Property Beyond Dreams

Ultimate Guide to Buying a Home in Cambodia

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.

Buying a home in Cambodia

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.

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.

Analyze your budget

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

Happiness is sharing a common goal

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

Condos are popular in Phnom Penh and Sihanoukville

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?

modern kitchen
Modern kitchen

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.

Continue reading: Ultimate Guide to Buying a Home in Cambodia Part-2

A new home is happiness

References:

Foye, C. The Relationship Between Size of Living Space and Subjective Well-Being. Journal of Happiness Studies 18, 427–461 (2017). https://doi.org/10.1007/s10902-016-9732-2 from https://link.springer.com/article/10.1007/s10902-016-9732-2 on 15.01.2021.

Winsten, C. B., and F. Savigear. “The Use of Rooms and the Use of Land for Housing.” Journal of the Royal Statistical Society. Series A (General), vol. 129, no. 2, 1966, pp. 157–209. JSTOR, www.jstor.org/stable/2343615 . Accessed 15 Jan. 2021.

Marty Ahrens and Radhika Maheshwari. Report: NFPA’s “Home Structure Fires”, Issued: November 2020 https://www.nfpa.org/News-and-Research/Data-research-and-tools/Building-and-Life-Safety/Home-Structure-Fires#:~:text=During%20this%20five%2Dyear%20period,billion%20in%20direct%20property%20damage.

https://www.investopedia.com/articles/mortgages-real-estate/10/ready-to-buy-house.asp

https://www.rocketmortgage.com/learn/how-to-buy-a-house

https://kohrongre.com/tіtlе-deed-tуреѕ-cаmbоdіа/

https://www.thebalance.com/homebuying-4842114

https://www.globalpropertyguide.com/Asia/Cambodia/Buying-Guide

https://en.wikipedia.org/wiki/Mortgage_loan

Ministry of Land Management, Urban Planning and Construction (mlmupc.gov.kh)

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  • Ultimate Guide to Buying a Home in Cambodia: Part-2 – Beyond Realty Cambodia

    […] Part-1 we had explained things to consider before buying a home in Cambodia. We also mentioned important […]

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