8 Questions for Cambodia investor

Cambodia has a relaxed investment environment and favorable policies. In this seemingly less affluent country, the price increase of the capital Phnom Penh has ranked first among the ten ASEAN countries, and the rate of return on housing rents is the first in Asia.

However, the investment is still multi-faceted, and many people start to buy real estate without knowing enough about Cambodian real estate, and then regret all kinds of problems. 

1.Hard title or soft title?

There are two forms of property rights in Cambodian real estate, namely freehold property rights and time-limited property rights. Freehold property rights are hard title, and time-limited property rights are soft title.

Hard title real estate is a freehold property right recognized by Cambodia. Most of the newly built properties are hard title, including land use certificates and housing use certificates. Hard title real estate is protected by law, and mortgages and sales are more convenient. It is recommended that foreigners invest in hard title real estate as much as possible.

The soft title refers to the property issued by the local government but not approved by the laws of the Central Government of Cambodia. It is usually an ordinary A4 paper. The term of the soft title's property rights is subject to the actual registration date.

No matter it is from the consideration of security or the length of property rights, it is preferred to buy hard title property.

2.Lump sum payment or loan?

The current housing prices in Cambodia are not so expensive, further small apartments are the mainstay, the total price is cheap, and lump sum payment or installment payment is more common.

Most of the mortgage loans in Cambodia use floating interest rates, and the loan risk is relatively high. The interest rate of Cambodian mortgage loans is very high. There are relatively few banks that can handle mortgage loans for foreigners. Foreigners generally do not use loans.

The lump sum payment is not only simple and fast, but also enjoys large discounts. Therefore, if you can pay the full amount, you don't need a loan.

3. What is kind of projects are more trustable?

Although the real estate industry in Cambodia is hot, the development standards are not strict, and the quality of housing companies is different. Many companies have insufficient strength. After joining the real estate army, they cannot bear the corresponding development and construction, resulting in the suspend of project. So when choosing a unit of project, it is best to choose a strong brand developer In terms of the safety of the project and the subsequent property management, branded housing companies have more advantages. You can also choose a listed real estate company in China, and it is more convenient to buy a house.

4. Can I ask agent to handle the process of housing purchasing?

Purchasing housing in Cambodia, the buyer must be in Cambodia, and buyer need to be charged on the certification documents, which means that foreign investors must complete the transfer of property rights in Cambodia on his own.  Any agency company that claims that everything can be handled is not credible.

5.Does leaseback project is worth to invest?

It is convenient for foreign investors to lease to developers, which not only guarantees the benefits but is also simple and convenient, so as not to worry about rental. But some developers deliberately raise the price of housing in order to promote sales, and then return them to customers in installments in the form of rental. In order to avoid this situation, it is better to compare with multiple projects in the same area,buyers may do a market research in advance, and check the housing price is reasonable or not, so as not to be blinded by the bubble of leaseback.

6.What is the currency settlement method for purchase housing in Cambodia?

The currency settlement method of buying housing overseas is very important. Although Cambodia has local currency, the daily payment is basically in US dollars, and the US dollar has a high degree of liquidity. Most housing purchases are also settled in US dollars. Therefore, be sure to prepare sufficient US dollars before buying a house.

7.Which one is better? Forward delivery housing or existing housing?

Existing housing can intuitively reflect the quality of the project. There are many decorated housing in Cambodia. Existing homes are more secure than forward delivery housing. They can also avoid the potential suspense of the project.

8.Where is the most worthwhile investment in Cambodia?

Phnom Penh is the preferred investment destination. Phnom Penh is the capital of Cambodia and the largest city. It has a large population, a prosperous political and commercial economy, a more mature real estate market, and higher real estate income. If you want to invest in Cambodian real estate, don't just observe the price only, the area selection is more important.