Beware romanticizing over 10Y guarantee

I’m not detached, objective about the 10Y guarantee.

  • beware credit risk. In contrast insurance payout is much more guaranteed than the GRR
  • beware capital depreciation risk
  • my Cambodia and BGC real life experiences tend to create a false sense of “in-depth experience”. Actually not in-depth, because the sample size is way too small to be statistically significant.
  • It’s not over yet. I have not received USD sales proceeds.
  • Phnom Penh is NOT another Singapore or Hongkong
  • The big brands (Shangrila or CapitalLand) are off the hook. These brands suffer no reputation damage if the 10Y guarantee is broken. This is similar to a celebrity endorsing a company that could go bankrupt soon.
  • it’s 10Y only, not lifetime

Top 3 “risk-factors” NOT covered by the 10Y guarantee

  1. location — could be inferior, so the developer has to offer the 10Y guarantee.
  2. developer credibility — cash flow,,,
  3. overpriced