Gated communities are one of the top choices of most home buyers. Not only does it come with a lot of benefits like security and fantastic amenities, but you have a tight knit community to raise your family. However, before you dive further into researching which home in a Borey to buy, you need to figure out the terms of payment at your disposal. After all, paying for mortgages for your dream home is something that you’ll stick to for years so you have to carefully weigh which term suits your needs best.
Buying a Borey home is similar to other real estate properties in Cambodia. While this is true most of the time, some Borey developers have introduced a new financing option, totaling your payment options to five. Curated below are the five payment terms you need to know when buying a Borey home.
1. Developer in-house financing option
The most recent financing option is getting it financed directly from the Borey real estate developer. This option has only been introduced in recent years but it has risen in popularity with home buyers like you due to how easy it is to get approved. Unlike in banks where you have to wait a long time to know if your home loan is approved, it only takes a short period with developers. Moreover, most Borey developers do not do a comprehensive credit check, allowing home buyers to get more readily accepted to buy their dream home.
Considering that real estate developers are primarily not financial institutions, their interest rates are higher than banks at 10% to 20% per annum. This means if you are considering getting this financing, make sure you calculate the expenses for incoming years properly.
Additionally, while this option is attractive for all home buyers, it poses risk as well. Due to not conducting comprehensive credit reports similar to banks, the chances of buyers not being able to meet the required payment are high. This leads to foreclosures and house auctions, which will put a strain on the buyer’s financial capability as well as hurt the Borey’s reputation.
2. Developer no down payment option
Besides offering interest rates similar to banks, developers offer a no down payment option to buy a Borey home. It’s exactly as its name says wherein you don’t pay a deposit or anything since as soon as you’re approved to buy a home, you start paying it quickly per month.
However, you need to be careful if you are planning on choosing this option. While not paying a down payment is an attractive offer, it only increases your monthly mortgage payments. Additionally, the financing risk in the long run with developers remains high since they can’t gauge the financial capability of home buyers. On the other hand, you do not have to worry about it if you’ve done the calculations yourself and determined that this option fits your needs best!
3. Bank financing option
The safest and most trusted option when buying Boreys is bank financing. Comprehensive credit reports and determining financial capability are conducted by the bank, lessening financial risks. Not only that but bank home loan interest rates range from 6% to 8%, with a maximum of 10% in rare cases. Using this option, you only have to pay a home down payment between 20% to 30% and the remaining will be financed by the bank.
4. Microfinance financing option
Besides banks, microfinance institutions also offer home loans. While you have to do your own research to determine if the institution can be trusted and if interest rates work well with your budget, it’s a good option to have. Credit and background checks are conducted here before you’re approved for a loan so the risks for you are lessened as well.
5. Cash option
If you have been thinking of buying a Borey home for a while and have the money for it, then another option for you is to simply buy it using cash. This is the quickest and most straightforward way of getting your dream real estate and it poses little to no risks! You won’t need to worry about mortgages for years as well as paying interest rates. However, make sure to choose the home you want to buy carefully if you’re going all in.
Choose your payment term wisely
All aspects of buying a home should always be carefully considered. This especially includes the payment terms you’ll need to follow to the letter since you’ll pay it for a long period of time. Considering that, you need to make sure that you only settle on a payment term after carefully determining what will work for you best.
Moreover, if you are looking for great real estate listings in Boreys, check out the ones here at IPS Cambodia! Listings are regularly updated to show you the best properties you can rent or buy. Additionally, as one of the best real estate companies in Cambodia, IPS Cambodia can help the process of renting and buying properties easier so contact us now!
KH