Investing in real estate In the Philippines – What you need to know
Everything has been displaying an upward trend in the real estate market of the Philippines. From construction costs to the property prices, everything has been increasing. The country’s economy boom, has always been the interest of study for the economists, as well as the first subway project of the state, can be cited as some of the factors causing this growth. This is good news for those looking to choose the Philippines for buying an investment property. As the property prices are growing choosing a developing location where the price growth is just beginning would be a cost-effective option.
Condos – know when to buy and when not to
The condominium market in the Philippines is, and therefore there are plenty of condos in all budget ranges that home buyers can find. However, if the appreciation value of the property is the number one priority, then an individual house on a plot of land might be a better investment. Also, there is the land value that comes with it. When the home buyer does prefer a condo then picking one in any of the prime localities would be a better option as these are the areas in the Philippines where the rental income can be excellent. Another factor to keep in mind is to check the homeowner association fee charged by the condo community before buying the property.
Where the property is located matters
For all those with a large budget at hand, property in the heart of the city would be the best way to earn in the form of rent quickly. This makes it easier to tackle the mortgage repayment. Those looking for a long term investment option buying properties in the outskirts and the less accessible areas of the Philippines would be a better choice. There are places where the real estate market is slow but steady and upward. These are the places where a more substantial property can be bought at a lower budget. As a rule of thumb, pick those localities that are at proximity to the areas that are already booming.
The right time to jump into real estate investment is now
Philippines real estate market has been growing at a steady pace. It would be a bad idea to wait for the prices to drop as this is less likely to happen in the next few years. On the other hand, taking the decision and immediately choosing an excellent value property would increase the chances of making more significant returns in a short period.
There are plenty of documents involved in the process of completing the real estate purchase. Contract to sell, deed of sale, tax declaration, condominium certificate of title are some of the official documents to be taken care of. Understanding the purpose of each of these documents would help undoubtedly interpret the terms involved. There would also be transaction and handling fees at various stages of the purchase including the actual registration of the property. All of this should be put into account while setting the budget limit.