We are living in the best moment ever. The convenience level in this era is by far the best unlike before. An era that makes life much easier. One of them is the way you shop, consider and purchase a property. Now, you could even do it online.
As you may know that property investment is one of the ways that can produce good ROIs. Well, subject to your way of doing research, evaluation, and profit strategy of course. Here are 4 digital ways to buy properties or lands and successfully profiting from it:
Tip #1: Always check property location online. Investing in the Cambodian property or real-estate market has never been easier. No matter where you are, you can do it by taking advantage of the power of online platform such as reliable websites and social media channels. One of the popular sites is realestate.com.kh, which is highly recommended by the locals. Alternatively, you can also do proper research of similar types of property via online by hunting the reliable lists of real-estate agents, land brokers, alternative online sites, properties for sale by owner, auction companies, and government agencies that are holding surplus property units. This way you will build a strong sense of understanding, greater networks and connection with these communities so that whenever there is a good opportunity, you will be first to know.
Tip #2: Evaluate the property legal document. Not everything can be done online, and this one is one of them. Property deals can be enticing simply because of their pricing versus the value that you will benefit from. Inexperienced buyers are often lured by amazingly sounded deals on lots and parcels. A piece of advice – be very prepared to thoroughly research your potential purchase before you end up being short-changed. Instead of buying a piece of property that you think will double up in value in the future, in reality, it is nothing more than just a myth. Below are the areas to investigate before you buy a piece of land or property in Cambodia:
- Deed and Ownership History
- Property Taxes
- Zoning and Potential Zoning Issues
- Physical Characteristics of the Parcel
- Usage Restrictions and Building Requirements
- Availability of Utilities
- Property Survey and Plat Maps
Tip #3: Finance the purchase. When you buy a piece of land, for example, there are two paths to fund the purchase. You can either use cash for it, or you can obtain a mortgage financing which will allow you to buy the property even if you don’t have a lot of cash in hand. Based on my personal experience in the industry since a decade ago, I would recommend the following options:
- Pay cash. Since the price for the raw property is often less than its developed counterparts, it’s very common for purchasers to pay cash. Additionally, financing this type of land is more difficult than financing a building because banks would categorise the raw land as a risky investment. You also need to keep in mind that paying cash can help you to eliminate the mortgage-related expenses – meaning, you only have to deal with the property taxes until you sell or develop the property.
- Get the financing from MFIs and/or banks. There are many lenders included MFIs and banking institutions in Cambodia that may be interested in your asset and decided to finance it. You perhaps can give it a shot and see. If you can showcase a strong financial background to the bank and at the same time see a need to reinvest your cold hard cash into other businesses while your monthly incomes could effortlessly pay back the loan on time, getting a loan from a financial institution is one of the best options.
Tip #4: Maximize your property investment. Once you’ve purchased the property, there are several ways to profit from it. Some of the options will generate a return in a fairly short time frame. Others may take a longer cycle and require a holding power to the property. It could be months or years. So, how to play this? Below are my recommendations:
- Hold it long-term. One of the most basic property investment strategies is simply holding it long term, then sell it when the price is right. If the development is moving in the right direction, you can apply the upward price pressure. The closer the development gets to the end, the more valuable our land is likely to get, even if we do nothing to it.
- Improve the state of the property. Build some buildings on your land will naturally increase their value. Whether it’s a single residential house or a small commercial building, improving it from being just dry and undeveloped lot to a proper development one is a basic way to profit from your land investment.
- Lease the land. This is often an overlooked option for land purchases. In certain areas within the country, many buildings are located on a leased lot. If your land is under a rural status, you can easily lease it to the farmers for plantation purposes. As time goes by, the property value will definitely go up to your benefit.
- Post and sell it back online. As there are many online channels available in Cambodia, and property selling is one of the most popular ways to do it via online, you can also opt for a decision to sell it outright after purchasing it. Simply take a set of good pictures of your property and upload them all on your favourite online platforms or social media networks.
The best is to still be present physically when you decided to invest in a property in Cambodia, although doing it fully through online is also possible. Should you decide to go for the latter, I would recommend you to have someone or a party that you trust to work on the deal on your behalf.