land with no building constructed and abandoned landed properties in cities like Phnom Penh. The Unused Land Tax is determined by the Unused Land Appraisal Committee (ULAC).How is Property Tax paid in Cambodia?Property Taxes can be paid via local tax office branches or through ACLEDA Bank, Canadia Bank, Vattanac Bank, or Cambodia Public Bank. For already registered properties, taxpayers will only need the tax payment receipt of the previous year or their Property Tax Registration ID.For unregistered properties, it’s imperative that owners contact the local tax office their property is in. The following documents will be required for registration:Tax Form PT01 - a form issued by the General Department of Taxation (GDT) that asks owners to outline the specifics of their property.Tax Form PT02 - another form issued by the GDT which serves as a tax application form.National ID Card, Birth Certificate, or PassportResidence Book or Family Book or Residency LetterOther documents may be required depending on the status of those involved in the transaction. We highly encourage seeking legal assistance for more specific matters.Capital Gains Tax in CambodiaThe Capital Gains Tax in Cambodia is a flat 20% rate. The Capital Gains Tax was promulgated through Prakas 346 in April 2020 and was initially to be enacted in July 2020. But the advent of COVID-19 delayed its implementation to January 2022 to keep Cambodia's property market activity going throughout the pandemic.Contrary to what most people perceive: The Capital Gains Tax in Cambodia is not exactly new; businesses in the Kingdom have always paid capital gains. The material difference now is that it applies to individuals, especially those looking to sell immovable property a.k.a. real estate. A more thorough discussion of Capital Gains Tax in Cambodia can be found here.The Capital Gains Tax in Cambodia can be calculated in 2 different ways:Actual Expense Deduction MethodThis method takes the sales proceeds and subtracts the expenses the seller made on that property to get the actual Capital Gains Tax to be paid. These deductibles can be the purchase cost, consulting fees, registration tax, commissions, and even advertising. These actual expenses are deducted from the sales proceeds and 20% of the difference will be the Capital Gains Tax to be paid.There are more applicable deductibles so we highly suggest you keep tabs on the expenses you made in your property if you are planning to sell in the future.Determination Based Deduction MethodThis method takes 80% of the sales proceeds and subtracts it from the whole sales value. The result will be the Capital Gains and 20% of it will be the Capital Gains Tax to be paid. This method is highly beneficial for property owners who bought low and are planning to sell high.Capital Gains Tax in Cambodia is expected to be enforced by January 2022. Once the law is in effect, we highly encourage keeping tabs on your expenses on the property to properly assess which method applies best in your case.Looking for property in Cambodia? Let us help!Article by:

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Four tips on budgeting for a new home

June 6, 2022, 6:38 p.m.

Home & Living

Property Buyers & Sellers Advice

Everyone needs to save money for buying property! But, in order to save for your new home, or to borrow for that home, you will need to budget for it. And this budget only gets harder as your family grows…The following are 4 basic budget tips that will help you keep more money in your pocket and get a handle on your household finances, thanks to Realestate.com.kh.First of all, list your monthly income, including everything that earns you money. List all of the costs you have to pay each month: Including rent, power, gas, car repayments, school uniforms, food etc. In short, anything that is a necessity in your and your family’s life.List all of the costs you can avoid from the previous list… This includes all things that are not necessary in your life, including entertainment, take away food, fancy new clothes, travel etc. This represents your “expendable income”: money that doesn’t always need to be spent! It is very important that you and your family are honest about what you don’t really need, if you are serious about saving.Now that you have defined what you HAVE TO PAY and what YOU LIKE TO PAY each month, you can control your budget for the next month by reducing your expendable income spending.Subtract your necessary costs from your total income to see what remains for the next month’s budget. This figure is the amount of money you can potentially save each month if you control your spending habits. Completing this exercise should help you review your spending patterns and make better financial decisions. The better your budget, the more control you can have over your monthly savings. Ultimately, if you follow these tips, you will be surprised what money you can save to put toward a new home, or to manage home loan repayments. You should read How to Save Money When RentingLook for more information related to home loans in Cambodia? look for real estate for rent in Phnom Penh or real estate for sale in Phnom Penh? Check out Realestate.com.kh today.

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Critical tips for prospective lessors

June 6, 2022, 5:07 p.m.

Home & Living

Property Buyers & Sellers Advice

When you are looking for the best tenants for your property; regardless of the term of the tenancy, it is necessary to ensure you have a well-prepared property and legal lease document for your prospective tenants.Below are several major things to include in your lease agreements when creating or signing a residential tenancy agreement, thanks to realestate.com.kh:What Is a Lease Contract?A lease contract is a formal document that properly identifies the landlord (lessor), tenant (lessee), and the leased property. This document further states the lease term and rental fee, and detailed terms and conditions of the lease agreement.Who Should Be in the Lease Contract?When it comes to obtaining a lessee, it is strongly recommended that you draw up a written agreement. This legal contract needs to be completed by the lessor and lessee so that both parties are 100% clear on what their rights and obligations are.This contract also allows and specifies the tenant to temporarily use the property of the owner, legally, in exchange for paying a rental fee to the owner. It is essential that both parties keep a copy of this agreement to refer to when in doubt.In the contract, both parties can set the clauses to protect themselves if any circumstances were to change for either the lessor or lessee and how this should be remedied if these circumstances arise.The Lease Agreement Should Contain:Both parties must sit together and write up clearly what they expect from each other. These include:The description of the property (which describes the current location and overview of the property);● The names, signature, or thumbprint and addresses of both parties;● The current rental fee and reasonable escalation in the future;● The rental payment term (monthly, quarterly, or yearly);● The deposit amount;● The monthly payment amount;● The lease period;● The notice period for termination of contract;● The renewable term and condition;● The lessor's obligations;● The lessee's obligations;● The renovation permission;● The number of residents;● The tax obligation (In general responsible by lessor, but can be altered according to the discussion).All other costs must be paid by the lessee (waste collection, public light, electricity & water bill) unless otherwise negotiated in the rental agreement.Create an Inventory ListAn inventory list aims to describe all the furniture that is presently existing inside of the property (including photos) before the tenant moves in. This is critical to ensure both parties know what is present in the property - and especially for the lessor to ensure no furniture or chattels are removed without permission or opportunity for redress.The lessor also needs to list down any current defects and the agreement of both parties whether the lessor or lessee must take responsibility to have them fixed. This is generally the responsibility of the lessee. Generally, this is made in a separated document.Ultimately a contract between a lessor and lessee is critical in setting out the obligations of both parties to ensure there is no confusion about any aspects of the tenancy. It will also enable both parties protection if there was any dispute arises.Looking for property in Cambodia? Let us help!

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Selling or renting: simple tips to get a better price on your property

June 6, 2022, 5:07 p.m.

When you plan to sell or rent your home for the best price possible, make sure you have a well-prepared property for prospective buyers or tenants to view. Below are a few tips to consider before you allow any homebuyers or renters to visit your home.Clean upDon’t disappoint your visitors with a messy or smelly first impression of your home. Cleaning is the most important thing before you open your home to sellers or renters. If you don’t want to do this yourself, hire professional cleaners to do it for you. It's a small investment with a strong return.In addition, pay special attention to bathrooms, kitchens, general living areas and backyards. Make sure there are no dirty dishes, unclean bathrooms or dust where there shouldn’t be dust. Creating a nice smell before visitors arrive with some fresh flowers that can help to create a welcoming first impression.Repair small problemsWhen you intend to sell or rent your home, you need to check and repair minor things such as door hinges, doorknobs, locks, faucets, appliances, water heaters, gas cookers, lights, drainage (especially if you want to sell a house in rainy season) and toilets. If you can find these problems now, get them repaired immediately before your buyers or renters see them. If the buyers or renters find them before you, they will use these reasons to lower your home’s price.RenovationA renovation is a good option if you want a better price for your home. This is especially true if you are targeting expats to rent or buy your property - as these types of buyers may want a more contemporary style than most Cambodian style homes. Prospective buyers or tenants tend not to complain about the price if they see your home equipped with modern design and decoration; which at least gives the appearance of higher value home. In Phnom Penh, unrenovated flat houses in BKK2 and BKK3 can be found with a rental price from $700 to $1,000 per month. After the renovation, the same flat houses can rent with prices starting from $1,200 to $1,400 per month.Valuation ServicesGetting a valuation letter certifying your home’s true value also contributes to a higher sale price. A professional real estate valuer has a specific skill to value your home price depending on the actual market conditions. A quality valuation will convince the buyer of the objective value of the property and give them trust in the transaction.The real estate valuation agency will evaluate your property based on your home’s detailed and definite information and comparative market prices, and then issue a valuation report for owners to be used as a proof to show buyers or tenants.For the valuation report, you will be charged at least $150, based on the type of the property and how detailed the report. You can apply for a valuation from a professional valuation firm now on realestate.com.kh. Now, the official commission and valuation is officially applied. You can also check more on how to calculate the valuation fee here! If you are renovating your house, it is also a good idea to do a valuation before the renovation begins - and then again after you have completed the renovations. That way, you know clearly the value you have added with the improvements. You can also ask the valuer during the first valuation what changes they suggest to increase the value of the home - and then this advice can direct your renovations.Stay up-to-date on the real estate industry in Cambodia and get real-time updates on real estate news as they happen. Download the Realestate.com.kh App now!Article by:

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Rental Agreements in Cambodia: Pre-agreement considerations

June 7, 2022, 3:18 a.m.

You really shouldn’t sign any rental agreement without a thorough check of any property, in any country! But there are some extra considerations which are especially important in Cambodian rental agreements that you may not have considered. Here are a few tips to consider before you sign any Cambodian lease agreement.Extra costsYes, you will pay your rental rate every month - but you will also be charged extra costs of utilities and other services monthly. The extra costs might include maintenance, waste collection, gas, water and electricity bills, security services, internet, and car parking. The costs will be low or high depending on the type of rental property and the business practices of your landlord. Some of these costs may be included in your rental fee - but if they are, they will be specified clearly. So it's really important to double-check these inclusions. If you rent a house in borey, you will likely need to pay an additional monthly maintenance fee, cleaner’s fee, security guard fees, and public light charges. Depending on the borey you are renting in, these fees might cost you between $20 and $50 per month. Condo or apartment maintenance fees generally range from $0.50 to $2 per square meter depending on what this service includes. In addition, living in a condo or apartment requires you to pay for a car parking space, which ranges from $50 to $60 per month. Again, some rental rates will include both of these fees - but it's always best to check.In Cambodia, be wary of landlords adding in fees at extra cost. For example, in central Phnom Penh electricity is generally charged to apartment tenants at $0.25 per kilowatt - however, the rate direct from the company can be less than $0.20 per kilowatt. Some landlords will try to charge substantially more than this too. Always bargainYou are a renter; you always have the power to negotiate the lease price with your landlord!Don’t be afraid to do so and don’t always depend on your real estate agent to do this for you. Remember that some real estate agents are not only acting in your interests; they act on behalf of the sale, and their commission will be higher if the final agreed price is higher than what it could have been. With this in mind, don’t be afraid to push your agent - and make sure you are working with an agent you can trust. You can find the best real estate for your needs.If you are applying for a long term rental, 1 year or over, you can use this as a negotiation point to lower your monthly rate. Also, while the landlord may not be flexible on the monthly rental price, you may still be able to push them for additional services or home furnishing/appliances for free as contract sweeteners. An upfront advance on your first few months’ rents may also be an enticing bartering point for landlords looking for a fast cash injection in the short term - but ensure everything is receipted correctly or they might catch you out later! Now, you want to look for property for rent in Cambodia, it's always available.Read the contract Always check the ways in which you can be liable for a breach of your contract and what is and isn’t mentioned in the contract, for example having pets or parties, extra equipment included or furniture, who pays for extra service, and repair services, deposit payment, terms, contract renewal and proactive professional management (for condo renting or apartment renting).That’s to make sure you know what the landlord in question expects of you and what you expect of the landlord before you agree to stay. If something is missing, get it put in the contract before you sign because verbal agreements are next to unenforceable in Cambodia.Little ThingsCheck the faucets, door hinges, locks, doorknobs, powerpoints, appliances, water heaters, and gas cookers before agreeing to rent! Most of the time these things look perfect until further investigation – but if you catch minor problems now, you can ask the landlord to fix them before the agreement is settled. Stay up-to-date on the real estate industry in Cambodia and get real-time updates on real estate news as they happen. Download the Realestate.com.kh App now! Article by:

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Buying residential property for rental returns in Phnom Penh, Cambodia

June 6, 2022, 7:43 p.m.

A western-style kitchen with modern and high-quality products in a luxury condominium. Supplied.Cambodia has many types of properties suitable for investors seeking residential property investments; such as villas, flats, shop houses, apartments, and condos. However, finding the right properties for the right tenants can be time-consuming if you don’t have an understanding of the current rental market supply and demand. Here are some handy tips from Realestate.com.kh on things to consider before buying a rental property for future returns in Cambodia.Target tenant versus target rental returnsIt is vital that you know who your target tenants are: Cambodian or expatriate. They are two very different targets with different tastes and financial means.If you target local middle-income Khmer families, you may consider buying a flat house in a Borey project in the suburbs or a shophouse in the inner city with both residential and retail capacity. Expect lower returns for these properties than you might get from foreigners renting condos or villas - but expect more security in this income; as demand for these properties is high compared to supply. The living room of a flat house within a Borey project in Phnom Penh. Supplied.You might consider affordable houses like a flat house with purchase prices between $70,000 and $100,000. Buying a flat house in the suburbs of Phnom Penh will earn anywhere between $350 and $550 per month in rental returns.For renovated one and two-bedroom flat houses around central Phnom Penh, you can earn between $450 and $550 per month. As a general rule in Cambodia, affordable rental properties tend to attract more tenants than expensive ones.However, if you aim to get higher rental returns, you can buy a shophouse in a prime location in central Phnom Penh such as Daun Penh, Chamkarmon, or along a major wet-market where purchase prices are around $3-$4,000 per square meter. You can then rent this space for an average of $1,500 per month. This is because a shophouse has a high potential for retail businesses, especially if it has corner parking spaces.If you want to target foreign nationals for more lucrative rental returns, you should consider buying a condo or high-end villa in the heart of the city for anywhere between $120-$700K. This can bring you between $1000 - $4000 per month in rental returns, depending on quality, location, and amenities.With a heavy supply of condos entering the Phnom Penh market, however, it's advisable to focus on location, quality, and other unique features to make sure that your asset will actually generate the rental returns you are seeking.Inspect the past rental returns of similar properties closely, and get advice from more than one agent and/or developer.Do you want to know more about Cambodian property valuations?The living room with a sleek interior design within a high-end condominium. Supplied.Alternatively, look at budget condos (around $40- $80K purchase price) in the less-central districts of Phnom Penh as these types of properties are able to be rented by Cambodians working in the city, although at a smaller monthly rate than expats are willing to fork out. But these assets should have a safer rental return.Look for bargain condos in areas like Toul Tum Poung (TTP) also known as Russian Market, Steung Meanchey, or Toul Kork. Local renters are happy to live in these areas of the city, close to their workplaces or schools.Sen Sok, Chbar Ampov, and Chroy Changvar are also seeing many new development projects popping up, and buying rental property in this area as residential property investment is likely to get good monthly returns from locals or expats.This is also an asset that will appreciate in the coming years if you consider reselling. Make sure you get the appropriate property title so that your ownership is guaranteed.Now that you have a better idea of property investment opportunities, you get started by checking out our list of Phnom Penh residential properties for sale.Location and SafetyTenants, especially expats, tend to consider safety and security when they decide to rent a residential property.Boeung Keng Kang, Tonle Bassac, Toul Kork, Daun Penh and Toul Tum Poung are among the most secure locations in central Phnom Penh. But for Cambodian nationals, location is second only to price; therefore, they seem less concerned about security compared to foreigners.Furthermore, you should buy rental properties in areas with amenities such as schools, hospitals, restaurants, entertainment services, and convenient access to business and commercial establishments.Make sure you are investing in an area where there is a high and sustainable rental demand in the future.Real estate agent adviceFinding a good real estate agent before buying a rental property is crucial for you as a buyer because the real estate agent will guide you towards the right sector of the market for your needs and financial means.In addition, the real estate agent is aware of the history of a property - and its actual potential for rental returns. They will be able to help you lease the property if you want a full-service approach to your investment.Stay up-to-date on the real estate industry in Cambodia and get real-time updates on real estate news as they happen. Download the Realestate.com.kh App now on both iOS and Android.Article by:

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Considerations before you buy your first home

June 6, 2022, 5:07 p.m.

Home & Living

Property Buyers & Sellers Advice

In Cambodia, purchasing a property for the first time can be an overwhelming task. If you are a first-time home buyer, you should consider the following points before you make any financial commitments.Purpose of the new home: Different types of houses will bring you and your family different advantages and disadvantages.If you just want a house to live with your family, consider a villa home. Villas offer a lot of space for your family to grow, and a relaxed and private setting. If you intend to buy a home from which you can generate income through opening a retail shop, consider a shop house in a location where you can find consumers. These types of properties allow you both residential and commercial purposes. However, if you really value a location in the central city and want to live a more modern life, you can consider a condo unit. The extra benefit of a condo is that you should be able to rent it into the future, if you decide not to live in it yourself.If you are planning on a profitable resale, you can consider buying a property off-plan (under construction) in a new development project. New Borey projects in the suburban areas usually have high potential for reselling in coming years. Or, if you have more money to invest, you can consider a new condo unit for higher returns when it comes time to resell. However, keep in mind that often these properties won’t be ready to live in right away, and also make sure your choose the right developer with the correct licenses and history.Location of your first home:Purchasing a home at the very heart of the city sounds like a good idea thanks to its fundamental infrastructure and utilities. However, with almost all property prices within central city reaching their peak in recent years, and worsening traffic congestion during rush hours, most new home-buyers (in particular, middle-income class Khmers) are preferring to buy in the suburban areas of the city, at lower prices.The outskirts of Phnom Penh and other urban centers of Cambodia are an untapped area where there are offerings that have high potential for small businesses, commercial centers, population growth, and property price growth. At present, housing projects are shifting towards the suburbs to push the area to become more attractive and populated. Whether you buy to live, do business, or resell, you should look for a good location adjacent to markets, schools, hospitals, and other amenities. Location is an extremely important consideration for any property investment.Budget plan:Preparing a budget plan for your new home is very important for your future expenses. With a clear budget plan, you will be well prepared for your current and future payments. Without a regular income, you may run into problems after your first home purchase. If you’re planning on these costs in advance, it will make it easy for you to decide how much money you should and can borrow money from the bank.Home loan application:Most homebuyers in Cambodia usually do not have enough money to pay outright. This is why they turn to the bank for loan options to pay for their new home. Different banks will offer different types of home loans at various interest rates. However, when you get a home loan, you will be bound by the bank’s terms, including the interest rate charged on that loan. After qualifying for a home loan, you will be required by the bank to submit collateral, income confirmation letter, identity card and proof of a guarantor. For this reason, it might be best to consider your loan limits before you select your dream home.Another option is to pay directly with the developer (if it is a new project). In this case, the interest rate on home loan may be higher than that of the former option - so be careful before you sign up.Extra costs:In fact, purchasing a new home does not mean that you pay only for your property’s price. You also should think about other extra costs in addition to the property’s value. There are a number of fees involved you need to know when you buy a property. Those costs or fees include ownership transfer tax, legal fees, property tax, title verification, loan processing fee, application for registration, property insurance, real estate agent’s fee, and ongoing costs. Learn more about the details of these extra costs on realestate.com.kh today.Read more great Home Loan and Mortgage Advice, on Realestate.com.kh today! Or, if you are ready, apply for a home loan on Realestate.com.kh today!

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Pre-signing Checklist for Rental Properties

June 7, 2022, 5:51 a.m.

When signing on the dotted line for rental properties, small very important details are oftentimes overlooked. But you should remember that your final lease agreement might not include many important elements that will ultimately make or break a rental agreement.We have put together a pre-signing checklist for you to consider before signing a rental agreement in Cambodia.How is the landlord?Always do a background check of your landlord in Cambodia to make sure everything is above board. This need not be a difficult one or necessarily very official. Neighbours and grocery shop owners in the vicinity are often the best sources that can help you ascertain your prospective landlord’s nature and his ownership over the property.Also, you should check how far or close he or she lives from the rented apartment. A landlord who is too 'nosey' can sometimes be equally as bad as an extremely laid back one.A lot of good apartment rental experiences are ruined because of landlords - so work out whether or not yours is a keeper. Also, try to speak with past tenants. The landlord may be able to provide the contact details of the last tenant. Try to contact them - and get the down-low on the property and the landlord before agreeing to sign on (how quick they were to respond to fixing items, rent increases etc).Meet the neighboursSimilar to the above regarding landlords, a bad neighbour can ruin your rental experience. Try to meet your neighbours before finalising the housing agreement and find out whether they will have an overbearing influence on your life.Consider their set-up too - is it a family living beside your house, noisy students, many kids and pets etc? This will make a difference to your living experience once the contract is signed - so find out beforehand. Visit at nightVisit the area where your new residence is located in the evenings to check its safety and for any noise issues.A neighbourhood that’s calm during the daytime can turn into a very noisy place at night time. Does a KTV open next door after 7 pm? Is the entrance to your prospective home will-lit? Do you feel safe in the new area? If you don't, you can bet your family won't.Is your pet allowed?Find out your landlord’s stance on having pets. Many landlords don’t allow pets, so finding a pet-friendly residence and landord can often be a challenge if you own fluffy friends.Consider the local commuteTry and get to work, or school, from the new home - before agreeing to live there. Many times, commute related research is merely based on the rough distance between your home and end destination.Walkthrough, or cycle, or ride on your moto on the travel route and see how easy and efficient it really is.Visit our extensive list of properties for rent throughout Cambodia.What are the costs?Most rental rates are exclusive of extra monthly charges. Monthly maintenance, waste collection, gas and water rates, electricity bills, bond payments, etc. can add to the monthly rental price significantly – so make sure you inquire about all extra expenses while you are viewing.Try to confirm them in the rental contract before signing. Expect to pay no more than 1000Riel/$0.25 per Kilowatt for electricity, $5 per month for water charges & trash collection and $5 per month for TV cable connection.Read the contractIt seems like a no-brainer. But read your rental agreement with care and attention to detail. Learn the ways in which you can be liable for a breach of your contract, for example having pets or parties – different landlords’ stipulate different reasons for being allowed to throw you out, so make sure you know what the landlord in question expects of you before you agree to stay.Everyone hagglesAlways bargain the price with your landlord no matter how it makes you feel. Learn how to haggle. The same goes for your real estate agent.Remember, that while your real estate agent is acting in your interests to some degree – they are ultimately acting on behalf of the sale, and their commission will be higher if the final agreed price is higher. If you are applying for a long term rental, one year or over, use this as a bartering tool.Also, while the landlord may not be flexible on the monthly rental price, you may still be able to push them for additional services or home furnishing/appliances for free as contract sweeteners.An upfront advance on your first few months’ rents may also be an enticing bartering point for landlords who looks for a fast cash injection in the short term, but ensure everything is receipted correctly.Safety firstRegardless of what your agent tells you, be personally responsible for you and your family’s safety when considering any new rental property. Walk around the neighbourhood of any property you are considering renting, speak with neighbours (and other tenants if it is a shared building) and come back to the area at night-time and make sure no hidden threats appear when the sun goes down.Also, always consider the potential for flooding. A 24-hour review is necessary to note any noise hazards too – there may be construction in the afternoon that you never noticed at the morning viewing, or a nightclub could open at night next door.For a little extra attention before agreeing to the rental contract, you can truly understand the pros and cons of the property.Little Things: Check faucets, door hinges, locks, doorknobs, appliances, water heaters and gas cookers before agreeing to rent. Most of the time these things look perfect until further investigation - but if you catch minor problems now, you can ask the landlord to fix them before the agreement is settled.Read more about the expat life in Cambodia in our guide!Is it bug-free?Keep your eyes peeled for any signs of a bug infestation. It is not uncommon and it’s easy to miss signs that your new home is shared by a family of cockroaches, termites, mice or other pests. Unless it’s a critter co-lease you’re looking for, find out before it’s too late.Photo evidenceBefore agreeing to the bond payment, take photos of every room in the house while it is empty. In these pictures, make sure you evidence any pre-existing damage to the property.This way, when your contract eventually ends, the landlord has no grounds to deduct wear and tear damages from your deposit that in fact, that you weren’t responsible for. What is your rental duration?Rental rates can climb 10% to 15% annually in Cambodia, especially in the urban and tourism centres. And as new buildings offering all types of modern amenities continue to enter the rental market, these prices will continue to rise.So, a long-term lease will save you from a price hike when the lease term ends and you are no longer able to find an apartment of the same value for the same price. Signing a long-term lease will also grant higher negotiating power because the landlord knows you will stay for a longer period of time. It also pays to be a good and reliable tenant as this may result in minimal increases.If you end up securing a lease for longer than you are able to stay in Cambodia, check with the landlord to see if they would allow sub-lease agreements. This will give you the opportunity to finish your lease agreement payments through a sub-lease with a short-term tenant.Alternatively, the landlord may allow you to transfer the entire lease to a new tenant that you have found.Looking for a place to rent? Let us help!Article by:

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Seller Beware: The top property sale mistakes that will damage your property's marketability

June 6, 2022, 5:07 p.m.

Home & Living

Property Buyers & Sellers Advice

If you’re planning to sell or rent your property, make sure you avoid the following property sale mistakes to ensure you attract the most buyers and renters and get the best price for your property.Poor exterior paint choice:Don’t try and sell a highlighter green house. Consider re-painting your property using a conservative colour scheme. This will allow it to appeal to a wider audience. Look for a good quality exterior paint, which makes your house look as new as possible and avoid this classic property sale mistake.The overgrown garden:An overgrown yard or garden suggests that your whole property has been badly maintained and will make a bad first impression – an obvious but all-to-common property sale mistake. Try to cut bushes and trees, tidy your lawn, plant some hardy plants and re-mulch for a fresh clean look.Too much mess and clutter:Buyers want to see and buy your house – not your things! So avoid a property sale mistake and don’t leave them lying around! Even houses that are decorated well can have too much clutter when it’s time to sell. The bigger your house seems, the more attractive it will be. Buyers want to feel the house or apartment has space, and will accept their furniture and their sense of style. So be prepared to de-clutter, move furniture or make your decorations more neutral.The shadow seller:Make sure you give your agent and their buyers plenty of space and privacy while viewing your home, and certainly don’t follow them around the house. Buyers want to imagine living in your house and that’s really hard to do while you and your family is waiting outside, or inside.Lack of storage:Buyers look for plenty of storage in any property. So, avoid leaving any overstuffed wardrobes and cupboards in the house because this will show the prospective buyer that there isn’t enough room in the house for all of your things – or their things! A final top-tip, use mirrors in small rooms to help the space appear bigger! Avoiding the above property sale mistakes ensures your home will be easier on the eye, the nose and the nerves of any prospective buyers or renters – and will have them making you an offer in no time!Dirty and smelly digsYour house needs to be cleaner than it’s ever been while it’s for sale. When making the decision to sell your property, get help from family, friends - or professional cleaners if need be. Pay special attention to bathrooms, kitchens, general living areas and backyards. No dishes or messy kitchens. Clean and fresh is the best smell when selling. Regardless of how great your home appears, if visitors are immediately confronted with overwhelming or unpleasant odours when entering a home, the likelihood that a sale takes place is extremely slim.Don’t list POA – Or No Sale PricePotential buyers generally read the home’s description and expect to see a listed price. As such, we strongly recommend that you include a price on any listing. If a home features a long list of unique details but lacks a sales price, buyers tend to think the home is very expensive or potentially overpriced. Make it easy for someone to investigate your home further by providing as many details as possible – including a list price.Nobody likes a reluctant sellerIt is not unusual for an individual or a family to become attached to a home. Especially when the residence is filled with great memories. However, once you make the decision to sell, you must keep the objective of a sale in the forefront of your mind. Try your best to keep emotions in check. Step back, and allow your real estate agent the freedom to perform their job.Lousy AgentGiven that real estate is an unregulated profession in Cambodia, you undertake thorough research before choosing an agent to sell your home. You can start you research on our Realestate.com.kh Real Estate Agent Directory Page. Consider if an agent makes themselves readily available to buyers. Agents who seem to rush clients, or seem distracted, do not have the interest of the buyer or seller at the forefront. Likewise, determine if the agent seems professional, honest and genuinely desires to make a sale. A dud agent could well be your number one property sale mistake, but with Realestate.com.kh this will never be an issue!Want to read more articles like this? Get on Realestate.com.kh today, the best source of information for property buyers and sellers in Cambodia.Looking for real estate for rent in Cambodia or real estate for sale in Cambodia?

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Mortgage Matters

June 6, 2022, 5:07 p.m.

Mortgages are an essential consideration for most people buying, selling, or simply owning a home. While the concept of borrowing from a bank or lender appears simple - home loans can be a lot harder to understand than you might first think. Realestate.com.kh is here to help you understand mortgages in Cambodia!What is a mortgage?A mortgage is a loan, quite simply, with your house and land used as security for that loan. That means, if you don't pay back the loan in the prescribed time frame, the lender (usually a bank) has the right to foreclose your home.Foreclosing means taking possession of a mortgaged property when the mortgagor fails to keep up their mortgage payments. Basically, the bank takes your home and sells it to settle the debt. The loan is secured by a “lien” (in other words, the "mortgage") against the property in question (your house and land). The lender still doesn't own the house, you do. But if you can't pay, they have the lien with your house as their collateral/security. You still have full ownership rights - yet subject to the mortgage. When looking for your first mortgage is it most important to consider two things:1. What you can actually afford?2. What you can borrow?Why are these two questions different? Because, the lender/bank is never going to look at how much you spend in a month on partying with friends, or movies and dinner, or how happy you'll be with a big payment.In reality, they may well be willing to loan you considerably more than you think you can spend on your home mortgage. You must consider this seriously - because only you know how much flexibility your lifestyle and spending habits have, which ultimately determines how much you can afford when searching for a new home.If you miscalculate this - you risk not being able to satisfy payments and ultimately losing your new home.You can also access the latest editions of the Credit Consumer Index Report published by Credit Bureau (Cambodia) Co Ltd (CBC).If you are unsure of what the different property titles are, have a read of our guide. A lender/bank will look at your income, and future income potential vs. your proposed debt, as well as your bank savings and credit history. Having considered these factors, the bank will then determine how much of a risk you'd be for the lender/bank to take on and issue a loan.Meanwhile, they look at the value of the house you want to buy, and potential future value, and compare against the interest rate of the loan you'll be getting. After this analysis, the bank/lender arrives at a loan amount that they consider a healthy risk.If all things go to plan, this loan amount will match (or potentially exceed) what you need to satisfy your down payment and the final price of the house you want to purchase.What are the components of a mortgage?There are three basic components to any mortgage. These are the home loan amount, interest rate, and loan term.The loan amount: The loan amount is the principal amount that you want to borrow. Banks in Cambodia generally give a loan of up to 70% of the property value.The interest rate: The interest rate is very important to understand! It is the percentage of annual interest that you have to pay on the total loan amount. It can be a fixed rate, a flexible rate, or a combination of both.The loan term: The loan term is the duration/length of time that you take to completely repay the loan. Loans generally range from 15 to 30 years in Cambodia.If you combine the principal loan amount and the interest amount, you will then know the overall loan amount. Most home loans are usually repaid via monthly instalments. The repayment comprises two parts or portions:One part is for the repayment of the principal amount. The other part is for the repayment of the interest.If you want to know which are some of the best banks in Cambodia- read our Ultimate guide to banking for foreigners in Cambodia.How do I speed up my loan repayment?Don’t automatically decrease your repayments just because the interest rates fall. For many loaners, as soon as bank fees and interest rates decrease, and minimum repayments are lowered accordingly, this immediately means a happy camper - with more money in the pocket and less for the bank.However, this is short-sighted. Instead of pocketing the cash, if you keep your repayments at the same level when the interest rates are falling - because this is a prime opportunity to reduce your principal with each payment and make faster progress satisfying your total loan in the longer term.As opposed to seeing it as a time to relax your repayments – you should see it as an opportunity to get ahead of the bank and pay back your principal faster.Test out an “offset account”If it is possible for your loan, try using an offset account. A mortgage offset account is directly connected to your mortgage and the payable interest on your mortgage month to month will be calculated by deducting what funds exist in your offset account against your loan.To clarify, here’s an example: if your total mortgage is $200,000 and your offset account currently has $5,000 in it, you will only pay interest on the remaining $195,000. An offset account allows you to save interest while still allowing access to your savings if needed.For investors, offset accounts are also useful for the preservation of mortgage tax-deductible benefits.Refinance and get a better run for your moneyMaybe you have worked out that your current mortgage is not suitable for your needs and financial circumstances. If this is the case, you need to change your loan quickly before it seriously hurts you.If you are not sure your current mortgage is right for you, it is best to consult a professional finance broker before it is too late. A well-attuned broker will negotiate with your lender about fees for additional repayments, refinancing, or any other necessary measures to help you save on your loan.A good broker should identify the perfect terms for you and then negotiate the best rates for that plan.Make smaller mortgage repayments, more regularlyIf you make more payments, naturally these payments will be smaller. But more regular payments, even if they are smaller, will mean ultimately you can pay off your loan faster because you will lessen your interest repayments in the long term.If you currently repay your mortgage on a monthly basis, try changing to fortnightly loan repayments. Now, your monthly mortgage repayments might equal $2,000 per month, for example. If you can instead pay $1,000 every two weeks, by the end of the year you would have made significant savings on your interest costs and will be a little bit closer to satisfying your overall loan repayment.Take measures to pay back a little bit more each timeRemember, your “minimum repayment” is exactly that: it is the least possible amount you need to repay each month. So, for most mortgages, there is nothing stopping you from paying more than the minimum necessary payment.It doesn’t matter if you pay extra regularly, just when you can afford to now and again is still worthwhile. Even a little bit here and there can add up and eventually reduce your mortgage.When you receive bonuses, tax returns or other monetary gifts you should seriously consider putting this expendable income into your mortgage repayments before it disappears into thin air.Stay up-to-date on the real estate industry in Cambodia and get real-time updates on real estate news as they happen. Download the Realestate.com.kh App now!Article by:

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Home-buyer Guide: Extra costs when you buy a new home

June 7, 2022, 6:48 a.m.

Home & Living

Property Buyers & Sellers Advice

Buying a new home to live in is a necessary thing for everyone in Cambodia, especially in Phnom Penh as most of them are renting but considering buying one for their family. However, buying a new home does not mean that you spend only on the base price of the property - you also have to spend on additional costs associated with the property. Therefore, it is vital that you be aware of extra costs associated with a property purchase in order not to have any unpleasant surprises. Below are several necessary tips on “additional costs” to help first-time homebuyers manage their budget plan for a new property in the event that you are unaware of it. Those additional costs include home loan application and legal fees, ownership transfer tax fee, home insurance fee, real estate agent’s fee, interest on home loan, application for registration and title verification fee, property tax fee, and ongoing costs. Home Loan application and legal fees When purchasing a home, most buyers in Cambodia usually do not have enough money to pay outright. Therefore, they will look for home loan options either with a company project or banks to buy one. However, If you choose a bank loan, you usually get 70% of the home value you are going to buy.Nhoep Nimol, a senior housing loan officer at Canadia Bank, said: “If a homebuyer applies for a home loan, he/she will be charged some fees to cover the charges incurred for valuation and processing of the loan. Then he or she has to pay 1 percent of total loan to the banks.”Ms. Nhoep added: “in the meantime, homebuyers will also have to pay $250 dollars to a lawyer for legal service which includes loan operation, legal advice, property check, and legal processing.”Interest on home loanIf you do not have enough money to buy a home and rely on a bank for a home loan, remember that you have to pay the interest on a home loan every year until the end of the contract. Bank loan terms can range up to 20 years, depending on the decision between homebuyers and the banks.Ms. Nhoep explained that if customers decide to get a bank loan, they need to pay interest which ranges from 8% to 10% per annum. Furthermore, homebuyers are required to submit collateral, hard title, and an income confirmation letter to the banks before qualifying for a home loan.Ownership Transfer tax feeIt is mandatory that homeowners pay ownership transfer tax during the transaction a.k.a. Stamp Tax. If you choose to buy a home in the Borey project, you will find it easy as the company has a master hard title to be issued to each homeowner. But homeowners have to pay 4% for this ownership transfer tax.Mr. Seng Sopheak, Chief Operating Officer at cplagent.com, said: “you need to pay 4% for the ownership transfer tax. In addition to the 4% transfer cost, buyers also need to spend about $1,000 to the cadastral office which is tasked with the overall operational processing of issuing the title.”“Usually, it takes around 12 weeks to complete the transfer of hard titles done at the cadastral office. A hard title, an ownership certificate issued by the Cadastral office, is the most secure form of ownership and recognized at the national ministerial level as well as at the Sangkat and district level,” added Mr. Seng.At present, due to the economic effects of COVID-19, the 4% Stamp Tax exemption for properties under $70,000 has been extended to 2023.Home insurance feeAlthough a relatively new concept in Cambodia compared to other ASEAN nations such as Singapore, Malaysia, and Thailand, home insurance is gradually spreading in Cambodia with more and more insurance firms starting their operation in the kingdom.Home insurance is currently not obligatory for homebuyers in Cambodia. But some developers such as Borey Peng Houth require their customers to buy home insurance when they buy a home from their project.Commenting on this, Mr. Seng explained that home insurance is crucial to every home buyer in Cambodia as he or she will not have to keep a lot of reserves for all types of risks possibly affecting his or her property. For home insurance fee, it depends on the size and value of the home: If the home price is above $100,000, the homeowner must pay $100 or higher per year and If the price is under $100,000, the homeowner must pay less than $100 per year.In any case, if you get a loan from the bank, Cambodia’s Ministry of Finance and Economy cooperate with banks and requires home buyers to buy home insurance of at least $70 per year.Application for Registration and Title Verification FeeDone at the District Land Office of the Ministry of Land Management, Urban Planning & Construction, you must pay a cadastral transfer fee of KHR 600,000 in order to insert the name of the new owner on the legal documents. Moreover, you also have to pay the title verification fee. According to Prakas 995 dated December 28th, 2012, checking for potential liens or encumbrances under a title will cost you around $12.50.Property taxLike other countries, all the immovable properties in Cambodia need to be paid annual tax; however, it will only apply to the properties with a value of $25,000 and above. According to the Prakas of the Ministry of Economy and Finance, the property tax is collected annually at a rate of 0.1% of the value of the property.To know how much you have to pay for your property tax, there is a clear formula for calculation on it. The property tax is computed by taking 80 percent of the property’s total value, subtracting $25,000, and then multiplying that by 0.1 percent.The property’s value is obtained through a government valuation, depending on several factors such as data collection on relative properties in the market, quality, and location. This tax equally applies to both Cambodian and foreign national who owns the property in Cambodia.Real estate agent’s feeIt is common practice for the seller to shoulder the commission for the agent. But this is not set in stone and there have been instances when buyers pay the agent's fee. It is advised to settle this matter in writing between the buyer and the seller.Mr. Seng explained that in Cambodia real estate agency charges a commission fee of 3%, usually from the seller. But in some cases, buyers also have to pay the commission fee of 3% when they want to buy property from someone. This occurs when the seller is unwilling to sell the property, but the buyer is willing to buy and asks for the agency to persuade the seller to sell their property.Property Management feeThose ongoing costs are usually paid monthly to support daily living including maintenance fees, repair costs, and bills such as internet, electricity, and water. Maintenance fees are paid by homeowners for the upkeep of the building. This fee varies between Borey home and condos/apartments.Mr. Seng says, “For borey home, the maintenance fee includes cleaner, security guard, and public light in the project area. It will be charged between $20 and $50 per month. For a condo, the fee ranges from $0.50 to $2 per square metre. In addition, living in a condo requires you to pay for parking space which ranges from $50 to $60 per month. Furniture and any future renovations can also be regarded as ongoing costs.”Ongoing costs for condos are usually covered in management fees.Looking for a new home in Cambodia? Let us help!

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Tips for First Time Home Loan Borrowers in Cambodia

June 6, 2022, 5:07 p.m.

Finding a first home loan that best suits your needs is always different from one person to another. When it comes to getting a home loan, the process of choosing it from a bank can be complicated. With more than 35 commercial banksoperating in Cambodia, it takes time to find the best home loan offer. Before deciding to borrow from any bank, it is recommended that you be aware of some crucial tips to avoid any frustration down the line.Below are a few necessary tips for you first time home loan borrower to know before choosing a particular bank, thanks to Realestate.com.kh:Loan Limitations:The volume of loan size depends on how much you can earn and your ability to finance your dream home through a loan. Loan limitation can vary from one person to another.Normally, banks allow you to borrow only 70 percent of the total property value. Depending on your financial status and capabilities, different lenders will be able to provide you with different loan packages.Legal Documents: Before applying for a home loan, initially you need to check what documents and information you need to prepare before you apply.In order to get the banks approval for a home loan, you need to have a set of legal documents including: collateral equivalent to the loan value, a salary confirmation letter, a valid identity card. and the information of your guarantors. Sometimes a guarantor is not required if the bank finds that you are qualified enough to handle the loan yourself - the bank will consider your access to capital, character, collateral, and other indicators that show your capacity to return the payment.Repayment Term:Variations in loan terms and interest rates will affect how much your repayments will be. In general, banks offer three options for home loan repayment: 1: 3 month payment interest upfront; 2: interest payment with fixed principal; 3: and interest payment with variable principal.The loan payment term can be up to 20 years, depending on your agreement with the bank. But if you want to change your payment options by paying before the schedule of the agreed term, you will be fined 3 percent for your remaining principal - so be careful that you understand each option clearly before your agree to any terms!Loan Processing:Processing a loan application can be very time consuming and requires a lot of paperwork and supporting documentation on the part of the borrower. When you request for a home loan, first the bank will do pre-qualification check - then after it finds out that you are qualified, you need to think about the loan program and interest rate that suits you best (and the bank agrees with). After the loan application is submitted to the bank, the loan processing starts. And the underwriting document is sent for loan approval. Once the loan is approved, the document is transferred to the closing and funding department and borrower will sign the loan documentation. The duration of processing the loan can take a short or long time. If the borrower uses an existing hard title as collateral, it will take a shorter time than using the home you intend to purchase as collateral. This is because, if using the home which is being bought as the collateral, it will take some time awaiting the transfer of full ownership of the title to the new owner at cadastral office, which can take up to 14 weeks. Need a home loan calculator? Check out Realestate.com.kh's clever finance calculators, and weigh up your next loan!

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Renters Guide to Avoiding Bad Tenants

June 6, 2022, 5:07 p.m.

Finding the right tenant can be a daunting task. But it can immediately go from bad to worse if you suddenly find yourself dealing with a bad tenant. But how do you avoid getting into an agreement with them in the first place? Realestate.com.kh have listed some tips you can use to ward off renter woes!Manage ExpectationsIt’s important to have a checklist of qualities you look for in potential tenants, but don’t set unrealistically high expectations for them. Every tenant has their own flaw. So, look for someone who’s willing to cooperate and compromise instead – someone who has consideration for you and your property.Enter into a dialogue with interested renters. Find out their needs and let them know yours. Let them know what you expect from them and ask them what they expect from you. And if something isn’t doable, let them know too. That way, you both have a better understanding of how to carry out these expectations. And if you do run into problems, at least you know who’s liable and what the process is.Do a Background CheckAfter falling head over heels for a tenant, it’s important to get as much background information about them as possible. That helps you verify if they’ve been good tenants with their previous landlord. This also helps you get a good sense of the tenant’s character – allowing you to evaluate whether you’d have a good dynamic as landlord and renter.If they’ve never rented a property before, you can also get their employer as reference so you can investigate their credibility and capability to pay rent. If they can’t or do not want to provide references, then that should be a red flag.Advance PaymentNot all tenants will be willing to shell out advance payments. But their willingness to do this can also be used to determine their ability to pay. If they have no problem giving you a 6-month deposit, then it’s more likely they’ll be able to make the succeeding payments.Having them pay in advance gives you security that if they’re not able to meet monthly payment deadlines or they break something in the property, you at least have their money as a way to compensate for their neglect or carelessness. Looking for property in Cambodia? Let us help!

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Office space in Phnom Penh: How to choose the best working space

June 7, 2022, 1:36 a.m.

Property Buyers & Sellers Advice

(A sample of office space for rent in Phnom Penh. Photo courtesy of Raintree Cambodia)The real estate sector of Cambodia has progressed tremendously in the past few years with a lot to do with foreign direct investment bringing big companies and entrepreneurs alike in Phnom Penh. As such, office spaces have grown in demand to house rising local businesses and foreign companies wanting a piece of Cambodia’s growing market.Overview of office spaces in Phnom PenhThere are many options for companies to set up shop in Phnom Penh. The city offers a wide range of office space choices and it’s only growing with each passing year.Knight Frank, a real estate consultancy firm in Phnom Penh, released a report called Cambodia Real Estate Highlights First Half 2019. In their report, they indicated 4 key findings for Phnom Penh’s office sector, namely:The completion of Diamond Twin Tower, Elysee Tower, and Prince Holding contributed approximately 46,444 sqm of net lettable area (NLA) to the Phnom Penh office stock, taking the total office supply to 463,701 sqm.Diamond Twin Tower, a mixed development comprising condominiums, office and retail components, was the thirst stratified office building to be added [to] Phnom Penh’s office stock.The new incoming supply placed downward pressure on the overall average occupancy, dropping 5.2 percentage points [from 88.5%] to 83.3% during H1 2019.Yield-driven investors may be attracted to stratified office investments as the condominium market continues to cool down.There has been an overall increase in available office spaces in Phnom Penh as of 2019. The Knight Frank report also projects that the growth (if monitored projects are completed on schedule) would more than double by the year 2021; offering up to 1,059,170 sqm NLA.Office spaces in Phnom Penh are distributed in the following areas:Daun Penh (32%) - considered Phnom Penh’s (Primary) Central Business DistrictChamkarmon (25%)7 Makara (17%)Boeung Keng Kong (15%)Toul Kork (4%)Sen Sok (4%)Meanchey (2%)Chroy Changvar (1%)Office Space Grading in Phnom Penh(An office meeting room in Phnom Penh. Photo courtesy of Canadia Tower)The year-on-year expansion of the capital’s business activity gives investors a chance to choose from a healthy selection of Grade A, B, and C office spaces.Grade A - These offices are what would be considered high-end. These are commonly located in high-visibility locations. Grade A offices are outfitted with top-of-the-line equipment, amenities, and modern HVAC systems. They’re spacious and aesthetically pleasing in terms of outside appearance and interior design. These are office spaces that are commonly associated with your multinational conglomerate who can afford the small fortune to keep these offices looking impeccable.Grade B - These are what would be considered middle-of-the-market office spaces. Some Grade B spaces offer the aesthetics and comfort higher-end offices might offer with some compromises. Nevertheless, facilities offered by Grade B office spaces usually are more than enough to cover the basics for a decent work environment. It’s arguably the most popular office-grade companies go for since it’s usually much cheaper than Grade A offices.Grade C - These offices are relatively the lowest priced and the poorest-quality in a given market. Grade C offices can usually be found outside a city’s business district and/or in old buildings over 20 years old. While this office-grade seems unattractive on paper, they do serve companies who are on tighter budgets and do not require a position proximal to the city’s business district.Office Space Rental PricesAccording to the Knight Frank H1 2019 report, office rental rates remain fairly stable over the past few years. The report states:“As a result of continuous office supply swelling, specifically Grade B and C, office rentals remained unchanged across all grades. Grade A, B and C offices command rentals ranging between US$28 to US$40 per sqm per month, US$18 to US$29, and US$9 to US$18, respectively. (excluding service charges and tax)”Of course, when it comes to Grade A office spaces, more luxurious (and expensive) options are available - coming with all the bells-and-whistles an office manager could ask for. One example is the Diamond Twin Tower located in Koh Pich which, according to the Knight Frank report, sells (via strata titles) its floor space anywhere between USD$2,800 to USD$3,600 per square meter.How to find office space for rentThere are various means to find offices for rent in Phnom Penh. You can find real estate agents who have a network of office space lessors. These real estate agents can save you a lot of headaches in terms of time spent looking for the right space, and negotiating the prices with the lessors. We recommend going through an agent since they will also walk you through the whole legal process of securing the lease.You can also search for office spaces (and agents) by visiting Realestate.com.kh, the leading real estate website in the country. You can find more than 45,500 properties, subdivided by region, price, and amenities. Realestate.com.kh has a long list of commercial real estate agencies and agents you can contact directly.Popular Office Spaces for Rent in Phnom PenhCORE@PPSEZThe CORE@PPSEZ project is located near the entrance of the Phnom Penh Special Economic Zone. This development includes 10 shopping units, 40 specially-designed office units -- providing convenience for future expansion into trade and factory spaces.The project is designed to provide easy access to trade and to increase productivity. The project will be a profile for various business, trade and industrial activities that offer international quality services and the starting price of this project is $100,000. These include elevators, security, 24-hour room monitor, 500 square meters of a production facility for private cargo handling. The CORE@PPSEZ construction began on August 1, 2016, and opened in March of 2018.Emerald HubEmerald Hub offers affordable office units in the form of a co-working space. It is the most popular option for part-time employees and freelancers. Here, you can work independently or meet with other like-minded people who have different skills and knowledge. Emerald Hub also offers other services such as cleaning, photocopying, hot and cold water, coffee, tea, and many more.The lowest rental price is at $30 dollars a month for a small unit. But if you need a temporary place where you can rent by the day or a week, they also provide flexible and easy ways for people like entrepreneurs who are just starting a new business.The mixed-use developments are usually not only developed for residences. It also includes facilities like shopping malls, offices, and hotels.AMASS Central TowerAMASS Business Center is located in the center of the BKK1 District (also known as the Embassy District), considered to be one of the most prosperous and wealthy districts in Phnom Penh. Surrounded by four main urban roads, the AMASS Business Center is surrounded by hotels, cafes, bars, banks, and supermarkets. It is not only conveniently located within major transportation routes but also places itself near many high-end residential and business office projects.Rental here, considering its ideal location, comes at a great starting price of $18/sq. metre.Office VillasThis isn’t exactly one company offering their spaces, unlike the ones mentioned above. Office villas are villas in high-traffic areas of Phnom Penh (such as BKK1) that are rented out by companies in lieu of high costs of conventional office spaces in the more expensive parts of town.Typical rental prices for villas range from as low as around $6/sq. metre to $25/sq. metre. However, longer leases or opting to sign as an anchor tenant may see these rates reduced. Beware though – working out a fair lease can be a challenge in the Phnom Penh commercial property market, and Cambodia generally, as villas (and other property for that matter) will often be priced according to your presumed budget rather than fair market value.Increasingly, however, villas around Phnom Penh are being pulled down to make way for new luxury developments and condominiums or being secured and modified for retail purposes. A decrease in supply has increased the value of those villas that still remain.Tax for Real Estate RentalIn the past, the landlord or property owner would normally withhold 10% of the rent from its lessor. In a sub-lease situation, the tenant of the real estate entity would withhold 10% of the rent on the sub-lease to the real estate company. Instruction 18410, a tax update from the General Department of Taxation (GDT), now provides an exemption with the withholding tax on the sublease if both the lessor and lessee are registered taxpayers.“Instruction 18410 is another example of the GDT responding positively to the market, which identified this as a duplicate tax for real estate entities, a withholding tax obligation in this case on both the Lessee and Sublessee on the same exact space,” commented Anthony Galliano, CEO of Cambodian Investment Management.Office space outlook for Phnom PenhPhnom Penh’s available office spaces are projected to increase by 130% according to Knight Frank. The report projects that rental prices will either remain static or be pressured down as more office spaces open in the immediate future.The report further projects that stratified offices (spaces that can be acquired via strata titles) are attracting more investors as Phnom Penh’s condominium market reaches equilibrium. Investors also note that business tenants tend to sign longer-term leases - which helps boost the confidence of those investing in the construction of stratified offices.The main challenge to the long-term future of conventional office spaces is co-working spaces in Phnom Penh. Co-working spaces are gaining momentum among young entrepreneurs, digital nomads, and start-ups in Cambodia. The flexibility of terms offered by co-working spaces, along with cheaper overhead costs, to companies on a shoestring budget is starting to attract medium-sized businesses as well.Whichever office is more suitable to your needs, Phnom Penh offers a variety of choices! If you’re interested in exploring currently available options, be sure to check out our listings and/or contact our partner agents directly.Stay up-to-date on the real estate industry in Cambodia and get real-time updates on real estate news as they happen. Download the Realestate.com.kh App now!Article by:

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How To Save Money When Renting

June 6, 2022, 5:07 p.m.

Home & Living

Property Buyers & Sellers Advice

The idea itself of renting can sound quite expensive. For some, it can be. But a lot of people are missing out on the opportunity to save just because they don’t know how to. Here are a few tips on how to save money while renting a property in Cambodia.Negotiation is keyThe first rule is to negotiate: always try to find a common ground with your landlord and ensure that you get the most out of your lease. Try to get a better rate in exchange for a longer-term contract or leverage on factors such as furniture, location and so on. Finding good tenants is not very easy, so landlords have a significant advantage in getting long-term contracts too. Sit down with the landlord, discuss all the terms and make sure you get a good deal for yourself.Get a roommateIf you have a large space for yourself and can spare a few more square meters, getting roommates can significantly decrease the rental fees you pay. Depending on how big of an area you’re willing to share, you can split the cost as high as 50/50. But just be really careful about the people you share it with. It’s best to split costs and space with people you already know.AirbnbAirbnb has become quite a trend for travelers nowadays. If you’re looking for a more short-term approach to sharing your unit or rental property, Airbnb essentially allows you to rent out your home or part of it for just a couple of days. Travelers tend to lean more towards this route because they get to meet people who are already familiar with the area and they don’t have to spend as much too. You can also benefit from this with all the learnings you can get from people who might come from another culture or environment as you.Get insuranceIt may seem counterintuitive to purchase something when you’re actually trying to save. But buying insurance will benefit you in the long run because you’ll be safeguarding your property from any unforeseen incidents such as flooding, fire, earthquakes, and things like those. So, instead of paying a large amount of money for repairs in one go, you’re actually paying the insurance to do that for you.UnplugIf you’re not using your electronics or appliances, it does help to remove them from the socket as accumulated energy from these can amount to something significant in your electricity bill. In the same way, turning off your faucets when you’re not using them not only saves you money, it also helps the environment.These are just some of the things you can do to save up while you’re renting. But it’s also important to note that the best way to really save is to just take control of how you earn and how you spend money. Knowing where you need to spend and when you don’t need to spend and what to spend on can make so much difference.Looking for rentals in Cambodia? Let us help!Article by:

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Tips: how to attract expat rental tenants

June 6, 2022, 5:07 p.m.

Smart landlords and property owners know that attracting a reliable expat rental tenant can be an excellent way to receive the best rental income from your property.So, how do you attract the best expat rental tenants for your property?List onlinePotential expat rental tenants search for their new rental property online well before moving to Cambodia. So, make sure you advertise your property online up to 3 months before it becomes available for rent. Advertising on Realestate.com.kh is an excellent way to reach expat rental tenants.PhotosBecause expats often can’t view the property in person, or have trouble navigating new cities, they rely on the photos more than most property seekers. Therefore, it is wise to make sure you or your agent take high-quality photos – always use a camera, not your phone! The more photos, the better!AmenitiesExpat rental tenants often move to Cambodia with a young family – so be sure to explain the local schools and conveniences near your property. Schools form a vital part of a foreign community’s backbone for those arriving in a new country with young children.Set upFurnished or unfurnished? Be prepared to provide some of the basic furniture requirements to help the tenant get started in Cambodia.Clean upThe only way you can justify a higher price is if what you’re renting looks perfect: Remove all personal attachments in the house; Give the walls a fresh coat of paint, preferably in white; Highlight the best features of the property in your photos; And always add detail to your listing about the unseen features of the property that are worth advertising.SafetySecurity is especially important to expat rental tenants – so be sure to take the time to explain what security features your property has, such a camera, guards, fencing, good neighbours and secure entries.Stay up-to-date on the real estate industry in Cambodia and get real-time updates on real estate news as they happen. Download the Realestate.com.kh App now!Article by:

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Houses for Sale in Sihanoukville: Home Buyers Guide

June 6, 2022, 5:07 p.m.

Realestate News

Property Buyers & Sellers Advice

Sihanoukville is one of the major tourist destination of Cambodia and is seeing a rapid economic growth. Currently, tourism and real estate are the main drives of its development and investors are rushing here not to miss out on the benefits of investing in the housing and hospitality sector.What are the types of Houses for Sale in Sihanoukville?Currently, the housing sector in the province is growing significantly due to the increasing demand of the tourism sector. Several kind of residential properties can now be found such as flats, villas, apartments, and resorts for tourism or business.Borey for sale in SihanoukvilleBoreys are regarded as a gated community occupied by people looking for a modern living space, and they usually offer different types of residential units such as apartments, villas, and shophouses. Borey projects available in this area include Borey BS, Borey Peal City, and the Borey Hillton Park Villa. These borey projects typically start with 1-bedroom with a starting price of $60,000.Condo for sale in SihanoukvilleAs in the rest of the country, the supply of condo projects in Sihanoukville is growing too.One of the prime condo projects that saw an early investment opportunity in Sihanoukville is D'Seaview Condominium project. The development is located only1 km from the coast of Sokha beach and the fresh air and the beautiful natural scenery provides comfort and great atmosphere to those living there. Residential units range from 1 to 3 bedrooms and are suitable for those looking for a modern lifestyle by the beach.Another condominium project in this area is The Royal Bayview which is located along the coast of Independence Beach. The project will feature 1.344 units and will also have a 3-storey shopping area. The Royal Bayview is expected to reach completion by the end of 2019.Another project located near by is The Blue Sky Tower, which is located in Sangkat 2, with a starting price of $40,000. The Nest Apartments Seaview Condominium is also rising on the in the area and is located along the coast of Hawaii beach. It has 9 storeys and has unit sizes ranging from 30 to 126 square meters with a price range of $28,500 to $52.500.It is clear therefore that the number of residential condominium projects rising in the coastal areas is growing very fast.Why are residential developments in Sihanoukville attractive?Currently, a number of infrastructure projects are under construction such as The railway system, the airport expansion, the Sihanoukville port development. This development will not only help boost the growth potential of the region and provide confidence for investors, but it will also ease the transport of materials and reduce the price of condos in the area. In addition, Sihanoukville is becoming very popular due to its location, and clean beaches.As mentioned earlier, tourism is also growing very fast: the Department of Tourism expects tourist numbers to run up to 3 million annually by the end of 2020 -- 1 million of international arrivals and 2 million locals.What are the potential areas for investment in Sihanoukville?Sangkat 4 seems to be one of the best options for residential area. It is located alongside the beach and includes the Ochheuteal Beach and stretches for 4 kilometers. It is located along the coastal road towards Serendipity beach and is a very popular area because of its convenience in terms of transportation and international trade.There is no doubt that Sihanoukville is becoming increasingly popular; whether you are looking for a vacation house or looking to relocate by the beach, is it certainly worth to check what the market is currently offering.Find out more about new developments in Sihanoukville on Realestate.com.kh now!Take 2 minutes to complete our survey and win and IPhone 8!

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