Tips in Buying Houses and Condos in Philippines (Part 2 of 2)

Join us in the second installment of our special on residential spaces, as Angela Manese, KMC MAG Group Residential Sales and Leasing Manager, offers her suggestions on the best places to live in for expatriates, starting families, young profesisonals, investors, etc. This short video also summarizes rental rates for major CBDs and provides useful tips for people looking for condo or house and planning to purchase one. (check out Part 1 here.)

Video Transcript:
Hi guys. Thanks for tuning in to the second part of our episode on residential spaces. (check out Part 1 here.) Again, I'm Angela and today, I will help first-time home buyers or investors decide on what type of property to consider, and hopefully, help narrow down cities where they could locate in.

Which type of residential property and which location would you recommend for expatriates, starting families, young professionals, empty nesters, and investors?

• For expatriates - You would want to have condominium units that are close or right within the vicinity of the country's CBDs. The value of these properties do not easily go down, especially since they provide convenient access to airports, hospitals, offices -- basically the entire city center. Aside from this, CBDs offer the convenience and lifestyle that's closer to what you're used to back home. 
• Starting Families - I would recommend house and lots that are a little farther from the CBDs as they offer larger and more affordable spaces. Exclusive villages and gated subdivisions also provide an environment that's ideal for raising children as they are close to good preschool or elementary schools. 
• Young professionals - Apartments and condominiums near the CBD are the best way to go, though you might have to move a little outside the CBD if you want to get a lower priced unit. You might also want to invest in a condo that's close to main transportation (i.e. MRT, LRT, bus stops) to make it easier to get to and from the office. 
• Empty nesters - High-end or luxury condominiums in Bonifacio Global City would be ideal for empty nesters who wish to live right in the city, but somewhere that isn't too crowded. If you have a larger budget, perhaps you can locate somewhere that's close to the beach or somewhere with available space to create a garden or farm. If you wish to enjoy a little peace and quiet without being too far from the city, a property in areas like Baguio, Cavite, Antipolo, Tagaytay, or Laguna would be a good option.
• For investors, a condominium is great for investment; it has a low price, which makes it capable of producing high yields. The key is to choose the location and make sure it suits the type of tenants you plan to target to ensure low vacancy rates. Condos in CBDs like Ortigas, BGC, Makati are safe bets because they cater to a wide range of markets.

How much is the ongoing rates for your recommended locations? (i.e. condo rental rates/prices in top CBDs)
Generally, rental rates in the CBDs range from as low as Php 700/square meter to as much as Php 1,400/square meter depending on the condition of the unit, type of furniture and appliances and inclusions in the lease. For Makati, average rental rate across all Makati mid-range and prime residential properties is at Php 761 per sqm with a high of Php 1400, with a YoY growth at 2.7%. Capital rates for mid-range to premium is at Php 127,245 per sqm, but this can go higher for high-end and luxurious residences. In BGC, rental rate is currently at Php 861 per sqm with a 4.9% YoY increase and capital rates average at Php 126,222 per sqm. Ortigas offers relatively lower capital rates and rental rates. Rental rates start at Php 689 per sqm with a modest YoY growth of 1.21% and capital rates have an average of Php 90,328 per sqm

Last minute tips
The secret to a successful property purchase or investment is planning well. There are lots of choices, so you have to be able to narrow down what you want in a residential property by considering what matters to you as an end-user or investor. Another tip, especially for first-time buyers, is to stay within your means. No matter which end of the market you're entering, the objective is to stay within a payment you can afford on a 30-year fixed-rate mortgage. Lastly, do your homework. Learn what people have been paying for the various types/qualities/sizes of houses in the neighborhoods you're searching. In a tight market you may have to work fast, but make sure you look at a lot of properties to gain perspective. Consulting a reliable broker would be advisable, it's free and all it takes is one phone call or email. With an expert broker, you can get access to a wider range of choices customized according to your priorities.

Thank you for watching. If you have questions or inquiries on available properties in the Philippines, just visit our website: kmcmaggroup.com. Stay tuned for our next series where we will be discussing the basics of leasing or buying retail spaces for budding entrepreneurs in the country. Bye!