Before jumping into the real estate business in the Philippines, you would want to get an idea of the real estate market’s state in this archipelagic nation. A lot of working people there want to live nearby their offices to reduce commuting hours and avoid traffic. Besides, the urban population is also increasing significantly. This is why the demand for condominiums and residential units and businesses that cater to the needs of these people is dramatically increasing.
As a result, investors are also finding great opportunities to work on new residential and mixed projects and getting plenty of good reasons to invest and grow their return on investment.
Ways of Earning by Investing in Real Properties in the Philippines:
In real estate business, you can earn money in different ways.
1. Increase in Property Value:
When you buy a property in a good location, it increases in value over time. To earn profits, you can go for the classic buy-and-sell move. Not every property goes up in value but if you make the investment after conducting research keeping in mind the future development in the area, you can earn a pretty good profit. Some investors gain profit via a buy-and-hold strategy, many investors go for the strategy of buy low, develop or renovate and then sell high.
2. Cash Flow via Rentals:
The number of families with mid-income who are looking for the convenience and perks of living in a metro city is going up rapidly. Therefore, the demand for condominiums and apartment rentals is shooting up high. Investors are taking advantage of this opportunity by doubling their purchases of residential units for the sole purpose of earning rental income.
You just need to make sure that the rental income must cover the amortization that you will be paying for the unit. Once the amortization is fully paid, the payout will dramatically increase and you can use it again to re-invest on the purchase of other units.
3. Ancillary Profits:
Sometimes, apart from the direct sale or rental income, you can earn profits through indirect ways. The revenue can be generated by micro-businesses located within or in the vicinity of your property. For example, assume you as a real estate investor own commercial space. If the foot traffic generated by other businesses is high in the area, you can take advantage of the opportunity by installing vending machines in the building to generate additional income.
Is it safe to invest in residential properties in the Philippines?
The real estate market in the Philippines has seen a boom in demand over the past few years. The demand is generated by millennials who want to be near their work and avoid the ever-increasing traffic on the road. As families are getting smaller in size, they are looking for condominiums rather than houses to settle in. The growth for condo units is not only being experienced in Metro Manila but various other cities as well. Retirement living is another strongest motivation for people purchasing residential properties. So, the answer to the above question is –yes.
By now, you must have noticed that jumping into the real estate business in the Philippines is a much safer option for anyone. Owning a real estate property in this beautiful nation is never going to hurt you once you go through all the aspects, such as location, amenities, safety, services, and quality of living.