Buying A Finished vs Off-Plan Condo in Cambodia
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Loading... - layla carter
- 17 Mar 2023
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We recently wrote about the most affordable and valuable areas for property in Phnom Penh, and overall, the property market sentiment is confident in 2023.
Developers have indicated the return of interest from foreign buyers from several countries such as Hong Kong, Japan, Singapore, and China – and the country’s recent removal from the FATF grey list also suggests there is renewed confidence for investing in the Kingdom.
So if you are looking to invest in property and a condo, as always do your due diligence, but the information below might be timely.
Are You Planning On Investing In A Finished Condo Or An Off-Plan Condo – Which One Is Better?
Off-plan property buying, needless to say, is when the property is purchased prior to its construction being completed. Buyers can view the design and construction plans but the physical property is yet to be handed over (completed).
The main benefits of buying off-plan is the opportunity to secure properties at the best price and on flexible payment terms. Buying early also means the chance to select the best units (most desirable) with the option of adding customisations to the property.
Buying off-plan is typically a great investment opportunity given future capital appreciation and attracting higher rental returns based on it being a new property.
The signed contract is based on the agreed price of the property as per the architectural specifications, plus any additions or changes. A small booking fee is required to secure the unit, followed by a deposit after signing the sales and purchase agreement (SPA).
Buyers will also settle payment terms with the developer prior to purchasing the property. Typical payment terms can be staged payments over the construction period, or staged payments based on construction milestones.
Typically, the higher amount a buyer pays upfront, the better the price they will be able to secure for the unit.
When you buy a completed condo, you can move in right away without having to wait for construction to be completed. Buyers can also walk through the unit and see exactly what they are buying, allowing the purchaser to make a much more informed decision. Read More…
