The demand for residential units in Cambodia continue to increase to satisfy the needs of residents as population in major townships and cities iso rising. Borey homes are the most popular and affordable in terms of the Cambodian living standard, preferred by both middle and upper-class people in the country. In fact, there are around 10,000 units of houses that are expected to be supplied to buyers every year. And while the demand remains high, new developments are rapidly trying to keep pace. Thus, before buying a home within a borey in Cambodia, it’s important to learn some tips for your advantages, whether in terms of short or long term living or investment.
What types of houses and facilities are within a borey in Cambodia?
A Borey development is widely known as a gated community. It has single villas, twin villas, hybrid villas, linked houses, shophouses, and flat houses. Borey developments have a variety of each property type in term of size, number of rooms, and prices to serve the needs of individuals and families or business.
In the surrounding area, some projects — especially the renowned projects — feature children’s playground, gardens, markets, retail stores, security guards, and security control.
Where to buy a Borey in Cambodia?
Check out the Top 10 Borey in Phnom Penh!
Siem Reap is the world’s famous tourist destination province known for its Angkor Wat temple. This plays a vital role in attracting millions of tourists every year. Because of this, some project developments chose to relocate in this beautiful province. Projects in the area include the Borey Angkor Palace, Borey Nagara, and the Borey Brem Brey.
Meanwhile, Kompong Som or Sihanoukville is known as a port city. Is is also a major tourist destination which has seen a rise in construction of both commercial and residential developments over the past years. There are a few borey projects in Kampong Som, such as the Borey BS, Borey Pearl City, and the Borey Hillton.
Kampong Speu has also started to see a rise in Borey developments to cater the local buyers of the area. Borey Phsar Thmey Kampong Speu is one of the newest projects in the province.
What are the prices of the Borey in Cambodia?
Different project have different prices for several reasons, one of these being One of these is of course the location. If you’re looking at prime areas, then prices are definitely higher. However, it doesn’t mean that buying a home in the city is always more expensive than buying in the province. It also sometimes depends on the project you buy from. Other factors include developers, interior design, size of unit, quality of project, and its facilities.
For instance, Borey Peng Hout and Borey Piphup Thmey are similar in terms of sales price where the starting price is at $60,000 while Borey Phsar Thmey Kampong Speu starts at $35,000 per unit. And a Borey in Kampong Som and Siem Reap also start with a price of $60,000.
Tax law for Borey in Cambodia
For any property of any type with a freehold/hard title in Cambodia, whether you’re a local or foreigner, there is a transfer tax that you have to pay. The transfer tax is 4 percent of the property’s total value.
If you’re the owner any immovable property in Cambodia, you have to pay a property tax. It is an annual tax that owners have to pay yearly by September 30th, regardless of whether you are a foreigner or a local. But only properties with a price of $25,000 and above are required to pay this form of tax.
The property tax is computed by taking 80% of the property’s total value, subtracting $25,000, and then multiplying that by 0.1 percent, said by CEO of Cambodia Investment Management, Anthony Galliano.
Can foreigners own a Borey in Cambodia?
According to the law on foreign ownership in Cambodia that was promulgated on 24 May, 2010, foreigners can own the private units of co-owned buildings. So, only strata titles are available for non-Cambodian nationals.
And Article 8 of the Land Law states that “a foreigner who falsifies national identity to become an owner of land in Cambodia shall be punished as determined under article 251 of this law. Any property bought under these circumstances will be seized as State property without compensation from the State. This simply means foreigner is not allowed to own borey homes and all landed property types in Cambodia.”
However, there is a way for foreigner to buy borey in Cambodia. And that’s via a Cambodian nominee structure.
Learn more about buying a borey home via a nominee structure
What type of ownership titles are available for 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 better to ask the project owner for LMAP title to the most secured for you future immovable asset.
Learn more about ownership title in Cambodia!
What do you need to check when buying a Borey in Cambodia?
Some borey developments don’t intend to run legally. So, recently, the Ministry of Economy and Finance and Ministry of Land Management, Urban Planning and Construction reminded homebuyers to be cautious before making decision. In line with that, The Ministry also announced some of projects that do not have a legal construction license.
Another way to be sure that you will not buy borey from illegal developments is by checking for 5 crucial documents. These are the hard title or LMAP title, company registration, approved master plan, construction license, and Borey License.
Is buying borey in Cambodia a good investment?
Everyone needs to have a home. Cambodia’s residential market has potential both for now and down the line for whether you just want a good home for living or you want to intentionally buy one for a good return in the coming year. It’s highly likely that property prices will continue to rise.
For instance, Borei Piphop Thmey in Kambol — along National road No 4, Phnom Penh — has relocated there for around 2 years now. Currently, its unit prices have significantly increased. Moreover, when the project is completed, economic activities also grow.
This makes buying borey homes a constantly good opportunity to get a good return in the future.
How do you pay for borey in Cambodia?
If you have enough savings on your own it will give you leverage for more discounts. But if you don’t want to pay off just yet or you don’t have enough budget, you also have other options, like paying in installment, stage payment, and a bank loan which could last anywhere around 15 or 20 years.
If you’re getting a home loan, you can get one from Canadia Bank, ACLEDA, ANZ Royal, Hong Leong Bank, First Finance, ABA, Vattanac Bank, and many more. To get a bank loan, you need to have regular monthly income, collaterals, hard title of the property, and guarantees. There will also be a background check for the prequalification on loan payment to the bank.
Should you buy an off-sale plan project of Borey in Cambodia?
Many project developments in Cambodia are sprouting up with a new sale strategy, selling off-plan units. Off-plan means the project owners are selling their projects before and during the start of the project 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 there’s the promotion. However, if you buy off-plan properties, you need to thoroughly do a background check of the project before making a deal.