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Four tips on budgeting for a new home
Four tips on budgeting for a new home
May 18, 2022, 3:17 a.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.
Popular investment opportunities in Cambodia for foreign buyers
Popular investment opportunities in Cambodia for foreign buyers
May 17, 2022, 5:06 p.m.
Realestate News
Property Buyers & Sellers Advice
Favourable foreign ownership laws, a U.S Dollar based economy, rental returns of up to 10% per year, and high yields are just a few reasons why Cambodia is a great investment destination. To help you make an informed decision for your investment in Cambodia, we highlight some of the common types of opportunities that are available in the Cambodian market.Condominiums and ApartmentsThis is the most common type of investment for foreigners in Cambodia, and in many ways, the easiest to understand. Most developers targeting international buyers will structure projects with some sort of rental return scheme or GRR, generally around 5%+ per year for up to three years. Although not all developers will offer a GRR scheme and may opt for offering buyers a small discount on the purchase price, especially if they are targeting buyers that intend to live in the property. A common question you will be asked by developers is: Are you buying for living or investment?*Guaranteed Rental Return (GRR) or Rental Return Scheme (in some counties) is the amount of money often communicated in a percent based on the purchase price of the property that the developer guarantees you as the buyer in return, over a certain period of time. If you are purchasing a property with GRR make sure it is mentioned in your sales and purchase agreement.Learn more about Guaranteed Rental Returns hereStrata titled office space and commercial unitsSimilar to the high demand for more housing in Cambodia, there are also 100's of new businesses and multinationals entering the market. In line with this, developers have identified this as an opportunity to differentiate themselves from their competitors and offer strata-titled office or commercial units for sale. Sometimes this can be integrated into a development that will also include apartments for sale, or it can also be a stand-alone office development project.Serviced Residence, Hotel and Resort-style investmentsAn increasingly common investment type or opportunity that we are seeing in Cambodia is investing in a serviced residence or hotel. This can be highly attractive to many investors that are looking for high and often guaranteed rental returns. It is also not uncommon for these types of investments to have a Guaranteed Buy Back option built into the purchase.A guaranteed buyback is a contract between the developer of a new project and anyone who buys a unit within that development stating that the developer will buy back the unit from the owner after a fixed period of time.Colonial apartmentsCambodia is littered with 100's of old French colonial buildings, and a common trend for foreigners living in Cambodia is to buy an older apartment, with the vision of renovating the property before selling it at a higher price. This is very common in many markets around the world. Whilst there are some great financial gains to be made in this type of investment, we would advise anyone living outside of Cambodia to focus on other investment opportunities in the property market, that come with a long-term lease, hard or strata title.Realestate.com.kh is home to over 30,000 (and growing!) property listings all over Cambodia. Our property advisors are on standby to help you in your real estate search!Need help finding the right property? Let us know!Article by:
Turning a profit from popularity: Investing in Chamkarmon
Turning a profit from popularity: Investing in Chamkarmon
May 17, 2022, 5:06 p.m.
The Independence Monument in Chamkarmon bordering Daun Penh. Supplied.Chamkarmon (ចំការមន) is one of the most well-known districts in Phnom Penh. Located in the south-central part of the city, it connects the central districts in Phnom Penh like Beoung Keng Kang (BKK), Daun Penh, and 7 Makara to developing districts like Meanchey and Chbar Ampov.Foreign direct investments have poured into the district’s residential and commercial sectors over the past year and have made it into one of the more developed areas in terms of urban conveniences. As a result, Chamkarmon has become a prime choice for many residents to live and do business in. But what exactly are the things that make Chamkarmon popular among Phnom Penh’s residents and keen foreign investors?Road accessibilityIt’s easy to get to Chamkarmon. The district’s location plays a major role in making it accessible, and as a result, popular to the city’s residents. Three major roads pass through the district; the first is the Mao Tse Tong Boulevard which cuts through the middle of the district and serves as a major artery between the eastern and western parts of Phnom Penh.Preah Norodom Boulevard runs through many key developments in Phnom Penh. Supplied.The two other roads are the Preah Norodom Boulevard and Preah Monivong Boulevard with both roads considered the main avenues for travelers between the north and south of Phnom Penh. These 3 roads intersect at different points in the most commercially active communes of Boeung Trabek and Tonle Bassac.Lower property pricesChamkarmon’s road accessibility is complemented by its relatively lower associated property costs. In terms of real estate, Chamkarmon’s property sales and rental prices are still comparatively lower compared to central districts like Beoung Keng Kang and Daun Penh.New development median sale prices (as of mid-2021)ChamkarmonDaun PenhBeoung Keng Kang$116,000$207,000$182,375Median rent prices per bedroom apartment (as of mid-2021)UnitChamkarmonDaun PenhBeoung Keng Kang1 bedroom$600$800$7502 bedrooms$800$1000$1000*Prices displayed above are median price points; there are several dozen live listings available for lower-priced properties for sale and properties for rent in Chamkarmon.These comparatively lower costs of living compared to central districts like BKK, Daun Penh, and 7 Makara make Chamkarmon popular for middle-class locals, expatriates and tourists alike.  It also doesn’t hurt that the area’s more attractive cost of living is paired with exciting nightlife and plenty of modern shopping destinations nearby.NightlifeBassac lane is a popular destination for both locals and expatriates in Phnom Penh. Photo by The Culture Trip.There are many sides to Phnom Penh’s nightlife and Chamkarmon is home to its more relaxed but vibrant face as opposed to the wilder side of the night in Toul Kork and Daun Penh. Selections of small to medium-sized shops, cafes, pubs, and restaurants litter the many streets and intersections especially around Toul Tompoung a.k.a. the Russian Market.Toul Tompoung’s nightlife caters more to a younger crowd and families simply looking to have a swell night out. Toul Tompoung’s nightlife is made popular among locals and tourists by the dozens of street vendors selling local delicacies and cuisines near the Russian Market every night starting at 6pm.Food & beverage retailers are abundant in Chamkarmon. There are a few semi-fine dining options in the area while more modest restaurants are more numerous and usually are serving foreign cuisines made by the area’s expatriate community. This melting pot of cultures spills over to Chamkarmon’s pubs and bars which enjoy city-wide fame with young Cambodians and expatriates.Chamkarmon, in general, has plenty of things to offer people looking to have a great night out without spending too much money. All it takes is one or two weekends around the Toul Tompoung area and anyone living in Chamkarmon can find a place they can always go back to.A growing shopping districtThe AEON Mall 1 was the first large purpose-built mall in Phnom Penh. Photo by TheLostPinay.Chamkarmon is a popular shopping district where hundreds of small-to-large businesses are found. Immediately noticeable is the prevalence of shophouses and purpose-built community markets as Chamkarmon is a nesting ground for the local entrepreneurial spirit. Whatever you’re looking for, a shop in Chamkarmon probably has it.There are two main markets in the Chamkarmon area: The Toul Tompoung Market (Russian Market) and the Boeung Trabek Market. These are the primary community markets selling both wet and dry goods as well as knick-knacks/souvenirs. Both markets are additionally surrounded by shops outside the market premises catching the spillover shoppers.Modern purpose-built shopping malls are also present in Chamkarmon. Chief examples are the AEON Mall 1 in Tonle Bassac and Chip Mong Noro Mall along Preah Norodom Boulevard. You can check our guide to shopping malls in Phnom Penh for more information.Market developments in ChamkarmonThe residential market in the area remains afloat because of the prevalence of COVID-19. Yes, because of the pandemic. With the income of many expatriates and middle-class families having been affected by the pandemic, many have been looking to move away from BKK and Daun Penh for lower cost rentals in Tier 2 locations like Chamkarmon where they would not be conceding the urban comforts found in BKK and Daun Penh.Of course, the interest in living more for less has translated to an uptick in properties changing owners in Chamkarmon. According to a report by Realestate.com.kh, while Boeung Keng Kang remains the most-searched district from property seekers, Chamkarmon’s popularity has closed the gap since the lifting of the quarantine measures in the city back in mid-May 2021.Chamkarmon’s retail space market continues to grow and is now one of the biggest retailer destinations in Phnom Penh. According to Knight Frank’s H2 2020 report, the district is home to 22% of the existing retail spaces (~400,000 sqm) in Phnom Penh, putting it on par (at 22%) with Sen Sok district - home to the biggest mall in Cambodia, the AEON Mall 2 and international wholesaler Makro. This growth is attributed to the opening of new shopping centers in the district.Office spaces in Chamkarmon have also kept up with the central business district of Daun Penh. According to Knight Frank’s H2 2020 report, Chamkarmon is close at 21% behind Daun Penh at 25% when it comes to the total office spaces in Phnom Penh. Though the report did not specify the specific commune these office spaces are, it may be safe to assume that most of these are located in the Tonle Bassac area.The development of Meanchey and Chbar AmpovThe AEON Mall 3 is the biggest mall coming to Phnom Penh in the next 3 years. Photo by Cambodia Properties.While Chamkarmon itself is seeing growth, keen investors do well whenever the larger picture is taken into account. The two southern districts of Meanchey and Chbar Ampov connected to Chamkarmon via the Preah Monivong and Preah Norodom Boulevards are both earmarked for massive residential and commercial developments.For the Meanchey district, the main headline is the construction of the AEON Mall 3, soon to be Phnom Penh’s largest purpose-built shopping mall measuring at ~174,000 sqm. When news broke in 2019, property prices around AEON Mall 3 saw a boost with many developments and land properties being bought in anticipation of the boom in the area.The Hun Sen Boulevard also greatly contributed to the viability of doing business in the Meanchey district. The 60m road (the other name for the Hun Sen Boulevard) is accessible via the Preah Monivong and Preah Norodom Boulevards from Chamkarmon. Its completion a few years ago vastly alleviated the traffic congestion in the southern part of the city, expanded opportunities, and raised property prices in Meanchey.Construction of Koh Norea bridge began in Q4 2020. Photo by Khem Sovannara from the Khmer Times.For Chbar Ampov, big borey developments have already laid claim to much of its vast lands. However, the OCIC has earmarked the northeastern portion of the peninsula for the Koh Norea Satellite City estimated to be worth $2 Billion.At present, Chbar Ampov is only accessible via the Monivong Bridge which leads to the Preah Norodom and Preah Monivong Boulevards. The OCIC is currently building a bridge over the Bassac river to connect Koh Norea directly to Koh Pich (Diamond Island). The Koh Norea bridge is planned to open in 2022.When it comes to future returns, Chamkarmon edges out central districts on price attractiveness and even potential returns for the next 5 to 10 years. It’s worth noting that much of the city’s outskirts are still developing and have been earmarked for further development such as Meanchey and Chbar Ampov - two districts directly connected to the district - presenting an opportunity for considerable returns for investing in Chamkarmon.Discover why Cambodia remains the rising tiger economy of Southeast Asia. Download now!Article by:
Strata title buying guide for foreigners
Strata title buying guide for foreigners
May 18, 2022, 3:34 a.m.
Realestate News
Property Buyers & Sellers Advice
A rendered image of the luxurious Agile Sky Residence in the heart of Phnom Penh.Can foreigners own land in Cambodia? The short answer is No. But the Royal Government of Cambodia has eased on this restriction by allowing foreign nationals to own property via Strata Titles.Strata title in Cambodia is a relatively new type of property ownership and the only one granted to a foreign national. This type of property title is presently restricted to condominiums, and more recently, office buildings since foreign nationals are not allowed to own landed properties in the country.The question now is, how do you, as a foreigner, get a Strata Title?DISCLAIMER: Foreign buyers, local buyers, foreign buyers with Cambodian citizenship, and companies have to satisfy slightly different requirements to purchase a Strata Title. We strongly recommend consulting a real estate agent to walk you through the specifics of your case. For this guide, we will be walking you through the general steps for an individual foreign buyer.How to obtain a Strata TitleObtaining a Strata Title starts with the owner of the property. But before heading to the sales office of a condo, we advise buyers to first check with the local cadastral office and local commune council if the developer/owner does indeed have legal ownership of the original title. In the case of property developers, this step is meant to verify their ownership of the Hard Title and its eligibility to be partitioned into Strata Titles.Upon completing the above mentioned due diligence, buyers may proceed in dealing with the company itself. While condo developers will likely have representatives to handle sales, we advise buyers to obtain a copy of their company/national ID as another layer of due diligence. This goes double for individual condo owners offering their unit(s) for resale.Once that’s clear, the buyer and the owner of the hard title (or an authorised representative) must physically be present at the same time in the cadastral office to initiate the title transfer. Foreign buyers are required to be in Cambodia for the title transfer as their thumbprint is required to be affixed in the Vente Definitive and the Application for Ownership Transfer, both being standard documents provided by the land department.It’s important to note that the Ministry of Land Management, Urban Planning, and Construction (MLMUPC) requires fully certified documentation of the identity and marital status of the buyer to be supplied and translated into Khmer - this includes the name of the buyer as English names are not permitted on property titles.The requisite fees for title transfers are paid at the General Department of Taxation (GDT). Transfer taxes are paid after the land office reviews and certifies the submitted documents. These same documents will be submitted to the GDT who will then assess the value of the property based on a proprietary set of criteria and calculation methods. An officer from the GDT will then be responsible to perform the evaluation and may take anywhere from 1-2 weeks. After the assessment, an invoice will be issued containing the transfer tax required to be paid.NOTE: It is common practice for sellers to pay the transfer tax, but this can go either way. Be sure to clarify this part of the transfer with the owner.A receipt will be issued by the GDI as proof of payment to the party who made it. This receipt, along with the certified documents will be brought back to the Cadastral Authority at the MLMUPC. A new original title, with the name of the new owner, will be issued by the Cadastral Authority.A sample of a Strata Title issued by the MLMUPC.Other ownership methodsIf you’ve assessed that Strata Titles do not meet your needs, there are other methods such as obtaining Cambodian citizenship, or a company lease, to own landed properties in Cambodia. But those involve completely different steps which are relatively more complicated. We highly recommend seeking the assistance of a Cambodian lawyer to properly guide you through the whole process of these alternative methods.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:
Strata Title Transfer Process, Q & A
Strata Title Transfer Process, Q & A
May 18, 2022, 1:32 a.m.
Realestate News
Property Buyers & Sellers Advice
Cambodian laws towards land titles for foreign ownership have been largely untested amidst the current construction boom.After months of collaboration with the lawyers of Sok Siphana & Associates and National 6A Investment, the Ministry of Land Management, Urban Planning and Construction (MLMUPC) has now started to transfer strata titles to purchasers of residential units - creating legally binding ownership.Realestate.com.kh spoke with Antoine Petit, executive director for National 6A Investment - the development company and property manager for the Galaxy Residence on Chroy Changvar - about the various pitfalls that all investors should be aware of when acquiring strata titles.Realestate.com.kh: What are the steps to creating a Strata title?Petit: At the very first stage, the developer acquires the land that the development will be on with a hard title in the name of the development company. This happened around four years ago for National 6A Investment. However, from this original master title you cannot directly transfer private unit ownerships to individual buyers. Before this, you must first transfer the total collection of split titles into the developer’s name and ownership. In our case, these were 51 separate titles for 51 units, made from the original, single hard title. The land department of the ministry will also screen your common area regulations and practices at this stage. If the land department is satisfied that the co-owned areas will be correctly managed and insured, then the strata titles will be issued. Once these 51 titles have been created and transferred into the company’s ownership, we can proceed to transferring these individual titles to the individual buyers.Realestate.com.kh: What is involved in the transfer of the strata title from the development company to the end buyer and owner?Petit: The MLMUPC requires fully certified documentation of the identity and marital status of the end buyer and these documents must also be supplied and translated into Khmer. Importantly, the strata title is solely in Khmer, thus no English names are permitted on the strata title and all buyers need their name to be translated. Khmer buyers, foreign buyers and the development company all must satisfy slightly different process and documentation demands. During this stage, we chose to engage the services of Sok Siphana & Associates to review the certified documents and their translation, to liaise with the authority at the land department and to provide legal assistance to buyers along the process until the transfer tax payment.Realestate.com.kh: Does the buyer have to be in Cambodia to transfer the new strata title into their possession?Petit: Yes. The buyers must physically be present to affix their thumbprint on their certified documentation, but most importantly on Vente Definitive and on Application for Ownership Transfer, both of which are standard templates to be provided by the land department. This means international investors must come back to Cambodia to get the title transferred.Realestate.com.kh: What costs are accrued during the transfer process?Petit: There is a public service fee per strata title for the conversion of the master title. There is also a public service fee for each individual strata title to be issued in the buyer’s name. Concerning the transfer tax, once the set of certified documentation is reviewed and accepted by the land department, the exact same documentation with other forms will be submitted to the General Department of Taxation. The tax officials will then issue an invoice with the amount of transfer tax to be paid after assessment of the property value based on their determined ranges and calculation method. After issuance of the evidence from the General Department of Taxation  that the tax has been paid by the buyer, the land department will complete the title transfer.Realestate.com.kh: What if the buyer refuses the strata title transfer?Petit: In theory, this will bring problems when it comes to resale because the second buyer will have difficulties to do a thorough examination or to have certitude that there are no disputes, mortgages, judgments or unpaid taxes associated with the property sold. Pure investors are usually resistant to fulfill the physical paperwork and monetary demands to transfer the ownership in their name. Some developers in this case may accept to hold the title for them - but this can cause complications for buyers later. It is not really advised. On the other hand, such an arrangement also creates landlord liabilities for the developer holding the strata title. An effective way to mitigate this for the reassurance of the buyer is to enlist quality legal support, to ensure constant communication with the developer and to get education surrounding the process. Hiring a professional legal firm with experience in this has been crucial - because they can make this transfer process as smooth and predictable as possible.Learn more about Cambodian land titles, strata title transfers on Realestate.com.kh today!  Click here for current land for sale in Cambodia and current land for rent in Cambodia
Matthew Rendall at Expo 2018
Legal aspects of co-owned buildings
May 17, 2022, 5:06 p.m.
Realestate.com.khTV
Special Reports
Like any other business enterprise, real estate development is governed by a legal framework. These set of laws and regulations, though complicated, ensure operations and activities related to the sector are done legally without ill effects on people and the environment.  Co-owned buildings are covered by most existing real estate laws in Cambodia but there are a few regulations exclusive to this type of property. Developers can be heavily penalised if they don’t follow these regulations in the Kingdom.We will guide you on the legal frameworks of co-owned buildings. Additionally, you will learn what is required if you are a developer in Cambodia.Keep in mind that you can browse hundreds of co-owned buildings on our site and you should always consult with a qualified legal team if you have doubts.What is a co-owned building?When people say “condominium” they are usually referring to a co-owned residential building. Under a co-ownership arrangement in Cambodia, several owners live in the same building. A co-owned building consists of units that are exclusively owned, with common areas whose use and benefits are shared among the co-owners.There are several types of co-owned buildings:Detached buildingsSemi-detached buildingsAttached housesIn the past, foreigners weren’t allowed to buy condos in Cambodia. In 2010, however, the law changed. Anything from the first floor and up can be owned by a foreigner. Also, foreigner ownership cannot exceed 70% in a single building.Find out more about buying a condo in Cambodia as a foreigner.Legal aspects for developers:Project licenceBefore work begins, a developer is required to obtain a project licence from the Ministry of Finance and Economy (MEF).This requirement was set forth in Prakas 965 and there are two types of licences:Type 1 licence is for developers who finance their projects by themselves. Type 2 license is issued to developers who raise money from their buyers.Holders of a Type 1 licence can only sell units within the development once the project is complete. Developers having a Type 2 licence can pre-sell, but only after obtaining a construction permit and a project permit from the MEF.Developers must make a deposit of 2% of the total value of the project into an account with the National Bank of Cambodia (NBC). This measure is meant to protect investors and their money in the event the project is not completed.The government has the right to revoke the licence if the developer fails to finish the project on time or if the developer fails to follow the legal obligations required under the law.Construction permitsSave for a few exemptions, a construction permit is required for any construction work or development in Cambodia.Applicants must complete forms and submit them to the Ministry of Land Management, Urban Planning and Construction (MLMUPC). Supporting documents must also be filed at the commune, district and municipal levels. All submissions must be made in Khmer.The application must bear the signature of the landowner and a licensed project designer or architect.The authority to issue construction permits mostly falls within the jurisdiction of municipal or provincial officials. For big projects like airports and seaports, it is the National Committee of Land Management, Urban Planning and Construction that issues the necessary permits.Under Cambodian law, a construction permit is only issued if the applicant follows or is compliant with the master plan, land use plan, and other governing rules and regulations.Other relevant permits in CambodiaIn addition to the permits mentioned above, there are others that will be required throughout the process of development:A site opening permit is required to open a building site. This is issued by the MLMUPC. The ground cannot be broken before obtaining this permit.A site closing permit is required once the construction is finished. This is a key component in the process. A certificate of compliance is also required before the project is considered finished. Keeping to codeIt’s important to follow the letter of the law when it comes to real estate in Cambodia. If problems occur, court cases can be long and painful affairs. It’s important to do all your research before beginning the process. Realestate.com.kh urges everyone to enlist the help of qualified legal professionals.Note: This is a general guide and does not constitute definitive legal advice. Always do your own research and invest at your own risk.Looking for property investments in Cambodia? Let us help!
Understanding property titles in Cambodia
Understanding property titles in Cambodia
May 18, 2022, 3:39 a.m.
Property Reviews
Property Buyers & Sellers Advice
(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:
Plot Land Buyers Guide: What you need to know BEFORE you invest
Plot Land Buyers Guide: What you need to know BEFORE you invest
May 18, 2022, 3:43 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.
The 4 big reasons to buy land property today
The 4 big reasons to buy land property today
May 17, 2022, 5:06 p.m.
Comparisons
Property Buyers & Sellers Advice
(The Kingdom of Cambodia’s rapid real estate development has been a boon to land-owners across the country. Photo by Ly Vanna.)One of the first things you learn in real estate is that land value continuously appreciates. In the Kingdom of Cambodia, this has become more apparent.This is especially true in the rapidly developing urban population centres (such as Phnom Penh and Sihanoukville) and major public infrastructure works (such as National Road 3, and the road projects in Kampot and Sihanoukville, or near national planned airports etc).According to CBRE’s Fearless Forecast 2020 report, land prices across Phnom Penh’s districts rose significantly. The districts of Daun Penh, Chamkarmon, and 7 Makara have seen the largest appreciation as these started the decade with prices around 2,000 USD per sqm.These same districts saw prices of ~6,000 USD per sqm in 2019; a 200% increase in value. Toul Kork, one of the most recently developed districts in Phnom Penh, has spiked in land value - from ~1,000 USD per sqm in 2010 and closed 2019 at an average price tag of around ~3,500 USD per sqm.(Phnom Penh's land prices have been on a steady increase since 2010. Source: CBRE Research 2021)Property in the countryside has risen as well due to the rehabilitation of major road networks. In the Kandal province, for example, the price per square metre of land was reported to cost $5 USD. But when road works began for the National Road 3, prices spiked to $13 USD per sqm. That may not sound like a lot compared to prices in Phnom Penh, but you have to remember that land in the countryside is purchased in hectares and not at a few hundred square metres.The uptick of land purchases and developments are showing no signs of slowing down anytime soon either. And that’s why you should consider buying landed property while they’re still affordable and profitable!Read the latest on why investing in Cambodia is a great idea.But before you buy, let’s understand the factors influencing the appreciation of land values.Why does land value appreciate?(The inherent value of land is tied with the versatility it provides when it comes to development.)Land has intrinsic valueLand has unquestionable intrinsic value since it can always be used for something that can produce valuable goods and services - something the Cambodian government, the private sector, and a few enterprising individuals in the countryside duly understand.For a better understanding of how intrinsic the value of land is, let’s take a look at cryptocurrency as a store of value. Without anyone accepting cryptocurrency as a medium of exchange, it cannot be used to produce anything else.On the other hand, even if land cannot be used as a medium of exchange, it can be used to build a house or a condominium that can be rented out. It can also be built into a mall to house shops selling a variety of products. If you don’t have any capital, you have the option of converting the land into a simple parking lot where you can charge cars for parking fees.With a few improvements here and there, a land’s inherent value further increases when there’s adequate infrastructure - which leads us to our next reason.Availability of infrastructure(Electricity in the Kingdom is of particular importance to continue its industrial growth.)Underdeveloped infrastructure isn't a problem unique to Cambodia, it still does greatly influence the development and pricing of property in the Kingdom. This holds true in major economic hubs like Phnom Penh and Sihanoukville - cities which are seeing the fastest rates of development of residential, commercial, and industrial projects which stretch the capacity of existing infrastructure to support them.For landed property developers, such as boreys, some developers have to construct their own electric/water supply infrastructure, further driving up the cost of the development.Land, by itself, is mostly useless for most modern-day purposes. This highlights the need for adequate infrastructure to support residential, commercial, and industrial endeavours. In particular, infrastructure for electricity and running water are key factors in the viability of any residential or commercial prospect.Hence, land property with access to the necessary electric and water supply makes for a valuable purchase for most developers.Location, Location, Location(Real estate is business, and business is heavily dependent on location.)As Mark Twain once said, “Buy land, they’re not making it anymore”.There is only so much land available that’s proximal to any city centre. The areas around the busiest and most populated parts of a city or a province will be most sought after due to their proximity to where people want convenient access to. As a city like Phnom Penh expands, it only follows that the accompanying land prices surrounding its busiest commercial and most popular residential areas rise as well.4 Reasons you should consider buying land property todayLand appreciates, your money does not. As Cambodia grows, so does its need for more residential, commercial, and industrial development. More projects from the government and private sector will be unveiled hence buying bare plots of land today, at incredibly low prices, can be a good means of protecting your wealth from inflation and grow it at a pace no savings account ever will.Read here if you want more advice on what you need to know BEFORE you invest in Cambodian land.Here are a the FOUR main reasons why you should consider buying land in the Kingdom:1. Boreys are becoming more popular in Cambodia(Boreys are gated communities in Cambodia offering shophouses, linked houses, and villas to the local real estate market. Phorn Seiha / Realestate.com.kh)Boreys have become increasingly popular among Cambodians as these gated communities provide a sense of community and security to their residents. Amenities such as parks, pools, and activity centres also have value-added appeal to buyers. Developers have also taken interest in the mid-range market to appeal to more Cambodians looking to buy a home.To give you a measure of how popular Boreys are, let’s crunch some numbers: According to Knight Frank’s H1 2019 report, there were a recorded 51,278 Borey houses distributed across 131 Borey developments in Cambodia. By the end of that period, there were 18 more Borey developments launched with more than 22,500 units expected to be added by 2021. Borey developers are also seeing up to 80% sales rates for their projects.In a few years’ time, more than 80,000 Borey units consisting of villas, shophouses, and linked houses will be available to local buyers. It probably goes without saying, that’s a lot of landed residential property coming into the market very soon.2. Rehabilitation of national roads(The rehabilitation of National Road 3 has caused surrounding land prices in the Kandal prices to increase. Photo by Valinda Aim from Khmer Times.)Development is stretching outward the major economic centres (Phnom Penh, Siem Reap, and Sihanoukville) every year. The Cambodian government has announced several major road rehabilitation projects stretching out of Phnom Penh, most notable of which are National Road 2, National Road 3, and National Ring Road 3.It’s also important to note that each of these major national roads is linked with other national roads leading to other parts of the country. It would be best for you to consult your local google maps to see where you can potentially buy land.3. Less management requiredMaintaining an empty plot of land doesn’t require much work or attention. As opposed to managing a business or rental property, all an empty plot of land probably needs is a fence and the ocular inspection every now and then, or maybe even a post to say that someone owns the property.Either way, maintaining a plot of land has comparatively fewer headaches than most other investments.4. Competition doesn’t existNo two pieces of land are exactly the same. At least one or more major factors (available infrastructure, access to roads, proximity to the city centre, land quality, etc.,) will always be different.Comparing that to condominium or borey property developers - who have to spend a lot on marketing their projects - you as the owner of a bare plot of land will not have to go through the same level of competition to acquire a buyer.What to do with the land you bought in Cambodia(Respondents from the Realestate.com.kh Consumer Sentiment Survey indicate they would buy real estate property as an investment over as a place of residence.)As anti-climactic as it may sound; this entirely depends on you. Many people, according to realestate.com.kh’s consumer sentiment survey, indicated that they wanted to buy land property mainly for investment purposes. In a story previously posted on realestate.com.kh, a resident of Kampong Speu along with his friends bought several plots of land around National Road 3 prior to the announcement of its rehabilitation. They expected their investment to profit in a few years but little did they expect they would more than double their earnings in just a few months once the government officially announced the rehabilitation project.If you’re not savvy when it comes to flipping land, and you don’t have a home to call your own, there’s always the option of using the land you own to finance a house.There’s also the additional option of leasing your land. This is a different process altogether but it’s essentially renting your property to an individual or entity that can make better use of it. This keeps you as the owner of the land while you’re paid fees for simply owning property.Again, this entirely depends on the land you have and what your future goals are. If you want to get started, you may check our listings page for properties you may be interested in!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:
Things to consider when buying in a Borey in Cambodia
Things to consider when buying in a Borey in Cambodia
May 17, 2022, 5:06 p.m.
Home & Living
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:
Long-term visa options in Cambodia
Long-term visa options in Cambodia
May 18, 2022, 2:46 a.m.
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Are you planning to retire in Cambodia?In the 2019 InternationalLiving.com's Annual Global Retirement Index, Cambodia was named as the 12th best place in the world to retire.  This was the fourth year in a row that the Kingdom held that title.In the 2021 edition, Cambodia again ranked as one of the most affordable destinations to retire and one of the best countries to retire overall.You can find out more in our ultimate guide to retiring in Cambodia which details the costs, benefits, property, and insurance expectations. See more below about the visa required by retirees in Cambodia.Is a visa required to stay in Cambodia?Yes, a visa is required to stay in the Kingdom of Cambodia for all foreigners. However, Cambodia has some of the most flexible visa regulations possible for foreign tourists, expat professionals, and retirees to visit and live in the “Kingdom of Wonder,” in the region.Whether you’re a tourist or a resident, a visa is required to visit, or stay in Cambodia long term. In 2019 the visa rules were constricted regarding long-stay visas, giving a preference for those who are locally employed or of retirement age.Types of Cambodian visasTourist visaThe tourist visa (T class) is for travellers who know they will be staying for 30 days or less. The 30-day tourist visa is available to travellers in advance or on arrival (for most nationalities) for a cost of $30 if you obtain it directly at the airport. The tourist visa is single entry only and can be renewed once only for an additional 30 days for a fee of between $30 and $50.At the expiry of the additional 30-day extension on your tourist visa, you must leave Cambodia and come back to obtain a new visa. If you are planning on staying in Cambodia, a tourist visa is not the best one for you, so start with a renewable ordinary visa instead.Cambodian “ordinary” visas (E class) If you wish to stay in Cambodia for an extended period of time, you will need to apply for a 30-day E-class visa (not an online e-visa) when you arrive. The visa is valid for 30 days and costs $35 (subject to your nationality). An ordinary visa can be extended indefinitely.Prior to your 30-day expiry, you will need to go and extend your visa. Due to language barriers and uncertainty, if it is your first time extending your visa, a lot of expats will use the services of an agent. You can choose an EB, EG, ER, or ES visa extension, known as an EOS, or extension of stay.The four E-class visas in Cambodia(Please note: that during the global COVID-19 pandemic - the visa situation in Cambodia has been temporarily different and no visas on arrival have been offered. Visa regulations and requirements should be checked with your relevant embassy from overseas. We recommend you follow the official government announcements on issuing visas).EB visa extension The EB business EOS (Extension of Stay) covers most expats in Cambodia, including those who are working, their partners and children, freelancers, and volunteers. The current rules (as of January 2019) require applications to provide a stamped letter verifying their employment with a Cambodian company). This visa extension is renewable and can last for 1, 3, 6, or 12 months. Please note only the 6- and 12-month visa extensions allow multiple entries.Spouses and children of EB visa holders will need to submit the visa holder’s employment letter. The letter needs to state that the company supports the application for the spouse’s EB EOS as a non-working dependent, and includes the dependents’ passport information. You will also be required to bring proof of your relationship to the visa holder to renew your own visa extensions.If you are self-employed and have a registered business in Cambodia you can write a letter confirming your own employment. This letter must be stamped with the registered Cambodia business stamp. Further information on setting up a business in Cambodia can be found here.An EB visa extension does not automatically give you the right to work in Cambodia. In order to be legally employed, you will need a Cambodian work permit and employment card issued by the Ministry of Labour and Vocational Training.EG visa extension The EG visa extension is designed for those seeking employment in Cambodia and can last 1, 3, or 6 months. If you have had a previous EB visa extension you probably will not be granted an EG visa, as they are not intended for expats who have already been in the country for a long term. The EG visa is only for first-time visitors to Cambodia.ER visa extension The retirement visa extension is for expats of retirement age. You simply apply for ER (retirement) extensions. Here are the requirements:You must be 55 or older.You cannot be employed.You must be able to prove you are retired (with a pension or social security documentation) and have enough funds (bank or retirement fund statements). For more information, please read our ultimate guide on retirement in Cambodia. These extensions can be valid for various lengths of up to one year. Prices are similar to working visa extensions which cost around $290 for a full year with multiple entries. There are various agencies throughout the region that can assist and help you with processing.Although the ER visa is popular and the price point is much lower than in neighbouring countries, you are not permitted to seek employment in Cambodia. For those wishing to work or operate a local business a Business Visa is required. It is worth noting some US companies are present in Cambodia and you might find them with job postings on popular US employment portals. More jobs in US here.ES visa extension The ES visa extension is a student visa. Applicants for the ES visa extension are required to provide a letter from a registered Cambodian school, as well as documentation to demonstrate they have sufficient funds to support themselves. The ES student visa extension can be issued for 1, 3, 6, or 12 months.Other Visa Types for CambodiaThe visas mentioned above are the main types most foreigners will be looking to secure for a long-term stay in the Kingdom. However, there are some other visa types for children of foreigners and those working in the NGO and international visitors of the government.K-class VisaThe K-class visa is intended for those of Cambodian descent who hold a foreign passport, which is valid for free for a lifetime visa.B-class VisaThe B-class visa is for employees of organizations that are in Cambodia at the government’s invitation EG: United Nations or World Health Organization.C-class VisaThis is a free visa for employees of international NGOs that have a memorandum of understanding (MoU) with the Ministry of Foreign Affairs.Cambodian visas for childrenAll non-Cambodian children are required to have an E-class visa to enter the Kingdom. If the child has at least one Cambodian parent, they can apply for a free K-class visa.Work Permit in CambodiaThe Cambodian Department of Immigration requires all foreign nationals to obtain an official work permit/employment card to be eligible to work in the country.Foreign nationals wishing to work in Cambodia must also meet the following conditions:Have a job offer from an employer compliant with relevant regulations regarding the employment of foreign nationals.Have legally entered the Kingdom of Cambodia.Possess a valid passport.Possess a valid residency permit.Be fit for the relevant job.Have no contagious diseases.You can read more about being an expat in Cambodia in our guide.Register on the Foreigners Present in Cambodia System (FPCS)The FPCS app records foreign information when they arrive in Cambodia at any entry point. It also records their data when they leave Cambodia.The main purpose of FPCS is to protect foreigner safety and security in case of an emergency when they are traveling throughout Cambodia and was introduced and enforced in early 2020.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
Independence Monument in Phnom Penh Cambodia
Living in Cambodia: Expat guide 2022
May 18, 2022, 3:50 a.m.
Home & Living
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Want to start living in the Kingdom of Wonder? It is one of the best places in Asia to live as an expat. Over 100,000 expats are currently residing here, and life is good! To help you, Realestate.com.kh has put together a definitive Cambodia expat guide.We’ll take you on a complete tour with this guide, include quotes from long-time expats, and even give you some Khmer language phrases to go with each section.ContentsCambodia basicsMoving to Cambodia: What to expectCost of living in CambodiaCambodian visas for expatsCambodian living conditions for expatsBest place to live in CambodiaHow many expats are there in Cambodia?Getting around CambodiaShopping for groceries in CambodiaJobs for expats in CambodiaCambodia basicsBefore you come to Cambodia, it’s good to know a little background information. We’ve got you covered. Consider the following section to be your crash course on where Cambodia is, its history, religion, government and language.Where is Cambodia?Cambodia is in Southeast Asia. On a map, it sits between Thailand and Vietnam and below Laos. Cambodia’s southern coast is off the Gulf of Thailand. Cambodia historyThe Khmer Empire of 800 to 1300 AD encompassed most of Southeast Asia. A great legacy of this era is the Angkor Wat temples in Siem Reap. This site is one of the most significant religious monuments in the world.From 1867 to 1953 Cambodia was a “protectorate” in the area known as French Indochina. This area also included most of Vietnam and Laos. Cambodia is still profoundly influenced by France’s legacy.The other most well-known period of Khmer history is the infamous Khmer Rouge era. This ultra-Maoist regime, led by Pol Pot, ruled the country from 1975 to 1979. During their brief time in power, the Khmer Rouge committed one of the worst genocides the world has ever seen. Nearly two million people were killed, or almost a quarter of the country’s population.Religion in CambodiaRoughly 97% of Cambodia’s population practices Theravada Buddhism, the official state religion. However, the influence of the country’s Hindu past can still be felt, especially at historic sites. Around 2% of the population belong to the Cham ethnic group who practice Islam. In addition to small groups of Christians in the country, there are also many ethnic-religious groups in the north.Cambodia’s governmentCambodia is, by definition, a constitutional monarchy. The King’s power is mostly symbolic. In practice, Cambodia is a parliamentary democracy. Norodom Sihamoni is the current King of Cambodia. Hun Sen, the current prime minister, has presided over the National Assembly since 1985. His Cambodia People’s Party won re-election in July of 2018 for another five-year term.What language do they speak in Cambodia?Khmer is the official language of Cambodia. It is in the same language family as Vietnamese. However, unlike its cousin, which in the recent past converted to use the Latin alphabet, Khmer still uses a unique alphabet.Basic English is widely spoken in Cambodia, and Mandarin Chinese is gaining momentum. Nonetheless, many foreigners coming to Cambodia learn at least a few simple phrases in Khmer.  Key Khmer phrases: Hello (formal) - jum riab sua Hello (informal) – suos deiCambodia- KompucheaKhmer language – paisa KhmaiYes (male speaker) - batYes (female speaker) - jaaNo – ot teiBack to top  Moving to Cambodia: What to expectNow that you know a little bit about the country, it’s time to layout your plan for moving to Cambodia. Living in a new country can be disorienting at first. Chances are, you’re moving to Cambodia from a country with a different culture. The following section is a practical guide to everything you’ll need before moving to Cambodia. What to pack for CambodiaYou might be tempted to bring a couple of huge suitcases or backpacks when you are moving to Cambodia. Sure, it’s good to be prepared. But don’t go overboard. Cambodia is a country with tons of cheap consumer goods. For example, you can buy a t-shirt here for a couple of dollars. So don’t stress too much about what to bring. If you are concerned, there are many Facebook Groups created by expats living in Cambodia, some are for specific nationalities and discuss specific items they miss from their home country or discuss what items they might bring to the Kingdom.Weather in CambodiaCambodia is hot all year. However, there is a rainy season and a dry season. December to April is considered the dry season. The worst heat comes near the end of this period, just before the rains start to cool everything off in May. September and October are the peak rainy months. The heat can be sweltering in Cambodia. In the middle of the day, it can hit 40C+ (104F). Even in the coldest months of the year, it stays around 30C! Make sure you're a lover of the heat if you’re moving to Cambodia. Here’s the current weather in Phnom Penh:The currency in CambodiaCambodia uses both the US dollar and the Cambodia Riel. The exchange rate is 4,000 Riel to 1 USD, and there are no coins. More and more places are accepting credit cards and digital payments, but cash is still the default currency in Cambodia. The situation surrounding the currency in Cambodia is a bit peculiar. People tend to use USD for larger payments. However, vendors are very particular about the condition of bills. A $100 or $50 bill with a small tear will be refused. Riel, on the other hand, is generally used for smaller amounts. They come in denominations between 100 riels and 50,000 riels.Since 2019 however, the National Bank of Cambodia has been pushing for the de-dollarisation which has been supported by businesses. NBC also launched Bakong, a central bank digital currency (CBDC) and encourage more digital payments since the global pandemic started in 2020.ATMs are ubiquitous in the city, so it’s usually not hard to get cash from your international bank account.Wall outlets in CambodiaThankfully, most buildings in Cambodia have wall sockets that accept Type A, Type C and Type G plugs. No matter whether you’re coming from the US, Europe, UK, Australia, or South America, you won’t need adapters. Even if you do, they are readily available. Anything between 220V and 240V is ok here.Can you drink Cambodian water?Tap water in Cambodia’s bigger cities should be safe to drink. However, plumbing rules are spotty, so most people drink bottled or filtered water. Municipal water is safe for washing and brushing your teeth.In rural Cambodia, most people still collect rainwater for daily use. It’s best to stick to bottled water in this case. Phone service and Wi-Fi in CambodiaCambodia has some of the best Wi-Fi coverage in Southeast Asia. In the bigger cities, every restaurant, guesthouse, and hotel will have it often for free.Mobile service is also, generally speaking, excellent. The leading providers are Cellcard, Smart, and Metfone. You can buy sim cards on every corner (you will need to present your passport), and data plans cost less than $3 a week.Key Khmer phrases: Money - louyPhone - touresapHot - kdauCold - rongeaRain - pliangPants- khaoShirt- auBack to top  Cost of living in CambodiaThe cost of living in Cambodia is quite low. However, it all depends on your lifestyle. The three main expenses while living here will probably be rent, food, and entertainment. Let’s break them down one by one:Rent costs in CambodiaRent fees can vary widely depending on where you live, what type of housing and whether or not you have roommates. You can get a place for as little as $150 per month in a shared apartment, or as much as $500 per month in a luxury building. On average, expect to pay between $300 and $500 per month for each bedroom. Our site has thousands of listings of apartments for rent in Phnom Penh from $300 to $500.You can rent authentically Cambodian digs for less than $300 per month.Western-style luxury apartments, called serviced apartments, are excellent. You can find them for $500-$2,000 per month. These usually come fully furnished and the buildings host pools, gyms and security. We’ve also got you covered here. Start browsing to find a condo for rent in Phnom Penh.You can track the price trends using our Cambodia Real Estate Trends tool.The official rate for electricity is 720 riel per kWh. However, many landlords will round this up to $0.25 for large buildings. The city's official water rate for residential spaces is between 550 and 1,270 riels per cubic metre. You should be paying between $20 to $60 per month for internet. If you pay for cleaning, you should look to spend from $30 to $100 a month, depending on the frequency.Food costs in CambodiaYou can find food for as little as $1.50 per meal. Cheap eats can be located on almost every street corner in urban centres. This dining is bare-bones, however. You’ll probably be outside on a plastic chair and with some covering. A mid-priced restaurant meal for two is approximately $15-20. There are more and more places in this range popping up in the cities and the quality of food and the range of cuisine can be excellent. Some expats in Cambodia eat out almost every meal. Others choose to buy groceries and cook at home. Food delivery apps and home grocery deliveries have also improved massively. Skip down to read more about buying groceries in Cambodia. On average most people spend between $200 and $500 on food every month.Cost of entertainment in CambodiaCambodia is still a developing country. But in the city, there are more and more modern amenities being developed. Shopping centres are some of the hottest destinations in the capital. The most prominent malls in Phnom Penh are Aeon Mall, Exchange Square, Sorya Centre Point, City Mall and Aeon Sen Sok. But there are dozens more planned in the capital alone. Most of these malls host cinemas, restaurants, arcade games, bowling and other forms of entertainment.Nightclubs and bars are also popular venues for expats to spend their time on the weekends. These tend to be in the central part of the city, near popular expat neighbourhoods. Pools are also popular places to hang out during the day. Check out our list of all Phnom Penh pools open to the public.Taking short trips around the country is a popular activity for many living in Cambodia. Since prices are lower in rural areas, you can often head away for an extended weekend for less than $200. Popular destinations include Kep, Kampot, Sihanoukville, Siem Reap and Mondulkiri.The final cost of living can be as low as $600 per month or up to $2,000 per month - it really depends on personal choice and budgets.Key Khmer phrases: Watch a movie - mul konSwimming - hael tukDance - roamDrink - pukCoffeeshop - haang cafeGo on a trip - dal leng Back to top  Cambodian visas for expatsGetting a visa in Cambodia is pretty straightforward. Most people show up and get one on arrival. But Cambodian visas for expats can cover a few different types. Read through the following section to learn about the visa that is right for you.Cambodia airportsThere are international airports in Phnom Penh, Siem Reap and Sihanoukville. If you’re coming from far away, you will usually arrive by way of another regional hub like Kuala Lumpur, Singapore, Hong Kong, Bangkok or Taipei. Cambodia’s airports are quite small, but that means getting in and out is simple. That said, more and more flights are being added each year as the number of tourist arrivals increase. As far as baggage and security, Cambodia airports are generally the same as any other country. The main airports also have seen several upgrades and new airports are being developed in Phnom Penh, Siem Reap and Koh Kong.Crossing the border into CambodiaCambodia officially has 15 border crossings. There are eight with Vietnam, six with Thailand and one with Laos. The majority of traffic to Thailand passes through the crossing at Poipet. Most buses going between Ho Chi Minh City, Vietnam and Cambodia cross at Bavet. Meanwhile, any passage to Laos goes through the crossing in Stung Treng.Cambodia visas for expatsCambodia usually does visas on arrival*. This means you’ll get them when you land at the airport or cross the border. All you’ll need are your passport and a passport size photograph. If you don’t have a photo, they will charge you $2 to scan the one in your passport. Most people arriving in Cambodia get either a T (tourist) visa or an E (ordinary) visa. E visa does not mean an electronic visa!There are a couple of other types of visas, such as B-type for NGO workers and K-type for foreign-born Khmer, but most people get T or E visas. These are both valid for 30 days. The T visa costs $30, and the E visa cost $35.Note: You can only extend the T visa once. You can get an additional 30 days for $45. Any travel agency can facilitate this in a few days. However, after that, you must leave the country and re-enter if you want to stay longer. E visas, on the other hand, are the better option if you plan to stay long term. You can extend E visas indefinitely. There are four types of extensions:EB for those with jobs in CambodiaEG for those looking for a jobER for those who want to retire in CambodiaES for studentsYou can get extensions that last one, three, six, or 12 months. The six and 12-month extensions are for multiple entries. Paying for one year gets you the best deal. It costs just under $300. Sounds expensive, but if you overstay your visa, you’ll have to pay $10 per day.*(Please note that since the COVID-19 pandemic, the visa situation has changed several times and it's best to visit the official Cambodian government websites' and embassy announcements for updates).Key Khmer phrases: Airplane – yun hauDay – tingaiOne – muoyTwo – bpiThree – beyFour – buonFive – bpramSix – bpram muoyTen – dop100 – muoy roi1,000 – muoy bpoanBack to top  Cambodian living conditions for expatsThere’s a reason that expats are attracted to the country: Cambodian living conditions for expats is pretty low-key. Cambodia is a developing country. Life moves at a slower pace, in general. But living conditions are still good, depending on how much you want to pay. The following section will take you through all the significant types of housing for expats in Cambodia. It will also give you instructions on how to find an agent and what to expect about Cambodian living conditions for expats.Types of expat housing in CambodiaChoosing what type of accommodation you want to live in is a big choice in Cambodia. If you’re only planning to stay for a short time, try getting a monthly rate at a guesthouse or hotel. Often, there will be a slight discount. If you’re on a budget, living in a shophouse is the way to go. These are the long, narrow buildings that often have shops and stores on the ground floor. Rent out an upper level with one or two friends, and you could pay as little as $150 per month. Dedicated apartment buildings are becoming more popular in Cambodia. Most come fully furnished and are more or less what you’d find in any other big city. They usually have one or two bedrooms and go for between $300 and $700 per month depending on the location. We have a massive list of expat rentals in Phnom Penh that you can start browsing right now.Serviced apartments are apartments decked out with luxury amenities. They have gyms, pools, and housekeeping service. They come in a range of sizes and can cost more than $1,500 per month. Most are in Phnom Penh, but you will find a few in Siem Reap and Sihanoukville.Villas are freestanding houses that can have between three and 10 bedrooms. Most span two or three floors, have a parking area, and some even have pools. People can use these as residences or businesses. Prices vary widely. But you can scope them all out now and find the perfect villa for rent in Phnom Penh.Hiring an agent, signing a lease in CambodiaIf you’re new to Cambodia, using a real estate agent is probably the best way to find your perfect property. Here most agents get paid a commission by the building owner, so there’s no extra cost to you. Just tell them what you’re looking for, and they’ll even arrange transportation to all of the viewings.If you hire an agent, they can also help negotiate the rental price. Usually, you can get them to reduce the rate a bit. After all, many apartments in the big cities sit empty.Make sure you get an English copy of the lease agreement, and you understand it before you sign. Usually, leases are for six months or a year. Deposits shouldn’t be any more than one month’s rent, electricity should be $0.25 per kWh or less, and water should be less than $0.50 per cubic metre.You can check our guide to pre-agreement considerations for renting in Cambodia for additional tips!Key Khmer phrases:House – pteaCity – tikrongProvince – khaetBathroom – bantub teukBedroom – bantub geengFloor___ - joan ti ________Door – tveaBack to top  Best place to live in CambodiaMost foreigners coming to Cambodia live in one of the three major cities; Phnom Penh, Siem Reap or Sihanoukville. There are a few smaller cities that attract both tourists and long-term visitors. Kampot, Kep, Battambang and Koh Kong are also popular.Finding the best place to live in Cambodia is all about what you want. Do you want to be near the beach? Near the amenities of the city? If you like having some luxuries, Phnom Penh is probably the best place to live in Cambodia. However, if you want nature and art, Siem Reap is probably the place for you.Are you looking to chill? If so, maybe choose Kampot or Kep. One of those towns is the best place to live in Cambodia for expats looking for a chill life with a cool sea breeze.Expat districts of Phnom PenhGenerally, expats in Cambodia live near the centre of their respective cities. In Phnom Penh, BKK1 is probably the most popular expat area, along with BKK2, BKK3, Toul Tum Poung 1 (Russian Market) and Tonle Bassac.BKK 1 and 2 are more upscale, with more amenities explicitly geared towards foreigners. Real estate for rent in BKK 1 can be a bit more expensive because of all the amenities. BKK1 is the best place to live in Cambodia if you are a Starbucks addict. If you want to learn more about the area, read our ultimate guide to BKK1. Or, watch this video that counts the top three reasons why expats love BKK1:BKK 3 and Toul Tum Poung 1 (Russian Market) both offer an attractive mix of western and local shops. Real estate for rent in Toul Tum Poung 1 tends to be more local-style. But you’ll find some great affordable places. If you love chill vibes, this is probably the best place to live in Cambodia.The Riverside area is popular with tourists and has many bars and nightclubs. It is, perhaps, less family-friendly than the other neighbourhoods, but it’s one of the best places to live in Cambodia if you love the nightlife. Our listings for real estate for rent in Daun Penh have tons of apartments right off the river. Find yours!More recently, Tuol Kork is a neighbourhood about 30 minutes out of the city centre that is increasingly attracting expats. Just like other large cities, commuting to a suburb outside the densely developed downtown area is an excellent way to find places renting for much less money. Start looking at the prices of real estate for rent in Toul Kork. Or, if you want to learn more, read the ultimate guide to Toul Kork to get more information about this marvelous area.Where to stay in Siem ReapIn Siem Reap, Wat Bo and Sala Kamreuk are two of the most popular areas for expats to live in. Here the primary industry is tourism, but many expats also come to work in the NGO sector. Do you have a heart of gold and a soft spot for ancient architecture?If yes, this is the best place to live in Cambodia for you. Find your accommodations right now at our page of real estate for rent in Siem Reap.Where to stay in SihanoukvilleDown south in Sihanoukville, many expats used to live near Victory Beach and ner Otres Beach. Over recent years, Sihanoukville has been undergoing massive changes and is now seeing brand new infrastructure, roads, refurbished sidewalks and beachside pathways as well as many new condos, hotels and grand mixed developments.  Many people opt for apartments in these new developments.Sihanoukville is the best place to live in Cambodia if you enjoy the seaside. Real estate for rent in Sihanoukville is also undergoing massive changes and prices are on the rise because of the city’s growth. You can easily find a deal on our listings page.Key Khmer phrases:To go -MovLet’s go - tosBeach - sa motCity - tikrongCommune - sangkatDistrict - khanBack to top  How many expats are there in Cambodia?It’s hard to say for sure exactly how many expats there are in Cambodia. Currently, between 150,000 and 200,000 foreigners live in Cambodia. In 2018, the government said that the total number of expats in Cambodia was 160,000, and with the introduction of the FPCS (Foreigners Present in Cambodia System) app in 2020, nearly 160,000 foreigners from 183 countries were recorded as living in Cambodia.Asian and Western expats in CambodiaExpats from Asian countries make up most of the expats in Cambodia. These include Chinese, Vietnamese, Thai, Malaysian, Indian, Indonesian, Korean, Japanese and Filipino.There are also plenty of Western expats in Cambodia. Most are French, British, Australian and American. However, many other European expats also live here. Retiring to CambodiaCambodia is consistently in the top 20 on InternationalLiving.com’s yearly index of best countries for retirement. Retiring in developing economies is becoming a global trend among heaps of expats.Meanwhile, the government has released plans to increase Cambodia’s attractiveness as a destination for foreign retirees. The proposed policies would give retirees the right to buy, rent or sell a property.For more info about retirement in the Kingdom, read our guide to retirement in Cambodia.Cambodia is expat-friendlyCambodia consistently ranks in the top five for most expat-friendly nations in the world. The local population is helpful and kind. Making friends is easy here. In less than a month, you'll probably be invited to a Cambodian wedding!It is easy to make friends with both locals and expats. Becoming friends with coworkers is very common. Many offices have football teams or go out drinking together. To meet other expats, you can visit one of the many expat-geared bars or join an activity group. Dodgeball, volleyball, rugby, and badminton are a few common sports that have leagues around town.Key Khmer phrases:Foreigner - bora teyExpat  - barang (literal translation means “French” but often used for all expats)“I come from…” – knyom mau bpiSports - keilaPlay - lengChinese - chenJapan - japonEnglish - angleAustralian - australiAmerican - americkBack to top  Getting around CambodiaGetting around Cambodia can be tricky for the uninitiated. Traffic is a bit disorganised, but paying for transport is generally cheap and easy to find. Most expats use tuk-tuks or autorickshaws for getting around the cities in Cambodia. Ride-hailing apps are convenient because the price is fixed, and it’s easy to map your route. On the other hand, some expats buy motorbikes or cars of their own to make getting around Cambodia more convenient. The following section will walk you through all these options for getting around.Cambodian tuk-tuks, taxis and ride-hailing appsMost foreigners will catch rides around the area in tuk-tuks, autorickshaws or taxis. Tuk-tuks are the carriages pulled by small motorbikes. They can usually fit up to four people. Don’t worry about finding them, if you’re in a busy area, they will find you! Going across a city like Phnom Penh via tuk-tuk should cost around $5 at the maximum. Shorter trips within the city will be less - for reference, trips around 2km are a little over $1 (4,400 KHR to 4,600 KHR).Ride-hailing apps are growing more popular every day for getting around Cambodia. The most significant local player is called PassApp. There’s also Grab, the Southeast Asian version of Uber. You can hail an autorickshaw for two or three people, or pay a bit more for a car. Buses and trains in CambodiaIf you’re travelling a longer distance, say from Phnom Penh to Sihanoukville, there are a few options open to you. Of course, you could take an aeroplane. Flights are fairly cheap if you manage to get a promotion for domestic flights. If you want to save a few bucks, however, the bus, train or minivan might be better.There are tons of companies that run coach buses between all areas of Cambodia. Some are more comfortable than others. Giant Ibis is one of the more reputable names. The revamped train service between Phnom Penh, Kampot, and Sihanoukville costs $4 to go from the capital to Kampot or $7 to go to Sihanoukville. Buying a car or motorbike in CambodiaSome foreigners coming to Cambodia want to buy motorcycles or cars. Luckily, you don’t need a licence to drive bikes smaller than 125cc. Always wear a helmet and make sure you can handle Cambodian traffic before driving.To drive a car, you’ll need to get a special permit for Cambodia. Thankfully, there is a driver’s licence centre in Aeon 2 where you can apply for a permit. Just bring the driver’s licence for your home country, two passport photos, a visa and 30,000 riels for the fee.Key Khmer phrases: Motorbike – motoTurn right – bat sdamTurn left – bat chvengGo straight – tov trongCar – laanBus – laan krongTrain – roteh plungRoad – phlauv Back to top  Shopping for groceries in CambodiaAfter arriving, you’ll need some food. Fortunately, Cambodia has a great variety of food. As you’ll see, it’s quite cheap to eat out, so some choose to go to restaurants almost every day. Others prefer shopping for groceries in Cambodia and cooking on their own.While you’re shopping for groceries in Cambodia, you have to keep a few things in mind. Imported foods are going to be expensive. On the other hand, local produce is guaranteed to be fresh and natural as there aren’t massive factory farms like in more industrialized countries. This section will walk you through the steps to take when shopping for groceries in Cambodia. It will also tell you about restaurant etiquette, tipping, drinking culture and the types of cuisine in Cambodia.Grocery stores and markets in CambodiaIf you want to cook at home, there are plenty of places to buy food and ingredients. The cheapest option is to go to a local wet market. Markets can be tricky, but with a bit of Khmer language and some bargaining skills, you can come out on top. International-style grocery stores are growing in popularity. So are small convenience stores that sell dry goods. There’s Lucky, Thai Huot and Super Duper as well as Aeon Maxvalu Express, Circle K and Kiwi Mart (with 7-Eleven due to open in 2021). Prices are more expensive, but they also have imported goods. More international and regional brands are also entering the market.Unsurprisingly, they are more readily available in some of the same neighbourhoods where expats tend to concentrate in the cities, such as BKK 1 and 2 or the Russian Market in Phnom Penh. Do you tip in Cambodian restaurants?Eating out at restaurants is very common in the Kingdom. Nearly every cuisine and price point is covered. Usually, the waitstaff can speak some English, but when in doubt just use the menu to point.Tipping is generally not practised in Cambodia except in upscale restaurants. Even in that case, service fees will often be added. If you want to tip, leaving a few extra dollars is fine. Service can be a bit lax compared to what you’re used to in restaurants in Western countries. Don’t feel bad about waving down a waiter if you need something. That’s just the way it works.Drinking culture in CambodiaThe drinking culture is quite widespread in Cambodia. Bars serve almost everything, but beer is the most popular drink for locals. The big names are Angkor, Anchor (pronounced ann-chore), Cambodia, Ganzberg and Tiger.You can also find wine shops and craft beers which are on the rise. Many bars and restaurants will serve you cocktails and specialist bars for whiskies, cocktails and other beverages are increasing in popularity. Happy Hour often means alcoholic beverages such as cocktails can be half price, and quite often happy hours run for several hours. Cafes in CambodiaCoffee culture is a rapidly growing part of Cambodian society. The younger generation loves to drink coffee and hang out at the many cafes in the city. Read our list of the top 10 cafes in Phnom Penh to learn more.What to eat in Cambodia Cambodian food shares some similarities with cuisines from neighbouring Thailand and Vietnam. However, it has many dishes of its own. In general, every meal comes with steamed white rice or fried rice. Fresh vegetables are common ingredients, as are lemongrass, lime, black pepper and herbs.One of the most famous, or infamous, food in Cambodia is prahok, or fermented fish. Fish is one of the most common proteins in the country. It can be found grilled, boiled, fried and everything in between. Chicken, beef, pork, duck and seafood are all common as well.Noodle soup is one of the most traditional breakfasts in Cambodia. Kuy teav is comparable to Phở in Vietnam and features rice vermicelli and beef. Pork with egg and rice is another popular breakfast, think of it as a version of bacon and eggs. Rice porridge is another popular dish, but people eat it at any time of day.Num bahn chok is another signature noodle dish; this one is noodles served in curry. It can be eaten hot or cold and with your choice of meat. In general, food in Cambodia isn’t as spicy as Thai food. But chili sauce is always available for heat lovers.If you’re looking for something quick and easy, many street vendors sell nompang or sandwiches. These are nearly identical to the famous Bánh mì of Vietnam. There are also vendors who sell all manner of fried noodles, fried rice or spring rolls.If you're feeling adventurous, try pong tea kon, known elsewhere as balut, which is duck/chicken fetus. Also, give durian a try, or even fried crickets, which are a typical snack while drinking beer.Key Khmer phrases: Food – mhobChicken – sach moanPork – sach chroukBeef – sach koFish – sach treyVegetable – bun leyFruit – plech cheu“Can I pay the bill?” – Som kut luyBeer – bee yahCheers – chul muyBack to top  Jobs for expats in CambodiaFinding jobs for expats in Cambodia can seem complicated. But several key industries are keen to hire those already in the country or ready to relocate. Most expats in Phnom Penh make anywhere from $12,000 to $60,000 per year. They work at NGOs, or in hospitality, tourism, education, tech or business. Some are hired to come here. Others choose to show up and look for work. Merely showing up is not as crazy as it might sound.The two most popular Cambodian job sites are BongThom.com and HRinc. You can also look to targeted Facebook groups to find out about jobs for expats in Cambodia.Teaching jobs in CambodiaThe first thing that many foreigners think of is English teaching. Lots of schools want to hire native English speakers to teach their students. Additionally, tons of tutoring gigs are available both for the English and Chinese languages. To help in your search, look through our complete list of Phnom Penh international schools and universities. NGO Jobs in CambodiaAnother important sector for expats is the NGO arena. Many foreign-backed non-profit organisations hire for a multitude of positions. There are also tons of international companies that hire foreigners. Many specifically target English or Chinese speakers.Start your own business in CambodiaMany people come to Cambodia to start their own business. Overhead is low, and the market is growing fast. Many choose to open bars, restaurants, guesthouses or tour companies. There is also a growing market for tech companies. For more information about starting your own business, read our guide to starting a business in Cambodia. Salary in CambodiaThe next big question is about money: How much can foreigners make while working in Cambodia. The answer varies a ton. Expat salaries can range from $800 to over $4,000 per month. Keep in mind that the cost of living here is much lower than what you’re used to, and the average salary for locals is less than $300 per month.Foreigners’ salaries are taxed at 15% by the state through payroll. Most employers will use specific banks and have direct deposit set up for all workers. The big banks in Cambodia are ABA Bank, Acleda Bank, Satthapana Bank, FTB Bank, Canadia Bank, ANZ Bank and many others. Most of these banks have numerous branches and ATMs throughout big cities.You can check out guide to banking for foreigners in Cambodia for more information.National holidays in CambodiaUntil recently, Cambodia had the highest number of national holidays in the world, spanning 28 days of the year. These have been reduced to 21 starting in 2022. These are the official holidays for Cambodia in 2022:January 1 New Year’s Day (Saturday)January 7 Victory over Genocide Day (Friday)March 8 International Women’s Day (Tuesday)April 14, 15, 16 Khmer New Year (Thursday, Friday, Saturday)May 1 International Labor Day (Sunday)May 14 The Royal Birthday of His Majesty King Norodom Sihamoni, King of Cambodia (Saturday)May 15 Vesak Bochea Festival (Sunday)May 19 Royal Plowing Ceremony (Thursday)June 18 Royal Birthday of Her Majesty Queen Norodom Monineath Sihanouk, the Queen Mother of Cambodia (Saturday)September 24 Constitution Day (Saturday)September 24, 25, 26 Pchum Ben Festival (Saturday, Sunday, Monday)October 15 Day in Honor of the Late King Norodom Sihanouk, His Majesty the King Father (Saturday)October 29 Royal Ceremony of His Majesty King Norodom Sihamoni, King of the Kingdom of Cambodia (Saturday)November 7, 8, 9 Royal Water Festival (Monday, Tuesday, Wednesday)November 9 National Independence Day (Wednesday)Medical care in CambodiaHealthcare in Cambodia doesn’t always get the best reputation. Many suggest going to Thailand for any significant issues. There are many clinics, hospitals, and dental facilities, however, that do offer high-quality healthcare.Refer to our guide to medical facilities in Cambodia to see all the best hospitals, clinics, and dental facilities. Key Khmer phrases:Work – twerkaCompany – krom hunOrganisation – angkarHoliday – tingai somrakSalary – brak kaiBank – thnia kearHospital – monti bpetDoctor – bpetDentist – bpet tmin  Back to top Expat life in CambodiaExpat life in Cambodia might not be for everyone. If you crave a unique experience in one of the most exciting parts of the world, you'll love it here. To be sure, life as an expat in Cambodia can be full of challenges. But the people you'll meet, the sights, sounds and smells you'll experience will be something you will take with you for the rest of your life.We hope you are successful in finding your home in Cambodia. Make sure to come back here for all of your real estate needs and use this page as your guide while navigating life as an expatriate in Cambodia, the Kingdom of Wonder. Looking to buy or rent in Cambodia? Let us help!Article by:
Tips to help you improve the health of your household budget
Tips to help you improve the health of your household budget
May 17, 2022, 5:06 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!
A Very Simple Guide to Managing your Household Budget
A Very Simple Guide to Managing your Household Budget
May 17, 2022, 11:21 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!
How To Save Money When Renting
How To Save Money When Renting
May 17, 2022, 5:06 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:
Amenities & Fixtures: What to expect from Cambodian properties?
Amenities & Fixtures: What to expect from Cambodian properties?
May 17, 2022, 5:06 p.m.
Home & Living
Property Buyers & Sellers Advice
Curious what about amenities and fixtures can you expect from Cambodian properties? Don’t worry! This guide will run you through the most common amenities and fixtures that you can expect in most Cambodian properties, whether for sale or for rent.NOTE: Common amenities/fixtures DOES NOT mean standard amenities/fixtures. These are merely based on the observation of the most commonly recurring amenities/fixtures from listings. The actual amenities and fixtures will ultimately vary from developer to developer and property to property.Common Apartment/Condominium AmenitiesModern amenities have become more commonplace in Cambodia’s apartments and condominiums. This is not, by any means, an exhaustive list of amenities, but a shortlist of what you’re more likely to see in your search. The rule “your mileage may vary” applies.Fitness Centre(Most fitness centres are located at the top floors such as this facility from The Peninsula in Phnom Penh. Realestate.com.kh)This can be called either a fitness centre or wellness centre, both are essentially gyms where you can exercise or work out. Some developments (on the higher-end, mostly) offer classes like yoga. How well-equipped a fitness centre depends entirely on how premium the development is. But most will likely have the basics of any workable gym.Swimming Pools(All high-end and some mid-tier developments have pools as part of their amenities such as this one from Garden One. Realestate.com.kh)Phnom Penh can get hot, especially around the months of March to June. Luckily, more developments are including swimming pools as part of their range of amenities. It’s hit-or-miss when it comes to mid-range developments, but high-end developments will have all the bells and whistles in a premium swimming pool.Public Wi-Fi(Most, if not all, developments have wifi included in their properties. But since these are for public use, you may want to consider getting your own. Realestate.com.kh)Residential units you buy or rent usually come with their already-provided Wi-Fi. But as with anything public, connection bandwidth will be shared. The public WiFi will certainly suit most people, but if your work is better (and more secure) through dedicated bandwidth, then we suggest getting your own.Public WiFi is mostly decent in Phnom Penh and it’s relatively inexpensive. A single person is fine using a 10 Megabit (Mb) fiber connection (yes, Phnom Penh has a commercially available fiber connection) and it’s enough to watch 1080p 60 fps YouTube videos - all for around 140 to 300 USD a year.Car Parking(Car parking is a must-have in Cambodia. Luckily, most Cambodian properties have parking available for their residents. Supplied)Parking is crucial if you have a car in Phnom Penh. The city is becoming increasingly busier every year and roadside parking is starting to become scarce and inadvisable. Fortunately, developers today incorporate parking spaces for cars and motorcycles in their projects. Even the smallest tower developments find ways to include motorcycle parking at the very least for their inhabitants. If you have personal transportation, this is a must-have in modern-day Phnom Penh.Common Residential Unit FixturesA lot of apartments and condominiums in Phnom Penh make it a point that their units make it easy for tenants to move in, especially when there’s a healthy expatriate population moving around the city every year. As a result, Cambodian residential units are quite generous with fixtures, even from the low end of the market. Here are a few of the most common fixtures included if ever you decide to move in Phnom Penh:Washing Machine(Most properties in Cambodia include washing machines such as this one from The Peninsula Phnom Penh. This is a major bonus for DIY-people out there! Realestate.com.kh)A range of apartments, from the low-end to the high-end already include washing machines in their units. If you’re the type to Do-It-Yourself, then the inclusion of washing machines is definitely something you’ll like. Most apartments and condos include places where you can air out your laundry, so you don’t have to worry too much about that part as well.Airconditioning(In a tropical country like Cambodia, and especially in the concrete jungle of Phnom Penh, air conditioning is a must. Realestate.com.kh)If you’re coming from a country with a cold ambient climate, then you’re in for a treat in Cambodia. Fortunately, all the units you could be looking at have air conditioning units. Do keep in mind, however, that electricity costs in Phnom Penh range from 0.20 to 0.25 USD per kWh - which makes electricity in Cambodia is pretty pricey relative to its neighbors.Electric Kettle(Part of the offensive charm of making it easy for you to move in is the inclusion of simple things such as an electric kettle. Supplied)This is a nice fixture some apartments include and you could even negotiate this as part of the deal whenever you move into an apartment/condo. A landlord might be more than willing to oblige if they can close a deal with this.Bidet / Bum Guns(Bidets or bum guns, as they're more known, are a staple in any property such this one from The Peninsula Phnom Penh. Realestate.com.kh)Bidets are a 21st-century invention seemingly from the heavens. This magnificent piece of modern technology is quite popular throughout the Indochina region - almost like a standard - even in public toilets. Bidets are usually affixed to most Cambodian residential units for rental/sale. A lot of western expatriates have shared their wonder of bidets, so to speak. Some even went so far as saying “Bidets have ruined toilet paper for me”.Television (with basic cable access)(Televisions are nice to have even when internet access is widely available. Most Cambodian properties still include it such as Wealth Mansion in Phnom Penh. Realestate.com.kh)Some apartment/condominium units come with a flat-screen TV. It’s nothing fancy but it’s definitely worth something. They usually include cable channels in it, so, if you’re a tourist/expatriate, you’ll have something to entertain yourself with right away. It’s part of the attractive selling points landlords build to make their properties more appealing to potential renters. Knowing what to expect from a potential purchase or rental can help you better evaluate the bang for the buck you’re gonna spend. While amenities and fixtures shouldn’t be the sole factor to make or break the buying decision, they certainly are worth considering since they affect the quality of life you’re going to have.Looking to buy/rent property in Cambodia? Let us help!Article by:
Best serviced apartments for long-term stays in Phnom Penh
Best serviced apartments for long-term stays in Phnom Penh
May 18, 2022, 2:32 a.m.
Property Reviews
Comparisons
Property Buyers & Sellers Advice
(The living room of a serviced apartment in The Elysee in Koh Pich, Phnom Penh. Realestate.com.kh)Whether you’re a tourist, expat, or even a local, serviced apartments offer plenty of conveniences not often included in other real estate properties. The “serviced” in serviced apartments particularly appeal to tourists and expats looking to have quality-of-life conveniences “built-in” with their residence.Included services in these apartments usually range from weekly cleaning services, regular laundry services, consistent supply of drinking water, and even a full concierge service similar to hotels. It’s important to remember, however, that service offerings will vary from apartment to apartment. For a more detailed discussion of what you should expect from serviced apartments as a whole, you can check out this brief guide to what makes for a well-serviced apartment in Cambodia.For this guide, we will be talking about where you can find serviced apartments (and what’s included in each one) for a long-term stay in Cambodia.Where can I find serviced apartments in Cambodia?Serviced apartments in Cambodia are largely concentrated in Phnom Penh. According to Knight Frank, an international property consultancy firm, most serviced apartments can be found in the following districts: Boeung Keng Kang (BKK) with 35%, Chamkarmon with 20%, Daun Penh with 13%, and Toul Kork with 12%.If you’re looking for commercialized districts that come complete with modern city staples like shopping malls, markets, banks/ATMs, restaurants, cafes, convenience stores, and offices, you should be considering living in these areas as they make up the city centre of Phnom Penh.What serviced apartments are good for long-term stays?We’ve come up with a few of the best-serviced apartments in Phnom Penh well suited for a range of the tourist/expat market looking to stay long-term in Cambodia. This list is by no means all serviced apartments in Phnom Penh, but a shortlist of what best represents the serviced apartment sector of Cambodia’s advancing real estate market.Silvertown Metropolitan(An aerial view of Silvertown Metropolitan, one of Phnom Penh's upscale serviced apartments. Photo courtesy of Booking.com)Starting Rent: USD $1,000 per monthOfferings: 1 bedroom to 3 bedroomsSilvertown Metropolitan is a high-end development that offers luxury condos, studios, and serviced apartments in BKK1. Expats, most especially, will appreciate the comforts immediately available. And given Silvertown Metropolitan’s proximity to the Mao Tse Tung Boulevard, anyone staying here can easily find their way to wherever they need to go in the city.Their tagline of “bringing L.A. to Phnom Penh” becomes apparent once you see their offerings and accompanying price tags. Starting at $1,000 per month, Silvertown Metropolitan is one of the more upscale and expensive serviced apartments in Phnom Penh. But does its services justify its price? If money isn’t an object and you don’t want any punches pulled in city pampering, then it certainly does. Their services include a 24-hour full concierge, housekeeping, and high-speed WiFi. Each unit comes fully furnished with a complete kitchen and dining area, laundering facilities, a refrigerator, hairdryer, robes, cable TV, towels, linen, and A/C. All rooms are outfitted with modern furnishings popular in posh West Coast apartments. Amenities such as the rooftop pool and fitness centre are also available for use.(An image of a bedroom in Silvertown Metropolitan serviced apartments. Photo courtesy of Silvertowncambodia.com)But if you’re more into what it offers beyond its premises, then it doesn’t differ too much from the other serviced apartments mentioned in this guide. Silvertown Metropolitan is in the mid-point between Preah Norodom and Preah Monivong Boulevard and sits close to Mao Tse Tung Boulevard. All these roads lead to the popular spots in BKK1, the Russian Market, and Riverside in Daun Penh.Silvertown Metropolitan represents one of the higher ends of the serviced apartment sector and with good reason: It tops the discussion when it comes to what condo has the best service and is well-managed in Phnom Penh.Silvertown Metropolitan Property ListingThe Elysee(The Elysee by Dara is inspired by the French monument, Arc de Triomphe)Starting Rent: USD $750 per monthOfferings: 1 bedroom to 4 bedroomsLocated in the French-inspired suburban area of Koh Pich, a.k.a. The Diamond Island, the Elysee is designed after the majestic Arc de Triomphe. And much like the actual monument, The Elysee’s vicinity takes after the iconic townhouses and boulevards of modern-day Paris. The Elysee is also one of the newest serviced apartments developed in Phnom Penh.The Elysee certainly tops this shortlist as its French-influenced design comes with luxury amenities and services without necessarily breaking the bank. Units can be rented out for as low as USD $450 a month which already comes fully-furnished and includes Cable TV, internet WiFi, and housekeeping included in the monthly rental - a good package we’re certain anyone definitely appreciates. Renting here gives you access to a fully-equipped fitness center and steam & sauna within the comforts of the apartment.(An image of an apartment for rent in The Elysee. Realestate.com.kh)Koh Pich island lies east of Phnom Penh’s mainland and is one of the fastest-developing areas in the city. Commercial amenities such as banks, cafes, restaurants, and offices can be found throughout The Elysee’s immediate vicinity. The Elysee sits right on Koh Pich road leading to Samdach Sothearos Boulevard where AEON Mall 1 stands. The same road is connected to Preah Norodom and Mao Tse Tung Boulevard, giving residents access to even more commercial establishments in BKK1, Chamkarmon, and Daun Penh.Koh Pich’s inspired urban design offers a new and unique experience of living in Phnom Penh, making it one of the hottest properties to watch out for - and at a good price. If you’re interested in living in Diamond Island, we highly recommend checking this propertyThe Elysee Property ListingUrban Loft(An image of Urban Loft's exterior in Sen Sok. Photo courtesy of Google Map contributors)Price Range: USD $600 per monthOfferings: 1 bedroom to 3 bedroomsUrban Loft is a serviced apartment located in Sen Sok. While this area is quite some distance from the center centre, Sen Sok itself has seen massive developments in residential and commercial real estate. We recommend this area more for expats rather than tourists as it’s still in the early-mid stages of development and doesn’t have much to offer if you’re not staying long-term.(An image of a bedroom in Urban Loft Sen Sok. Photo from Urbanloft.com)Regardless, Urban Loft offers plenty of space for quality long-term living. Its wide interior design allows for large open-plan condos that maximize light and airflow within each unit. It’s also fully furnished so moving in is easy and quick - something we know expats would definitely prefer. Urban Loft’s spacious units are complemented by an expansive pool and gym. Families living here can avail of the kindergarten and babysitting services. An array of excellent schools are not too far away as Sen Sok is where boreys (gated communities) are becoming increasingly popular among Khmer families.AEON Mall 2, the biggest mall in the city, is just a 5 to 7-minute drive away. And down the road is the popular wholesale grocery Makro. Choices are becoming increasingly abundant in Sen Sok that going into the city proper is starting to become an option rather than a necessity.Urban Loft Property ListingThe View Serviced Residences(An image of The View Serviced Residences in BKK1. Photo courtesy of Agoda.com)Starting Rent: USD $1,000 per monthOfferings: 1 bedroom to 2 bedroomsThe View Serviced Residences is one of the premier serviced apartments in BKK1. Inspired by Japanese interior design, The View’s units offer a simplistic charm many tourists and expatriates would find attractive.The View is at the crossroads of Phnom Penh’s many attractions and modern conveniences. Its location in BKK1 surrounds it with the city’s best places to eat and the newest and biggest shopping centres around in the form of Chip Mong Noro Mall and AEON 1, respectively. Its proximity to popular tourist and expat spots makes it a good choice for foreign travelers wanting to get a peek of the many offerings within the Kingdom.(The View Serviced Residences was designed by Japanese architect Kato Yoshio. Realestate.com.kh)But what’s a serviced apartment without talking about services? Starting at $1,000 per month, residents get fully-furnished rooms, twice-a-week housekeeping, fitness centre, and access to an infinity pool, jacuzzi, and steam room in the common areas. A cafe and restaurant are also serving residents inside the apartment building.Whether you’re by yourself or with your family, just visiting or staying for some time, the View’s units may be what you’re looking for considering its ambiance and location.The View Serviced Residence Property ListingTK Royal One(An image of the exterior of TK Royal One in Toul Kork. Realestate.com.kh)Starting Rent: USD $900 per monthOfferings: 1 bedroom to 3 bedroomsTK Royal One Serviced Condominiums is a mixed-use development featuring offices and serviced residences. Its location in Toul Kork, right along the Russian Federation Boulevard, has made it a landmark of sorts in the area, making it hard for passers-by to miss.The Toul Kork district has developed over the past few years as an extension of the many conveniences available in the Phnom Penh city centre. TK Royal One is one of the district’s more iconic developments as its offerings of office spaces and residential units is a sort of testament to how much Toul Kork has improved in a short amount of time. As such, TK Royal One’s location along the Russian Federation Boulevard gives residents access to a lot of markets, shopping centers, restaurants, cafes, schools, sports facilities, and other entertainment centers now established in Toul Kork.(An image of TK Royal One's spacious living rooms and balcony. Realestate.com.kh)TK Royal One’s residential units come fully furnished and designed to accommodate renters living by themselves or expat families looking to live long-term in Phnom Penh. Each unit is spacious and comes with a private balcony providing an astounding view of the city’s rising skyline. Amenities in TK Royal One include internet Wi-Fi, a fitness centre, swimming pools, a parking area, and a rooftop garden.TK Royal One Property ListingAre serviced apartments worth it?The choice entirely depends on you as you are the best judge of your personal needs and budget. Most serviced apartments in Phnom Penh are proportionally more expensive than standalone apartments without 24/7 concierge services, regular housekeeping, fitness centre, and a swimming pool. If these services are important to you, then serviced apartments could be well worth the extra hundred or so dollars a month.On the other hand, if you’re the type of person who can live without these services, you can save a few hundred dollars which you can allot more to necessities like food or other luxuries like traveling across Cambodia and its neighbouring countries. You can check out several listings of apartments for rent in Phnom Penh here.Looking for other properties? Click hereArticle by:
Shrine in Siem Reap
Expat Rental Guide: Siem Reap
May 18, 2022, 2:35 a.m.
Home & Living
Property Buyers & Sellers Advice
A majority of Siem Reap’s roads are paved, making it easier for residents to move around. Photo from Khmer Times.Siem Reap is an amazing area of Cambodia filled with history. It’s no surprise that many expats chose to move here when they arrived in the Kingdom. Temples, nature, culture and arts are just a few of the factors that make Temple Town so great.This Expat Rental Guide will help you figure out how to find the best expat rentals in Siem Reap. This guide will also answer the following questions you need to know before signing that rental agreement:How much does it cost to rent in Siem Reap?What’s the best property for an expat to rent in Siem Reap?What should I keep in mind before renting in Siem Reap?Realestate.com.kh is Cambodia’s largest real estate classifieds portal. It is home to over 30,000 (and growing) property listings and works with the most reliable real estate developers and agencies across the Kingdom.For this guide Realestate.com.kh is collaborating with Daka Kun Realty, a popular real estate agency in Siem Reap staffed by local real estate experts, to help expats find the right property for their needs!How much does it cost to rent in Siem Reap?There are plenty of quality houses/villas for rent in Siem Reap without breaking the bank, like this one from Daka Kun Realty.For a ballpark estimate, renting in Siem Reap can cost anywhere from US $350 - $2,000 including utilities, this figure is dependent on several factors like type of property, size, facilities and location. Check out our breakdown of the different costs in the guide below.Monthly Rent in Siem ReapRenting a residential property in Siem Reap can cost anywhere from $250 to upwards of $1,800 per month depending on type of property, amenities available and location. A 1-bedroom apartment could cost $300 USD a month or even $600 USD a month if you’re feeling fancy, while a 2-bedroom can cost as low as $500. Siem Reap has a lot of rental properties to the point that your mileage may vary.Houses and villas (houses with yards) are also available for rent in Siem Reap. According to Daka Kun Realty, which has a whole portfolio of landed properties for rent, landed houses usually start rentals at $300 per month.Check available rentals in Siem Reap todayRental Deposit in Siem ReapRental Deposits in Siem Reap (and Cambodia in general) can be the equivalent of 1-2 month’s rent. According to Daka Kun Realty, this depends on the length of stay agreed on: a 6-month lease commonly asks for a 1-month rental equivalent and a 12-month lease could be up to 2 months. Although this may vary from landlord to landlord.The deposit is used to pay for any damages/lost items incurred during your stay on the property. Sometimes this is used to pay for your last month of renting the property. Though this depends on the rental agreement.Electricity cost in Siem ReapElectricity cost in Cambodia is around 800 - 1000 KHR per kWh (0.21 - 0.25 USD cents per kWh). Yes, it is considerably more expensive compared to neighbouring countries like Thailand and Vietnam. It is important to note that some landlords round this up to 0.25 USD per kWh.According to Daka Kun Realty, expat renters can expect the electricity costs in Siem Reap.Property typeCost in KHR per kWhCost in USD per kWhApartment1,0000.25House/Villa7800.19Water cost in Siem reapWater utility in Siem Reap is adjusted depending on monthly consumption. But generally, there are fixed rates employed by landlords to simplify calculations.Property typeCost in KHR per m3Cost in USD per m3Apartment2,5000.62House/Villa1,7000.42Rental TaxesThere is a withholding tax of 14% for rental properties in Cambodia. However, it is common practice for landlords to cover this.What is the best property to rent as an expat in Siem Reap?Siem Reap offers a lot of choices that cater to many different walks of life. Given its diverse population, much of its rentals have also grown to accommodate many different tastes. Find out which one is right for you (and your budget!)Apartments/CondosExpect around $250 per month as a starting price for new/renovated 1-bedroom apartments in Siem Reap. You can find a table below of what prices to expect when renting in the city.Cost of renting an apartment in Siem ReapNumber of bedsMedian rent per month1-bedroom$2502-bedroom$3503-bedroom$500NOTE: These are starting prices of recommended properties for expatriates, especially those looking for western-style apartments like in the image above. You can still find more affordable/premium accommodations by searching on Realestate.com.khAmenities to expect in apartments in Siem ReapRentals in Siem Reap have usual inclusions such as furnishings, appliances, and common fixtures. The only thing missing might be a WiFi connection. However, more landlords have started installing WiFi to make things easier for expatriates.Apartments for rent in Siem ReapHouse/VillaAccording to Daka Kun Realty, houses start at $300 while villas start at $500 per month. Houses/Villas available for rent often come complete with furnished interiors and some additions depending on how premium the property is.Houses/Villas are interchangeable when referring to rental properties. Villas, however, usually have large yards and spacious interiors.Cost of renting a house/villa in Siem ReapType of PropertyStarting rentHouse$300Villa$500NOTE: These are starting prices of recommended properties for expatriates, especially those looking for western-style homes/home interiors like in the image above. You can still find more affordable accommodations by searching on Realestate.com.kh.Amenities to expect in houses/villas in Siem ReapUsual inclusions are the furnishings, appliances and common fixtures. The only thing missing might be a WiFi connection. However, more landlords have started installing WiFi to make things easier for expatriates.Houses for rent in Siem ReapWhere are the best areas for expats to rent?Siem Reap’s central areas are the best areas for expats to rent. They’re close to supermarkets, restaurants, shops, and anywhere else you might need something from. Daka Kun Realty recommends the following areas:Sala KamreukSala Kamraeuk commune. East of the river and south of Highway 6, this area is fairly quiet, but still has a range of restaurants and shops.Svay DangkumSvay Dangkum is across the river from Sala Kamraeuk. Most of the backpacker hostels are here. And don’t forget the famous Pub Street!Sla KramSla Kram is north of Sala Kamraeuk. It’s closer to Angkor Wat park and has tons of local flavour.Things to consider before renting in Siem ReapWhen 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. You can check out our guide on a rental checklist worth going over before signing any lease!Things to consider when renting in CambodiaWhether you’re someone new to renting or it’s your first time coming to Siem Reap, we hope this guide has given you a few things to consider for your future rental in the temple town. Now, the real step begins: Find the right rental property in Siem Reap for you!Help me find an apartment/house for rent in Siem ReapArticle by:
Critical tips for prospective lessors
Critical tips for prospective lessors
May 17, 2022, 5:06 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!
Buying residential property for rental returns in Phnom Penh, Cambodia
Buying residential property for rental returns in Phnom Penh, Cambodia
May 17, 2022, 5:06 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: