Real Estate Investment: How to Maximize Capital Growth and Yields

Thanks to the rising influx of investments in the country and creation of jobs through BPO, the Philippines' property sector is booming. The increased income and spending of many Filipinos created a high demand for residential buildings, while offshoring and outsourcing of jobs increased demand for buildings and office spaces. If you want to take a piece of this industry's profit pie, then you should consider real estate investment. However, before puting your money into this investment vehicle, it is important to prepare and to learn the ropes in order to maximize capital growth and yields. Here are some tips to help you out:

1. Perform market research and get a reliable assessment of the property's value.

Check out listings and visit various properties in your chosen location. This will help you get an idea about property prices within that area, possible factors that can increase value, and property type (e.g. residential or commercial, office building vs. condominium) that appreciates faster. Proper research can help you see if the property is overpriced or if it has problems that you could not have anticipated.

2.  Choose a next-wave location for your property.  

Make sure the area you are investing in has potential for high growth and yields. For investors in commercial property, some of the factors you should consider are the following:

• Access to an educated workforce
• Access to reliable facilities: electricity, water, telecommunications
• Safety and security of the area
• Proximity to transportation
• Proximity to business district
• Access to main roads and thoroughfares

3.   Hire an experienced asset manager. This is very important for commercial real estate investors; you need to find someone who can take care of your building and its facilities, maximize the use, ensure safety and security in the area, promote good relationship with tenants, and more importantly, maximize the rental income and adjust it to ensure you are getting the right amount from your investment.

4. Consult an honest and effective real estate broker. If you are trying to establish your portfolio in a short period of time, a good broker would be an asset to your team. This person can help you find the right properties with good prices.

The challenge in real estate investment is not to avoid risks; it is finding smart ways to minimize the potential effect of these risks without diminishing returns. You would need good research, expert advice, and honest real estate professionals to help you out. To know more about property investment in the Philippines, contact KMC MAG Group today.