The Complete Guide to Investing In Cambodia Property
CAMBODIA PROPERTY INVESTMENT GUIDE
For those planning to invest on properties, Cambodia offers countless opportunities for investors who wanted to willingly explore prudently.
After successfully emerging from a dark past, the country has eventually shown such tremendous progress in terms of its economy.
Cambodia has also been hailed one of the investment frontiers in South East Asia.
Demands to invest in Cambodia properties tend to grow strongly for foreign and local investors in recent years.
If you are one of those who are planning to invest in Cambodia property, you need to be guided accordingly.
There are essential things that you need to learn and considerations that you need to take into account before you jump in to any investment opportunity.
This is a complete guide to investing in Cambodia property designed to help you learn better and end up with the most informed property buying or investing decision.
REASONS WHY YOU SHOULD INVEST IN OVERSEAS PROPERTY
Investing on properties is one of the most practical and beneficial way of using your money for a guaranteed profitable undertaking however, you need to do it the right way.
You need to keep in mind that your choices and approaches can make or break your investments so you need to be guided accordingly.
As far as investing on properties is concerned, increased number of individuals these days are opting to invest overseas for many different good reasons.
LOCATION IS AN ATTRACTIVE OPTION
Overseas locations actually offer attractive option.
The overseas market can provide you with good and stable returns in form rents from the properties which you invest in and opportunities for capital appreciations as well.
There are biggest banks that have developed different schemes most particularly for individuals who are planning to purchase or invest on properties in the overseas markets.
There are also ideal overseas properties financing packages which are especially structured to help individuals finance their properties overseas.
These banks facilities also offer freedom to choose properties under construction or completed properties.
Loans are also available but are subjects to loan minimum requirements.
LARGER FINANCIAL GAINS
Though investing overseas seems a complex pursuit, the efforts that you have put into locating and then purchasing properties overseas can result to larger financial gains.
As an investor, you’ll have the satisfaction of knowing that you will be the owner of tangible assets.
The property’s value can’t fall to zero.
Truth is, it’s likely that you’ll make stead income and enjoy prospect of capital appreciation as well in the long run.
Though there are good reasons to invest overseas, you need to keep in mind that there are still essential considerations before jumping in.
ESSENTIAL CONSIDERATIONS TO REMEMBER WHEN INVESTING OVERSEAS
WHAT’S THE MARKET LIKE
A declining, quiet and declining market is not ideal according to experts.
RULES ON THE FOREIGN OWNERSHIP
In some countries, foreign investors can just purchase newly built residential properties and should obtain prior approval for particular property types.
Other countries, the foreign freehold ownership isn’t allowed but foreigners can purchase freehold lands for manufacturing purposes with the Board Investment Approval.
If you will invest overseas, you also need to be aware of the restrictions on foreign ownership.
As investors, you also need to be aware of the restrictions on currency volatility and capital repatriation to make sure they remain cost competitive.
RULES ON TAXES AND FOREIGN EXCHANGE
Various countries have particular rules that apply to foreigners who bring money to the country and taking the money out.
Taxes come in different forms ranging from transaction taxes to taxes for holding property.
As the tax policies might need interpreting and some rates can change more often, investors or foreign buyers speak with an accountant and lawyer when entering overseas jurisdiction.
Rules on Taxes and Foreign Exchange Other factors that need to be considered when investing overseas are risks of foreign exchange, what’s the property really like, the type of unit to buy, financing options for properties overseas and more.
REASONS WHY SHOULD YOU INVEST IN CAMBODIA
Out of the many rapidly-growing and developing frontier markets in Asia, it has been known that Cambodia is one of the friendliest countries for real estate buyers and businesses as well.
This small yet lovely county is nestled in the heart of the Southeast Asia and has leapt forward especially in terms of economic growth.
Cambodia properties are excellent ways to profit from unparalleled rise of the nation.
This country hasn’t had even a single recession year since 20 years ago and it successfully skipped the known Asian Financial Crisis in 1990s and it has even outgrew the financial crisis that took place in 2008.
There is really no such thing as recession proof country however, Cambodia has completely proven to be as close as it really gets.
One of the reasons for this is that Cambodia just like other numerous frontier markets tend to be less correlated with global economy.
Cambodia has indeed undergone drastic changes from underdeveloped country to widely-urbanized Kingdom and the massive improvements and developments have paved way for this.
Contributing factors to the country’s growth are primarily the pro-business policies of the government that results to influx of more foreign investors in different business sectors like:
- Residential and housing market
- Offices and commercial market
- Industrial market
- Agricultural market
- Retail market
If you are planning to invest overseas, make sure not to invest in the wrong country.
To ensure that your money and investment is secure, you can consider investing in Cambodia?
The good reasons for this practical and beneficial option are as follows:
STRONGER GDP GROWTH
Unlike other countries, Cambodia has stronger GDP growth.
Records reveal that from 1999-2013 got the highest average annual growth of 8.2% and the country grew about 115% during that time and this is about 27.5% higher than Singapore and 38.5% higher than Malaysia.
INEXPENSIVE AND YOUNG WORKFORCE
Cambodia got lowest cost workforce among Asia and there is an abundance of trainable and willing work force in this country.
The rising literacy rate has also surpassed 75%.
The prime location of Cambodia is one of the fastest-growing regions in the world.
This is sandwiched between two larger and more highly developed economics which is Vietnam and Thailand facilitating economic spill-over.
Cambodia is also situated along Gulf of Thailand giving the country easy access to maritime trades.
Another good reason to invest in Cambodia is political stability.
The Prime Minister of Cambodia has actually held power since 1985 and various ministers have been highly experienced and have been long serving the country.
FAVORABLE INVESTMENT SETTINGS AND CLIMATE
Cambodia guarantees 100% foreign ownership except lands.
There are attractive and great investment incentives and no capital gain tax.
INCREASED TRADE INTEGRATION
Cambodia is a WTO member since 2004 and its ASEAN membership provides regional trades advantages and benefits.
The country also has duty-free or a preferential export access into highly developed economies.
IMPROVED TRANSPORT CONNECTIVITY
All the bridge and road links with the neighbouring countries have been upgraded.
The railroad systems are also being rehabilitated to ensure better and more convenient transport connectivity.
The container sea port found in Sihanoukville has also been expanded and modernised.
The Phnom Penh river port was enlarged and relocated for better access. There are also 3 international airports in Cambodia.
LOW-COST INTERNET AND TELECOM SERVICE
The hyper-competition in internet and mobile sectors has significantly cut the user costs.
New coal-fired and hydropower plants underway tend to replace the oil-based generation and then cut the energy cost.
UNTAPPED LAND AND NATURAL RESOURCES
Cambodia offers fertile land for processing and production of various agricultural commodities.
The country is also noted for its livestock farming and aquaculture processing potential, off-shore oil as well as gas reserves, abundant mineral deposits and world-class tourism sites including culture, nature, history, islands and beaches.
UNDER-PENETRATED AND GROWING DOMESTIC CONSUMER MARKETS
Cambodia has ultimately youthful demographics that ensure rising domestic demands.
The 61% of Cambodians are under 25 and median age is 21 years old.
The household formation, workforce participation and the urbanization will entirely show significantly robust growth over next decades.
The purchasing power and per capita GDP have doubled over past decades and are expected to rise continuously.
There are also emerging opportunities for import substitution in several industries.
UN-LEVERAGED AND GOOD FINANCIAL POSITION
Cambodia has relatively low sovereign levels and consumer and corporate debt.
The country is well capitalised with conservative banking system.
There is no tradition of government subsidies and bailouts which are said to be surprisingly rare today.
It is known that Cambodia is perhaps the last investment frontier-market found in the region.
If you get started with investing now, you can experience and enjoy first mover’s advantage.
With all these great reasons, you will now be surely convinced that investing overseas, particularly in Cambodia will surely deliver lots of benefits to you.
You are also ensured that with such investment option, your money will not go to waste and your investments will grow.
HOW MUCH ARE PROPERTY TAXES IN CAMBODIA?
Annual property taxes are 0.1% of the market value of the property in excess of 100,000,000 Khmer Riel, or about $25,000.
Needless to say, annual taxes are very low in Cambodia.
Rental income taxes are 14% for residents.
For non-residents, rental income is taxed at a higher 20%.
There are various deductions which, in most cases, bring these rates down significantly.
WHY INVEST IN CAMBODIA CAPITAL - PHNOM PENH
Investing in Cambodia Property is now made easier.
The first thing that will strike your mind when you hear the term “Cambodia” is its blowing creative work of architecture.
This place is well-known for its exceptional structures and breathtaking scenery that will definitely mesmerise your mind, heart and soul.
If you have been on several trips to this awesome place, you will surely feel motivated and enlightened to invest in Cambodia Property.
With the help and guidance of a professional real estate company, investing a property in this place is possible.
PROJECTS TO INVEST IN PHNOM PENH CAMBODIA
THE BRIDGE CAMBODIA
Singapore prominent developer gives great assurance to the investors that are mutually developed by the Oxley Holding which is a Singapore developer and the World Bridge Land which is a Cambodia developer.
The Bridge Cambodia is the first mixed development in the state of Phnom Penh.
In addition to this, Bridge Cambodia offers low cash outlay and guaranteed rental for 10 years.
It also offers guaranteed rental return of 70 percent over ten years by Oxley. The own Grade A offices at Bridge Cambodia comes with residential price.
Why Choose The Bridge Cambodia?
- Impending the full integration of Cambodia into ASEAN 2015 and synergies of businesses and commerce.
- Only the Grade A office is for sale in the prime location.
- The Bridge Cambodia is near to mega shopping mall called AEON Mall.
- It is considered the best investor’s choice.
- The Bridge Cambodia has a growing economy that can attract foreign ventures and startups.
- It is walking distance to Toyoko Inn and NagaWorld casino and hotel.
- It is considered as the tallest building in Phnom Penh that offers 360 view.
- The Bridge Cambodia offers low cash outlay.
- It is the first mixed development in the state of Phnom Penh.
Investing in Cambodia Property is the best thing that you should do especially if you want to have a stable income as time goes by. Invest in Cambodia Property today and reap the amazing benefits tomorrow.
THE PEAK CAMBODIA
The price starts from 1XXk US dollars and you can invest with low down payment for as low as 20K US dollars.
Cambodia Capital is considered as the first integrated luxurious business tower.
Its celebrity endorsement is Zheng Ge Ping, Mediacorp Artist.
The Peak Cambodia in Phnom Penh is mutually developed by the Cambodia developer known as World Bridge Land and the Singapore Developer called Oxley Holding.
Owning an office space below the Shangri-La 5 Star Hotel is only available to The Peak offices owners or investors.