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Philippines Real Estate: Things You Need to Know About Buying a Condo in the Philippines

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“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.

In sum

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.

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Independent Living Starter Pack

Finally, you’ve been able to move into your newly acclaimed affordable condo in Mandaluyong City. It surely feels great to say that you are free finally. Hooray! But we all know that independent living is not just all about the happiness and perks of living alone. If you are that person, or someone who is planning to live away from parents, relatives or guardians, for fun, here is your solo living starter pack:

I am so glad that I MADE this happen

happy condo living

Other people have that luxury or blessing to be given a new house or condo unit for his or her use (yes, you are super lucky!). And it’s a different wonderful story for those who had struggled for we-do-not-know-how-many-years before they were able to get their place finally. Since from renting to owning and paying his or her dues are difficult, the return of glee and happiness is priceless. So yes, you are so glad that you made that happen!

You will remember all the hardships you’ve been through to be able to see yourself in your dream home and thinking of all the possible countless things you can do since you are now alone. Yay, excited!

Wait… am I really ready for this?

thinking condo living

So here comes self-doubt and anxiousness creeping in. From being so joyful and ecstatic about imagining yourself living independently, the thoughts of how will you be able to pay everything, have the time and energy to clean and cook, study and work at the same time, and much more kicks into you. This doubting stage is not just for a one moment, but it will get it into you a couple of times; possibly after a bad day, when you are sick, too exhausted or whatnot.

No worries, dear. This thought will not haunt you forever if you claim it yourself that you are really ready and your decision of living independently is nothing but correct.

Got to make my place clean and presentable

clean condo living

I don’t know if it’s just me or whenever we have something new. We want to make and keep it clean as much as possible. Moreover, you want to see your belongings beautiful and in pristine condition, because you know how precious it is for you and how hard it was before you finally get it into your hands. Same as with your new house, you do countless hours of cleaning and keeping it nice. Yes, hardworking!

Then that day of laziness

tired condo living

It’s not every day that you will choose to pick up the broom and sweep the floor, if it is, good for you and your home. But for those who struggle to get up and cook for themselves, there are times you would rather go lazy than tired. We all deserve a break and pamper ourselves in whatever way we are used to – not cleaning the house, ordering food instead of cooking, lay down and have a movie marathon – yes, whatever!

Your old things are still there

teddy bear condo living

Your favorite stuffed toy and lovely pillow are still in your bedroom. Your good-old cabinet also moved in with you. Of course, for practicality, you don’t need to have everything brand new. There are things you can leave with your previous home but decided to take it with you. Why? Because you need that sense of comfort, belongingness and companion to a “whole new world” in which you don’t know anyone but your old things. These materials will also give you the vibes of the home of your “faraway previous home” in your “new home.” Nostalgia and tears are coming right up!

And of course, a lot of adventures!

adventure condo living

No explanations needed. It’s for you to discover yourself.

 

So we hope that you were able to see yourself in this basic independent living starter pack. What’s in yours?

FOUR SELLING FAUX PAS OWNERS COMMIT IN SELLING THEIR HOMES

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People who prefer to get the full profit of their home’s worth would rather sell their homes by themselves rather than entrust it through a broker and have to deal with pay cuts. And since shopping through the Internet has become a rather trendy thing where you can find even the rarest finds online, homeowners wishing to sell their homes have exploited this technological advancement to its maximum advantage. This remains to be a stiff reality even with the downturn in the real estate market, and more and more people think that they can do a better job of selling their homes than the pundits who have been in the industry for years and who have had far more experience than they do.

While selling your homes on your own is not exactly an impossible feat, you may find yourself disappointed with the slow pace or sale you may be getting owing to your inexperience and ineptness. Considering that most of you are novices when it comes to selling homes on your own, it can be easy to commit several faux pas when it comes to pricing our homes, but it is nonetheless, it is a mistake that can easily be rectified. However, before you go on selling your home on your own, it would be great to have an idea of which mistakes to avoid so that whether you are selling your Makati condo or your swanky apartment from uptown, you would be doing it right.

So if you are planning to sell your homes anytime soon, here are the common faux pas you should be avoiding:

1.) EMOTIONAL PRICING

One of the mistakes a homeowner commits in pricing his homes is emotional pricing where he prices his home based on nostalgia and sentiment rather than its real value. This is not necessarily a bad thing but if you are listing it at an exorbitant price for which the buyer will not be getting much value at, you will be disappointed with your lack of potential buyers. Homeowners have this propensity of viewing their property with emotional attachment and because of this, inflation in price –when experiences as a child are considered—will ensue. Do remember that although your memories may mean a lot to you and may mean something of value (may it be through your various decorative touches throughout the home), this is not necessarily true for your potential buyer, and they may not share the same sentiment. Price your home as if you are looking at it from a broker’s standpoint and not an owner’s.

2.) INSISTENCE IN NOT GETTING HELP

You may be selling your home on your own, but that does not mean you are selling your home entirely on your own. At the most, it means that you will do some or all of the work involved in finding a buyer, complete the transaction in the hopes of saving all of or part of an agent’s commission. But this does not mean you will disregard any sort of assistance that could potentially help you. Remember, in this age of technology sources of information and support are available almost immediately and at the click of a finger. If you do not take advantage of this, you will be putting yourself at a disadvantage. To be a savvy seller, you should know when to seek help when you need it.

3.) IMPROPER STAGING

Buyers can be very discerning and discriminating when it comes to buying homes considering that they have a plethora of houses to choose from. So with this in mind, you have to stage your home correctly in order to entice a potential buyer to buy from you. Impressing a buyer does not always take much as simple things such as paint, good flooring condition, cleanliness, uncluttered walls and well-lit rooms are already a few nondescript but imperative things that would impress a buyer. If you are unsure of the best way to stage your home for viewing perhaps hiring a professional would be best so that they can advise you on the changes you can make to not only attract buyers but keep them interested enough to make an offer.

4.) INSUFFICIENT PHOTOS

One thing you must remember when you are selling your home is that you are trying to attract potential buyers and hopefully have them make an offer. Considering this to be the case, you should be sure to put up adequate photos online that buyers seeking for homes to buy online would be able to do a virtual tour of your home—one that would eventually get them to see your property in person. Showcase your home at its best and choose the best photos to upload.

Five (5) Steps To Achieving Financial Independence

Financial independence is generally described as a state of having sufficient personal wealth without having to work actively for basic necessities – necessity such as shelter, food, and clothing. It is basically a way of living where you are not confined to a nine-to-five, full-time job just to sustain your current lifestyle. Achieving this takes time, effort and a whole lot of determination.

financialHere are the basic steps to help you reach that.

  1. Start with goal setting. First and foremost, specify your purpose. How do you see yourself five or ten years from now? Do you aim to get rich or do you want to live just comfortably? List down all your short-term and long-term objectives. As what Napoleon Hill once said: “Strong, deeply rooted desire is the starting point of all achievement.” So get on with your visions, be on track and set those goals now.
  2. Assess your financial situation.  How much are you earning right now? Suppose you do less spending and more saving, up to what point would that take you? How long would you need until you’re near your objective? Do you need to switch jobs? What’s your guarantee that by doing so, you’ll get closer to where you want to be? Evaluate your current position and begin drafting strategies towards resolving obstacles that may hinder your growth financially.
  3. Manage your money wisely. This is where discipline and plans of action come in. What are your biggest expenses and how would you move towards reducing them? Are most of them must-haves or just nice-to-haves? Define their significance to your everyday life. This step is not meant to make you feel like a pauper that you have to save every little penny you earn. It’s all about managing your finances intelligently and making smart choices when it comes to expenditures. Experts say that saving money is a key to financial success. Put aside 10% or more of your earnings and do it as early as you can in your life. Remember Bruce Lee’s words: “Make at least one definite move daily toward your goal.”
  4. Ensure that you are out of debt. Most of your efforts would be useless if you are neck-deep with debts. So make sure that you pay them off and eliminate them entirely from the picture. Keep this in mind: “Debt is like any other trap, easy enough to get into, but hard enough to get out of.” -Henry Wheeler Shaw
  5. Take the risk and invest. Be a risk-taker and success would be within your hands. A couple of risks that you could take involve investments. One is through owning a property. The real estate industry is one of the best investments in the Philippines. If you would purchase and then put an apartment or a PH house for sale, you could later have it rented thereby giving yourself a monthly income without a sweat. Another is by starting up a business. With today’s technology, internet marketing is proven to be one of the most profitable businesses these days. Once you gain the necessary skills, you could either be a consultant or be your own boss. Whichever investment opportunity you decide, do not forget to always do a thorough research first and educate yourself. Just like what Benjamin Franklin used to say: “An investment in knowledge pays the best interest.”