Buying Your First Unit for Condo Investment? These Tips Are for You

Make sure to read these investment tips before buying a condo for your investment!

By: Eunice Sheene Fulgencio | September 03, 2018

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Time moves quicker than you realize. Before you know it, you’ll be at a crossroads where the decisions of your younger self will gravely affect the kind of life you’ll live in the future.

This is why, now that you are earning money and making savings, you need to determine what to capitalize on to make your money grow. One excellent area to invest on is real estate, specifically condo units. The real estate market has been at a steady rise in the country due to the high demands of residential and commercial spaces. Moreover, according to IQI, a multinational real estate marketing and investment firm, not only does the country have a good gross annual rental yield, its popularity as a tourist destination leads to an influx of travellers needing a place to stay [1]. A condo then can serve two purposes: a place to call home or an investment property.

Since it’ll be your first time buying a condominium unit, you’ll need a few sound strategies to aid you. Check out the following condo investment tips that can help you get started with real estate investing and decide on a unit to purchase!

1. Consider the location first.

Choose the “where” of the unit before making any other decisions.

What seems to be an obvious and basic real estate investment tip is actually the most crucial of them all. Since the real estate market offers many properties to choose from, it might become daunting to decide, so narrow your choices by first focusing on the location. As the investor, you need to be knowledgeable about the strengths and weaknesses of the major cities in the metro so you can come to a sound decision. Consider also other major factors such as traffic, the surrounding neighborhood, and proximity to landmarks and institutions.

2. Size does matter, so take it into consideration.

Unit size should be thought of thoroughly.

Who and how many people will reside in the unit should be top considerations in choosing the size. If you envision the unit to be occupied by only one or at most two people, a studio or a one-bedroom unit condominium should be fine. If it’s for more than that, you should opt for a two or three-bedroom. Remember that the unit type and size affect the prices, so keep that in mind when making a decision.

3. Set a budget.

Be realistic on how much you’ll be willing to shell out.

Research the average prices of the unit type you want and from your data, set a non-negotiable amount which you are willing to spend. Make sure that the budget is reasonable, justifiable, and realistic. Also note that different areas in Metro Manila have different price ranges; properties located in big business districts such as Makati and Ortigas are expected to be pricier than the ones in more residential cities, such as some areas in Quezon City.

You can also learn about housing loan requirements and see if you could use one. There are a number of banks which offer home loans if you meet their requirements. Other loan options include government agencies such as the Social Security System (SSS) and the Pagtutulungan sa Kinabukasan: Ikaw, Bangko, Industria at Gobyerno (Pag-IBIG) Fund and in-house loans from the real estate developers themselves. Before you commit, check the interest rate and loan conditions first.

4. Read up on the developers.

The property developer will also determine your future satisfaction as investor.

The Philippines boasts of a long list of property developers, so you as the investor have to do careful research on which company’s property to buy. Read up on the developers’ reputation, the quality of properties they have completed, and their promptness in meeting the expected turnover date. Take in consideration as well that different developers have different specializations; some offer resort-type properties while others cater more to young families.

5. Plan for profit.

Be smart in your future plans for the unit.

Determining ahead what you will do with the unit will yield great success for you. Aside from making the unit as your home, another option is to make a profit out of it by reselling or renting it out. Selling, otherwise known as “flipping,” entails improving and making upgrades to the unit after its purchase and reselling it for price that is higher than the purchase cost. Meanwhile, the other option is to turn it into a rental unit for a small but steady profit every month. An established plan will help you decide which condominium unit to get.

A condo unit is one of the best investments you can put your money on. If you’re smart enough about it, it can bring you gains for years to come.

Check out our list of condominiums in Metro Manila or browse the Housing and Condo Guide category of the Yoorekka Directory.

Have you ever invested on a condo unit yourself and have proven and tested tricks of your own? We’d love to hear about them in the comments section below!

Reference:
[1] https://bit.ly/2PdNpHm

About Eunice Sheene Fulgencio

Eunice knew that she’d be writing for the rest of her life from a very young age. Naturally introverted, she is selective with how she uses her time and who she spends it with. Has a penchant for sweet treats, sentimental proses, and online personality quizzes. A true-blue INFJ.

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