Real estate cannot be lost or stolen, nor can it be carried away. Purchased with common sense, paid for in full, and managed with reasonable care, it is about the safest investment in the world.
—Franklin D. Roosevelt
What does the future hold for the real estate market in the Philippines? Is it still valuable to invest in real estate despite all the projects that have been booming everywhere in the recent years?
Not all investments are created equal. It means money, effort and time. Before getting ready to pursue an investment, financial gurus as well as plain old common sense would advise you to think through and analyze your investment strategies.
Real estate is something that you can physically touch and feel – since it’s tangible, many investors consider it a low-risk investment that allows you a greater degree of control over your money.
Normally, a down payment of up to 20% of the purchase price can be made, and the rest can be financed by banks. This gives you leverage to invest more in different types of properties with less money down, helping to build your net worth or income that you could make off the properties.
So, why should you invest in real estate? Here are the most notable advantages:
- It is income generating
If you’re investing in any real estate development such as a condominium or an apartment, make sure there is no oversupply of the same type of property in the area. Invest in a right property that has high demand, but is scarce and hard to find in the area.
If you pick the right property, you can surely enjoy the probability of a monthly rental income. Owning an investment property won’t take much of your time after you’ve set it up. The key is to find people who can help you monetize your investment.
In this case, Primavera Residences, an eco-friendly condominium in Cagayan de Oro, is an example of an investment that is new to the city. Being the first condominium that is ready for occupancy, you can surely generate income in no time, allowing for faster ROI.
The building also has its own professional in-house asset management team that manages the units for short and long term rental through the innovative ‘Serviced Apartments’ concept, the first of its kind in Cagayan de Oro. This ensures you a hassle-free, one-stop solution in overseeing your income generating asset. Quarterly reports will be provided to update you of the performance of your investment, allowing you to be on top of things while keeping headaches at bay.
- Keeping your day job
You can’t do ten day-jobs, but you can surely own and manage at least ten properties by yourself.
To guarantee a rental income, your creativity can increase the value of your property, may it be in renovating your interior and exterior or furnishing your unit/property. For such renovations, at Primavera Residences, buyers get unfurnished units with inclusions of tile floorings, painted walls and ceilings, fitted kitchen sinks, bathroom fixtures, electrical wirings and outlets and you can be inventive by how you design your unit to attract clients coming in.
You’ll make a substantial profit when the increase in value (perceived or otherwise) is greater than your acquisition cost and what you spent for the improvement. The key is to be diligent enough to look for a bargain. Remember that the profit is made when you buy, not just when you sell.
After everything is done, you will have just to sit, relax or continue on your day job and just receive a monthly income.
- Most real estate properties will appreciate in value.
“Most” because there are properties that are slow to appreciate and don’t appreciate in value at all.
The key is location, location, and location.
Buy a property where the major developments are ongoing, or where it’s headed. Better yet, invest on properties near malls, schools, offices, churches, or new roads built. This translates to faster growth, value appreciation, and higher demand to prospect investors.
Sustainable developer ITPI for example, has invested in alternative locations where nature and the environment has been thoroughly preserved and optimized. Primavera Residences, located in a master planned community in uptown Cagayan de Oro, was built in 2009 and has been successful in attracting buyers and investors who believe that uptown CDO is an ongoing success story in the real estate market.
- Your property is illiquid.
Unlike most investments, real estate couldn’t be immediately translated into cash, preventing irresponsible use of money or overspending.
If you’re in need of cash, however, your property can be used as a collateral in the bank or you can use it as a security to apply for a loan.
- Better returns
For many decades, this investment has produced constant wealth and long term appreciation for millions of people. If you consider inflation, in the long run, if you decide to sell your property, there’ll be a higher chance to get better returns as compared to just keeping your money in the bank. Real estate has had an average return of 8.6-10% over the past 20 years, since we have gone through 3% inflation over the years and this partly accounts for the high return on the investment.
Much, much better if you pass it on as a legacy to your children and your future children’s children.
Looking for a property to invest in? Visit www.primaveraresidences.com or call 088-880-5002.
