What should you look for when you investment property in Cambodia?
Since 2010, foreigners can legally own property in Cambodia, with some restrictions. According to the law, the foreign ownership applies to the “private units of co-owned buildings”, from first floor and above, and up to 70% of the buildings. “Co-owned building” is a building that several owners reside and consists of residential area (private units) and common area such as gym, lift, garden, swimming pool and etc.
This type of the property ownership is called “Certificate of Acknowledgement Ownership of Private Unit” aka “Strata Title”. Strata title is a form of ownership that allows the owners to legally own the property. This is also one of the “Hard Title” that is the strongest form of property ownership certificate, issued by the Ministry of Land Management Urban Planning and Construction, the national government. “Soft Title”, on the other hand, is another common property ownership certificate in Cambodia that is issued by the local government.
Of course, you’ll have Strata Title for your Bodaiju Residences unit!
1) You can’t prove legally that this is YOUR property.
2) the property value would be very low.
3) it would be difficult to resell in the future.
4) The mortgage could be harder to be approved, or the interest rate could be higher
Make sure that you understand the foreign ownership system, and protect your asset value!