Mongolia’s new investment law attracts foreign buyer interest from across the globe
One of the most significant events to happen in Mongolia in recent years is today’s introduction of the new investment law by the Mongolian parliament. As of Friday 1st November 2013, the new law will overturn two previous pieces of legislation, making the financial environment within Mongolia much more attractive to foreign investors.
In a nutshell, the new law means that the playing field has been levelled for domestic and foreign investors with the change tipped to boost investor confidence worldwide.
- New law on investment in Mongolia takes effect today, 1st November 2013
- Playing field levelled for domestic and foreign investors
- International investor confidence should return to “Asian Wolf” economy
One of the most attractive features of the new investment law is that it sets stable tax periods based on the investment amount and the location within the country, with rates set for between 5 and 22.5 years. The rules are applied based on the day a contract is signed and are not subject to the changing legal environment during the lifetime of the deal.
Ray Withers, CEO of award-winning property investment experts, Property Frontiers, with a proven track record in Mongolia explains,
“Previously there have been concerns over how foreign investors are treated compared to domestic investors. Every 4 years, with a change of government, there were worries that the rules might be altered to the disadvantage of foreign investors but now, under this new piece of much-welcomed legislation, foreign investors know where they stand today and into the future.”
Indeed, as the managing director of Mongolian Investment Banking Group LLC, said “Tax stabilization measures and provisions that will help to prevent future changes to the legislation should provide investors with the confidence that they need to return to the market.”
And this investor confidence is set to spread to the Mongolian property sector. Previous foreign investors who purchased residential property in the capital Ulaanbaatar through Property Frontiers have seen average returns of 24% and up to 300% capital growth over the last 4 years with many keen to reinvest into the country’s lucrative commercial sector.
With the Mongolian capital witnessing real estate prices rise eightfold since 2001 and commercial rentals predicted to triple over the next 5 years as more international companies enter the market, now is the time to cash in on commercial property in Ulaanbaatar.
Property Frontiers’ latest offering in the Mongolian capital, The Village @ Nukht, presents a superb opportunity to purchase a luxury retail unit, on a freehold basis (rarely seen in Asia) from just USD 254,000.
A luxury shopping and leisure centre located in Ulaanbaatar’s “Billionaire Valley”, construction at The Village @ Nukht is well underway with completion due by the end of Q4 2013. Offering expected rental returns of 14.8% NET, an assured yield of 12% for 24 months and up to 20% capital appreciation per annum, this is one opportunity not to be missed.