Cambodia is a place that attracts foreigners from across the globe for investment purposes. Some people even like to settle in Cambodia. The reasons include cheap economy, amicable locals, beautiful location, and pleasant weather.
Some people like to buy houses for living purposes whereas others think of investing in the Cambodia real estate industry which in the long term can prove to be an asset.
We have compiled a list of things to note before you are thinking to buy property in Cambodia in this blog post.
Property titles
When buying property in Cambodia one must know the two types of titles of owned properties.
Hard title
Hard titles are the most authentic ones to buy property in Cambodia. These are actually ownership certificates given by the Ministry of Land Management and Urban Planning and construction department on a national level.
Soft title
The soft titles are the preferred titles. They are not recognized on a national level but are recognized by locals and on the district level. The individual owning a soft title still possess ownership status. The advantage of soft title is that it protects the owner from taxes and other legal fees.
Ownership rights for foreigners
When it comes to buying property in Cambodia, there are certain laws designed by the local government. E.g
Buying Land on the ground floor in Cambodia
A foreigner can not buy land in Cambodia on the ground floor but he can buy on the 1st or 2nd floor as in the case of apartments.
Passport and Visa
A foreigner must have his passport and visa in order to buy property in Cambodia. Since these are his legal documents.
Some tips to buy property in Cambodia for foreigner
Under article 44 of the constitution, it is prohibited for foreigners to purchase land in Cambodia. However, they can still buy land in 4 ways
- In order to buy property in Cambodia, you can acquire citizenship of Cambodia.
- You can also buy property in Cambodia through some local company
- You can also apply for leases and loans in order to buy land in Cambodia
- You can also get land from a Cambodian nominee. Although it is used often but is illegal.
Define Boundary
In Cambodia, boundary disputes are very common. One can claim property or some of its area to be under his ownership. In order to prevent this unwanted inconvenience, what one can do is to fence or guard his own area so that no one else can claim his right over your property or land.
Title search
Conducting a title search is an important thing to note before buying property in Cambodia. This is important so that you pay for the property to the actual owner. Sometimes, when buying property in Cambodia, a buyer may not get the original title since that’s the seller’s ownership proof. In that case, you will get a copy of the title. Just make sure that the copy is a recent one.
Transfer of Title
The title is transferred by the land officers when they see the receipt of transfer fees as well as land office fees. The transfer fee by law is 4%. A larger amount is paid as a service fee to the transfer office department.
Note down your budget and other requirements
Among the primary things to note before buying property in Cambodia is defining your budget.
The type of property you want to own is directly related to your budget.
You must seek help from a real estate agent. Tell him your budget and he might suggest you a list of properties that match your budget and requirements.
You should at first decide by yourself what kind of property you would like. It can be big or small. It can be old or new. Either you want property for sale or for commercial purposes. If you want to live, whether you have the budget to buy a new house or you would like to rent one.
In case you are not able to afford to buy property at full price in Cambodia, local banks there, are providing leases. One can show some legal documents like bank statements in order to get loans from the bank.
Area of the property
Whether you are buying land for residential or commercial purposes, or for resale, the decision of area is very important. A good and clean area imposes a very good impression of your property on others.
The surroundings matter a lot. If you are buying a house to live in, you must look for a good area to live in.
The area must be clean from different sorts of litter and garbage. There should be greenery around providing a cleaner and fresher view and an eye-pleasing sight. Local shops of daily household items should be available nearby to save time. In addition, schools, colleges, parks, shopping malls, and hospitals should also be within range of the house.
If you are buying property in Cambodia for commercial purposes, keep in mind the industrial aspect of your business. Locate an area of similar businesses. This is an important business strategy from a competition point of view. Also, keep in mind the surrounding area. The property should be in the range of those who are your potential consumers.
If you are buying property for resale purposes, make sure to buy one in a potentially re-saleable area. The surrounding houses or buildings should also be well defined and physically appealing to the eyes. All the essential utilities and important buildings should be in range.
Important tip:
To buy cheap property in Cambodia, what you can do is to buy unfinished property.
Unfinished property is sold at a very low rate. You can then build it up, renovate and remake it. Hence you will buy property at a low rate and after some investment and effort, you will be able to sell it at a much higher rate.
Hope you will find all this info and tips useful if you are looking to invest in the lively real estate market of Cambodia!
