Many people work a long time in order to save up for their future, but when they finally get the money to invest in something, they’re uncertain where and how to utilize their financial resources.
This is especially true when they finally decide to invest in the real estate or property where even professional investors run into issues all of the time. Properties and land in Cambodia can be confusing and has the potential to take your money without a return if you’re not sure what you’re doing. This is something that Alex Evengroen backs up. Evengroen is the CEO of Key Real Estate, chief adviser of the CVEA and vice-chair of Eurocham’s Real Estate & Construction Committee.
Evengroen says that “if you just buy random land, it will most likely backfire. Educate yourself and ask around before you invest!” There are plenty of resources and information available which you can use, like real estate portals, agency reports and government statistics. If you’re not sure how to interpret the data you find, then you can get a real estate agent or agency to look at the properties for you so that they can give you an honest evaluation.
If you are looking for credible and competent agents, there are plenty of agents that are also registered with the Ministry of Economics and Finance through the CVEA.
I have $100,000 free for investment in property… What should i do?
When asked where investors can spend $100,000, Evergroen states that it will be wise for people to buy land because "land is going up, always." It’s a good opportunity to increase your investment quickly and get a return. And since the real estate industry is still rapidly growing with new policies being implemented by the government, now may be the best time to invest in it.
He adds that there are also still a lot of rural areas that are left unnoticed due to developments being concentrated in key areas like Phnom Penh. So, once land resources are exhausted, you have the ability to increase and dictate the price of land either for resale or rent. But before buying land, it is encouraged to do much research on trends and to crosscheck pieces of information you receive.
Evengroen also offers that if people were to invest in an already completed property, lower end condominiums would best suit the given investment amount since these types of properties only cost $40,000 to $100,000. These will soon be popular for middle class Cambodians and will be released into the market in the next 18 months. This will spell an easy profit of up to around $25,000 after completion.
Evergroen further explains that "Cambodian people, they love it when something is finished and it's touchable." So, whether you’re looking for investments you can sell again or have someone rent out, lower end condominiums are great properties to invest on. It’s very difficult to earn $100,000 and it is very easy to lose it if you invest without caution. So, before placing your money on properties, be sure to always know what you’re getting yourself into.
Learn more about Investing in Cambodia now, on Realestate.com.kh
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