Why Your âGuaranteed Returnsâ Might Just Be a Developerâs 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 â and risks youâll only discover too late.
These offers typically apply to a limited number of units or select floors, and they hinge entirely on the developerâs cash flow and credibility. In other words: if sales slow or the company faces financial stress, your âguaranteedâ income might quietly vanish â along with the buyback.
Whatâs worse? Many of these projects outsource rental management to third-party firms youâve 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?
Whatâs their delivery record?
Whoâs managing the rental program?
Are there escape clauses hidden in the guarantee?
Because sometimes, that shiny yield isnât your opportunity â itâs their exit plan.