You’ve worked hard and finally saved up enough money to purchase an investment property. This is a special time since it means you are taking one more step towards financial security for both you and your future generations. However, it is important to take a patient approach when buying an investment property.
That is why we have created this investment property buying checklist. It is designed to help prepare for this process and better understand what you’ll need to do. While this doesn’t include everything you must consider, the basics are covered.
See more: Why rental properties make great investments
Dot Property Philippines investment property buying checklist
Strategy: Decide what you want from your investment is the first thing you need to do. Are you looking for a second home, capital appreciation or rental returns? The answer to that question alone should determine the location and type of property to focus on.
Act Early: When it comes to property investment, the early bird does catch the worm. Moving fast and being first in line at a new development will allow you to take advantage of the best units at the best prices. In many locations you will find that prices can rise by anything up to 30 percent between buying off-plan and completion.
See more: Pros and cons of buying off-plan condos
Check the rental market: If renting is your strategy, avoid high-density developments where there could be hundreds of other similar units for rent. Additionally, it is good to take a look at the surrounding area on Dot Property Philippines to see how many units are available for rent nearby.
Furnishings: You will need to spend on interior decoration and furnishing your unit if you plan to rent it out. This is a cost many investors can overlook so be sure to include into your budget. After all, what’s the point of investing in a property if you can’t afford the necessary furniture to rent it out?
Maintenance: Check for any fees on this end. Most new condominiums have yearly fees for maintenance that owners are expected to pay.
Find an agent: Many people do try to complete a purchase alone, but utilizing the services of a real estate agent can save you both time and money in the long run. They may also provide extra insights and information that will help you make an informed decision on which property is best for investment.
Find a lawyer: Your lawyer will do due diligence on your behalf and ensure you understand everything before signing the contract. A good real estate lawyer will ensure your purchase goes smoothly and that everything follows the law.
Prepare for taxes: Like any property, you will need to pay all necessary taxes on your investment property. Your real estate agent and lawyer will be able to provide you with more information on what these are as well as how you can plan for the future.
This investment property buying checklist is simply the start of your journey. Securing your investment property will require both time and due diligence, but it will all be worth it at the end of the day.
