Expert Talks | Type of Real Estate Should Be Focused On In 2023
Real estate investing is very popular because houses, condos, commercial buildings, and other types of real estate are valuable assets. You can make money in different ways, such as by being a broker, by selling and renting out homes and empty land. So, what kind of real estate should be invested in 2023?
Following this question, Mr. Sorn Sieb, president of the Cambodian Association of Appraisers and Realtors (CVEA), told the Harbor Property team that in 2023, we should invest in real estate that continues to sell at low prices means we should buy those properties in the lowest price and sell it in the average price. And we will gain more when the market rises.
In addition, Mr. Sorn Sieb stated that the real estate that should be invested depends on the type of real estate investors, he divided investors into three categories, including:
1. The first type of investor is one that takes little risks with their investments. If we wish to invest with a low level of risk, we should concentrate on properties that have a low rate of return, such as apartments, condominiums, houses and office space. We may look at the developed area of Phnom Pen, where the return on investment is anywhere between 5 and 15 percent.
2. The second type of investor is one who is looking at developing areas such as the suburbs, which are all promising locations, with the expectation of earning a return on investment of between 15% and 30%. They may be able to earn a profit, but the sale may take some time until it sells in return, and this will vary based on the area as well as the type of property.
3. The third investor is interested in huge profits but is also willing to take significant risks. Risks associated with this kind of property do not always involve financial losses; however, buyers run the risk of being unable to move on from the property, finding it difficult to sell, and being required to make a long-term investment over a period of many years before seeing any return on their money. These investors, for the most part, have knowledge at their disposal; they are aware of where they should put their money and anticipate seeing growth in the years to come. This type of investor often invests in land, although this type of land cannot be leased back, yet the profit margin is shockingly between 30% and 50%.