Condo Investment 101

What is the Ideal Size of an Investment Condo

From: Business Commerce and Asia Magazine

If you want to make a profit from your investment condo, then choosing the right size matters a great deal.

In condo investing, size does matter. But whether to go smaller or bigger is the more pressing issue. After all, how the buyer and investor plan to use the property in the medium- to long-term will help them determine the ideal size of their next condo purchase, because the condo’s size has a lot to do with its eventual profitability.

With this, global property portal Lamudi Philippines gives out advice on the ideal size of a condo property depending on the type of investment.

IF YOU BUY AND HOLD…

Go bigger

Investors who plan to purchase and hold on to the condo property in the long term are better off with bigger units: those with three bedrooms or at least 150 sqm. Although these condos are definitely more expensive than smaller ones, they offer good returns in terms of capital appreciation. In fact, according Colliers International Philippines, luxury three-bedroom condos in the three markets it monitors (Makati CBD, Bonifacio Global City, and Rockwell Center) are expected to appreciate in value by between 5.1 and 6.3 percent by the end of this year.

Where to buy them

These properties are usually found in Metro Manila’s business districts, such as the Makati CBD, Ortigas Center, Rockwell Center, and Bonifacio Global City. However, not all condos in these areas can be considered “luxury.” Smaller condos (less than 100 sqm), even those advertised as three bedrooms, cannot be considered as such and, thus, have lower resale value.

IF YOU BUY AND RENT OUT TO SALARIED EMPLOYEES…

Go smaller

Depending on your target market. If you target renters whose monthly incomes range from Php23,400 to Php67,500—junior executives and supervisors, based on Jobstreet 2015 salary report—then you are better off with smaller condos (from 21 to 32 sqm). Metro Manila’s buoyant IT and BPO sectors, among other industries, make rents for these condos are relatively affordable for these young, usually single, workers. Monthly rents for these condos can range from Php14,000 to Php21,000, based on Lamudi price data.

Where to buy them

Many of these condos are found in the periphery of Metro Manila’s CBDs, especially the areas close to the MRT stations along EDSA (Magallanes, Boni-Pioneer, and Shaw). Living in one of these areas also make a lot of sense to these renters, as commuting to work becomes easier.

IF YOU BUY AND RENT OUT TO EXPATS…

Go bigger

Especially for those with families. Metro Manila’s high-end leasing market is quite buoyant given the high number of expats employed in the BPO sector. These condos usually have three bedrooms and sizes of at least 200 sqm. According to Colliers, condos of this size in Metro Manila’s high-end areas are expected to post rental rate increase of between 4.7 and 5.1 percent by the end of this year.

Where to buy them

Expats prefer areas where work, leisure, and schools for their kids are within reach so the Makati CBD, Rockwell Center, and Bonifacio Global City are a good bet for condo investment. These places are self-contained, mixed-use developments that expats like because convenience and security are their utmost consideration.

 

 

Myths and Misconceptions about real estate investment

Global online real estate marketplace reveals top mistruths about investing in property

There are a number of factors playing a role in real estate investment, including tax incentives, fluctuating market conditions and economic strength. However, figures show that fewer people invest in real estate than the stock market, raising the question why?

As international property markets go from strength to strength, global property portal Lamudi looks at the top misconceptions surrounding real estate investment.

It is just too risky

While investing in property comes with risks, so do all investments. The property market is an increasingly attractive way to make money, as long as time and effort is spent researching the current property market, and its changing conditions. With the help of experts, you can make a calculated decision before taking action.

The more properties you own, the easier it is to make money

Real estate is not a get-rich-quick investment; it can take time to develop a good cash flow. Managing a lot of rental properties at once takes a lot of time, and resources. By nurturing your investments, you may be able to afford a property manager. However in the initial stages, it makes more financial sense to start off small.

Only the wealthy can invest in property

While it is true that you need to enter into property investment with financial security, you do not need to be wealthy to invest in real estate. It is realistic to consider that a property will appreciate in the long-term. If you can plan, research, and negotiate a good deal for the right property with profit potential, you can successfully make a smart investment.

Only local investment will result in ROI

By limiting yourself geographically, you are ignoring investment opportunities, both in the same country and globally, that may be more profitable. Whether you would want to live in this location or not, consider how attractive the area may be for those looking to rent. Are there attractive local amenities? Is it well connected? Is the neighborhood desirable? These are all questions to ask yourself when considering the location of your investment.

Five ways to rain-proof your homes

Torrential rains are pouring down on the country as the monsoon season is back again. Even if its a normal occurrence for us Filipinos it is still best to be prepared and protected. Here are some tips to ready our homes for the typhoon season.

From: calongeloria.com

Lamudi Philippines offers rainy-season essentials to ensure home preparedness.

Home check and care are a must, especially that the monsoon season is expected to start soon in the Philippines. With this, global property website Lamudi Philippines offers five ways to protect your home from the sudden onslaught of torrential rains.

1. Roof Checkup

A twice-yearly preservation check of your roof can do wonders and can spare you from headache and expensive repairs later on. The roof is a very important part of the house; it is your first line of defense against intense heat, typhoon-strength wind, and torrential rain, so before the wet season officially kicks in, make sure to conduct a thorough check.

Look out for damages or inspect areas susceptible to leaks and repair immediately. Make sure there are no holes and rust spots. Likewise, inspect your gutters if the drain is working well and check for clogs in the down pipes.

2. Secure Your Wares

Secure objects in your home that could possibly fly, fall, slide or bend from strong winds. This tip applies to the roof as well—make sure that your roofing system is well fortified to avoid roofs flying off or being carried by strong winds.

3. Waterproof Doors and Windows

Seal your windows and cracks with waterproof sealers or rubber gaskets, which can be purchased from DIY or hardware stores. These will prevent unwelcome water that might leak through cracks, and they can be easily replaced.

4. Inspect Your Drainage

More than the rain, it is the flooding that deserves most of your worry. If possible, make sure that your drainage is working properly. As this is a relatively huge task, hire professionals to do this for you.

5. Trim Overgrown Plants and Trees

Thick and dense plants and branches that hang precariously near windows or power lines can pose hazard to your household in case of harsh winds and rain, so make sure to prune them. Trimming shrubs may be easy, but the bigger tasks, such as pruning tree branches, are better left to professionals.

In addition to these five tips, make sure to keep emergency kits in places where you can easily find them. These kits should include drinking water, flashlight and batteries, and medicines. These will come in handy during floods and power outages very common during the monsoon season, and may even save the life of people around you.