Purchasing a property for the first time can be an overwhelming task. You don’t want to buy a first home that turns your dream into a nightmare, right? If you are a first-time home buyer, you definitely need to know every important detail for your first home in Cambodia. It’s a significant aspect to make a sound decision and to help you maximize your purchase. You need to anticipate what you can expect from the buying process itself and research handy tips to make life easier after purchasing your first home.
Are you making careful consideration before you buy?
The first thing you need to determine is whether you will buy for the long-term or short-term. You also need to determine whether you’re going to use it just for residence or also for a business. Also ask yourself if you’re going to do a resale down the line. From there, you can choose a traditional single-family home, boreys, villas, a shop house, a flat or a condo. Each type of property has its pros and cons, depending on your homeownership goals. So, you need to decide which type of property will help you reach those goals.
Are you buying to just live there, generate income, or for investment in coming years?
Keep this question in mind because different types of houses will serve you different advantages and purposes. If you just want a house to live with your family, consider villa houses, or flat houses. But if you have a lot of money, you can consider a condo unit.
But if you intend to buy a home which you can live off of and generate income from, consider shop houses. A good shop house is located at the front main road. Even better is when it’s in the corner or cross road.
All types of houses can be an investment in the future, but if you are planning on a resale, you can consider new projects. New Borey projects in the suburb area will always have high potential for reselling in the coming months or years. And if you have more money to spare, you can consider a new condo unit. You may feel it’s expensive, but it will yield high returns.
Where is the best location for your first home?
Locations adjacent to markets, schools, hospitals, and other amenities are always good. But also look into whether it has the potential for future developments that would drive the local economy to grow. And this will constantly keep the property prices rising.
If you can buy a home at the very heart of the city, it’s very good for you. But it’s hard to do so because they are more expensive. And it’s rare to see someone selling their homes. There are no new projects being developed in the central city except for condo units.
You can also consider getting your first home at the outskirts. The outskirts are an untapped area where there are offerings that have high potential for small businesses, commercial centers, population growth, and property price. Meanwhile, housing projects are also shifting towards this direction to push the area to become more attractive and populated. Whether you buy to live, to do business, or to resell, there will always be advantages with each one.
How much money do you plan to spend for your first home?
Knowing your budget is very important for your future expenses. It indicates what you can afford. Having a budget means you will only spend some amount of your money for payment and keep some more either for investment or further necessary expenditures. Make sure you also have regular income. Without regular income, you will run into problems after your first home deal. If you’re planning on it, this also helps you decide how much money you should and can borrow from the bank.
What do you know about home loans for your first home?
Most homebuyers do not actually have enough money to pay outright. Buying a home is always expensive. This is why buyers seek a lender for a chance to take out a loan to pay off the value of their home. That’s known as a home loan from the bank.
Different banks will offer different type of loans available to you. When you get a loan will be bound by terms, including the interest charged on that loan. When you qualify for a home loan you will be required to submit collateral, hard title, and an income confirmation letter. If you fail to pay the loan back, the bank can take over your home as collateral against your failure to repay your loan.
Bank loan terms can range up to 15 or 20 years, depending on the decision you and the bank agreed to.
Sometimes the bank can also give you a loan for more than you’re requesting. But they will still do a background check before approval to see if you can pay back the loan.
Are you buying a freehold first home?
Generally, if you want to buy a house, it’s likely you’ll buy it freehold. That means you own the property and land. A hard title is applied as the most secure and strong ownership title in Cambodia. So, you have to check with the project owners regarding this.
What other things do I have to pay for?
Apart from your monthly loan payments (if applicable), there are other extra costs you need to know of. These include, initial furnishings and decorating costs, loan arrangement and valuation fees, property tax, transfer fee, utility fees, and even repairs and upkeep.
Do you need a real estate agent?
If it’s your first time hunting for your first home, you’re better off with an agent. Purchasing your first home is not really an easy task, and it will be more convenient if you look for an expert who can help you every step of the way. They will do all the exclusive processes to access the listings for you that you wouldn’t have otherwise found yourself. You just tell them what you need and they’ll take care of the rest.
The right agent will have a wealth of knowledge and expertise about different areas in the current market. They can make the process a lot less stressful for you. However, there are also some scammers out there too.
You can learn more about these on our guide to avoiding scams!