Here are key tips for condo investors to consider before placing a holding deposit on a unit:
1. Location Matters
If you’re buying a condo for investment, consider where expats and locals prefer to live since they will be your potential tenants or buyers. In developing countries, location is crucial—being in a central area is often more beneficial than buying in an outlying location and waiting for price appreciation. Condo values can be risky if the building management is poor or if there is an oversupply of new developments. Investing in prime central locations helps maintain value and demand.
2. Price Per Square Meter (Net Area)
Always check the net size of the condo rather than the gross size. The net size refers to the actual usable space inside your unit, while the gross size includes a portion of shared public areas. The price per square meter based on net size is the most accurate way to assess a property’s value. If you find a competitive price per sqm in a central location, it may be worth considering.
Cambodia’s real estate market is still younger than Vietnam by 15 years and Thailand by 25 years, indicating strong potential for capital growth if you invest at the right price.
3. Building Management Capabilities
Before purchasing, ask the developer who will manage the building after completion. Visit their past projects to evaluate their performance. Even if you buy a high-quality building, if the management is poor, maintenance issues will arise, the building will deteriorate quickly, and property value will decline. A well-managed property maintains its value and attracts long-term tenants.
4. Developer’s Track Record
Always research the developer before making a decision. Visit their previous projects, check their construction quality, and see if they deliver on their promises. If the developer is new to Cambodia, do extra research to verify their credibility and experience before committing to a purchase.
5. Choosing the Right Property Consultant
The property consultant or agent you work with plays an important role in your investment decision. Check how long they have been in real estate, their customer reviews and feedback, and their past experience in the industry. Select an agent who provides post-sale services, including handover assistance from the developer if you live overseas, support with interior design, rental management, and resale services. Without these services, you may face challenges managing your property after completion, especially if you are not in Cambodia. Choosing the right agent ensures a smooth investment experience and helps maximize your property’s value and rental potential.
Final Thought
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