Why Your “Guaranteed Returns” Might Just Be a Developer’s Guaranteed Exit Strategy
"8% NET for 5 years, with a 110% buyback!" Sounds like passive income paradise, right?
But in Cambodia (and other emerging markets), guaranteed rental returns often come with fine print — and risks you’ll only discover too late.
These offers typically apply to a limited number of units or select floors, and they hinge entirely on the developer’s cash flow and credibility. In other words: if sales slow or the company faces financial stress, your “guaranteed” income might quietly vanish — along with the buyback.
What’s worse? Many of these projects outsource rental management to third-party firms you’ve never heard of. And when things fall apart, the paperwork will likely protect them, not you.
Before signing, dig deep:
Who is the developer, really?
What’s their delivery record?
Who’s managing the rental program?
Are there escape clauses hidden in the guarantee?
Because sometimes, that shiny yield isn’t your opportunity — it’s their exit plan.