Real estate is one of the most established, yet exciting industries to invest in the Philippines. With the growing need for commercial and residential spaces for professional or personal utility, many Filipinos aim to acquire properties as a long-term investment.
With the development of master-planned communities and centralized business districts, the need to relocate closer to work became one of the driving forces in the increase of the sale and leasing of condominium units across Metro Manila. This demand is expected to continue growing at a steady pace as the population and labor force continue to grow.
In 2019, condominium units in Metro Manila had a YOY price increase of 5.8% in Q3 2018 from a year earlier. Rental rates are also rising to contrast the tightening of the vacancy rates in key CBDs.
However, investing in real estate can be a daunting venture. Thinking about acquiring residential properties as an investment? Here are the deciding factors you need to consider to know your next move:
Location and Accessibility
Location remains to be the top consideration when choosing which condominium to invest in. Many unit hunters filter their search by the location and its proximity to their workplace and the accessibility and convenience it provides them. Location can also be a big factor in the price of the property you’re thinking of investing in. Units in business districts such as Bonifacio Global City, Makati, and Ortigas remain to be priced more compared to those which are situated farther from city centers.
The developer behind the condominium unit should also be considered when thinking about this investment. Subleasing or reselling your condominium unit may be easier if it under a more popular and reputable names and companies.
For pre-sold units, the reputation of the developer matters a lot because it ultimately determines whether the condo will actually be completed and ready for turn over to its buyers. For ready for occupancy units, established names in the real estate industry are committed to work with the condominium homeowners’ association to help manage the condo. Property Management includes the adoption of effective security measures, strict implementation of building rules, and proper maintenance of the whole structure.
Budget and Selling price
Investing in residential properties, especially condominium units, involves a significant amount of money. Determining your budget for a property can set your limits and parameters in refining your options.
Prices of condominium units can vary depending on how you will acquire it. Buying a unit straight from the developers can cost lower compared to units offered by resellers. However, there are cases when owners list their properties cheaper than the developer's original price.
Moreover, it is also crucial to also consider other fees that you might allot budget for when acquiring a unit for investment such as the association dues and property taxes.
Goal of investment
Having a clear and definite goal and purpose for your investment will help you make the right decision when buying a unit of your own. Are you planning to utilize the unit for residential; purposes and have it for lease? Or do you intend to generate greater profit by reselling it in the future?