In recent years, the Kingdom of Wonder, Cambodia, has seen a steady increase of value being put into the real estate and land markets. Whether it is in the form of buying and selling land, houses, apartments, or of course, condominiums, Cambodians and expats alike are eager to get their hands on the bustling market which is property. However, in the last year, the value of said market has been fluctuating quite a bit, as are the resulting effects of the recent and still ongoing Covid-19 pandemic. As such, the answer to the question, “Is buying a condo in Cambodia a good idea?” is not so clear cut anymore. So let’s take a look at some of the pros and cons of investing in a condominium.
To begin with, I should probably explain exactly what a condominium is. To put it simply, a condominium, or condo for short, is a type of housing that is similar to an apartment. This means that like an apartment, a condo is a set amount of living space that resides in a larger communal building. However, unlike an apartment, condominiums within a communal building are not all owned by one central owner or company, rather, each condo belongs to the individual who purchases it.
Before we go and take a look at the financial benefits and detriments of purchasing a condo in the current housing climate of Cambodia, let’s look at some of the personal benefits that might arise from buying a condo. This basically means any benefits that might befall you if you purchase a condo that affect you and your family on a more personal level.
In terms of purchasing a condo, the benefits are similar to those you would get if you were to purchase housing. These benefits are the simple ones in nature. You would have a nice place for you and your family to inhabit, if ever that were your intentions with the purchase. On top of that, you would also be reaping the benefits of living in a communal building, which includes safety and security, communal facilities such as swimming pools, restaurants, and even mini marts if the building your condominium resides in happens to have them.
If you are looking just for a living space for you and your family, and you can afford a condo, then there are quite a few benefits mentioned above that might interest you.
Of course, with every purchase, there comes benefits and detriments along with the decision. In terms of purchasing a condominium, there are a few detriments that will come along with it as well.
One such issue and fault of such a purchase would be the obvious large price tag that it brings with it. As with many and most properties on the market, the money that it would take to make the purchase is a rather large amount. In addition, the rate at which the prices of condominiums rise is rather slow in pace, meaning that it would take a while for you to be able to turn a profit. This means that unless you are already financially stable enough to make a purchase and still afford to live comfortably, buying a condominium would be rather difficult. Finally, there is the issue that is staring us in the face, the fact that the housing market prices have been lowered substantially due to the covid19 pandemic, making the climate risky and unpredictable.
While this might make it seem like there are merely a few problems with the idea of purchasing a condo, the fact that the barrier is a high price means that a lot of people would be unable to partake in the condominium buy and sell market.
Moving forward, we will finally take a look at some of the things that would make a purchase of a condominium a good choice.
To begin with, the housing market is one that has seen steady growth in Cambodia, so if you were to throw your hat into the ring in this regard, you are almost guaranteed to pull in quite a lot of profit from your purchase. Furthermore, the low prices that are the results of the pandemic could be both a blessing and a curse, meaning that if ever you so wish, you could sweep in and buy property at low prices, only to sell them for a higher margin once the prices shoot back up. Not to mention the stability of the housing market coming from the fact that there will always be people who will be looking for living space, making it so that you would never have to fear your purchases not turning a profit.
In the end, there are some barriers that would make purchasing a condo a bad idea, such as the high price and the current climate of the housing market. This would mean those people who aren’t financially suited for such endeavors would not be able to join in the rin. However, a purchase of a condominium also brings with it a myriad of benefits, such as a stable increase in price and a stable market base for the price to grow, not to mention the personal benefits that befall you and your family with the purchase. So is buying a condo a good decision? Well, if you’re someone who has the funds and patience to afford to wait for the benefits to arrive, then certainly so.