As you already understood the best way to have a high income is to buy a property, but can a non-resident or a foreigner buy a property in Cambodia and make money?
Cambodia not only allows foreign investment, but also encourages them, perhaps more than anywhere else in Southeast Asia. Creating almost any type of business with 100 percent foreign ownership is easy.
An annual multiple entry visa costs $ 250 and is issued in a few days. Staying in Cambodia with a long-term visa is simple and cost-effective. For property buyers, foreigners may be entitled to own condominium apartments on their own behalf. The general consensus is that new condominium buildings are overrated.
You can often find the best deals in old apartment shops left over from colonial times. Land with development potential is also promising for active investors. However, for these two types of real estate, everything is becoming more difficult, since foreigners cannot directly own anything other than a condominium.
A land holding is more legally protected, but requires annual license fees and monthly tax returns. Profits can be worth the extra effort and expense if you buy property on a larger scale in Cambodia.
In addition to title rights, another feature on the Cambodian real estate market is the distinction between “hard rights” and “soft rights”. Both grant you the legal status of unconditional ownership and must belong to either a Cambodian person or a Cambodian company.
“Hard rights” are registered through the land registry of the national government and give property owners an undeniable right. Soft Rights are instead registered through the local government. “Soft”, at least theoretically, are not as iron as “hard.” In fact, more than 90 percent of real estate in Cambodia belong to “soft rights.” And they serve as legal, government-recognized proof of ownership. Soft are strong enough. Therefore, almost any local bank will accept them as collateral for a secured loan.
Most Cambodians even prefer soft-property because the transfer fee is much lower.
Not only this, but also the local government spends much less time processing information than the national government. Everything can be solved in a few days, not months – which makes life especially easy.
With that said, due diligence is a good idea. Real estate investors often hire a lawyer. To talk with neighbors, view the land registry. And make sure that the seller of real estate with “soft law” is truly the true owner and does not have burdens.
Source: adamfayed.com
