Top Tips for Investing in Real Estate in the Philippines
Buying a property is a great investment option. It’s a tangible asset, which means you can choose to own it for personal use. But, it can also generate passive income over time. There are several ways to earn from a real estate investment. It requires a significant amount of money and the right knowledge before getting started.
Having the basics figured out is key for first-time property buyers. This includes having a knowledge of the process, the legal ins and outs of purchasing a property, and current trends in the market.
Perhaps the most popular real estate investment option today is condominiums. It has an appeal among young professionals, providing them convenience and sparing them the burden of long commutes to work. This is something that beginner property investors can turn their focus to.
It may be a competitive market, but those who know how to go about their investment can race ahead of the competition. Here are 5 important tips to remember to ensure a successful real estate investment.
Determine Your Goal for Investing
Before you begin your search for an investment property, take some time to identify your end goal. Do you intend to use the property as a personal residence? Do you plan to lease it out or make it into a vacation rental listing?
Think about where you’ll be in the next 5 years, lifestyle-wise and career-wise. This can help detail what you need or want in the property.
The value in knowing your goal first means that you’ll be able to find the right location.
Secure a Good Location
There will always be a demand for living space in central business districts. Areas like Makati, BGC, and Ortigas are cities with overflowing career opportunities. Thus, a demand for property follows.
For some people, location matters just as much as the property itself. A good location can mean different things to different people. But what renters commonly look for in condos near the CBD are accessibility to work, distance to hospitals and schools, and diverse lifestyle options.
Rental prices can soar further once a certain location begins to take off. Up-and-coming neighborhoods are good investment opportunities, as properties in the area could increase in value when new roads and infrastructure are put up. Securing a good location for your real estate investment requires careful research!
Know Your Financing Options
Investing in real estate requires a large sum of money from the start. There are several financing options in the Philippines such as bank loans, Pag-Ibig (HDMF), and in-house financing. Knowing what to choose requires thorough research and careful assessment of each option.
You can also seek guidance from a loan officer or someone who has had previous experience with the loan you’re eyeing. As early as possible, it’s important to prepare the necessary documents to get approved and ensure you’ll have the funds for the investment.
Know only what you can afford. If a brand new condo isn’t within your budget, consider buying a secondhand unit in a very good location.
Take part in Viewings or Open Houses
It’s for your own benefit to take part in property viewings or open houses. Being present to inspect a property lets you gauge its investment potential. It also gives you better insight on current market prices. As part of physical due diligence, don’t just check on the property’s condition. Look also at the safety and security around the vicinity and in the neighborhood.
Open houses provide the chance for buyers, property investors, and real estate brokers to come together and network. Going to these events can be a source of valuable information.
Consider the Developer
There are many condominium developers in the Philippines. Long-timers, new players – they all can provide something to property seekers. When investing in a property, there’s wisdom in researching about a developer’s history and track record.
You should also inspect the developer’s property management. What facilities and amenities are available to residents? Are they as good as advertised? Are they maintained well?