For first-time buyers, when it comes to finding the perfect place to call home, there are two primary options that often come to mind: an established home or a new development. Both have their own unique characteristics. But which one should you choose?
In this blog, we will explore each option, helping you make an informed decision. This article will guide you through the factors to consider, ultimately helping you choose the right one.
Advantages of Purchasing an Established Home:
- Because it has already been built, you can move in far more quickly than with an off-plan home. It can take a year or more for a house to be built when buying a house or a unit in the development project.
- Established housing has had time for upgrades to be added, so it tends to have a lot more character. Off-plan homes tend to be more generic.
- Established homes are more of a known quantity in terms of financial details. Thus, they are far less risky and more of a sure bet in terms of resale value and appreciation.
- Since the prime locations of any city tend to get developed first, established homes also tend to have better locations.
What You Need to Know Before Making a Decision
- It can give you more time to save for the deposit while the house is under construction.
- You lock in the price now but pay later. If it appreciates in value, this can result in substantial equity gains in even the short term.
- New homes typically have lower maintenance costs than older homes. This can help offset the typically higher purchase price.
Loving an Off-Plan New Development. What Now?
Consider the Risks:
First, when buying a new development off-plan, be aware of the inherent risks such as potential discrepancies between the finished home and the brochure, or the worst-case scenario of the development not being completed. Due diligence on the company behind the project is essential before going investing. Also, if you are considering buying a new development off-plan, buyers beware of so-called "free" gifts, such as cars or holiday packages, which are not actually free. It will be added to the price one way or another.
Check out the ultimate guide to buying off plan!
Look around:
First, if the developer has prior completed projects such as borey homes or condos, request viewing to gauge the quality of their work. Review all documents thoroughly, and don't hesitate to inquire about any claim that seems too good to be true.
A sample unit is an excellent opportunity to experience the property first-hand, helping you to visualise what the finished product will look like.
Brochures can be misleading, especially if you are new to the real estate market, so be mindful of comparing the cost per square meter to other properties in the area. By following these guidelines, you can assess if the price is fair and make an informed decision when investing in off-plan properties.
Check out the Borey buyers guide!
Get a lawyer:
To safeguard your interests, it's crucial to enlist the services of an experienced property lawyer who has a deep understanding of the local laws and market practices in Cambodia. Your lawyer will be solely devoted to your concerns and won't have any conflict of interest, making them your most reliable protector throughout the buying process. Therefore, it's essential to have a trusted lawyer by your side who can provide you with the right advice and guidance.
Ensure Quality:
After the new development home is built, but before settlement, have it inspected. Hire a building inspector to do this for you. If anything is amiss, this is the time to catch it and try to get it remedied. Do not wait until after you have paid and moved in to make this final important check.
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