Condominium has always been at the back of the mind of every investor. It can give you a quick escape, a home, and everything in between; But once in a blue moon, we Filipinos prefer to use it as an investment. Condominiums can give you liquidity and financial security. But what does it take to do so? Often times we purchase for the sake of just wanting a condominium, but as an investor, there are things you must consider when buying a condominium, depending on their purpose.
Below are tips for investors when buying a condominium for investment.
1. Target Market
This I believe is one of the most important aspects when buying a condominium for investment. What do you truly want to achieve? As we all know, there are certain classes in the Philippines, all can be your clients, but not everyone will like what you offer. This is the reality. For you to identify your market, you must first ask yourself these simple question. Who do you want to target? The High-Class? The Middle Class? The Students? Office-workers? Each one differs in terms of your investment. For you to truly make your investment work, do some research first and be wise.
2. The Size
The idea size to purchase is a 2-Bedroom unit, but sometimes we switch to a 1-Bedroom unit because of the amount of money we need to deposit. Truthfully, we must be ready to purchase what we want. The bigger the amount we spend on a property; the bigger return we get. If we decided to get a 1 Bedroom instead, normally, what we will get are short-rentals with low monthly, but there will be a huge market for this one. With a 2 Bedroom unit though, you get long term rentals with high amortization, but you need to be lucky to find the right family for this one. Different sizes, changes the type of market you get. Take note though, sometimes the smaller ones make the most money. You just need to know who you must target and where you must purchase. Which leads me to our next tip.
3. The Developer
In the Philippines, we have multiple big developers to consider, but again each one differs from another. Each developer has their own pros and cons, but one will be perfect for your investment. Know the developer first, study their track record, and make sure to know everything before you decide to purchase. Some developers earn more in terms of investment; some tend to be homey but does not make easy returns. Do your research, ask around, go to their showroom before you decide to purchase.
We have heard this a million times by now, but location is always key to the right investment. If you want to hit the big market? Purchase a unit in that area, but be ready to pay the amount. Do not be afraid though, a good location is always a good investment. Be sure to understand the future of the area, know what will be built and when it will be finished. Make sure to be near the area of your target market. If you want to target students? be close to the schools, want to target doctors? Be near the hospital. Again, each one differs to another.
Now, you’re more ready to make the right investment. Always make sure to know the what’s, the where’s, and the when’s of the condominiums. This will help you in making the right investment and avoid all the regrets later. Be reminded though, a property is a property, no matter what you do. It is still a good investment.