by Beyond Realty 
11 minutes read
When you take the next step in your life and buy a home, you don’t need to feel the pressure and anxiety that accompanies such a difficult decision.
One of the first things you need to do when buying a home is to work out how much you can afford and borrow. You should also check your credit rating and know where you stand. Before you buy a house, it is always helpful to know everything about your financial situation. Buying a home requires being aware of your financial status, credit history, and other factors.
If you have a problem, try to fix it before you try to borrow money for your house, even if it is only a small amount of money.
When you buy a home for living, you should only buy a property that is perfect for you and your family’s needs. Seek advice from a mortgage broker or lender in advance as this will show your commitment to the mortgage. Once you have your mortgage approved – and know where you stand on your monthly payments – you start buying the property. There are also payment and prepayment options to check this Can help you get a few years out of your mortgage.
Table of Contents
Important Guides
If you want to transfer a land title please refer to: How to transfer land ownership in Cambodia?
If you want to learn how to buy land and landed property in Cambodia as a foreigner, please read Legal methods for foreigners to buy land in Cambodia.
If you want to learn about property ownership document types, please check out property titles in Cambodia
Before searching a home:
Before you start looking, make a list of everything you want in a home based on what you want and what you actually need. You should also make sure that you have identified areas where you are willing to compromise just in case you need to.
To help you find the perfect house, you should use the services of a real estate agency in Cambodia. Your agent will provide you with a list of potential properties that match your budget and features. When you meet with your agent, he will talk to you about how much you are willing to spend and what you want in a home.
Once you have your list, you should look for houses in your neighborhood, drive to the house and drive around it. You should take into account the location of your house, the travel time to work and the number of people in the neighborhood.
Buying a home depends largely on your budget, but if you don’t have much capital available, you can buy your dream home at a very affordable price. Many of you may think that buying a home is a difficult process and requires a large down payment, although this is not always the case. While it is not easy for everyone to buy a home, it is now easier than ever to buy a home, because most credit agencies and banks are much more flexible in terms of home loans and mortgages.
To make a down payment on a house purchase, you must factor the total purchase into your mortgage payment. The more money you spend on buying a home, the lower the down payment and the higher the interest rate on the loan.
If you don’t own a home, you may need to rent a home for a short period while you pay off your mortgage.
Instead, you can simply convert your rental payments into monthly installments for your home. This is a worthwhile solution, as you will still be paying money for the house you could spend on it instead. Homes are great for renting because most of them cost as much as your mortgage payments nowadays if that makes sense at all. Owning a home is always a dream, especially when it comes to the dream home you want to own one day.
In Cambodia, there are some banks and lenders that simply offer you the opportunity to buy a home or property at a low-interest rate. ABA Bank, PPCBank, Acleda Bank, and CAB can provide mortgage and loan opportunities that might fit your needs. You can buy your dream home and enjoy low monthly payments with an interest rate but remember you must choose the loan plan that is best for you. Don’t forget that the loans may not be available for foreigners for every property in Cambodia. It will depend on your local credit score, assets, tax records if you have run a business.
You can find out about banks, lenders, or online services, but whenever you buy a house, you should plan ahead, hire an estate agent, and then pursue your dream home. A good estate agent can help you get the best deal on a home if the price is right for you.
Important Factors
The view is one of the main factors influencing resale value when buying a home, and homes with a beautiful view, such as houses with a beach on the horizon or a river-view, are often sold more expensively than comparable homes without such views. Potential buyers are so similar and interested that these views have a considerable dollar value. When it is time to sell the house again, properties with views do not take long for a buyer to be found.
Most properties today are concentrated on the building itself, but land is also important, and a house with a good resale value should have good views of the city, as well as other buildings in the neighborhood.
The yard of a modern house is smaller than an old one, but there should still be a decent front and back yard. Provided the property is in a typical neighborhood, it should not be on an unusually located property. Don’t buy a property that has been serviced or has too many holes.
Normally, you would pay a premium for a house that is moderately green or undergreen in some areas but remember that good prices apply in areas that you may not be able to recoup when you sell. Beautify the landscape by humanizing the lawn and adding shrubs and trees, and by landscaping the backyard.
Another factor you should check is the title deed type. Does the house have a hard title or a soft title or LMAP and for condos you should check whether the unit has a strata title or not.
Deciding home type
Choosing the right property types relies on the purpose of buying a residential property. Are you purchasing a residential unit for leasing out and having an ROI and/or for value rise up due to strategic location and/or for using as a home?
There are various types of residential property for investment and for living in as well. Villas, houses, townhouses, colonial houses with yards are for people who want to enjoy totally private space whereas buying apartments (flats), condos will lead to a less private space except the interior of the apartment. Twin villas, link houses stand somewhere in between considering privacy.
Each type of residential units will bring different rental income. A luxury villa will cost more rent per sqm or per bedroom if compared to a luxury apartment.
Property size matters
We will here discuss about size of the property as a factor to affect the value. For health guideline instructions of property size required per person, please check this article: The Relationship Between Size of Living Space and Subjective Well-Being.
There are also scientific studies concerning the rooms/land size; the relationship with the socio-economic character and position of a neighborhood is examined in this study by Winsten, C. B., and F. Savigear: The Use of Rooms and the Use of Land for Housing
Houses in your neighborhood will vary in size and size, but they shouldn’t be too different. When determining the market value, the house closest to you is one of the most important factors.
If most of the surrounding houses are small, however, they can act as a brake on value. If you buy a small or medium-sized house in your neighborhood, the larger house can help increase the value, but if it is a smaller house, it can cause a decrease in the resale value of your home.
There are times when determining your desires and needs can be extremely important. Buying what you need in a more prestigious neighborhood has a better chance of getting what you want from a less desirable neighborhood.
What should be in a home?
Fire and life security measures such as international or local fire code compliance, structures designed according to worldwide accepted standards is the most important factor to choose a home. According to NFPA statistics: “More than one-quarter (27%) of reported fires in 2014-2018 occurred in homes. Even worse, more than three-quarters (77%) of civilian fire deaths and almost three-quarters (73%) of all reported injuries were caused by home fires.”
There should always be at least one open bedroom in your house. For the rest of the house, make sure there is enough space for your wardrobe and don’t forget to find a place for linen and towels. A walk – in the wardrobe is extremely desirable for every bedroom And it’s an extremely important part of every home.
Garages increase the resale value and you should always make sure that you get at least one double garage. Recently, three- and four-star garages have become popular in some areas of the country.
Washrooms are often in places where they close their eyes to the fact that you have to go up and down stairs. Consider this if you are carrying a load of laundry, especially if you want to wash or dry.
The kitchen is the most important room in the house and all the family activities are focused on it. In a new house, the family room should also be extremely close to the kitchen. Of course, the dining room and breakfast area should be next door, but larger kitchens are well equipped with modern appliances.
The backyard should be easily accessible so there will be opportunities for barbecues and outdoor entertainment. There should also be a short walk from the garage to the kitchen so that shopping does not become a terrible burden.
Swimming pools offer added value in Cambodia real estate market and can increase the number of potential homebuyers trying to resell a home.
We explained the main things to consider before buying a home in Cambodia. We also mentioned important factors, deciding a housing type, property size and what should a house have. We will focus on unfinished homes, cheap homes and gated communities.
Watch our video how to own the home beyond your dreams.
Unfinished houses
Wikipedia defines unfinished buildings as buildings (or other architectural structure, as a bridge, a road or a tower) where construction work was abandoned or on-hold at some stage or only exists as designs.
Unfinished houses are a great way to save a lot of money while you’re looking for a new home. By buying an unfinished home, you can keep your monthly mortgage low and reduce your initial investment. You can also buy a house with a large foundation size, which can easily add up and save you money.
The upper floor of an unfinished starter house usually remains unfinished, so the question is how much equity you want to put into the unfinished area.
Sometimes, however, an unfinished house can leave the roof, frame, plumbing and electrics unfinished. Before you make a purchase, you should always decide how much money you have for what needs to be finished and what is not used. If you plan to add rooms to your house, the house you are looking for must have a garage, but if you do not, you can save thousands and save just as much in the long run.
There are always ways to save money by just looking at the plans, but you should always keep that in mind. An unfinished house can also have a few areas where you can save a lot of money if you just leave it as it is. When you are planning an extension, you need to plan for all extensions, and there is always a way to do that.
When a developer buys a house he wants to build, he will do everything to make as much money as possible from his house. You could get them to agree with your ideas, even if they are probably not what you want, and vice versa.
The block’s … or DIY flats, come without any internal fittings, so residents complete the homes themselves. This makes them far cheaper than finished apartments, making it easier for people to get on the property ladder. (Reference)
Building a home can be a very profitable business, but if you want to take out a mortgage, most banks need to make sure your home is in good condition and in line with local regulations. This means that living rooms, bedrooms, and other spaces must be finished, and that is because most companies build their houses exactly as the plans require. When you look at an unfinished home, you must see what the bank is willing to accept.
Most banks will not give you a mortgage if your home is not yet fully (or almost) completed, but they are known to reject unfinished mortgages that they would find difficult to sell if you defaulted.
Before investing in an unfinished home, you should always check with your bank, which has strict requirements for unfinished homes. If the builder has built a lot of topsoil and grass just to satisfy the bank, you may not be able to make money or save. The entire lower area must be finished, as must most garden designs.
As most of you already know, buying an unfinished home is a great way to get into the housing market and buy your own home. Unfinished homes also offer potential buyers the opportunity to build their own homes, which can generate a lot of interest in the market.
If you want to save money, you should definitely talk to the developer about it, but if so, you can go through the plan again and decide that it doesn’t have to be this way.
Cheap houses: Are they for you?
In most cases, you can save a lot of money, forgetting that your house will bring back memories of your whole family for many years. When it comes to property, cheap flats are hard to beat, but it’s a cheap home, isn’t it?
Making money from real estate is easy no matter how you look at it, and cheap homes are currently one of the most profitable types of real estate in the world. For estate agents, this type of house is a way to buy a house at a low price, build it up a bit and then sell it at a higher price. Renovation and resale usually bring more profit then buying a new house and selling it.
Although cheap housing can be found anywhere in the Cambodia, some are better than others and there are some great neighborhoods to see and do.
On the other hand, most cities that offer affordable housing tend to be poorly positioned in the labor market. It’s not great when you need a job, but for those who retire or settle down to start a business, it can be great.
You can save a lot of money by buying a house that is less expensive and still meets your needs. This means you can buy your house in the cheapest area of the city, or you can save and buy a house that is cheap but not too expensive.
You should not focus on a type of house or neighborhood but look at all available options and compare prices. Remember that buying a cheap house doesn’t necessarily mean buying a house in the worst part of town or buying the run-down house.
You can get a cheap home in a great neighborhood if you weigh your options accordingly. Take a look around and be surprised how many apartments are available at reasonable prices, as you see in different areas.
Negotiating the price
While some houses can have a higher price than you are willing to pay, negotiating can be a significant part of the price. You can save a lot of money when buying a house if you know how to negotiate with your agent. If you only learn a few simple negotiating techniques, you could save yourself a much better deal than the average home buyer.
Every day, hundreds of people are getting affordable housing through negotiations with estate agents. In some cases, you can end up paying full price for a home and still spend less than someone else, but still get a lot.
While prices are having an impact, financing is also an area that can help make home ownership more affordable. There are several ways to save money with finance options, and low interest rates can save you a lot of money when you buy a house. Before you decide to buy a home, you should always think carefully about what you have available to you when you buy a home, and look for the best interest rates for your home and other options.
Most cheap homes sell very quickly, so act quickly to find a cheap home that suits your needs. There are many affordable homes, but if you look around you can always make an offer and you should always look for one.
Don’t just look and forget about the house, do a house inspection and then decide whether the price and equipment really is what you’re looking for.
When you buy or sell a property, you need to have the right conversations with the right people to get the best deal. Having a negotiator is a good way to make sure you know exactly what is going on and that you have been able to “get it right” on the property. The first thing you should do with your negotiator (or negotiator) is make sure that you leave the house straight ahead. Whether it is an estate agent or someone you work with and negotiate on your behalf, you will want to be sure that all the facts are there.
You need to know what trends are out there and what facts are good for the real estate that is being considered. This means, of course, that you want to spend your time finding the right offer for you on the “right” property.
When you work with a negotiator, you want to make sure you have your best interests in mind. Negotiators often try to sell someone for a deal, only to get a commission and forget the commission. This is not necessarily the best way to negotiate and find an agreement, but when you are looking at a property or working for a negotiation, make sure your individual needs come first.
Start with the right information and end with the conclusion of your right contract. All of them leave after winning the right to invest in a property, not the other way around.
If you are interested in real estate and just want to work with a negotiator, make sure you match the description of the bestseller. This makes it easier for you to invest in the property and fulfil your individual needs.
After deciding to buy it you can run a due diligence report by a real estate agent or a lawyer or by inquiring directly from offices of Ministry of Land Management Urban Planning and Construction.
Gated communities
For most potential homeowners, the biggest plus is that the homes in the gated communities retain their value. Because there is little or no traffic and because the maintenance requirements are so strict in most of them, the values of the houses in these mostly remain high. In developing countries like Cambodia, the estate prices rise up every year and these homes gain value as other homes. Gated Communities: There are a number of advantages and disadvantages for the municipalities divided into different categories, such as high maintenance costs, low property taxes, high property values, etc.
If you have children, another plus is the safety of gated communities, the gate mechanism preventing people from following your car in front of your community. Of course, these communities are much safer because the gates are guarded, but it is also easier to sell your own home if you have to move away. There is a good chance that you will be little Johnny or Sarah, as you find in most residential areas.
A scientific article on gated communities claims that: “according to many scholars, there has been an explosion of gated communities in many countries across the globe since the end of WWII, and people who occupy those gated communities are in increase.
Instead of a Conclusion
When you choose a good real estate agent, they will do everything they can to help you find a home and make sure you get exactly what you want. They can help with house tours and the like, and even give you information about neighborhoods you don’t know. If you’re not finding something that interests you for the first time, you can always look around to find the best home for you.
If you plan your budget and proceed step by step, you are closer to your dream home than you thought. If you decide to continue renting and pay money for something you don’t own, your dream home will continue to disappear. Instead, invest your money in property and stop renting, find it and act now.
References (Page 2):
Ministry of Land Management, Urban Planning and Construction
Wilson-Doenges G. An Exploration of Sense of Community and Fear of Crime in Gated Communities. Environment and Behavior. 2000;32(5):597-611. doi:10.1177/00139160021972694
Why people choose gated communities: A case study of Alexandria metropolitan area – ScienceDirect
Siti Rasidah Md Sakip, Noraini Johari, Mohd Najib Mohd Salleh, Sense of Community in Gated and Non-Gated Residential Neighborhoods, Procedia – Social and Behavioral Sciences, Volume 50, 2012, Pages 818-826, ISSN 1877-0428, https://doi.org/10.1016/j.sbspro.2012.08.084 (http://www.sciencedirect.com/science/article/pii/S1877042812032223)
https://www.sciencedirect.com/science/article/pii/S1110016818300723
https://www.thecut.com/2019/05/what-its-like-to-buy-and-renovate-a-cheap-old-house.html
