Is Buying Off-plan Property Good Choice in Cambodia?
When it comes to buying property for investment or a permanent stay, generally you will have three options: 1. Buy completed property 2. Buy ongoing property (under construction) and 3. Buy off-plan property.
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Among the above three options, buying off-plan property is the most favorite for some buyers thanks to some attractive reasons. First, if you purchase an off-plan property in Cambodia, you can buy those properties below the market value and can resell it for a good profit if you are an investor.
Second, you can have the freedom of selecting your preferred unit. Before the project starts, you will be the first to choose a specific location, features, rooms and much more. Third, you will be offered a good payment option from your developers with low interest rate if you buy an off-plan project.
However, if you want to buy off-plan property, you will face the risk that developer fails to finish the project or does not even start to build the project after you pays full price or installment for the property.
In this case, you are recommended to study your developers in more details about their previous projects and financial sources before you decide to buy off-plan project. If you do not want to invest your money with the wrong project, you can find professional, reliable real estate agencies or real estate agents in Cambodia to help you choose the right developers.
Mr. Yoeng Samdy is an experienced attorney-at-law at law office of L.D.R. and have been involved in solving dispute between developers and home buyers who bought off-plan property.
He said: “if you want to buy off-plan property in Cambodia, you should seek lawyer advice or service before purchasing off-plan project to ensure that you are buying the right property from the right developer. Therefore, you will not lose your hard-earned money by investing with the wrong developer.”
By law, before being qualified to build and sell the project, property developers must get their project approved by relevant ministries. Before getting approval from the ministry, developers must have some reserved capitals required by law, construction license, company registration, project license, project master plan and hard title (master and individual hard title), he added.
Recently, there have been protests from home buyers who bought off-plan property from one Borey developer in Dangkor district, Phnom Penh City. Mrs. Tith Bunna is a factory worker and one of home buyers who protested in front of sale office of the company this morning.
Mrs. Tith Bunna said: “I bought off-plan property from my Borey developer in 2018 with full payment and the company promised to build and complete my home in 18 months with possible 4 months extension. Now it is February 2022 and my home is still partially finished. I request the Borey developer to finish my home as soon as possible.”
Regarding this issue, Mr. Yoeng Samdy highlighted that usually the dispute occurs when home buyers fail to study in detail of their developers. Some buyers have no in-depth knowledge of legal perspective related to project development and they do not want to spend more time researching the project.
That is why investors or home buyers should seek legal advice or service from lawyers to avoid the risk when they buy off-plan property because lawyers will do due diligence of the project before recommending clients to buy.