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Understanding property titles in Cambodia

February 24, 2020, 3:42 a.m.

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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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How To Save Money When Renting

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

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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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Things to consider when buying in a Borey in Cambodia

Things to consider when buying in a Borey in Cambodia

June 7, 2022, 6:11 a.m.

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Property Buyers & Sellers Advice

Cambodia’s rapidly growing property sector has opened up a new market for housing projects throughout the Kingdom. While condominiums continue to take the headlines in Cambodia’s construction news, little do outsiders know that Borey developments - gated communities featuring a range of popular residential housing - are beating condominiums in terms of popularity among Cambodia’s expanding middle-class.At the end of 2018, Knight Frank recorded a total of 46,197 units across 126 Borey developments. That number increased to 51,278 units across a total of 131 Boreys by the first half of 2019!The supply of landed property projects continues to grow in the first half of 2021 despite of the impacts of the global pandemic. 21 new projects were still launched in 9 districts in the capital which added l15,500 units to the future supply.This number is expected to grow in the coming years but you can get up-to-date Realestate.com.kh’s Real Estate Survey and Reports here.What is a Borey and what makes it so popular?A Borey development is a gated community featuring a range of housing types popular among Cambodians. It can feature single villas, twin villas, hybrid villas, linked houses, shophouses, and flat houses. These different housing types further offer a wide range of preferences in terms of floor area, number of rooms, and prices to accommodate the needs of individuals, families, and/or businesses.Since Boreys occupy a considerable amount of space, some areas of the development may be allocated for parks, children's’ playgrounds, markets, and retail stores. These gated communities also feature 24/7 security through private security personnel and infrastructure.Where to buy a Borey in Cambodia?According to the General Population Census 2019, over 2,200,000 Cambodians live in Phnom Penh. This makes Phnom Penh the most populated city in the Kingdom and it only follows that most of the Kingdom’s Borey developments are concentrated here.A high percentage of borey developments are located in the outlying districts of the capital city, because of two primary (and related) reasons.First, Phnom Penh’s almost-breakneck pace of development leaves little-to-no room for Boreys to be developed within the city center.Second, because of the speed of development, land prices close to the city center make it virtually impossible to make any Borey development appealing for a majority of Cambodians.Given the variety of Borey developments, we recommend buyers to check the latest Borey projects close to Phnom Penh.(Borey VIP in Dangkao commune, Dangkao district) (Borey Lorn City Lotussana in Chaom Chau commune, Por Sen Chey) (Borey Galaxy 11 in Spean Thma commune, Dangkao district)As the Borey market in Phnom Penh gets more competitive, developers have started looking elsewhere in the Kingdom for future projects.Siem Reap, the second most populated city in the country with over 1,000,000 residents (General Population Census 2019) has started seeing its own Borey launches in the last couple of years.Most Borey developments have reported strong off-plan sales figures, with some citing sold-out figures in their first and second phases. The interest shown by the local market suggests that the city’s market is open to new property developments despite the popularity of shophouses and traditional Khmer houses in Siem Reap.The Borey market in this culturally rich city is growing every year. We recommend interested buyers to check the latest Borey projects in Siem Reap and some of the featured boreys below:Bakong Village - Bakong, Prasat BakongVnom Empire - Ampil, Prasat BakongBorey Royal Angkor Village - Svay Leu, Svay LeuSihanoukville has seen rapid commercial and residential developments since 2015, mostly focused on mixed-use developments. Borey developers, however, have taken an interest in the city as the on-going development of a USD $2 billion expressway from Phnom Penh to Sihanoukville, and a USD $294 million road rehabilitation within the city, makes it a strong candidate for Cambodia’s next major urban centre.For property hunters looking for the comforts of the city while having easy access to Cambodia’s beaches, we recommend interested Borey buyers to check Borey VIP in Sihanoukville and all the latest borey developments in Sihanoukville.How are Borey properties priced?Borey properties vary greatly in terms of prices. This is mainly because of the aforementioned variety of properties offered within any given Borey development. For ballpark estimates, Knight Frank’s report cites that these could range from USD $750 to USD $1,700 per square metre in 2019.Then again, land prices in Cambodia are constantly on the rise so these prices are expected to further increase in the immediate (2-3 years) future.Factors that directly/indirectly affect Borey prices also vary. Here are some key considerations in Borey price assessment:How far away is the Borey community from the nearest commercial centre? (Shopping centres, theatres, banks, government institutions, airports, etc.)What are the included amenities in the Borey? (community park & events centre, children's playground, public swimming pool, etc.)Did the developer build the necessary residential infrastructure themselves? (electrical grids, water and sewage pipelines, access roads, etc.)Is the Borey overall an affordable/mid-tier/premium Borey?We suggest you consider these factors, in addition to your specific and personal needs, when buying a Borey, or any property, in the Kingdom of Cambodia.Find out more about property valuation fees in Cambodia.Tax law for Borey in CambodiaFor any property of any type with a freehold/hard title in Cambodia, whether you’re a local or a foreigner, there is a transfer tax that you have to pay whenever you purchase a property. The transfer tax is 4 per cent of the property’s value.An annual property tax is also levied on landed property exceeding 100,000,000 riels ($25,000) in value. This tax is collected annually at a rate of 0.1% of the property’s value. The tax is based on the value of lands, houses, buildings and other constructions built on the land by deducting 100,000,000 riels (USD$ 25,000) from the property in question.The (property) value of lands, houses, buildings and other constructions that are built on the land shall be determined based on the market price by the Property Evaluation Committee established by the Prakas of the Minister of Economy and Finance, according to the General Department of Taxation.Read more in our guide on property tax in Cambodia.Can foreigners own a Borey in Cambodia?Foreigners are prohibited to own landed property by the foreign ownership law in Cambodia that was promulgated on May 24, 2010. Since Boreys are considered landed property, this type of housing is essentially prohibited from being owned by a non-Cambodian citizen.A foreign national can either get married to a Cambodian and name it after their spouse, or gain Cambodian citizenship for themselves after satisfying state requisites.What type of ownership titles are available for a Borey in Cambodia?Cambodia uses three types of ownership titles. These are the soft title, hard title, and the LMAP title — the safest type of title. So, if you buy any Borey homes, it’s best to ask the project owner for LMAP title to be the most secure for your future immovable assets.What do you need to check when buying a Borey in Cambodia?The Cambodian government, through its respective agencies, has cracked down on erring developers who do not have the proper documentation for their projects. But it’s always good to exercise some due diligence on your part. That’s just being a smart consumer!Here are the 5 key legal documents you need to look for when checking a Borey’s legal adherence:Hard Title: You have to look at two classifications of hard titles when dealing with Boreys. The first is the hard title for the whole Borey development. This is called a master title - and will cover the entire piece of land on which the project sits. The second one should be hard titles that are subdivided for each residential unit included in the Borey. These are called individual titles.A legitimate Borey development should be able to produce both of these hard titles to potential buyers. If they can’t show this, don’t put any money down until they do.NOTE: It is also possible for developers to issue a Soft Title for their properties, but it would be in your best interest as a resident to get a Hard Title.Development Company Registration: Development companies will need to register themselves to gain approval from the necessary ministries to proceed with construction. However, construction is not always a sign that they’ve been approved. You can ask to see their company registration just to make sure both the project and the developers can proceed legally.Master Plan Approval: The Ministry of Land Management will need to approve the developer’s Master Plan first before the construction begins. A credible developer will be able to provide you with it or at least show you a copy.Construction License: The construction company then goes through a thorough background check with the Ministry of Land Management. Boreys must have a single registered construction company building the units and infrastructure to ensure consistency and quality throughout the development. Once this has been cleared, the construction company is then given a license.Borey License: The Ministry of Economics and Finance releases the license for the Borey once everything is in order. This means that the developer has satisfied the requirements of the Government in terms of quality, design, sales plans, and documentation.Is buying Borey in Cambodia a good investment?Good investments are always based on a given market’s projected needs - and Cambodians are increasingly demanding more and better homes every year. Land prices for Borey developments have already seen a considerable increase in recent years.According to data from Knight Frank, the average launch price of Borey projects in 2018 amounted to USD$ 715 per square metre. This jumped to USD$ 940 per square metre in 2019. The high-end of Borey developments have seen the biggest jump with 2018 launch prices ranging around USD$ 1,200 to USD$ 1,350 per square metre - this increased to an average of USD$ 1,700 per square metre in 2019.The global pandemic caused some fluctuations in the prices from 2020-2021 according to CBRE Cambodia’s recent Market Overview report.Another factor to consider is that Boreys currently in the pipeline, and consequently, other future Boreys, will be built further away from the city centres (especially Phnom Penh).Considering this rapid outward expansion, established Boreys will definitely see a massive increase in value in the coming years.How do you pay for Borey in Cambodia?The adage “Cash is King” is prevalent in Cambodian transactions. Having your own money in cash gives you good leverage in getting a discount for property purchases in the Kingdom.But if your current situation calls for more immediate purchase, with not enough cash to purchase the whole property, instalment options are also available through bank loans and other licensed microfinance institutions.If you’re getting a home loan, you can get one from ABA Bank, Chip Mong Bank, Vattanac Bank, and many more. To get a bank loan, you need to have regular monthly income, collateral, the hard title of the property, and guarantees.There will also be a background check for the prequalification on a loan payment to the bank.Should you buy an off-plan Borey in Cambodia?Many project developments in Cambodia are sprouting up with a new sales strategy by selling off-plan units. Off-plan means the project owners are selling their projects before and during the start of the project’s construction.Buying a unit on an off-sale plan can be advantageous: You can get a good discount, you can choose your unit in the project before anyone else does, and even influence the design of your house.There is, however, the risk that the development might run into trouble in the future that may lead to the construction being stalled or even cancelled. To help you better sleep at night, we strongly recommend you follow our guide to checking the developer’s legal papers in the earlier part of this guide.Stay up for up-to-date news 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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Orkide Villa: Growing Houses in Phnom Penh

Orkide Villa: Growing Houses in Phnom Penh

June 6, 2022, 5:04 p.m.

Home & Living

As “ADB predicts a rosier growth for Cambodia in 2017”, developers are slowly jumping on to the opportunity to both make a profit from it and also contribute to the country’s economic growth – specifically in the construction and real estate industries. Take this with Cambodia’s upgrade to a lower-middle income status, you get a new set of up and coming luxury developments! And one of these is the Orkide Villa. But just what exactly does this villa have to offer when compared to the multitude of projects being constructed? Realestate.com.kh digs deep to show you what!Deriving from the inspiration of the name itself, Orkide Villa is set out to become Chroy Changva’s “Botanic City,” using elements that are both innovative and familiar to customers who wish to purchase units on the project. Its design is a play on modern architecture intertwined with Cambodia’s natural greenery – offering a taste of both worlds. It’s sort of similar to the Supertree Grove at the Gardens by the Bay in Singapore. Meanwhile, its interiors are also going to be lavishly decorated with current but timeless fixtures, fittings, and colors. The main color palette being black, brown, gold, green, and white.The project will have two villa types. Namely, the Grand Villa and the Twin Villa. The Grand Villa will have a total of 3 floors, 1 master bedroom, 5 bedrooms, a family room, a dining room, a kitchen, 2 maid rooms, a store room, a laundry room, a car park, a children area, and 9 bathrooms. Meanwhile, the Twin Villa contains a master bedroom, 3 bedrooms, 6 bathrooms, a dining room, a kitchen, a living room, a store room, a laundry room, and 2 car parks.The Orkide Villa is also located in a safe area where there is both peace and 24-hour security. Schools, shops, and other establishments also line the area for easy access. These include a Caltex gas station, Chenda Shop, VegeFresh Supermarket, Unicaffee, Sdok Pravoek, Dary Sports, Pro’s Auto, Heng Siden, and Bamboo Finance PLC.It’s also relatively easy to move around as the project’s close to public transport and main roads like the Phnom Penh Hanoi Friendship Boulevard.To top it off, The Orkide Villa has come highly commended as one of the best housing developments in Phnom Penh during the 2016 Cambodia Property Awards, further solidifying its spot as one of the country’s best investment properties.So, if you’re trying to look for either an investment or a purchase property for the long-term, it’s worth looking at some of the units at The Orkide Villa!Take a look at similar projects on Realestate.com.kh!

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Real Estate Scams to avoid in Cambodia

June 7, 2022, 3:32 a.m.

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Despite the huge growth in the Cambodia real estate industry, there are still many operators that are conducting real estate scams and misinformation for a quick profit.Given the loose regulation of the industry, and the mixed standard of agent ethics, many of these scams do not come to light until it is too late. If you are not wary of these types of scams and misrepresentations, it could damage you financially. Here is a list of the most common scams in the market, thanks to Realestate.com.kh. Keep these common real estate scams in mind when you are searching for property from both private sellers and agents in Cambodia, and protect yourself and your property assets. If you ever think you might be getting scammed, seek professional legal advice!The Double Title Scam:Properties in Cambodia come with soft titles and hard titles. Sometimes a property may have both. This scam involves an owner selling the house to two buyers. One buyer gets the soft title and the other gets the hard title. The person with the soft title loses the house because soft titles are only recognized in the local government, while a hard title is recognized at a national level. There has also been cases of multiple titles being issues, or forged - and sellers selling the same property to multiple people. There is a possibility that the buyer with the hard title is involved in the scam, but that is not always the case.You can avoid this scenario by making an inquiry with the Ministry of Land Management, Urban Planning and Construction and the local government office managing property registration. Get a copy of the title from the seller and check it against official records.Another safety precaution is to check whether the neighbors have hard titles. If they do, this means that the government has already titled the area. Buying a soft title in a place where most neighbors have hard titles is not advisable.Hidden Land Disputes:Having a soft or hard title in this scam is hardly relevant. This scam involves the property standing on a land with an ongoing dispute. Talking to neighbors usually reveals this issue. But you should also conduct a title search through a commune council official or the Ministry of Land just to be on the safe side. A professional real estate agent will do this on your behalf, or a lawyer with experience in property transactions.Deposit Disappearance Act:This scam is done by a fake owner. A buyer is asked to pay a deposit to secure the property. The seller then disappears after receiving the deposit. You may opt to pass the deposit through a reliable third party or an intermediary escrow bank account until everything is settled to protect yourself from this.False owner:This scam involves someone pretending to be the owner of a property. These properties are mostly vacant properties. What you can do is ask or have someone ask the neighbors and village chief about the property and its history and owners. Then cross-check whether there are discrepancies with their stories and the seller’s story. Again, a title check is crucial - if the owner can’t produce the title, something is wrong. Go to the relevant authority and find out whether or not they are the real owner before you give them any money.Hidden House Lease:There are instances where a house has a fully-paid long term lease. It could also be registered as a separate entity from the land. It may also have rooms sold that utilized soft titles. This is a very complicated situation and should be approached with caution. A title search should reveal the facts. Hard titles should have all the necessary details.You should seek help from local authorities if there’s just a soft title in place. As a preliminary check, note if there are rooms inside the property that the seller cannot open. If they intend to sell the house, they must be willing to force the door open or should have the key to open it.Hidden Damage:One of the reasons people sell their properties at a lower cost is because there are damages you may not be able to see. Some of them are not really visible until after you’ve made the purchase and started moving in. It’s advisable that you bring an expert with you who can check the plumbing, electricity, and the structural strength of the property before you put any money down for it.Flooding area:“No flooding” seems to be one of the selling points in property listings. Sellers will advertise it being in a flood free area even when it’s not. This can be detrimental once the rains come pouring in. One of the things you can check is whether there are flood lines; that is, where the lower half of a wall is darker. You can also ask around on forums or to neighbours in the area whether it really is a flood-free zone.Pre-selling Scam:This is when a so-called developer advertises a new project and collects money that they say they’re going to use for construction, and then they suddenly vanish into thin air. This might be a landed housing project, a borey project, a plot land venture or a condo development.This can be avoided by doing a thorough background check on the developer’s previous projects. Trusted developers usually already have a good track record. Note, this doesn’t necessarily mean that new developers are scammers.You can also try looking for news articles regarding the development project from major and trusted publications. They mostly indicate prior achievements by the developer and whether it’s been approved or not. Take note though, positive media coverage should not be relied upon solely - as it is not full proof.You can verify with the involved ministries as well – such as the Ministry of Land Management, Urban Planning, and Construction – if there are any approvals and certifications in place for the developer. They should have a company license for their development company. They should also have a master hard title for the land on which they are developing, a license for the development including a master plan of the full development from start to finish, and they should have a construction license. If the developer won’t present these things when asked, this is a clear warning sign. If you can’t buy with a hard title, or a strata title for high rise units, this is a clear warning sign.Extension Scam:These real estate scams involve declaring a property larger than it actually is and then selling it. The seller might say the property size is at 6x16 when it’s only 4x10. Buying in this condition sets you up to potentially get part of your house demolished in the future. Sometimes the owner will be aware of the issue, and sometimes they won’t - so this isn’t always a deliberate scam.Checking the title at the relevant authority for these sizes will clarify this situation. Properties with an LMAP title have had the borders defined and GPS coordinates prescribed. These are the safest titles, and they can be executed at cost. The additional cost, however, will guarantee you are buying exactly what you think you are.Working in Tandem:These type of real estate scams involve two entities or people working together to increase a property price. One person buys undeveloped land and the second person announces a new development nearby. The development usually doesn’t specify a specific location. The other person then sells the undeveloped land at a higher price. They then both split the profit. Nothing is ever built after that.Avoiding this is easier than the other scams because big developments need the approval of several ministries and are undertaken by companies with an established portfolio. Scammers usually do not also have physical offices. Again, always check if there are any approvals and certifications in place for the developer. They should have a company license for their development company. They should also have a master hard title for the land on which they are developing, a license for the development including a master plan of the full development from start to finish, and they should have a construction license. If the developer won’t present these things when asked, this is a clear warning sign.Don’t let these scams scare you too much - just be aware…Buying property in Cambodia can be beneficial if you do it right. A trusted real estate agent is a great start if they understand the transaction process and the market tricks well - but even some agents may not be working in your best interest. If you are concerned that you are being scammed, seek legal advice before you put any money down!Check out articles, news, and views related to real estate law on Realestate.com.khtoday!Looking for real estate for rent in Cambodia or real estate for sale in Cambodia?

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Plot Land Buyers Guide: What you need to know BEFORE you invest

Plot Land Buyers Guide: What you need to know BEFORE you invest

June 7, 2022, 3:57 a.m.

Home & Living

Property Buyers & Sellers Advice

Land prices have skyrocketed across Cambodia, with many local investors looking to strategically invest in pieces of land, of all sizes.Typically, developers/investors/friends will club together and buy a big piece of land (the bigger the land size, the cheaper the price per square meter). They will then subdivide – possibly providing some infrastructure and a master plan – and sell in smaller parcels to end buyers achieving a higher rate per square meter.Starting from net prices as low as a few thousand dollars for end buyers, these plots are often sold with attractive payment schemes and grand promises of guaranteed future infrastructure development.By choosing the right piece of land within one of these projects, at the right location, end buyers can also earn a relatively quick appreciation of that land asset. Some buyers are buying now with the intention of later building a home or business on this land once the area develops into a more viable suburban zone.However, not all of these land plot developments are safe investments.It is extremely important for end buyers to seriously consider the following:The location of any land plot that they intend to buy,The land title and certification being offered for that transaction and,The trustworthiness of the project owner or manager.They also need to consider what role their real estate agent is playing in the transaction.If these are not diligently considered, the buyer may not have as valuable an asset as they assumed. In the worst-case scenario, they may not have an asset at all…You can see all the available plots of land for sale in Cambodia.With this in mind, Realestate.com.kh, in cooperation with VTrust Appraisal’s highly experienced research team, have put together the ultimate plot land buyers guide.The intention of this article is to make sure that when you buy a land plot, you better understand how to protect against potential issues in the future, and choose a land project with the right legal framework, location and project planning.Broadly, any buyer needs to consider three important issues:Surrounding town planning;Infrastructure and amenities; andLegal issues regarding the plot of land itself.1. Surrounding Town Planning:The success of a land plot project relies heavily on the city master plan, especially local planning mapped out in or nearby the subject area’s periphery.If the government lays out a master development plan covering some parts of the areas in which a new satellite city will be developed, including major roads, drainage and other amenities, this means that those plots of land nearby this planned development will be in high demand and surge in price soon.So how do I choose the right location to buy plot land?A buyer needs to comprehensively study the location where the project plot is situated.Conduct due diligence regarding the surrounding environment, including a 500 meter to 1,000-meter radius scan on existing and future establishments, infrastructure, facilities and amenities that can help raise the standard of living of the residents at that location.In addition, conduct a scan on the Government’s master plan for plans regarding the nearby and surrounding areas, as well as potential private development schemes that could add value to the land plot, or detract value from the property.When will it be a good location? Consider your desired time frame…A location may take some time to become valuable. What if it takes up to 20 years, or even 30 years, for the location to be identified by the Government or large scale developers?Perhaps for many years residents will live with poor access roads, no drainage systems, undersupply of running water or electricity, or long commutes to public schools where they send their children; and by the time the infrastructure comes through for them, the perceived value for the buyer may be gone.Another potential issue with the plot location is its geographical features, for example, is it prone to flooding or other natural mishaps? Find out early before you buy.2. Infrastructure and Amenities:Regarding infrastructure, a buyer should be aware of two critical issues:Existing infrastructure; andFuture plans that affect the infrastructure there or nearby.What existing infrastructure is there?For existing infrastructure, a buyer should look at accessibility such as roads linked from the city centre to the location, running water supply, drainage systems, and other necessary amenities nearby, such as schools, community markets, public services, and so forth - or at least within a manageable distance.If the land has readily available infrastructure, it creates more value in that land immediately. This makes it worth purchasing the plots of land for resale or other purposes, but it may also mean you are too late to catch a great deal - because everyone else may have noticed the potential value too.Future infrastructure:However, not many land plot projects have infrastructure readily in place. And this is why the price is so attractive. Most of the land projects are located on the city fringes or peripheral parts of the capital, where there is minimal infrastructure.If that is the case, a buyer should look into the future of the location: whether or not there will be any town planning, including infrastructure, in reach of your desired land plot.The simple question is to ask whether there is likely to be viable development growth of the location within 5 to 10 years?Unfortunately, speculation like this can sometimes be hard to guarantee with 100% certainty. If the development does not materialise, this will lead to the land price stagnating or to a lack of a secondary market which will affect the returns.What if the buyer buys land, and then the Government changes their mind and does not supply infrastructure in this area?It’s bad news for the buyer! However, if private developers see potential in the areas nearby the plot and volunteer to supply some basic infrastructure, then the project will still have a good chance for appreciation.Some plot land developments are supported by the Government and some are not? How do we know which are? And what difference does this make?Only through due diligence can a buyer know clearly about these circumstances, by verifying development approval from the relevant authorities, title deed checks, or licensed plat/plan of subdivision for the plots of land.Positive media coverage regarding the land plot does not mean it is necessarily a safe investment, it could just be speculative.3. Legal issues regarding the plot land itself:A serious consideration of the plan of subdivision (of the plot project), which should be fully approved by the correct government authorities, is crucial before buying any plot land.An approved plan of subdivision means all the separated titles (or parcels of land) within the plot project are safe to buy with titles and will be respected at the national level of authority.A ‘letter of land transfer’ (a type of soft land title) registered at the district level if often used in plot land transactions - but beware that this is not a particularly strong statement of ownership for the end buyer and can create various potential problems moving forward.What sort of land title am I seeking?One common legal title for a plot of land is a ‘separated piece title’ which is derived from a master plat (plan) of land subdivision. To enable each of the ‘separated piece titles’, first, the developer has to hold a title deed for the whole land.Thirdly, the developer has to get the plan of subdivision approved by the urban planning authorities, especially at the national Ministry level, namely the Ministry of Land, Urban Planning and Construction.When this approval is given, it is legally feasible for a buyer to register a separate title at the ministry level for their piece of land within the project. Note though, that officially transferring this separated title will incur a transfer fee of 4% of the total value of the plot of land.Lastly, if the Government has already developed a master plan in regards to the location where the plot project is situated, then all the separated piece titles there can be registered as LMAP titles, one of the newest land titles in Cambodia.In most landed housing development projects in Phnom Penh, each separated title is offered as LMAP. Having an LMAP title means that the borders of your property have been perfectly recorded, and are free from any dispute over usages rights or ownership. What documents should the buyer ask to see before they commit?First, a buyer should verify the title deed, either of the land consolidation and/or of the land subdivision, that comes under the master plan.Secondly, check if there is approval from the related ministries (MLMUPC) for the plot project as a whole.What are the potential issues regarding land titles for the Plot Land Buyer?If due diligence by the buyer is not conducted carefully, there are potential issues associated with land plot purchase. These could be legal issues such as types of titles, as mentioned above.The problems of soft titles in plot land transactions:A basic letter of land transfer title (a type of soft title registered at the district level), which is still under the master plan of consolidation, might be safe in some cases.However, if the land title is only a soft title, buyers open themselves up to losing that land in the future if the project owner, for example, loses the entire piece of land (as collateral) to the bank if they fail to pay their mortgage.Another tricky situation is when the project owner chooses not to honour the soft title in the future, and reclaims the land, or sells the land to another buyer without revealing the soft title rights of the plot to the buyers.Another possibility is that the project seller in fact never had any ownership of the land in the first place, and the letter of land transfer title was totally fraudulent.You must do your due diligence and ensure that none of these outcomes are possible. Ideally, don’t buy unless you can buy with a hard title deed!So how can I turn my basic letter of land transfer title into a binding hard title?A buyer should first refer to the title deed for the master plat of subdivision to check there are no issues in regards to bank collateral commitments with that land.Then the buyer must register their title with the authorities (Ministry of Land Management, Urban Planning and Construction) based on the master plat and their agreement with the seller.By doing so, the buyer can then convert their basic soft title into a hard title respected at the national level. This means the land cannot be taken back from them in almost any circumstance.If not registering at that level, the landholding title is still soft.What is the correct role of the real estate agent in the plot land transaction?A professional real estate company should not be the owner of the land for sale, as it represents a conflict of interest, as they are concurrently acting for the end buyers.Real estate agents would be able to act on the behalf of potential investors in terms of identifying a site and then selling the smaller lots, they should not have any equity interest in this.Meanwhile, a quality real estate agent acting for the end buyer, should be able to consult and assist in the process of due diligence demonstrated above.Check out some more great resources on Realestate.com.kh in our Location Profiles and Investor Guides. Learn more about Cambodia, Phnom Penh, Siem Reap & Sihanoukville. Learn more about Investing in Cambodia, Foreign Ownership in Cambodia & the Cambodian Expat Experience!This piece was a co-production of Realestate.com.kh and V Trust Appraisal.

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Are you moving to Phnom Penh?

June 6, 2022, 5:06 p.m.

Realestate News

Home & Living

Phnom Penh is the capital city of Cambodia and home to almost half of the expats residing in the country. Most expats liken Phnom Penh to Bangkok 10 or 15 years ago.The city retains its charm through the stunning landmarks of Royal Palace, Independence Monument, Wat Phnom, Pagodas, famous ‘wet markets’ such as Toul Tum Poung (Russian Market), Central Market (Phsar Thmei), Orussey Market, Kandal Market, Old Market and more. As well as local small business owners filling the streets with an array of local foods, breads and fruits at every corner.At the same time, a handful of retail malls have started opening (and will be opening) throughout the city’s districts, namely in Daun Penh, Toul Kork, Sen Sok, Chamkarmon, Meanchey, and the Boeung Keng Kang districts. Western expatriates will likely see more familiar brands in these areas while still enjoying the relatively cheap cost-of-living in the Kingdom.There is a wide range of accommodation options for expats in Phnom Penh, ranging from as low as $200 per month for a more Khmer style of living, right up to $2500+ for the penthouse in a top-tier international standard serviced apartment. Generally, expats will know what area they want to move to - reasons being: they may have some friends work or live there already, and others may simply want to live close to their work. The latter of which is a good rule-of-thumb to follow since the city has plenty of choices and landlords vying for expatriate tenants.Expats in Cambodia seem to have coined various terms for locations in Phnom Penh that don’t necessarily match how Cambodians identify those locations. Be wary of this when you are trying to catch a moto or tuk tuk using the “barang” (foreigner) location term. For example, an expat identifies BKK 1, BKK 2 or BKK 3 by these names - and whilst so do a lot of locals, in fact these areas are known better to locals as Boeung keng Kang 1, Boeung keng Kang 2 and Boeung keng Kang 3.Foreigners are also very familiar with the location known as riverside, which relates to the area of Daun Penh. Similarly, foreigners like to say Russian Market - which relates to the Toul Tom Pong area.The Riverside area (Daun Penh), which runs along the Tonle Sap just before the junction of the Mekong river, is traditionally where most of the expats in Phnom Penh choose to live, and is also home to many of the famous restaurants, bars, clubs, guesthouses and hotels in Phnom Penh. And it is definitely a hot spot for the night owls and tourists visiting Cambodia.Debatably, in recent times the most popular area of Phnom Penh that seems to be swelling with expats is known as Chamkarmon. Within Chamkarmon there are various popular locations with expats residing in Phnom Penh. The affluent BKK1, the cosmopolitan Tonle Bassac and the rapidly rising in popularity Russian Market area (Toul Tum Poung) are all within the district of Chamkarmon. Generally speaking, if you are moving to Phnom Penh - you will most probably find yourself living somewhere in the district of Chamkarmon or Daun Penh.These are generally the districts expats frequent since they feature familiar brands and most businesses have employees who can speak a good level of English - something that’s not often talked about but makes a huge difference in making Phnom Penh an easy place to move into compared to its neighbours.This brief article, hopefully, should give you a quick glimpse of what it’s like to move and live in Phnom Penh. More and more expats are moving in every year as they fill important roles in the expanding business portfolio of the Kingdom.If you’re heavily considering moving to Cambodia for work, retirement, or even simple leisure, you can get started by looking for a place of your own in Realestate.com.kh’s property listings featuring over 20,000 properties for rent and sale.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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Guaranteed Rental Returns? What to know

June 7, 2022, 6:54 a.m.

Realestate News

Home & Living

Jay Cohen, Director and Partner of Tilleke & Gibbins Cambodia, joined Ivan Cano, Content Manager of Realestate.com.kh, in sharing an introduction to Guaranteed Rental Returns.Cambodia’s property market has seen massive growth and changes over the past decade. The influx of foreign investors made the landscape quite the competitive field and many new property investment opportunities throughout the Kingdom now come with Guaranteed Rental Returns (GRR).What are Guaranteed Rental Returns?In layman's terms, GRR is a future rental income that is guaranteed by the developer or management company to the property purchaser for a contracted period of time after the purchase agreement is signed.For example:Property Price$100,000Guaranteed Rental Return (GRR)6% per yearGRR Period2 yearsExpected Rental Return$12,000 over 2 yearsSharon Liew, CEO of Huttons CPL, notes that Guaranteed Rental Returns is a reassurance scheme for new investors looking to try out a new, somewhat uncharted international market. Standard net returns being advertised in the condos and new developments market range from 4 percent to 9 percent, normally for a two to five year period.Key considerations for Guaranteed Rental ReturnsFor potential investors faced with promises of Guaranteed Rental Returns, there are several points to consider before signing that dotted line.Make sure the GRR is on a contractual documentFirstly, it is crucial to find out exactly what is underwriting the guarantee. If it is merely a paper promise it is potentially illusory - a marketing exercise that will collapse after the developments launch. However, if there is an actual contract in place, containing the potential for legal recourse should the income not be generated, the GRR presents some value.“If there is a GRR scheme, the investor needs to make sure the GRR is set out in writing,” said Jay Cohen, Partner and Director of Tilleke & Gibbins Cambodia, highlighting the importance of having the Guaranteed Rental Return rate in writing. “There needs to be some sort of contractual document that sets out the rights to the GRR”Guaranteed or Gross Rental Returns?After setting the GRR out in writing, investors need to consider additional costs that may reduce an investor’s expected return; a common mistake that some novice investors make is to take the Guaranteed Rental Returns being offered as a reference point to calculate their returns.Jay Cohen notes that investors need to be careful and understand what other costs may be imposed by the developer that may reduce their GRR. “Often in GRR schemes, there may be other costs that will reduce that amount. For example, management fees, sinking funds, utilities, furniture packages, and property taxes” he said.For example:Property Price$100,000Guaranteed Rental Return (GRR)6% per yearGRR Period2 yearsExpected Return$12,000 over 2 yearsManagement fee per month$125 ($1,500 per year - $3,000 for 2 years)Utility bill per month$80 ($960 per year - $1,920 for 2 years) Expected return: $12,000 after 2 yearsCosts over 2 years: $4,920 (Management fee + Utility bill)Net Return Return: $7,080 over 2 yearsJay emphasizes the importance of having the GRR and the associated costs of owning the property to be on a contractual document and from there, understand what is their net return over the contract’s expressed period of time.Sam Kiers, Director of Sales and Marketing at Elevated Realty, agrees: “This ultimately leads to investors seriously considering the time it takes for the investment to turn profitable.”Desmond Yap, General Manager of Yong Yap Properties, believes that if it is the developer offering GRR, it is fair to assume they have done their calculations and have ensured they will not create a loss of profit for their company. “Thus, in effect,” says Yap, “the buyer is paying for their own Guaranteed Rental Returns.”Know the going rate of similar propertiesJay Cohen notes that developers often look at surrounding properties of a similar tier along with calculating their desired ROI to come up with a GRR offer. Jay additionally impresses on investors that it is not uncommon for developers to inflate the rental guarantee figures to create a good impression on buyers considering the longer-term benefits of their investment. The opposite is true as well that a developer can undercut GRRs if they are confident they can rent/lease the property out for a much higher price.For investors, another consideration about any GRR promise should be whether the rental income figure appears realistic and achievable in the current market, keeping in mind where the property is located. If it is clearly unrealistic, the investor should foresee a dramatic reduction in returns on their unit once the guaranteed rental period ends.Sharon Liew explains that “In general, the projected GRR is usually lower than the market rental rate by about 20 percent, to protect the developer from any losses - this means, that anything higher than 20 percent (per year) is likely too good to be true.”What happens after the GRR period ends?“After a GRR period ends, the investor takes over the property and they have an obligation to lease it out themselves,” said Jay Cohen. Depending on the developer, they may offer their services to lease an investor’s property post-GRR for a nominal fee/arrangement. Jay Cohen emphasizes that this should be spelled out in a contractual document to avoid ambiguity or the requirement of additional services resulting in more fees.Do a background check on the developerIt is advisable that the buyer must consider whether the developer or their property management company in fact has the ability and resources to manage the property properly and sustain rental tenants for the property over the guaranteed period.Liew confirms that “The developer’s credibility and presence in Cambodia are extremely important, as most GRR only kicks off after the development is complete. This makes upfront rebate on Guaranteed Rental Returns a more attractive option.”Look for an experienced property management operation, with past success in the local market.“Be sure to check the validity of the GRR agreement and the quality of the management team," says Desmond Yap, “and, if possible, see how the management company is arranging their finances.”Force Majeure, enforcement, and dispute resolution of GRRsGuaranteed Rental Returns in Cambodia came at a time when the real estate market was booming. Business travelers and tourists were flying in and Cambodians from the countryside were flocking to big cities like Phnom Penh to find work - constituting a large base of property buyers and renters. But COVID-19 has disrupted this growth.So can the developer reduce the GRR under certain situations? Can the developer altogether stop paying the GRR if there’s a force majeure event? “It depends,” says Jay Cohen. He reminds investors that the GRR is a contract between the purchaser and the developer. “Whether the developer is allowed to reduce the GRR because of events like a pandemic, or a force majeure event, that really comes down to the nature of the contract”.Cambodia has legal concepts of force majeure. Jay says that developers may rely on this law but warns this may be a difficult issue as it is not clearly spelled out under Cambodian law.He suggests that a “dispute resolution” be negotiated between the investor and the developer. “Give some thought to dispute resolution,” he said, “the agreement may be regulated by Cambodian law, and may give investors the choice of the Kingdom’s courts or arbitration”.“Arbitration in Cambodia may be a good path as it’s faster. So that may be a way to enforce the agreement” he said.Recap and additional tips when considering Guaranteed Rental Return offersJay Cohen reminds investors there should be a document aside from the Sale-and-Purchase Agreement (SPA) that clearly sets out the GRR, obligations of the developer, and any other additional expenses to be shouldered by the purchaser.Additionally, even if a GRR is reasonable and competitive, they are not the sole indicators of a good investment. Saraboth Ea, Managing Director of Maxem Property warns, “GRR needs to be considered amongst many other factors that determine whether an investment is a good value or not. This will consider the buyer's objectives and investment timeline, which varies from individual to individual.”“As the market matures,” continues Ea, “We hope to see developers put less emphasis on rental returns, and establish a good balance between local buyers who will reside in the property versus those who buy purely as an investment.”Looking at both sides of the Guaranteed Rental Returns debate, the rental guarantee is important for investors who need immediate reassurance on their investment - however, the guarantee is only as good as the strength of the company offering it. Ea says that a healthy skepticism around GRR is only natural in Cambodia, as it is a relatively new concept for local buyers and investors: “Rather than being the sole incentive for a buyer, we view it more as a gauge of the developer's confidence in their project.” Looking for property investment in Cambodia? Let us help!Article by:

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Tips to help you improve the health of your household budget

Tips to help you improve the health of your household budget

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

Realestate News

Home & Living

Realestate.com.kh has created the following guide to creating and sticking with a monthly budget and we have even created an online Budget Planner to help you! We believe every Cambodian should be able to afford a home and this is our way of helping you to keep more money in your pocket and getting a handle on your finances so that you can make your new home a reality.But first of all, check out: “A Very Simple Guide to Managing your Household Budget”Additional Tips for Effective Household BudgetingKeep a record of everything and anything you spend over a 30 day period. It’s amazing to see what you actually spend your money on. This needs to be a family effort with everybody’s spending included in the household budget, HONESTLY!It’s better to overestimate than underestimate your expenses whenever you make your household budget. This way you are pleasantly surprised by any miscalculations.Be organised — don’t guess the figures. Rely on bills and take note of all transactions during your day. You need to know exactly how much you have, down to the last cent.Regularly review your bank records alongside your estimated household budget.Become a conscious spender by making a list BEFORE you do any shopping and STICK TO IT. Buy only what you need.Compare prices before buying large items and never buy on impulse.Live simply — the simpler you keep your spending habits, the more money you will have to pay off your mortgage, save for a new home or spend on your children. You might even be happier…Once you do start saving money, make sure you make the most of it by speaking to your bank manager or financial adviser.Keep your new savings in a bank account where you can’t access it from the ATM! Don’t let impulse spending spoil your new household budget.If you follow these simple guidelines, you should have more money for that new home or rainy day.Looking for property in Cambodia? Let us help!

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A Very Simple Guide to Managing your Household Budget

A Very Simple Guide to Managing your Household Budget

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

Realestate News

Home & Living

Property Buyers & Sellers Advice

Nobody likes to think about money! But, in order to save for your new home, you will need to budget. And this budget only gets harder as your family grows.Wondering where to start? Realestate.com.kh has created the following guide to creating and sticking with a monthly budget and we have even created an online Budget Planner to help you! We believe every Cambodian should be able to afford a home and this is our way of helping you to keep more money in your pocket and getting a handle on your finances so that you can make your new home a reality.How to Budget for a HomeThe following are a few basic budget tips to help keep more money in your pocket and get a handle on your household finances.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. Looking for property in Cambodia? Let us help!

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