Profitability & Appreciation
The business class population of Phnom Penh has important revenues either from the exponential development of their businesses or from high rank positions within the Cambodian government. The discovery of two layers of oil offshore, south of our island makes the Belinda Beach Resort the only modern accommodation around. The many engineers who will be working on the oil platforms might be potential monthly or long term tenants.
Our Property Management Department proposes the following option:
-We advertise your property locally and internationally.
-We handle the rental schedule and contract.
-We take care of the yard maintenance and house cleaning.
-We charge 30% of your gross rental income.
Comparing to similar rentals in Siem Reap (temples of Angkor), we can apply the rates as follows:
1 night = 780 USD (600 USD for the owner)
1 weekend = 1,560 USD (1,200 USD for the owner)
6 nights = 3,250 USD (2,500 USD for the owner)
1 month = 13,000 USD (10,000 USD for the owner)
RATE OCCUPANCY
We consider an average of 7 months out of the year, rate occupancy. This average is very reasonable considering the mild climate year round. The many travelers from Australia in the south hemisphere that have their school vacation shifted compared to European countries.
PROFITABILITY
Starting investment: 596,500 USD
Rental income for the owner: 70,000 USD
Investment return: 8 years and 6 months
These figures do not account for the explosive real estate market thorough Cambodia. For the last 3 years, real estate values doubled each year. This general tendency could slow down within 2 to 3 years but an annual 50% growth will remain. The recent announcement (August 2007) of the Government decision to develop the infrastructures on the continent, with the assistance of Japanese and Korean investment companies, promises an increase of real estate value in the area.