Are you interested in purchasing a house? It is important to first ask yourself the simple question, why? You will be successful in purchasing and receiving the advantages that you desire from the house when you have established specific goals in buying a house. Below are some questions that will analyze your purposes and aid in awakening your desires. Answer the questions below and you may find an answer to the question of, why?

Purpose

There are two essential purposes when an individual considers buying a house. It can be for living purposes, or business purposes. Below are very initial questions that we can consider briefly with regard to these purposes.

Business Purposes:

Q: What type of business are you planning to open?

Is your business providing goods and or services? Are you planning it to be a back office or front office? How much space do you require for it? How many people are going to work for this business? How many customers are you expecting to support your business?

Q: Who is your target customer?

We can classify target customers into various categories:

• Income: Low, middle or high.
• Age: 0-5, 6-12, 13-18, 19-30, 31-50.
• Engagement: Customers visiting your business place, making phone calls or online contact in any form (website, social media etc).
• Type of customer: Whole sellers, retailers or consumers. You can check with the categories listed above to see if the house you wish to purchase will be suitable for your business.

Q: How big is your business?

We can establish the size of your business based on the amount of capital and assets you have acquired since the start up your business to present day. However, what you should consider is the size and type of house you wish to purchase and if it is an appropriate match for your business. Similarly to houses for living purposes, bear in mind that you should utilize the house to its full capacity.

Q: What is your business plan?

It is best you consider ahead of time how long the house can remain suitable for your business. In the case that your business grows or does not grow, how will the business affect your house and vice versa?

Location:

Q: Which area is it located at?

The location should be easy accessible or easily found by your customers whether it is a back office or a front office.

Q: How does the location connect/interact with other institutions?

Other institutions such as schools, universities, pagodas, hospitals, markets, downtown shops and the like are very important to consider if your customers frequent any of them. In this case, it is important to choose the best spot for your house where it links to nearby institutional sources easily.

Q: How busy is the area? What is the peak hour like?

Busy areas can be both advantageous and disadvantageous for your business location. If the traffic is always heavy in front of your workplace it may be degrading for your business, but if the area is bustling with people exploring the vicinity for different purposes, there is a higher chance your business will be frequented by more people. What time is the peak hour and how does it affect your business?

Type of House:

Q: What type/style of a house is suitable for your business?

This solely depends on your business and whether the feature, size and space matters for the business or not. A large business such as a grocery store may wish to purchase an area with lots of space to stock its goods, where as a small bakery may prefer a small space to sell its goods.

Q: What size do you need?

The size refers to the space of the house. How much interaction within the house is necessary for your business? There should always be extra space so that your business will run smoothly to accommodate any expansion as it grows.

Price:

Q: What’s your expected price of the house?

Your expectation of the price of the house you wish to purchase should be matched with your expected business capacity.

Q: What is the current market price?

You can check the current market price of house by checking the price of similar houses around the area or areas in similar condition.

Finance:

Q: How much money do you have in hand?

No matter how much money you have, you need to establish a budget plan to avoid hitting any obstacles.

Q: How would you like to pay? A pay off? In installments?

If you have enough cash in hand and you do not wish to pay the interest then you may be interested in a pay off. However for a business you should consider paying in installments as you can spare some money to support your business. If you wish to pay in installments, you should consider your income statements.

Q: What is your income statement?

Your income statement(s) are important because you need to know if you can still afford your living expenses after you have paid the installment for your house. You can consult with our credit consultants located in various cities across Cambodia.

Q: What financial institution you may consider?

Some houses, for instance like Boreys (private housing compounds) allow you to pay in installments, or you may seek the help of financial institutions such as banks or microfinance institutions. However if you decide to receive financial assistance from a Borey, there are some points you must consider such as the type of property title, credit of the property developer etc. Some microfinance institutions are specialists in housing loans. You may need to consider which financial institution can provide you with the best service along with appropriate long term installments and an acceptable interest rate.

Q: When is the estimated break event-point expected to take place?

It may not sound positive or encouraging when you think about the break event-point as the price of the house can be much higher. It is important to remember that it is completely fine if your break event-point with the house is long term, because the value of your house is always growing as well. So do not worry, and continue enjoying life with your business.