Real estate has traditionally been regarded as a wise investment, particularly when other options are either too volatile or provide insufficient returns. The big question is, what form of investment property is ideal for long-term success, and where should I acquire it?
Discussions on condo investing and the measured risks for property prospects are also key issues to consider as we continue to live through this worldwide epidemic.
Now to answer the question, “Are condominiums a worth it investment in this pandemic?” you must consider some of the factors; both advantages and disadvantages. You must also analyze recent condo market movements that have been affected by COVID-19.
Reasons Why Condos Remains to be a Good Investments in 2021
Consistent cash flow with a lower risk of investment
Because the choices for utilizing this enterprise are limitless, the best condo investments produce dependable income flow. You can rent them out for residential or commercial use, or you can profit from them by selling them after a few years. All investments are risky, but condos are less risky than others.
Real estate can be leveraged as its value increases.
Leverage is a tactic you can employ to secure your prospect because it leverages borrowed funds and, as a result, improves the potential return on investment. This is a benefit to you, especially when real estate values grow.
Aids in the accumulation of equity.
The majority of the time, condos are purchased using loans rather than cash. The more you pay down your loan, the more equity you accumulate. This is a victory for the owner both now and in the long run, as the property’s value rises.
The Real Estate Market and Retirement.
Real estate, like any long-term investment such as education or relationships, is a good option for retirement plans. This is one of the most overlooked, yet crucial, phases in purchasing a condo in the Philippines.
Real estate has a lower tax rate, while developers offer substantial discounts.
A condo has a lower tax rate than a house. What’s more, condo developers provide significant discounts, particularly during the pre-selling period. As a condo investing strategy, scouting during this time period is ideal.
Pandemic-Proof Real Estate Investment
True, there are benefits and drawbacks to purchasing a condo in the Philippines, but the benefits outweigh the drawbacks, especially in light of the coronavirus outbreak. To alleviate your concerns about the risks of condo ownership, consider the following advice on how to approach this investment and where to go from here:
Look for assets that are less expensive than their replacement cost.
As an investor, you must consider both the cost of purchasing land and the cost of constructing the property from the ground up. Is a condo a decent investment when so much money is needed? Yes, but only if you budget properly. This requires properly pricing rentals, which should not be lower because additional buildings will incur higher development costs.
Look for leases with lengthier lock-in periods.
Condo investment in the Philippines can be easier if you opt for ones that have lengthier lock-in periods. Condos, where tenants have already invested in the fit-outs, commit them to it and, as a result, have lower vacancy forecasts.
Try signing leases with yearly escalations of 5%
You must be careful in your real estate investments. Leases often need a 15% yearly escalation every three years, which might be daunting to prospective tenants. Instead, have them sign leases with annual escalations of 5% so that it is more progressive and manageable for both parties.
Look for tenants who are of the highest caliber.
In the same way that the developer in whom you are investing should be trustworthy, so should the tenant. COVID-19 has altered how banks urge us to be cautious with our real estate investments. Grade Tenants will consider rental charges as a small portion of their total revenue and, as a result, will view them as assets rather than just another cost center.
All lease assets must be paid off.
The most serious risk you face is investing in a rogue developer or fretting about finding a new renter. Purchase only completed lease assets to mitigate leasing and development risks.
Invest in the Growing Alternative in Metro Manila, North Caloocan
Is it worth the money now that you’re thinking about buying a condo? Definitely. There are even prime real estate investment locations around the country. It would be quite beneficial for you to plan for the next stage of your life and flesh out your safety and stability through long-term investments that you can benefit from.
Discover the new side of Caloocan City with Camella Manors.
With the abovementioned factors, now is the ideal time to invest, move, and reside in North Caloocan with Camella Manors! Camella Manors Caloocan is the first mixed-use condo development in North Caloocan.
Located in the progressive area of Camarin Road in North Caloocan, this 5-tower residential property has its own commercial complex; which is ideal for those who are searching for a holistic and convenient condo living experience.
Invest in Caloocan and reap the benefits of the economic boom and business-friendly environment of one of the richest cities in the Philippines. Buying an affordable condo in Caloocan is an ideal choice for those who want to generate passive income through real estate investing.
Hence, Camella Manors Caloocan takes pride in being the first mixed-use condo development in North Caloocan, changing the landscape of real estate in Metro Manila.
Aside from the strategic location, it also features functional amenities; such as a swimming pool, clubhouse, function hall, fitness gym, playpark, jogging path, and garden roof deck. 24/7 security is provided to maintain a safe space to live.
Furthermore, you will surely enjoy a life well lived in the city-suburban setting; surrounded by a positive community of businessmen, investors, and Overseas Filipino Workers. If you want to use your unit as an investment to earn passive income, Vista Leasing Services can help manage it for you.
Get a chance to live outside the box at Camella Manors Caloocan!
Know more about Camella Manors Caloocan at www.camellamanors.com