Make sure your condominium purchase is a sound and profitable one.
Property is forming part of many people’s investment portfolios in the Philippines, particularly among overseas Filipino workers. Bricks and mortar are deemed to be a safe asset. However, it is important to make sure that the property you buy is good choice and one that will make for a sound investment.
Once you have decided to buy an investment property, then consider these following tips to reap the rewards of investing in a condominium.
1. Think to the future.
When investing in a condominium there are two ways to make money. One is to speculate on the market selling it soon after you have purchased it, and the other it so rent it out to generate a rental yield. With the first option you need the property to increase in value to be able to cover your costs and make a profit. This can either be achieved by buying a property in the first phase of a launch where prices tend to be lower to start generating interest in the building, or by making improvements to the property that will increase its value. With the latter, this is a longer term investment strategy and it is important that pick the right sort of property suited to the rental market.
2. Purchase from a well known developer.
This is really important as you do not want to lose all your hard earned cash because the developer has gone under. A trusted developer is likely to have a number of previous properties that you can use as a benchmark as to their success and quality of work. Take time to visit these especially if intend to buy the property off-plan as it will give you a better idea as to the quality than the marketing brochure.
3. Study the market.
Regardless of your investment intentions it is important to do your homework. You need to ascertain what will make a good investment. Location is always key as is the overall finish and quality of the property. Do your research to see if there are any impending infrastructure developments or new amenities as this will add value to the property. It is also important to understand the market demand so that you pick a property that will let or sell again quickly. This even includes deciding whether to rent your property furnished or unfurnished.
4. Continue to be alert.
You need to keep your eye on the ball to be aware of any changes in the market. This will give you the chance to cease windows of opportunity to make money. It will also help guide you to make the next decision on what to do with your property. As well as monitoring whether you could be achieving more rent in your buy-to-let property, it will also give you clues as to the next property hotspot if you follow the moves of developers closely.
