When people talk about investing, real estate investments like a house always make it to the top of their list. And rightfully so. A house is a piece of property that appreciates really fast. But how? And what makes one house more valuable than the rest? Renovations and remodeling work can transform a house’s style and function. But these are really not what appreciate in value over time. It is the land or where a home is built on. A house can be constructed easily, but finding a land where to build it is not. This is why realtors and developers are not exaggerating when they say location is everything.
Some people ask: why buy a 30-square meter condo for three million pesos when you could actually get a 60-square meter up-and-down townhouse in a far suburb in Metro Manila? The answer is location and that is what dictates value. A property within a business center, close to malls and schools, or easily accessible because of its proximity to public transportation and major highways is naturally more high-value. This is why a lot of buyers invest in commercial condos. Condo leasing is a very profitable business because of the growing number of people, mostly young professionals, who want the convenience of condo living in a prime location. These people understand that value does not depend on how pretty a house is but on how comfortable, convenient and secure it is. The value of a property also depends on the financial activity in the area, development, its neighborhood, and its people.
A neighborhood or a community with many young people is a sign that a property is valuable. This is the generation that works, spends, and invests. And we’re talking long term.
The Young at Work
Most young people look forward to working and making a living. Try walking along Bonifacio Global City and you will see a lot of young people in their 20s and 30s rushing to their office buildings, finding a parking space, or taking their lunch break. The rise of the millennial workforce cannot be ignored. One U.S. study shows that this year, millennials will overtake the Baby Boomers in numbers and by 2030, today’s millennials will make up 75% of the workforce.
Tech giants, multinational companies and BPOs are always on the hunt for these young urban professionals or yuppies. And these yuppies are always looking for a place near their office buildings. Traffic is simply a game-changer. The desire to live closer to the workplace to save time (and get more sleep), save money on gas or commute, and save sanity by not having to go through rush hour traffic every day are among the reasons why condos for rent in prime locations are a hit.
Condo renting is very popular among young professionals. Aside from the convenience of living in close proximity to the workplace, condo living is just simply comfortable. It is also safe and secure. When renting, yuppies invest on location, convenience, comfort, and security. So if you are surveying a home you want to buy or offer to buyers, look around first. If you see a lot of young professionals in the area, the chances are good that the value of the property is high. A steady rise in residential and commercial leasing is a sign of good things to come. Money is being made in that side of the city and developments are likely to continue.
The Young and The Dreamer
A generational survey by realtor.org found that millennials represented the largest number of home buyers today. These are young professionals and young couples starting a family. This market is made up of dreamers who aspire great things. When a neighborhood is made up of people belonging to a fairly young generation, this means that there must be something about the area that made them want to stay for a long time. A community with young residents is vibrant, busy, and fun.
Real estate in the Philippines is focused on vertical living essentially to attract the young population. Vertical living is more custom-fit to their lifestyle. The location allows them to work and play without going through a lot of hassles. Vertical developments are surrounded by the things young people need, want, and ever dreamed of.
The Young and Restless
Young people are literally restless. They lack rest and most of the time, prefer it that way. If they are not working, they are having fun or if they are lucky, they do both at the same time. An area where young people thrive is a place that is always busy and full of life. It is “on” 24/7. There’s always something going on at any point of the day. You can envision this place as having al fresco dining areas, jam-packed restaurants, drive-thrus, clubs, and spas, and bookstores and coffee shops everywhere. This is the area you want when you invest in a commercial condo. This is the area that your market will fall in love with. The condo rental market in areas like this will only grow because it presents everything a resident will ever need. A frap on the way home? Meeting with a friend on a Friday night? Want a massage? No problem. Everything is in walking distance. Now, who doesn’t want to live in a place like that?
Investing in a condo is really a no-brainer. Whether you live in it or offer the condo for rent, you are sure to get the best value for your money. Be very particular with location. A high-value property is one surrounded by developments, important establishments, office buildings, schools, public transportation, and yes, young people. When young people choose the home they want to live in, they intend to live there for a fairly long time. That community better be fun and vibrant to accommodate their lifestyle. That community is a real estate gem and equally precious to investors and prospective buyers.