Appreciating Appreciation
as published in atayala.com
Your thoughts on investing in real estate is probably what led you here. Whether you are looking for the next condominium or house-and-lot to buy, you should never stop learning about the market.
With all the realty projects popping out here and there, a good understanding of how the business of land and property works would really help you in making the smartest decision, especially since you will be dealing with your hard-earned cash.
Business experts suggest that if you are planning to invest in real estate in the Philippines, now is a good time to take advantage of land and property appreciation.
Understanding Appreciation
Appreciation is the term used for an increase in the value of assets, like vintage items, limited edition collectibles, jewelry, stocks, currency, trademarks, land, or properties. It occurs due to several reasons like an increase in demand, or a scarcity of supply. Movement in inflation or interest rates could also be a great factor.
Looking at the current landscape of real estate in the Philippines, investing in a condominium could be the best choice. Buying a unit or two won’t even mean having to live in it. There are a lot of ways you can diversify your money and resources by putting your eggs in different baskets.
Taking Advantage of Appreciation
Currently, there is a high demand for condo units in high-rise buildings located in Central Business Districts (CBDs) like Makati, Bonifacio Global City or Ortigas. Interest is also high for upcoming business districts such as Arca South in Taguig and Vertis North in Quezon City. There is opportunity in the upcoming crop of young professionals, young families, and even students, who aspire for a convenient life in the cities that they chose to live in. With the BPO boom and offices filled with employees who come from provinces outside the Metro, it won’t be too difficult for you to find people who would pay to occupy the space you bought.
This demand gives you more opportunities to earn higher each month, as property developers like Avida have in-house leasing services which can help turn your unit into a rent-generating enterprise. If you have the extra capital, you can even opt to invest in units located in prime locations; these are more expensive, but the potential profit would be worth it, as Global Property Guide places rental yields at between 7.04 and 7.51%, depending on the size of the unit in question. After half a decade or so, you can decide to sell the unit you currently own and invest in another brand new real estate property with a higher value.
If you want to start smart on your journey to the world of investment, getting a condo unit that you can rent out is quite possibly one of the wisest ways to go.
