DSR Asset Management Overseas Property Investments

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 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 today for a free no-obligation chat with the experts on all aspects of over­seas prop­erty investment.