Five Tips For Condominium Buyers

• 31 December 2015
• Property Focus
• 1396 Views

As the ASEAN Community edges closer, there has been a noticeable increase in the supply of condominiums on Cambodia’s property market. Recognizing Cambodia’s potential, a number of well-known developers from various countries are currently launching their projects. Such developments can bring both opportunities and challenges to property buyers who should be aware of any potential risks to their investment.

Since the procedure for buying a condominium is relatively different from buying a flat or a plot of land, buyers should be cautious when they decide to buy. Here are five tips that every condominium buyer should know:

1. Don’t get caught in developers’ hype

Developers usually spend large sums on promotion and advertising to convince prospective buyers that their building is the best. Although they may be telling the truth, you still need to do background checks on their business and find out if they have any past experience in real estate development. If you are planning to buy a unit from a developer who is not well-known in the market, you should check if they have proper licenses and recognized development permits.

2. Know how much you can afford

Knowing your budget will limit what you can buy. Since buying a property usually involves a large financial transaction, you should not buy on impulse. Do not buy just because you feel you could make money out of it. You could end up unable to pay your monthly mortgage installments or, in the worst case, sell your property below market value.

3. Buy with a plan

Those who buy a property without a clear purpose ultimately end up losing money or producing a low return on their investment. Whether you buy to live, rent or flip, you should plan in advance because uncertainty can be costly. If you buy to live, you should set aside some extra money to buy furniture or to renovate. However, if you have a plan to flip the property, you should also consider upgrading it or customizing the design to meet your potential customers’ needs.

4. Hard title vs. soft title

When discussing terms of sales with the developer, it is important to raise the topic of title deed transfer. You should ask which type of title deed they will issue, when they will do it, and who will be responsible for the legal and ownership transfer fees.

5. Pay management fees regularly

When you live in a condominium, you will have to pay the management fees which are the common expenses incurred from operating the building. These usually include electricity for elevators and corridors, building maintenance, security service etc. Even if you do not stay in your unit, you will still be required to pay the fees. Therefore, do not forget to take this into consideration before deciding to buy.