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April 26, 2008
NOTTINGHAM, UK, April 26, 2008 - Situated in the chic riverside French Quarter of Cambodia's capital, its wealthiest city of Phnom Penh, these properties are available now through overseas property specialists David Stanley Redfern Ltd from 29,151 with only 1,000 reservation fee.
There is plenty of leverage as the 65% balance isn't payable until completion and approval of the finished property and an initial 35% post due diligence payment. There are no construction risks whatsoever and this foolproof opportunity to own a highly desirable apartment in an equally alluring region offers all the benefits of any higher risk market, just without the worry.
Rental: Despite democracy and property ownership issues restricting the development of Cambodia's real estate sector, it's somewhat reassuring to know that Phnom Penh is at the centre of it all. Here, the developer is offering a net rental guarantee of 10% for the first 2 years so, along with Cambodia's capital growth hovering around 15% to 20% per year, this investment opportunity is undeniably attractive.
Costs: Cambodia's tax administration is split between registered businesses that are required to submit a monthly tax return and individual taxpayers who do not submit tax returns (though tax on employment income is withheld by their employers), so do not pay income tax on rent. Theoretically, up to 20% income tax is payable by residents from their net rental profits, whilst non-residents will pay 20% flat rate. Administrative practice dictates that companies must pay income tax and deduct 1% turnover per annum. Profit tax is 15% on net profits with the usual depreciation and deductions being allowed. Individuals are not VAT registered either and so are not liable for VAT on rental income. 10% withholding tax is payable by the lessee if the landlord is resident, and 14% if the landlord is non-resident. This tax is increasingly written into new leases. VAT is payable on rental income at 10% in corporate situations. Capital gains tax is currently non-existent, though it is imminent and likely to come into effect by 2008 at around 20%.
Buying: As foreign ownership of land isn't allowed in Cambodia, investors must take 1 of 4 routes around the problem. Buy through a local company, lease the land, acquire governmentally encouraged Cambodian citizenship and land ownership rights as you do so.
Tenancy: Rent is freely negotiable between landlord and tenant in Cambodia, with a deposit of 1 month's rent and 2 months' advance rent for the last two months of tenancy are commonplace. The security deposit is usually refunded 3 days after the tenancy term and all applicable maintenance deductions. Long-term renewable leases that usually last for 1 year are commonly written, though verbal agreements are acceptable for shorter term rentals. Only the law of contracts and the improved revised land law governs the tenant/landlord relationship.
Access: Phnom Penh hosts 2 international airports that offer daily flights along with all the major regional airports in Bangkok, Hong Kong, Ho Chi Minh City, Singapore, Taipei and Laos too, though the nearest is just 11km away from central Phnom Penh.
April 26, 2008
NOTTINGHAM, UK, April 26, 2008 - Situated in the chic riverside French Quarter of Cambodia's capital, its wealthiest city of Phnom Penh, these properties are available now through overseas property specialists David Stanley Redfern Ltd from 29,151 with only 1,000 reservation fee.
There is plenty of leverage as the 65% balance isn't payable until completion and approval of the finished property and an initial 35% post due diligence payment. There are no construction risks whatsoever and this foolproof opportunity to own a highly desirable apartment in an equally alluring region offers all the benefits of any higher risk market, just without the worry.
Rental: Despite democracy and property ownership issues restricting the development of Cambodia's real estate sector, it's somewhat reassuring to know that Phnom Penh is at the centre of it all. Here, the developer is offering a net rental guarantee of 10% for the first 2 years so, along with Cambodia's capital growth hovering around 15% to 20% per year, this investment opportunity is undeniably attractive.
Costs: Cambodia's tax administration is split between registered businesses that are required to submit a monthly tax return and individual taxpayers who do not submit tax returns (though tax on employment income is withheld by their employers), so do not pay income tax on rent. Theoretically, up to 20% income tax is payable by residents from their net rental profits, whilst non-residents will pay 20% flat rate. Administrative practice dictates that companies must pay income tax and deduct 1% turnover per annum. Profit tax is 15% on net profits with the usual depreciation and deductions being allowed. Individuals are not VAT registered either and so are not liable for VAT on rental income. 10% withholding tax is payable by the lessee if the landlord is resident, and 14% if the landlord is non-resident. This tax is increasingly written into new leases. VAT is payable on rental income at 10% in corporate situations. Capital gains tax is currently non-existent, though it is imminent and likely to come into effect by 2008 at around 20%.
Buying: As foreign ownership of land isn't allowed in Cambodia, investors must take 1 of 4 routes around the problem. Buy through a local company, lease the land, acquire governmentally encouraged Cambodian citizenship and land ownership rights as you do so.
Tenancy: Rent is freely negotiable between landlord and tenant in Cambodia, with a deposit of 1 month's rent and 2 months' advance rent for the last two months of tenancy are commonplace. The security deposit is usually refunded 3 days after the tenancy term and all applicable maintenance deductions. Long-term renewable leases that usually last for 1 year are commonly written, though verbal agreements are acceptable for shorter term rentals. Only the law of contracts and the improved revised land law governs the tenant/landlord relationship.
Access: Phnom Penh hosts 2 international airports that offer daily flights along with all the major regional airports in Bangkok, Hong Kong, Ho Chi Minh City, Singapore, Taipei and Laos too, though the nearest is just 11km away from central Phnom Penh.
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