Other Expenses to Consider When Buying Home in Cambodia
When it comes to buying home to live, some people miss to calculate additional expenses they have to pay before they can get a permanent home. Today, Harbor Property will tell you what other expenses to expect when you buy home in Cambodia, so that you can calculate your exact spending on your favorite property. Below are extra expenses you need to know before you decide to buy home to live.
Interest Rate on Home Loan
In Cambodia, most people prefer to buy home with an installment payment with developer or banks because usually they do not afford to buy with full payment. In this case, home buyers will carefully study the project and select the right developers or banks which can offer flexible payment scheme. Generally, banks in Cambodia can offer a loan of up to 70% of home price with an interest rate between 7 and 10 percent per annum.
Fee for Real Estate Agent
Buying home through real estate agent will cost you 3 percent of the home price and this fee usually comes when buyers ask real estate agent to buy home for them. For first home buyers, this might be the first choice for them because they can save time, energy and money when they hire real estate agent.
In some cases, you can buy the best property with a match to your budget and preferences below the market price because real estate agents usually have a variety of properties available in hand and they can negotiate with landlord for a better price on behalf of you.
Tax on Property Transfer (Stamp Duty Tax)
After buying the property, you will have to pay a 4 percent tax on property transfer with a $1,000 dollars extra fee for the service of cadastral office. Effective in July 2019, the stamp duty tax is determined with the rate of 4% of the value of the immovable property which is the objective of the transfer of ownership or right of possession.
However, the stamp duty tax is exempted among relatives: from grandfather or mother to grandchildren (zero tax), from parents to son or daughter (zero tax), from sibling to sibling and from parents to son or daughter-in-law.
Annual Property Tax and Other Monthly Fees
All homes in Cambodia worth more than $25,000 dollars are required to pay 0.1 percent tax annually. The property tax base is determined by the 80% of the property value with the reduction of 100 million KHR. Therefore, property tax to be paid is (property value) x (80%) – (100,000,000) x (0.1%).
The market value of your home is assessed and updated regularly by the Immovable Properties Appraisal and Valuation Commission, under the political responsibility of the Ministry of Economy and Finance (MEF).
In addition to annual property tax, you need to pay for monthly management fee between $0.5 and $2 dollars per square meter and parking fee of $50-60 dollars per month if you live in condo. If you live in Borey, you have to pay between $10 and $50 dollars per month for security, cleaning and public electricity.
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