Compass Real Estate > Cambodia Investment Guides > Should buy a house with a one-time payment or in installments?

Should buy a house with a one-time payment or in installments?

544
2022-12-29
Summary:Buying a home is one of the momentous consideration of your life which everyone needs to pay attention to deeply because there are many procedures to clarify. Buying a home is also fulfilling of family's dream. And the most important thing is your budget. As for the budget plan to buy a house, we see that there are two big opinions which have been raised due to some people thinking that they should spend cash or save money to buy a house because it is more profitable, while another view states that should buy through installments to make more profit. If so, which one of both perspectives is better or corrected all.

    Buying a home is one of the momentous consideration of your life which everyone needs to pay attention to deeply because there are many procedures to clarify. Buying a home is also fulfilling of family's dream. And the most important thing is your budget. As for the budget plan to buy a house, we see that there are two big opinions which have been raised due to some people thinking that they should spend cash or save money to buy a house because it is more profitable, while another view states that should buy through installments to make more profit. If so, which one of both perspectives is better or corrected all. 

news/2022-03-03/1646289442349455.png

Before we move on to the pros and cons of both methods, let's first understand what one-time payment and installment are all about. Buying a home with cash or one-time payment is a method that a customer pays the deductible amount along with the deposit, down payment, and plus with other discounts to a homeowner or project owner over a specific period of time. On the other hand, installment purchase is a method in which the buyer simply makes only a down payment in the amount specified by the project owner, then the remaining portion is divided into monthly payments. To make the right decision as to which method is best, consider the following points first.

One-time payment method

❈ Pros

Interesting point for sellers

It is very common and if possible, sellers or real estate agents always want customers who can afford to pay off because they do not have to worry about the client's financial situation that something might happen in the future.    

image.png

⁕ Immediate acquisition of real estate rights

In general, once you have paid the money, you will be fully entitled to the property and have the security of not having to worry about foreclosure. On the other hand, if you want to sell later, it is also convenient.

Good for a long time saving

Once you paid off, you may not have to worry about paying the house monthly anymore, so for the income you earn, you can definitely save.

news/2022-03-03/1646291161179771.png

No additional fee

As long as you paid full house cost, the costs such as fee on the procedure, transfer right ( can negotiable with the owner to pay) or loan transaction fees which all of these can save you some money.

Can reduce a lot of costs

Indeed, in order to attract customers, many homeowners or project owners use a variety of discount methods to attract customers who have paid their full home's price, which is also a good opportunity for the buyers, not only can also get extras gifts such as a set of furniture or a lucky draw. In fact, many condominiums or condominiums have different promotions between one-time payment and paying in installments, according to data compiled monthly by top developers on Compass.com.kh. According to https://www.compass.com.kh/development-sea-listing/, for customers who wish to buy a house with a one-time payment, there is a chance to get a discount from 5% to 40% off with additional gifts such as fully furnished, property maintenance fees and you can also negotiate on some other points.

news/2022-03-03/1646291388529679.png

Quick transaction

At this point, many people jokingly say that as long as the money is paid, everything must be done. But this is true when you pay in full, transactions can take as long as only three days to two weeks, as they do not spend much time verifying documents.

❈ Cons

⁕ Money has tied to home

As you know, house price is not cheap. In order to show the reader to find out that during the period when the buyer has paid off, a big part of the budget has already been spent, leading to savings may be lost or not at all, there may be a shortage if needed in an emergency.

news/2022-03-03/1646291423640905.png

Maintenance and other expenses

Once you get the full rights, for some housing project, if you want to renovate some part of the house, you will definitely have to pay for it yourself. And you are still not exempt from property tax, you have to pay normally.

news/2022-03-03/1646291463189572.png

No tax exemption

In some countries, the state will waive or reduce the payroll tax or monthly taxes due to the understanding of mortgage payments.

Installment method

❈ Pros

Lack of funding

In the time that you do not want to spend money on monthly rent, but the budget is still limited, the installment plan is a good choice because the rent is not much cheaper than the installment. One more, after you paid for a long time, it will become your property, while the rental house, even if you live for many years, is still another's property.

news/2022-03-03/1646291507132144.png

Manage expenses well

This means that if you make installments, you will be able to divide your expenses properly and will not significantly affect your savings.

Enjoy fixed installment

If you choose a fixed installment plan, paying off your mortgage can be a daunting task, as you can figure out how much it will cost to pay off your installment on the monthly basis.

❈ Cons

Difficult to sell out

Since it is a property that is being paid in installments, you need to find a client who can hand over the cash then pay to the project owner before you have the right to transfer the property's right.

Pay high interest

You know that the installment must have an interest rate and it is not a low rate. The significant thing is to pay in the long run until it is full so it causes to loss of a lot of money on the amount of interest. And for installments also do not get many discounts from the original price, it is lower than the one-time payment or can be difficult to negotiate with the house owner. According to statistics, we have observed on some project's data that there is a discount lower than 10% of the total house price or offer interest-free installments for up to 30 months only, thus losing both interest and other discounts.

news/2022-03-03/1646291538764734.png

Missed a good opportunity

You will be missing out on the opportunity to choose a home that has the potential to be profitable. We see a small number of projects that use this method to attract customers to buy their products, knowing that their projects are difficult to find high profits.

Fined or confiscated

It is inevitable that a bank loan will be fined if the customer pays late to the project and will be fined in addition to the monthly payment.

news/2022-03-03/1646291576228902.png

    After understanding the above points, it is clear that everything has its advantages and disadvantages the main point is that you need to learn to understand your own situation, which method you can afford till the future without causing difficulties later or consult with experts to avoid mistakes. Compass hopes that this article will be able to help you in your decision to buy a home. If you want to find your dream homes without spending a lot of energy, please contact our team. We look forward to serving you.

news/2022-03-03/1646293503924735.png

Disclaimer: The re-forward articles on Compass website are for the purpose of conveying more information, and it does not mean that the Compass website agrees with its views or confirms the authenticity of its content. Article noted as "Source: Compass original", please note that the source from Compass. The content of the article is for reference only and should not consider as investment advice, and it does not mean that Compass agree with its views.

0

Share
Latest comment
0/500
{{MemberInfoData.nickname}}
{{MemberInfoData.tel_arr[0].showtel}}
  • Rent
    {{MemberInfoData.house_num.rent}}
  • Buy
    {{MemberInfoData.house_num.buy}}
  • Land for rent
    {{MemberInfoData.house_num.land_rent}}
  • Land for sale
    {{MemberInfoData.house_num.land_buy}}
Compass customer
{{MemberInfo.show_company_name}}
{{showTime.show_time}} active
Image is being sent:
Message loading
Message failed to load, click to try again
{{emoji.emoji}}
OBTAIN
Send a business card to{{ taname }}
Start sending
Cancel
No recent contacts
  • {{ind.unreadMessageCount}}
    {{ind.nickname}}
    {{ind.sentTime | time}}
    [图片]
    [语音]
    [视频]
  • Recent contacts are loading
  • {{item.nickname}}
{{send_title}}
  • {{follow.house_name}}
    {{follow.house_province}} {{follow.house_city}}
    {{follow.currency_price_sold_price.start}}{{follow.currency_price_sold_price.mid}}{{follow.currency_price_sold_price.end}}
Selected({{checked_length}}/3)