The number one priority when it comes to investing in real estate properties in Cambodia is that it’s beneficial for you in the long run—whether it provides you long-term security, higher returns, or both. Considering the economy and real estate market today, the best move for your portfolio is to ensure that you invest in properties that can guarantee high investment returns like a waterfront property.
These properties are close to, next to, or have direct access to any body of water, making them a great investment option since there are only a few of these properties within Cambodia. To know why you need to invest in waterfront properties now, continue reading below!
1. High demand
When it comes to vacation homes, the main priority that people look for is that it has a scenic view. Considering that a waterfront property has this in spades as well as a serene environment you can’t find anywhere within a bustling city, it’s always high in demand. This is true whether it’s during the holiday season or not!
Moreover, you have many potential renters since tourists, expats, and locals often seek peaceful homes like what waterfront properties offer year-round. Besides that, an additional benefit that makes these homes in demand is that you can do a lot of water sport activities like swimming, canoeing, and more!
2. Scarcity
There are only a limited number of waterfront properties anywhere, especially since other owners of similar properties tend to buy the space surrounding their home to ensure the peaceful environment of the area.
Moreover, there are only a number of man-made and natural bodies of water within Cambodia, or in other countries, making it difficult to find waterfront properties that are up for sale. When you do, the best move is to contact your IPS Cambodia agent and request to check it out as soon as possible since these properties don’t stay available in the market for long.
3. Permanent scenic view
One of the biggest worries in choosing the right real estate property to invest in is that its surroundings will change drastically over the years, especially at a decline. This is something you don’t have to worry about when you buy a waterfront property since it’s close or right by a body of water, the chances that it will be removed or changed for the worse is not likely to happen, if at all.
Most bodies of water are protected by the government, whether they’re man-made or not, so there’s little chance that construction will be done to obstruct its scenic views.
4. Resell value is high
Since there is scarcity in the available waterfront properties for sale in Cambodia, when one or two is put up in the market, the value placed for it is high. This is especially true if you continue maintenance, repairs, and upgrades for the home over the years to ensure that it follows current market trends—or ahead of the trends.
Besides renovating the waterfront property, you can also hire someone to ensure the surroundings fit what your home looks like. This can force appreciation to the current value of the lot, allowing you to get a higher offer.
3. Cost-effective holiday home
Going on a holiday is important but sometimes finding the right place and location can be difficult, more so since it’s often costly. This won’t be the case if you have your own waterfront property since it can automatically become your holiday home. No need to pay for expensive vacation homes in other places when your waterfront property has it all—the scenic views, all the water sports activities you can do, and you can feel right at home!
4. High ROIs
Amid numerous investment options, real estate is steadfast in returning what you invested within a couple years. This is more apparent in Cambodia since annual rental yields are at an average between 6% to 8%, which is higher than other Southeast Asian countries who have an average annual yield of 3.87% according to the research conducted by Global Property Guide.
While this is already high, waterfront properties have a higher return of investment considering it’s at an upward trend of 37.5% according to research conducted by Russell Lands in 2019.
5. Retains its value
Making an investment doesn’t always guarantee continuous appreciation in value considering the real estate market can be affected by external factors that can, unfortunately, lower its value. For example, if the economy isn’t doing well, chances are that the value for most investments will also go down. However, you don’t have to worry much about this when you invest in a waterfront property since it’s often known to be resistant to economic downturns.
This is possible because there’s only a limited number of waterfront properties available at a given time, which lessens the possibility of its value heading downwards similar to other residential properties. While its value can grow at a staggered rate during a decline, its value will still continue to appreciate.
KH