Investing in Farm in Cambodia

Discussion in 'Investment Strategy' started by David Thiu, 10th Nov, 2017.

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  1. David Thiu

    David Thiu Well-Known Member

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    Hey guys,

    Just wondering if anyone has had much experience investing in Farms overseas, and would mind sharing your experiences and thoughts.

    My uncle has a farm growing mangos and says there may be opportunity for me to buy a farm next to his to grow some Durian. Here were some rough numbers that was mentioned:
    • Purchase price for land $2,000/hectare x 20 hectares = $40,000
    • Monthly maintenance cost about $150/month for 4 years before fruit can be harvested
    • Planting costs about $1.50 per plant including labour
    • Estimated return after 4 years is +$10,000 increasing each year
    I'm not really sure on the exact numbers, like how many trees you can plant per hectare, how many fruits per tree, how much you get per fruit etc... and will probably discuss this further with him when I visit Cambodia this month.

    Does anyone own a farm? Would you mind sharing some numbers?

    Cheers,


    David
     
  2. Cimbom

    Cimbom Well-Known Member

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    Unless you have lots of spare cash that you don't mind losing, I personally wouldn't invest overseas unless it was in a developed country with a reliable legal system
     
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  3. hammer

    hammer Well-Known Member

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    I have a lot to do with Laos which is next door and just as corrupt.

    Unless you are there on the ground, don't do it. It's too easy for someone to bribe an official to sign a paper and it will be like you never owned it.

    The risk/reward equation is just too high.

    However if you managed to set up a Durian farm in Oz, I can guarantee you that there's hundreds of thousands of hungry customers who will gladly pay you a lot for the delicacy! :) The Frozen ones in woolies just don't cut it.
     
  4. VB King

    VB King Well-Known Member

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    Aside from the corruption, there is a lot of land in Cambodia that doesn't have a "hard" title. Which means someone could come in the future and make a claim on it, you won't receive any compensation.
     
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  5. Scott No Mates

    Scott No Mates Well-Known Member

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    How are you going to fund it? Are you going to work it or expect a return for a share farmer?
     
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  6. 158

    158 Well-Known Member

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    Fixed the thread title for you....

    pinkboy
     
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  7. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    I know an Aussie in Thailand who has been fighting thru the courts for 10 years trying to get back a property that was stolen from him. Worth $1mil Aud
     
  8. Ross Forrester

    Ross Forrester Well-Known Member

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    I have looked at farming in california and it was just to risky managing an asset like that remotely.
     
  9. Scott No Mates

    Scott No Mates Well-Known Member

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    A vineyard in the Napa Valley isn't farming, it's irrigation.
     
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  10. Ross Forrester

    Ross Forrester Well-Known Member

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    Yeah - not that glamorous.

    Alfalfa
     
  11. Scott No Mates

    Scott No Mates Well-Known Member

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    And I thought that Alfa's were manufactured in Italy. I must lead a sheltered life. :oops:
     
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  12. BarneyRubble

    BarneyRubble Well-Known Member

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    Have been to Cambodia multiple times. Not a country I would invest in, at least not with the current government in place, and that is unlikely to change anytime soon.

    Those figures for the land seem expensive to me for Cambodia. As your uncle is there, I am sure you are aware everything is USD too.

    Another thing for consideration. Durian only start producing fruit after 4 years if it is from grafted stock. Planting from seed or even seedlings will take more like a decade.
     
  13. David Thiu

    David Thiu Well-Known Member

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    Thanks for the feedback guys...
     
  14. Hwangers

    Hwangers Well-Known Member

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    Depends on how well you trust this Uncle and how much time he will invest in your farm. Will he be an active or passive manager in your farm? Is he currently successful? Will this success be replicated with your farm? How well-connected is he with the local authorities, in saying that I do like Durians, but I love Mangoes more, so I... forgot what I was talking about...
     
  15. David Thiu

    David Thiu Well-Known Member

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    I'm not really sure, and guess I'd have to wait till I arrive in Cambodia to find out more. Mum mentioned he had ties to royalty in Cambodia, and is currently earning $10,000-20,000 from his mango farm.
     
  16. hammer

    hammer Well-Known Member

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    Warning light just went on.

    If he's earning so much from his farm why doesn't he buy the farm next door?

    Who exactly would you be buying the land from and would your uncle receive a cut from that transaction?

    Something is not right.
     
  17. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    Everyone has ties to royalty
     
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  18. Scott No Mates

    Scott No Mates Well-Known Member

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    I even have coins & banknotes with the monarchs likeness on them.
     
  19. MyDarlinghurst

    MyDarlinghurst Well-Known Member

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    I just came back from Phonm Penh
    Dusty dirty hot place

    i would look at Thailand rather than Cambodia
    A bar would be a better investment

    have you tried the Cambodioan expat forums ?
    there are 2 big ones I know of

    khmer440 and Cambodianexpats
     
  20. David Thiu

    David Thiu Well-Known Member

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    The farm next door might be another $40,000-50,000, which is cash he might not have, and he may not want want to wait 4 years for it to produce an income.

    But some very good points you've raised. Thank you.

    I've never been before so I've go no idea about whether it's a good place to invest or not. Just thought I'd keep my options open.

    I haven't checked the forums you mentioned above until now, but it looks more like Tourist Forums, and doesn't seem to have much regarding investments in farmland...