Real estate remains popular as an investment among Filipinos. it’s unique as an asset because it’s good price appreciation while also being a viable source of passive income.
Moreover, unlike paper assets like shares of stocks or mutual funds, land may be a tangible asset that you simply can actually use for private utility.
However, investing on land are often daunting if you’re just a beginner. Thus, you want to first take time to review it before going off and buying your first property.
Recently, I’ve had the prospect to speak to a number of the country’s top land investing experts. I asked them about their thoughts and private outlook on land investing within the Philippines. Below are my ten key takeaways.
Real estate may be a long-term investment and not a short-term quick profit venture.
Many times, it’s the buyer’s short-term expectations that creates property investments to not perform needless to say .
Quick flips to form money may be a bonus and will not be an expectation. once you buy a property, be prepared to carry that property for several years.
2. No Bubble
There is no land bubble within the Philippines. The country’s land market has always been resilient.
It calmly went through the 2008 global subprime crisis, and it’ll do an equivalent if and when the present POGO market slows down.
Moreover, the Philippine land industry is usually about the local market. it’s location-specific.
For example, there might be a “bubble” during a specific city or region, but good opportunities are going to be present in other cities and regions.
Real estate prices have inflated due to Philippine Online Gaming Operations (POGO). And it’s unknown when it’ll hamper or decline.
If you would like to require advantage of this ongoing opportunity, then learn to talk Mandarin or have a business partner who does.
4. Quick Profits
Those who have properties in and around Central Business Districts (CBD) can sell now for quick capital gains.
Otherwise, they will make fast money from AirBnB or transient stays. Just confirm that the Homeowners Association (HOA) and Property Management Office (PMO) allows short-term rentals.
As of September 2018, the percentage of AirBnB in Metro Manila is 50% with a mean revenue of P22,500 per month.
5. Unmet Market
There is an enormous and unmet demand in Cebu, Davao, Bacolod, Ilo-Ilo, Dumaguete, CDO, Bohol and Metro Manila for affordable and decent housing. Buyers are mostly starter families and newly weds.
Thus, it still is sensible to take a position in family homes, 1BR / 2BR condominiums, and multi-unit apartments.
6. Live, Work, Play
People are prioritizing convenience quite ever today, especially given Metro Manila, Metro Cebu & Davao traffic situation.
“Live, work, play” communities are expected to try to to well. There’s also good opportunities in regional growth centers and township projects.
Foreclosed property investing has become a touch tricky because banks and financing institutions now ask on the brink of market rates.
It’s best to specialize in one area and master the values there until you discover an honest deal.
If you would like to maximize capital appreciation, buy properties at pre-pre-selling stage if you’ll .
Do your homework. High-end developers don’t always deliver high-end quality properties. Particularly research on delays in turnover of past projects.
Furnished properties sell faster and may fetch higher rates from end-users. this is often good to recollect for those getting to flip properties.
Getting approved for home or housing loans remains a challenge for several . loan interest rates are currently high.
Thus, it’s best to seem for projects with easy-to-own programs. And more importantly, simulate your cashflow to ascertain if you’ll really afford to shop for a property.
10. Due Diligence
Never buy a property supported speculation. Use actual data for sold properties within the area to work out its market price .
Moreover, use actual lease contracts of neighboring properties to work out rental rates of a selected area.