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The real estate industry has long been a niche that is constantly thriving. Despite the current Covid-19 situation in Cambodia which is obviously unpredictable, there lies many great opportunities for those shrewd, forward thinking investors and developers out there who view this crisis as the perfect timing to expand their existing property portfolio or invest in their first property. Real estate investments can take many different forms such as land, residential, commercial, retail, industrial, mixed-use development, Real estate investment trusts (REITs) and so on. In this article, we will break down everything you need to know regarding why investment in real estate is the best investment compared to other investments.

1. Real estate has a high tangible asset value

Tangible assets are physical things — like property, smartphone, and jewelry — that are worth money. Real estate, especially, will always have some kind of monetary value. If we compare this to investing in stocks where, if the market crashes, it is possible that something you paid $1000 or 4 million riel for could suddenly be decimated or worth $0. With real estate, your investment will always be worth something.

2. Real estate appreciates in value over time

Not only will the building or home itself likely grow in value, but the actual land that it’s built on will also usually be worth more over the years. Besides that, real estate investors can also generate passive income through the rental of their asset. Rents also tend to increase over time, which can possibly lead to higher cash flow.

3. An investment in real estate can also diversify your portfolio

Not only will the building or home itself likely grow in value, but the actual land that it’s built on will also usually be worth more over the years. Besides that, real estate investors can also generate passive income through the rental of their asset. Rents also tend to increase over time, which can possibly lead to higher cash flow.

4. You can predict the cash flow of real estate investments.

You wouldn’t be able to predict the cash flow you’ll receive every month for most investments. On the other hand, with real estate, you’ll know what your cash flow will be for the property that has been rented out. As long as you keep the property occupied, you can regularly receive monthly cash flow from that source. Also, make sure to reserve some budget for routine maintenance and repairs and factor that into your yearly expenses. (Pro tips: If you don’t want to deal with building maintenance issues, doing marketing to find tenants and managing tenants yourself, Pointer Property Management can help you with this.

5. Higher and More Consistent Return on Investment

There’s an opportunity for greater and more consistent returns with real estate than with other investments. When a property is built, it’s due to one main reason – Population Growth. The sheer number of new projects and properties in Phnom Penh as well in the special economic zones such as in Siem Reap and Sihanoukville is a testament to the growing real estate market in Cambodia. Supply follows demand, and demand is continuing to rise. Populations almost never decrease coupled that with the steady economic growth in the kingdom which is the reason why the demand for housing increases every year.  

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