by on June 25, 2014 | Categories: Real Estate Industry
The Philippine economy has undergone massive growth development over the past 12 years. A report by the World Bank indicates that the economic growth in the Philippines has been increasing at an average of 5% since 2002, a considerably higher growth rate as compared to the prior two decades.
Alongside the robust development of the country’s economy comes the rising market trend in real estate in the Philippines. Claro Cordero, Jr., a contributor at the Jones Lang La Salle blog, has found that housing or real estate demand in Metro Manila alone has been continuously increasing, with an approximate demand backlog of 58,000 housing units on a yearly basis.
Good property investment has never seen the best timing for market popularity than it has at the moment. The booming real estate market in the Philippines signals the existence of several various opportunities for property investment that can largely assure security of your future finances in the years to come.
Grow your money by investing in a real estate investment trust or REIT. A REIT is a stock corporation that enables investors to invest in a property to pull in income through real estate assets. A REIT investment entitles you to several tax incentives, thus, increasing the net income you receive from renting out the property you will be purchasing.
Secure your financial future by investing on a housing property developer that in turn, invests on the REIT. You may have to invest a lump sum of money in order to purchase a property under a developer that uses REIT. However, you’ll see that the amount of money you’ll spend for REIT investment will be all worth it, as your return investment money in the bank earns high interest rates in the long run.
When you start receiving the interest rates from the bank, which you produce from the REIT investment returns, you may have the opportunity to just lay back and stop working. This is because the high interest rates you’ll receive from the bank may be sufficient enough to support your daily needs in life, including luxurious stuff you may want to indulge in from time to time.
To widen your options in generating income from an invested property, consider exploring commercial leasing as well. You may choose to lease your property at a reasonable rate to a virtual company that does not want an expensive rental fee. Renting out your property for commercial purposes at a reasonable rate allows you to gain clients and monetary compensation without having to undergo a long wait time.
The growing condo rental market in the Philippines makes condo a popular commercial leasing space for many businesses, especially virtual companies. There is not much activity going on in a work day at a virtual company. Each employee works mostly independently in front of a computer. Because of the business nature of the virtual office, having a small to mid-sized condo unit as its workspace works out great on both the property owner and the company’s behalf.
House prices in the Philippines continue to soar high. Properties below market value are also available in the real estate industry. Invest in properties that are within 40 to 50% below the market value. Consequently, the discounted amount will produce larger equity gain. It’s going to do you a lot of good if you invest in a property below the market value if you plan to actively invest in a real estate property for a couple of decades. The rate of income return will be far much greater than the amount you spent on investing after 15 to 20 years.
Make a condo as high investment priority when purchasing a property below the market value. Condos make good property investment for a rental business. Rent out your condo to a long-term tenant. If your condo has a low market value, undoubtedly, the rates of investment return you’ll get from rental income will double in the next couple of years, or decades.
One unique way to get rich by investing in a real estate property without making any payments is to work as an agent or broker with a leading real estate developer in the Philippines. Signing up as a real estate agent won’t cost you an arm or leg. You will be required, though, to put in efforts in attending seminars and training so you can widen your knowledge on the real estate realm.
Expand your connections with a network of investors who you may potentially do property transactions with. Be active in social media sites to post the details of the properties you’re marketing. Don’t get tired of following up with clients through making phone calls to show them that you’re serious in marketing your property. Be proactive when giving out details about the benefits that living in your property gives during orientations.
If possible, feel free to attend seminars and workshops about real estate brokership hosted by various leading institutions in the country. You’ll gain invaluable knowledge that you would have never have known by only reading and conducting research on your own.
If you have all the money in the world, consider buying a land and constructing a condo building on it. DMCI Homes has done just that, while providing comfort and satisfying the need of the market. The developer has constructed several property projects in the metro, and has enjoyed earning a fortune from completed projects.
You may choose to not only make the condo units in your new project available for purchase, but also make them available for residential leasing to gain additional total revenues. Make sure you offer more or less similar amenity privileges to your renters that your condo owners enjoy, so you’ll be able to maximize the chances of keeping your renter happy and satisfied doing business with you.
Try to pull in more income from property investment by purchasing a share at an events place area in your condo. Many developers allow this type of investment share in their clubhouse. Talk to your developer about this. You’ll earn extra income along the way when a non-resident individual decides to rent your condo’s clubhouse so he can have a venue to host a small private party.
If you’re looking for a property investment that can rake in huge amount of revenue and income on a long-term basis, be confident that you’re making the right decision by making a real estate investment. You’ll be in luck if you decide to make an investment in real estate now, as the demand for it exceeds the current supply available.