As a universal real estate, the investment value of real estate is self-evident, overseas real estate is also the main investment target of high net worth people.
As an emerging real estate market in Cambodia, housing prices are rising rapidly, rental income is remarkable, and the rate of return is relatively high. In addition to the relatively low housing prices, many ordinary people want to go to Cambodia to buy an apartment.
But investment needs to be careful, and property buyers should learn about all related knowledge first. What is the difference between Cambodian real estate and China market? What are the restrictions for foreigners to invest in property? Where is the most suitable for investment? Is the Cambodian property worth to invest?
You’d better prepare well before invest in Cambodia property.
1. Know your purpose of invest
A number of people choose to invest in overseas property out of investment purpose, a number of people out of long-term living purpose, a number of people out of vacation and retirement purpose, and a number of people out of children’ school purpose.
Investment income mainly includes rental income and value-added income. For rent income, you must choose a good location. For value-added income, you must choose the potential area. For vacation pension, tourism real estate is more suitable. If you are living abroad for a long time, you should consider more about the quality of the house and the maturity of nearby facilities.
There are many factors to measure the value of real estate, but no matter how high-quality projects will not meet all the expectation from buyers, you can find a suitable house in time only if you are sure of the purpose of buying a house.
2.Plan budget well, choose the payment method you fit
There are generally three payment methods: full payment, installment payment and loan when we purchase property in Cambodia.
If you do not have a steady job locally, you may not be eligible for a loan, and there are many restrictions on foreigners' loans. Therefore, many people will not choose loans when they buying a house in Cambodia. It is difficult for foreigners to buy a house to qualify for a loan, and the loan interest rate is relatively high. In addition, most of the residential loans in Cambodia are floating rates. It is not so cost efficient to buy house by loan.
Cambodian real estate is dominated by small apartment, the total price is not high, there are many people who choose the full payment. One-time full payment requires sufficient financial support. If the loan is not cost-effective, installment payment is troublesome. The full payment is also a good choice. One-time payment usually could get a better discount.
New projects in Cambodia also accept installment payments. The down payment ratio, installment method, and payment time of different project are different. The higher the down payment, the easier the later repayment. The lower the down payment, the greater the pressure on the later payment.
Before buying a house, buyers should make a budget plan according to own economic situation, choose the proportion of down payment that you can afford, and reduce the down payment or budget if you cannot afford it.
3.Get loan approval in advance
The mortgage pre-approval process requires submitting all documents, recording income, debt, and credit, as well as understanding all available loan options. The process is longer, but it can save time in the future. The pre-approval of the mortgage can prove that you have sufficient financial capacity and you are a reliable buyer. Most importantly, it allows you to fully understand your affordability.
4.Choose nothing better than the worse one
It is also important that how you act if there is no project meet your demand.
Although there are many real estate properties in Cambodia, high-quality projects are rare. Good projects are loved by locals and investors. Good project always limited. If there is no intentional housing you prefer, or the price is too expensive, any situation which stop you to buy it, do not compromise. And you need to fully understand your own affordability, and do not pick any project you are not interested.
Investment opportunities are not unique. It is not terrible to miss a good project. Adjust your mindset and you could get your ideal house eventually.
Disclaimer: The re-forward articles on Compass website are for the purpose of conveying more information, and it does not mean that the Compass website agrees with its views or confirms the authenticity of its content. Article noted as "Source: Compass original", please note that the source from Compass. The content of the article is for reference only and should not consider as investment advice, and it does not mean that Compass agree with its views.
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