With the booming international free market we live in, there are many different ways you can invest your money for a good return on investment (ROI). Real estate in the Philippines is a particularly lucrative niche to target.
Image credit: StockSnap via pixabay.com
Real estate is one of the largest and most accessible markets in the country, mainly for the simple reason that everyone wants four walls and a roof over their head. Condos, while sometimes a volatile investment, can also be an exceptionally rewarding one. However, anyone who buys a condominium unit as an investment without understanding the market runs the risk of a catastrophe. Here are a few tips on buying a condo in the smartest way possible:
First of all, make sure to use a realtor. While it’s true that all real estate firms charge a small fee as commission, the value their professionalism and expertise brings to the whole process is something you really don’t want to ignore. A professional realtor will not only find a condo that meets or exceeds your strict specifications, but will also provide you with a lot of great insight relating to finance, negotiations, and the industry as a whole. This asset will certainly make the process of property hunting run more smoothly.
Whenever you’re considering to buy a condo as an investment, you should make sure you have access to thorough market research. Like many other industries, there are countless resources for you to get a comparative analysis on the real estate market. Similar to an appraisal, a thorough look at the condos you’ve had your eye on will estimate their potential as an investment based on the sales of properties with similar characteristics. In the same way, you should conduct a decent amount of research into the bylaws concerning condo units surrounding common ownership areas. This can have a pretty significant impact on your investment, so make sure you do your homework!
When buying a condo as an investment, you should always stick to the old rule of “location, location, location.” The location of a property has a massive effect on its value and even affects its potential to increase in the future. The best places to buy a condo will have a fairly active tourist trade, and will be easy to rent for tenants. If you take a lazy approach to location research, your property may not appreciate at a good rate.
If you are going through a realtor, don’t brush over the home inspection either. With condos especially, there may be large parts of the property which aren’t your responsibility at all, but you should still arrange for a thorough and professional inspection of it. This will give you a lot more peace of mind about the condition your investment is in. By the same token, don’t take anything for granted. The maintenance of the unit’s exterior will be taken care of by the local home owner’s association, but you should double and triple check what areas need fixing before sealing the deal.
About the author: Jerome Malleck is a contributing writer for Realty Biz News