How to buy land profitably and what kind of land should buyer avoid?

After a protracted crisis in the Covid-19 crisis since early 2020, Cambodia's property market is now slowly recovering, with a series of actions. As for the land market, although not as active as before, experts still expect positive results. In the past 10 years, until now or in the future, real estate is still popular, whether you are a veteran in the real estate industry or a newcomer. But before investing, there are many things to consider, because if you buy or invest in the wrong place, you can bury the capital. What kind of land do you need to buy to get more profit? What kind of land should you avoid buying?

* What types of land get profit easily?

- Residential land

Residential land is a type of land where the buyer can build a house or building. This type of land is easy to profit because it is popular with investors, especially Borey projects, while the price increases year on year. 

- Land for industrial sector

This type of land is generally located in areas rich in factories, large enterprises, densely populated, some areas can almost be turned into villages, the price is easy to increase from year to year. Whether for sale or rent. And if you want to start a business, it can also help you grow.

- Land for tourism

When the audience hears the word land for tourism, it certainly refers to all the land, whether mountainous or watery. But real estate expert Oknha Dr. Kim Heang told local media that land for tourism should look for land near rivers and seas, as most tourists prefer to relax in  water areas rather than the mountain areas.

Oknha Dr. Kim Heang

* Where to buy land with profit?

According to an interview with Business Cambodia, Keam Seaklong, a real estate expert, said that the most profitable types of land are the above, especially industrial and residential land which are distance from 20 to 30 kilometers from Phnom Penh capital, if you look at the size, can be from 2000 square meters up with easy access to, it would be better with car because it has the opportunity to make a profit quickly.

Keam Seaklong, a real estate expert

If you listen to the words of a real estate businesswoman who is doing it personally, even though she does not have a company, she receives fruitful results. She is Mrs. Chuon Sideth, she reveals that in her experience, she is not very interested in buying land in urban areas or suburbs, because land in these areas has already risen in price, with less opportunity to profit from sales. She always buys cheap land and is in government development projects, and when the state starts building, the land prices will go up.

* What types of land should be avoided when buying?

Of course, land investments that use large amounts of capital should be scrutinized from all angles, not just because they are popular and need to be bought. The types of land in the following are the types of land that buyers should avoid:

- Land in dispute

This type of land is very risky because it is not clearly occupied, it is not yet known who the real owner is, the parties claiming ownership have not yet settled the lawsuit, which may be due to collusion between crooks and some people with power. Therefore, it is better to investigate the neighbors or those who know that area.

- Fake land owner

There have been many cases where some buyers have been deceived by scammers who keep pointing out that the land is in their project or that land belongs to them, persuading customers to pay or deposit in advance, but never showing the title deed. Therefore, before making a purchase decision, please look at the plan and ask the local authority or the Ministry of Lands for clarification.

- State property

Some land belongs to the private and some land belongs to the state, so buyers do not know which land belongs to the state, after buying it, the state suddenly develops in that area. On the other hand, land that is close to the country's heritage site, because in the past, there have been crooks cheating buyers by always claiming that there is no problem, so those who lose are the buyers.

* Things that buyers should be focused in before signing a contract

- Owner's title deed

You need to see if the title deed is hard or soft and the owner is the real owner, avoid giving money to the wrong person.

- Land conditions

It is possible to check what kind of land it is, whether it is properly measured, and whether it is legally fenced and whether it affects neighboring land.

- Land with issues

It is also important for the buyer to be aware that the land is being mortgaged to secure a loan or lease or foreclosure. In addition, the buyer must investigate whether the land is the subject of a foreclosure lawsuit. Therefore, before buying the land, it is necessary to have a settlement procedure.

- Frontage land or next to development projects

Development projects in Cambodia are progressing steadily, so before buying the land they want, the buyer must observe whether the land is next to a road or in a state development project or not. All of these issues require the buyer to carefully examine the extent to which the land is affected by the projects.

(Just presentative picture)

        In general, real estate investors, whether real estate or other types of real estate, all processes, all situations require careful attention, and we hope that all points in these articles can help you as an investor or New entrants are a reference to the return on investment.

And if you have a need to buy or sell land, please contact COMPASS Real Estate, a real estate website that collects all kinds of real estate, whether houses, apartments, condos, warehouses or land and serves customers professionally.

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