Articles worth reading

Covid-19 reproduction in Quezon City drops to 6-week low

account_balanceQuezon City access_time5 days ago

The Quezon City coronavirus disease (Covid-19) reproduction number fell to its lowest in six weeks. According to OCTA Research, the city’s reproduction number, which shows how contagious an infectious disease is or the number of people who can...

Quezon City suspends 'bike helmet' policy 

account_balanceQuezon City access_time5 days ago

Bicycle riders in Quezon City welcomed the suspension by the city government of an ordinance requiring a biker to wear a helmet or else be slapped with a fine, according to a report by Philippine News Agency. Mayor Joy Belmonte said they will i...

Metro News

What is the best property for you?

What is the best property for you?

account_balanceMetro News account_circleAlejandro Manalac chat_bubble_outline0 Comments

A very basic question that somehow so many people actually fail to ask themselves first before signing on that dotted line on the contract and committing themselves in a major and long term obligation of amortizing their purchased property.  Most of the time mesmerized and emotionally overwhelmed by fancy presentations and colorful brochures, the binding agreement is usually clinched by throwing in a discount or some extra freebies. Prominent addresses matched with captivating amenities promising a swanky lifestyle allures the prospective buyers and make them forget about their investment objective (which they may not have actually thought of in the first place) then proceed with their engagement with the sweet talking, quota pressured salesman.

After a day, a week, or a month, some buyers just realize that they cannot really afford to proceed with the investment and come up with all kinds of reasons not to proceed and demand a refund. There are also some who will continue until they can even if they are always on the edge and pay their amortizations with heavy hearts. The good news is that there are still more buyers who either really know what they are doing and with very clear investment objectives, and those who were properly advised by experienced professionals. Just in case you have made a property acquisition in recent years, you may be able to identify yourself with any of these three types of investors.

The key is really simply knowing your clear investment objectives based on your needs, reasonable wants, the appetite for risks, financial capacity and length of holding period. Actually, it is only you who can answer all of these or you may seek the assistance of a professional adviser as long as you provide them with truthful facts. 
When identifying a project, you can match all of these mentioned items then determine the single most important factor, the Market. What and who will be your market if you decide to cash in your investment by reselling your property with a handsome capital gain or if you prefer to generate positive cash flow through rental income. It is equally important to consider the time when the property will be ready for turnover. Will there still be a sizeable market at that point. What will be the price range or the rental rates that will be affordable to a bigger number of prospects? What are the projected supply and the trend of taking up of similar units by your target market especially if you are considering to lease out your unit? What will make your building stand out among the other projects? What are the other expenses that should be considered in your ownership like property taxes, insurance, share in the taxes of the common areas, association dues, broker’s commissions, and minor repairs? While projects with a lot of luxurious amenities are really perfect for end-users who will enjoy the use of the facilities, it may not be very advisable for projects which are intended for lease at competitive rates.

If you fail to carefully take all of these into consideration and just get carried away by your emotions aroused in excitement in the course of the impressive presentation, chances are you will end up having your unit included in the numerous vacant units in some popular areas waiting for buyers or tenants while continuing to pay your interest-bearing amortization and monthly association dues.

With the continuing growth of the Philippine economy, we can still expect the property sector to ride with the boom. Two major contributors to the supply of money in circulation are the OFWs and the BPO sectors. These two Dollar generators play a very big role in the production and absorption cycle of the real estate industry. The former comprise most of the buyers and the latter providing the lessees for their units. The buyers of right-priced projects who can lease out their units at lower rates and still get very good returns are enjoying high occupancy from the BPO workers. 

Another growing and very promising business are renting out your units on a daily, weekly or monthly basis. One popular model of this is the Airbnb which is fast gaining acceptance worldwide. I will be writing about this in the coming issues. 

Editor’s note:

https://www.facebook.com/alejandro.manalac1


date_rangeDate Published
1 year ago
shareShare article
folder_openArticle tags
content_copyCategorized under

Share your thoughts with us

Related Articles

Photo Courtesy of Manila PIO

Manila opens new quarantine facility at PLM

account_balanceManila chrome_reader_mode21 hours ago

Manila opened a 66-bed COVID-19 quarantine facility at the Pamantasan ng Lungsod ng Maynila, the 14th facility to be opened in the nation’s capital. Manila City Mayor Francisco 'Isko Moreno' Domagoso said this is the biggest quarantine...

PLDT, Smart select Nokia’s WING for IoT services 

account_balanceMetro Manila chrome_reader_mode1 day ago

PLDT Inc., through PLDT Enterprise and its Wireless arm Smart Communications. Inc., is in an advanced stage of discussion with long-time partner Nokia to provide next generation Internet of Things (IoT) services for its customers. Together, Smart and...

Navotas City Mayor Toby Tiangco

Navotas retains 24-hour curfew on minors

account_balanceNavotas chrome_reader_mode6 days ago

Navotas City will continue its 24-hour curfew for minors amid the decision of the Inter-Agency Task Force for the Management of Emerging Infectious Diseases to allow persons aged 15 to 65 to leave their homes. "We want our children to stay safe...

The struggles in 2020 of the casino industry in the Philippines

account_balanceMetro Manila chrome_reader_mode1 month ago

Do you want to learn more about the challenges and predictions for the gambling industry in the Philippines? Find all answers in this article!

Let's Stay Connected Like us on our Facebook page.
×
Click on the article to continue reading
Isko wants anti-leftist tarps removed in Manila Google provides free listing of MSME products Second tranche of SAP nearly completed Gov't asked to subsidize workers' 13th-month pay Comelec announces voter registration schedule LTO releases new motorcycle plates Send Press Release MNC Facebook Page MNC Twitter Page MNC Instagram Page LGU Spotlight Barangay Front Business Sports Entertainment Metro Gen Metro Feature