Buying real estate in the Philippines is a bit like falling in love. Choose wisely, and it may end up being the best thing you’ve ever done in your life. Make a miscalculation, and it can be a long-term source of headaches. But how do you know which mistakes to avoid?
There are certain things investors in real estate need to consider before they take the plunge. Taken seriously, these key reminders may keep you from making major mistakes when your goal is owning land in the Philippines.
Think about the future
People generally start thinking of investing in real estate–like buying land in the Philippines–only when their current situation calls for it. For example, when they get a job promotion, a pay increase lets them afford a condo downpayment. They could also be transitioning between life stages and may need a home to settle in after marriage. However, considering buying a condo for sale or house and lot for sale is more than just about the present. The demands of the future will also need to be considered.
Investing in real estate is a commitment, especially if you are purchasing property that you plan to live in. Think about what the future will look like, and what needs will crop up then. A seemingly simple concept as pet ownership, for instance, can affect your investment. If you plan to adopt a furry four-legged companion, do remember that some condominium developments are more pet-friendly than others, which will narrow down your choices. Or when elderly parents stay with you, proximity to healthcare facilities and extra bedrooms are top issues to consider.
Buy within your means
Buying a house or a pre-selling condo takes a considerable amount of money compared to other purchases. Take the time to learn how much it will cost to own and maintain. The most practical solution is to talk to an expert with a calculator onhand, and track the expenses you will be making on your investment against your daily budget.
Even then, consider that there are some costs that are not directly involved in the property purchase, but still needs to be paid for. These include parking fees, association dues, and connection charges for utilities in condominiums.
Invest because it’s right for you and your family, not just because you can afford it
The construction boom happening in the country over the past couple of years leads to a practical implication for buyers: affordable prices. Condominiums for sale in the Philippines now come in a range of prices to suit an equally diverse range of budgets.
However, price should not be the only consideration when purchasing real estate: remember why you want to own land in the Philippines in the first place. If it’s meant to be income-generating (either through rental or an eventual sale), consider by how much the property will appreciate in time. According to sales expert Grant Cardone, “Properties historically increase in value as the net operating income of the property improves through rent increases and more effective management of the asset.” Do consider the ability of the developer or condominium association to maintain the property and help increase the value of your investment.
On the other hand, if you are purchasing the property for your own use, think about how comfortable you will be with the environment. Does it have the amenities you like? Is it close to your place of work or to your kids’ school? Finding property you enjoy will make it worth the price.
Observe the market to form the best strategy
In real estate, words like “seller’s market” and “buyer’s market” get thrown around a lot, which basically refer to the way prices are affected by supply and demand. If it is a seller’s market, then prices tend to rise because there are a lot of people who want to buy. On the other hand, a buyer’s market brings on lower prices because there’s not much competition to drive the rates up.
It seems pretty easy when it’s a buyer’s market since lower prices mean a better deal. But what do you do when the market isn’t where you want it to be? Surprisingly, the answer isn’t always to hold off buying. In the book Real Estate Investments and How to Make Them, author Milt Tanzer writes, “You cannot afford to wait until the perfect market opportunity for you arises. It may never happen.”
Those looking to buy property need to change their tactics depending on what’s going on in the industry. In a seller’s market, be open to buying in places other than your original choice. Find options like pre-selling condominiums, which give better deals. The upside to buying in a seller’s market is that you benefit from the high value, too.
Real estate is a good investment. It’s only a question of finding the right property to invest in, and remembering that a “good” investment is a personal definition. With an established reputation among real estate developers in the Philippines, Alveo Land’s portfolio provides a great variety to choose from. Its developments are located in established cities such as Makati, Pasig, and BGC, or upcoming districts such as in Arca South. Its latest tower, Park Cascades, is a noteworthy option, with its accessible and secure location in Taguig.
When buying property in the Philippines, many factors including property valuation, location, and especially construction quality, should all be taken into consideration when looking to invest in real estate. Learn about your best options here.