So you will be glad to know that the government is currently coming under increasing pressure to abolish the restrictions on foreign ownership, and the possibility of buying freehold in Cambodia may be just around the corner. Current law leaves potential foreign investors with two options, leasehold of up to 99 years, or forming a company, and taking on Cambodian nationals as partners sharing 49% of the company -- the foreigner has the controlling 51% share.
David Stanley Redfern Ltd has some excellent properties in one of Cambodia's strongest areas: the French Riverside Quarter of Pnomh Penh: left over from the French colonial era, the aptly named French Colonial Apartments. The properties are bought on a 99 year leasehold and cost from £29,151 for a one bedroom and from £48, 100 for a 2 bedroom. In the contract is a clause that allows buyers to buy their property freehold for $1 should the law change to allow it. Their location is one of the prime areas of Cambodian real estate, making their low price a real bargain.
The properties are completely refurbished in what I would call a modernist style with an oriental twist, (or is it an oriental style with a modernist twist? See accompanying pictures and decide for yourself) and what I would also call absolutely stunning. Perhaps most attractive about the properties is that they come with a 10% guaranteed rental yield for the first two years. But because of Cambodia's recent popularity with tourists, and the shedding of its skin as a destination for back-packers, to attract more of the middle-high end of the tourism market, with more disposable income, earning a 10% yield after 2 years shouldn't be all that difficult. Capital appreciation on the properties is conservatively estimated at 20% - 25%.
Also on the plus side is the fact that Cambodia's rental laws are pro-landlord, and there is no income tax on rental income, other than the tenant withholding 14% of the land-lords rent is what is unsurprisingly called a withholding tax. Also on the plus side are the low-moderate total transaction costs of 3.9% - 6.5%. Call David Stanley Redfern Ltd today for a free no-obligation chat with the experts on all aspects of overseas property investment.
For more information on Cambodian investment property visit: http://www.davidstanleyredfern.com/
About David Stanley Redfern
David Stanley Redfern Ltd is one of the U.K.'s leading overseas property investment specialists. The reasons for this are an incomparable range of international properties spanning 40 destinations worldwide, and unrivalled customer care, which lasts long after the purchase has been completed. Experienced, professional staff and membership to the overseas property market's regulatory body: the Association for International Property Professionals, as well as their stringent due diligence procedures gives buyers the confidence that any purchase with David Stanley Redfern is a safe one.
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