What the 30/40/30 installment plan is

The standard developer purchase scheme in Cambodia is divided into three parts: a 30% down payment upon signing the contract, 40% in an interest-free installment plan over 36 months (monthly payments), and a 30% balloon payment as a lump sum in the 37th month. The total overpayment is zero: the installment plan is interest-free.

Importantly: the buyer becomes the owner under the contract from the moment of the first payment. The purchase agreement records 100% of the rights to the property already at signing.

An example calculation for a $50,000 property

  • Down payment (30%): $15,000 — at signing
  • Installments (40%): $20,000 — interest-free, ~$556/month over 36 months
  • Balloon payment (30%): $15,000 — as a lump sum in the 37th month
  • Total overpayment: $0

What to do if you don't have the sum for the balloon payment

If you don't have the required sum by the time of the final payment, the developer offers financing: 10% per annum for a term of up to 15 years. The buyer chooses the amount and term themselves. It is important to state the intention to use financing in the contract in advance.

Keys before full payment

For a number of properties, the keys are handed over before full payment — roughly in the second year of the installment plan. This means you can rent out the apartment while continuing to pay the installments. The rental income partially or fully covers the monthly payments — a self-financing scheme.

Schemes for different properties

The installment structure varies depending on the developer and the property:

  • Time Square 8 (Megakim): 20% down / 30% installments / 50% balloon, financing 10% / 10 years
  • Time Square 9 Gatsby: 20% down / 40–45% installments / 35–40% balloon, financing 10% / 10 years
  • Time Castle XI: 20% down / 35% installments / 45% balloon, minimum reservation from $500
  • Kingston Royale: 30% down / 36% installments / 34% balloon, financing 10% / 15 years

The leverage effect

An interest-free installment plan creates investment leverage: you control an asset whose value is growing, having invested only 20–30% of its price. If the property appreciates over the three years of construction, the entire difference goes to the investor. With assignment before completion — without the 4% transfer tax.

An installment plan in Cambodia is not a mortgage with bank approval and insurance. It is a direct contract with the developer, available to foreign buyers without income statements or credit history.