Friday, January 4, 2008

Down by the riverside in Cambodian capital

Despite democracy and property ownership issues restricting the development of Cambodia’s real estate sector, fly to let investors can take advantage of some attractive rates in Phnom Penh.

One developer is offering a net rental guarantee of 10 percent for the first two years. Add this to Cambodia’s capital growth which is hovering around 15 to 20 percent per year, and it presents a viable investment opportunity.

A refurbished 1-2 bedroom apartment complete with electricity, water, telephone, central heating, lounge, bathroom and gardens situated in the chic riverside French Quarter of Cambodia’s capital are available through David Stanley Redfern Ltd from £29,151.

Rent is freely negotiable between landlord and tenant in Cambodia. Phnom Penh has two international airports that offer daily flights.

As foreign ownership of land isn’t allowed in Cambodia, investors must take one of four 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.