“Every person who invests in well-selected real estate in a growing section of a prosperous community adopts the surest and safest method of becoming independent, for real estate is the basis of wealth.”-Theodore Roosevelt
In modern Philippines, you would be hard-pressed not to find a condominium tower in major cities. In fact, it may be argued that you can find one (or one about to be erected) in almost every nook and cranny in its biggest metropolis, Metro Manila. Of course, this rising trend of condominium living is to be attributed to the proliferation of these real estate projects. After all, with a Filipino’s perpetually busy lifestyle, living in a condominium unit would not only be convenient but ideal. With this in consideration, the Philippine condominium market remains as robust as ever and shows no signs of slowing down. After all, with the ever-increasing demand, condominium developers must endeavor to address that exigency.
As Manila is rife with individuals seeking condo units (seeing as it is a premier spot for professional and career growth), it would inevitably be area developers would be so keen to develop. Makati, Fort Bonifacio, and Ortigas are three prime spots where condominium units are the most prevalent. However, with a myriad of options to select from, buying a condo can easily get tricky. How can you ensure that the unit in two serendra is ideal for you? Is there any way of knowing whether the property in question would make a sound investment? While there is no telling for sure, it would be best if you armed yourself with information as regards the property you are looking to buy.
Otherwise, here are a few things you should consider to help you decide where you should put your money:
When in doubt, check the rental yield
Experts in real estate would argue that rental yield is a paramount criterion for real estate investment—and they are right. The Asian average is around 4.2%, but this number is nothing in comparison to those of Metro Manila where rental yields are at an all-time high. Manila is a prime spot for condominium investment as investors can expect a yearly influx of individuals who are looking for condo units to rent—from the students to young professionals.
Consider those places that are near to BPO offices, central business districts, techno-hubs and significant developments as these will be driving factors in raised rental yields.
When looking for condominium units to invest in, consider smaller units
Most individuals looking for a condo unit to rent would hardly be looking for a full-blown condominium complete with three rooms, a suite, and a rather spacious bedroom. Considering as they will mostly be living alone, renting a big condo unit would not only be impractical but unnecessary as well. Save for a few exceptions, it has been determined that the rental demand for one-bedroom and studio type units are higher than two-bedroom units and up—most especially in developments in or in proximity to central business districts.
This is because most potential condominium tenants would likely be looking for only enough space for themselves only making the extra rooms extraneous. So, instead of investing on condos with big spaces and some rooms, choose the single unit ones.
If you are looking to invest in real estate in the Philippines, breaking ground with condominium units is an excellent way to start. Condominium units are known for their affordability and high rental yields as compared to the Asian average. Select premier areas where the working and student population remains the highest. Furthermore, choose properties in proximity to business districts, schools and BPOs and you are guaranteed a good investment.