5 Things You Need To Know Before Investing In Your First Condo

In the past 20 years, Cambodia has experienced substantial economic growth of about 7% per year. Even though the pandemic has negatively impacted the economy last year, the World Bank predicted that Cambodia’s economy will still grow by 4% in 2021 - a positive figure which many countries can only dream of. Factoring this with the constantly increasing population of Phnom Penh, you will see why the urban city receives a significant amount of real estate investment, proven by the influx of foreign direct investment into private large-scale housing and other development programs. The growing city and new real estate investments resulted in the increase of interests towards investing and living in condominiums. If you desire the modern lifestyle that a city center can offer, a condominium is the right choice for you. Then picking the right condo with a potential return on investment is absolutely important. This article can help provide you with the needed information to make an informed and smart decision. Here are some mandatory things you need to consider when selecting your future home:

1. Which type of condo suits your needs

The price of a condo varies greatly depending on the size, location and other benefits. So, it is essential to decide which one is most important to you. Compared to conventional houses such as borey and villa, condos are relatively cheaper - which is most suitable for first-time homeowners looking to enjoy a more luxurious and comfortable lifestyle in the buzzing city like Phnom Penh.

Moreover, an ideal condo should have the amenities that fit your daily lifestyle. If you’re living alone, a single bedroom or a studio condominium would be the best option. A studio condominium is packed with all the essential interior features including a fully equipped bathroom, kitchen, and a furnished bedroom, whereas a single-bedroom typically comes with all the similar essentials plus extra space.

On the other hand, if you’re living with your family or 5-6 people, you will need a condo with bigger and better comfort. The options are a 3-bedroom condo or a loft where homebuyers can take full advantage of its high-ceiling space design, natural lighting and the amazing view the building can offer.

2. Location

Most condominiums are located in the heart of the city that are surrounded by all sorts of commercial areas. From entertainment to business districts packed with electric shopping malls, theaters, luscious green parks, abundant restaurants and enticing cultural centers - mostly within a few minutes walk. Commuting to work or to school will become a lot quicker and a lesser worry.

The late Lord Harold Samuel - a real estate tycoon in Britain once said “Location, location, location”. When investing in real estate, location is the most important deciding factor. The same goes for condo, selecting a location within an urban development plan or an infrastructure development will yield a high return-on-investment.

3. Set your budget

The first step of financing your first condo involves calculating the down payment and closing cost (typically with only 4% of the property cost). . As a rule of thumb, the more down payment which you can pay, the less interest you’re going to pay in the long run. Thus, the best choice to make for our condo investment plan to be most fruitful, is to always finish all the installment payments as soon as possible.

4. Getting to know the association fees

One of the main differences between condominiums and single-family homes is the fact that condos have the ability to foster a health-friendly community for everyone in the compound. Therefore, in order to maintain the desirable quality and standard of living, every owner is required to pay the association fees which will cover the security service and all the maintenance such as lobbies, elevators, swimming pools, landscaping, garbage disposal, sewage control and more.

Association fees also vary depending on the amenities that the condominium provides. This means more amenities equal higher association fees. The options could range from gym, to outdoor garden, rooftop deck, artful open spaces, and even entertaining units (party room).

5. Understand the condo rule and regulation

Condo units are individually owned, but the shared space is the property of the whole community. As such, a set of rules and regulations are imposed in order to make sure that everyone is content with their desired living condition.

The Covenants, Conditions, and Restriction (CC&R) commonly address the maintenance responsibility of the common area, the policy on noise making, the number of pets that you’re allowed to have and other rules to determine what is acceptable in the common living space. Therefore, before buying a condominium, one should always check the rule book formally known as ‘Covenants, Conditions, and Restriction’ (CC&R) and see if you are comfortable with the rules. For example, if you’re an animal lover, then you will definitely have to check if the condo has a pet restriction rule

All in all, buying your first home is an exciting milestone and a worthwhile investment with proper guidance. When buying your first condominium, always remember to factor in your ideal lifestyle, the condo’s location and your daily routine, alongside with the potential return on investment, your budget plan, CC&R and how much association fees you get to pay.

Source: rfcitycambodia