The growth of real estate in the kingdom has sparked interest for a new wave of local and international investors to take advantage of various opportunities. In particular, this includes first-time investors eager to take their first step into the property market. Here are a few key points from Realestate.com.kh to aid first-time investors. In Part 1 we look at the importance of having a clear purpose, and how to begin to evaluate the potential of your impending property investment.
Ensure your purpose is clear
Before diving into any decisions, first ask yourself what type of investment you’re looking for and clearly establish your motivations. Are you looking for a residential or a commercial property? Are you going to live in the property and resell at a later date? Do you plan on living and doing business there? Are you investing for the short- or long-term? These are all key questions that you should have clear answers to before moving any further in the investment process.
This first step will help you to easily narrow down your options – especially in a market like Cambodia’s where an abundance of property types and opportunities are available.
For example, if you’re looking for residential properties that you can either rent out or sell later, you should look thoroughly into villas, condominiums, flats, and apartments in boreys and embark on researching the areas that are in demand. All of this key
information is available from multiple online and published sources.
Examine the property’s potential
Depending on what type of property you’ve chosen, it is critical to undertake further research, such as which locations can offer you the lowest price for the highest potential for growth and profit. Being completely honest with yourself about what you can afford and the actual return on investment is something you need to be completely clear on.
Keep in mind when examining the property’s potential you will have to factor in variables such as maintenance, repair, and business fees attached to the property. Payment terms, loans and interest will also affect the total amount you need to spend to secure your investment.
These are the first steps to take into consideration as a first time investor.
In Part 2 we will delve deeper into the evaluating a property’s potential and the mechanisms available to protect yourself and
your investment in the long-term.
Want to learn more about making the right investment choice? Jump on Realestate.com.kh today, the best source of information for property buyers and sellers in Cambodia.
James Whitehead is the Director of Content @ Realestate.com.kh