Talking about Investment

With the number of condos currently built and more to come, aren’t we heading for a real estate bubble soon? I get to hear the same question in realty circles; from people who have investments or are considering to invest in properties, vertical [developments] or otherwise. But really, will there be a real estate bubble soon?  Real estate is not immune to market conditions and like any business, it has its threats and that includes the threat of a real estate bubble.

But just because the threat is there, it doesn’t follow that you have to also ignore the opportunities. A business cannot move and succeed if it sits and waits for the threat to go away. The threat will never go away. What goes away is opportunity, that’s for sure. If you let go of opportunity, somebody else will grab that opportunity. 

But real estate bubble is not likely as yet in the near term. What is clear by far is that the economy is robust. Consumer spending is high, foreign investments are coming in hordes, industries have expanded, many people have jobs, Filipinos abroad are sending money, tourism is up and many other positive news. The conditions augur that business is vigorous and growing.  It is also during good times that people are buying or renting real estate for office or for residential use. So if you have the money to spare and want try your luck in real estate investing, like buying a condo perhaps then you’re in for a good business. 
 
If you’ve followed our column last week, I have shared the ways to take advantage of the real estate boom by simply flipping – buy low, sell high.  Condos, at their pre-selling stages, are usually offered cheap and can be resold at a higher price once they are finished or even halfway complete. Another way to benefit from the property boom is rentals. I figured it out that since we have a shortage in housing, it can be said as well that there is a strong demand for rentals. 

“Now is the best time to invest in a property specially condos, apartments, and three-bedroom houses. The demand for residential spaces is increasing but the supply is not so much. We are hoping that developers will be able to finish their projects sooner. Tourists are also looking at condos as alternatives to hotels because they are cheaper. The market for rentals have already widen base on the inquiries we receive.”

Since we know already that we have a market for rentals, you may want to put your hard-earned money in a condo for investment and have it rented out once it’s finished. What makes condo investing very attractive and easy to own these days is that, the payment scheme is easy on the pocket. Many developers offer staggered downpayment which you can spread in two years. And once your condo is done, you can lease out your condo and pay for the remaining balance through rent. In a way, you’re essentially buying your condo for the price of a downpayment. In addition, rental prices go up by as much as 9 percent per year, which means, you can easily payoff your mortgage in a short period of time.  

If you need to know more or want to take advantage of the opportunities in property investing,You may want to Visit Me in my Office at Insular Life Cebu Business Park District Level 10th floor unit 1001 Ayala Land Sales Inc. Office and Look For Alexander See.
If you are buying real estate to establish your home, your parameters should be more focused on what is most convenient for yourself and your family. As a home, it should not be looked at as a financial investment. Rather, it should be considered as a life goal. However, if you just want to invest, please make sure that you have carefully analyzed a real estate investment versus other investment options based on your personal financial plan. If you definitely want to just invest in real estate, choosing between a condominium and a house and lot would use the same parameters in analyzing its financial viability. Here are some of them. 1. location which includes convenience and attractiveness of neighborhood and security.(a Hint use Googlemaps for Location Vicinities and settings )

2. reputation for quality of development of the builder (this is particularly true for condominiums which are high-rise and be sure to track their track records if the Developer/Builder are really reputable of their project)

3. rules of the association governing the neighborhood and costs in relation to this association

4. your ability to maintain all amortization and maintenance (association, repair, taxes) payments.

 Some Short Keypoints of Why Condominium are Selling like Hotcakes this Times.
 
Time and size. Most of the time when you choose a property to buy, specifically your new home, the first deciding factor is the size. Is the property big enough for me or not? Today’s condominium buyers have a different criteria in mind, and that is time. Most condominium buyers are busy professionals who value time more than anything else. And that is more time for work, for leisure and most importantly, for their family.

Lifestyle:
With the development of master-planned communities, living in a condominium has never been more enjoyable. While earlier villages promises a quiet and serene environment, communities of the new generation is quite different. Live, work and play is a common tagline for today’s new developments. This means bigger amenities, more socially engaging activities and more business opportunities.

Passive Income:
Condominium is not just a property where you can use as a shelter, it is also an excellent investment tool. Condominiums, being usually at the heart of the city, have a higher opportunity of giving you a passive income. And yes, I’m talking about renting it out.