So you have finally decided that you want to invest in real estate. It is true that putting your money on a property is a good idea in the Philippines given our economy’s resilient nature. However, everyone should keep in mind some property investment tips to help you through.
If you’re a first-time investor, you’ve stumbled on the right article. Here, we talk about the top considerations to make sure that this type of investment is the right fit for you.
Learn the Most Effective Property Investment Tips
Being a novice investor doesn’t have to mean risky business. Here are tried-and-tested property investment tips to help you make your first, great buy.
Be clear with your future plans.
If you’re investing in real estate, there’s one thing you should always make sure of. How can you get the most return on your investment in the future?
To do this, you need to have concrete plans. Are you going to be building a property that you can lease out? Or will you simply be re-selling it again at a higher value? Having this as a starting point will keep the rest of your plans aligned, especially when it comes to budget.
Research, research, research.
One of the most important property investment tips to know is that the profitability of your investment depends a lot on the location and your target market. Before anything, make sure that you’ve done enough studying on the piece of real estate you are eyeing.
For example, if you are planning to put up a house and lot for sale in the future, then you should know the best locations. These will likely be the more private areas with good communities for families and long-term settlements.
If you’re planning to lease, on the other hand, you should also know your best bets for a location. These will probably be places near cities where the center of happenings is. Areas of this type never run out of flow of renters.
Calculate your expenses…
…and see how long it will take you to gain back your investment. It’s a good idea if you can also have a basic forecast of how much you might earn in the future from it.
If you’re planning to invest in a rental property, will the average rental rate of it (based on the location of the place) give you good returns on the money you’ve already put out? You also have to consider operation costs, which are necessary for the maintenance and renovation of your property.
If you’re looking to sell, here’s a no-brainer property investment tip you’ll get from the pros. Estimate the price of your property, then take out your forecasted expenses from it. This will show you how much you will likely make.
Consult with specialists.
This is especially important if you have zero knowledge of the financial and tax requirements related to real estate. A local taxation specialist can help you out in understanding taxes, rates, and bases of documentation. They should also be able to help you file other necessary paperwork and penalties.
The same goes for when you are ready to market your unit or house and lot for sale. Having experienced real estate agents can help you a lot with listings and marketing.
Inspired by These Property Investment Tips? Let Johndorf Do the RestBefore settling on a real estate to buy, make sure to follow these property investment tips on the dot. Need a good example of the best properties you can put your money on? Our projects at Johndorf Ventures are perfect for first-time investors thanks to our strategic locations in Visayas and Mindanao.
We are proud to be the best real estate developer and real estate firm in Cebu, having delivered both commercial and residential properties in the finest communities the regions have to offer. Check out our properties and reserve today.