Real Estate Experts Share Key Investment Methods for Low and Middle-Income Earners

• 15 March 2021
• Property Focus
• 4342 Views

Real estate experts have urged low and middle-income earners to get more involved in the real estate market, claiming investing in real estate is not complicated as it sounds.

Vice President of Cambodia Valuers and Estate Agents Association (CVEA) Man Chandy said investing in real estate does not always require huge capital. Even with an average income of US$500 per month, one can also invest in real estate.

Mr Chandy suggested that for those who do not own a house yet, the first investment to consider is buying a house.

“Installments and a bank loan are the best way to buy a house given the average salary of US$500. However, if you are not qualified to request a loan given your high expenses, buying a small land plot can be the second choice,” said Mr Chandy.

He added that buying a small land plot with an average price of US$5,000 with instalments is the deal method.

“This method is similar to indirect saving. In 3 to 5 years, the price goes up, you can sell the land and buy a house, or invest in something else. However, if the price does not go up, you can also build a house on the land,” said Mr Chandy.

However, he suggested that before buying any land plots, one must know how to analyse, survey and forecast the potential in that area, and if you do not have the experience, look for friends or agents with experience for help.

The president of Cambodia Valuers and Estate Agents Association (CVEA) Chrek Soknim, also shared another method which is investing as a group.

He added that group investing is the ideal way for low-income earners, but one has to be very careful and study thoroughly whether or not your shareholders are trustworthy.

Besides, Mr Soknim also added that using a bank loan to invest is another method.

“Commonly, an individual with a US$300 to US$500 monthly income can get a loan of up to US$20,000. You can start from a small amount and gradually go bigger. This method can give you financial credit for a large sum of loan in the future,” said Mr Soknim.

Besides the aforementioned suggested approaches, both experts also said before investing, low and middle-income earners must study their personal cash flow carefully, as the crucial part for each individual is different personal expenses.

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