Real estate is always considered a good investment. The Philippine economy is booming (with HSBC raising the growth outlook for this year, according to news reports) and more professionals have disposable income. Industry analysts say that now is the perfect time to create a solid financial portfolio. However, a word of caution must be given. Decisions must be made with proper research. This includes understanding the local market and avoiding these deadly real estate mistakes.
Novice investors can become fixated on finding the “best deal” or waiting for the “perfect time.” In reality, all real estate agents will say that there is no such thing. What is important is finding a project that is balanced and suitable for your needs at the time.
Where people often fail is looking too much into the price per square unit. In an attempt to get the most “bang for your buck,” there is a chance of missing out on an excellent project. One must also take into consideration the location. For example, a condo unit in Makati is a premium site. Investors must understand this and instead of focusing on the minutiae of pricing, look at the overall advantages.
Buying real estate is an important milestone in any adult’s life. It should be made with enough information and due diligence. The concept of “planning as we go” should be avoided at all cost. Real estate agents constantly advise their clients to develop an investment strategy or model and then finding a property to match that.
Many novice investors work backward; buying a home and then deciding what to do with it afterward. The amount of stress caused by this can be easily prevented. The problem lies with thinking of real estate as a transaction rather than an investment strategy. Remember that among all the other industries, real estate is a stable financial asset.
Another important decision that must be given proper thought is the real estate group you choose to work with. Leading groups in the Philippines, such as Ayala Land, assure all their clients of well-built and superior projects.
Paying Too Much
Before viewing models and speaking with a real estate agent, it is important to make a thorough examination of your finances. An easy way to do this is to create a simple chart divided into two columns. The left-hand corner would be expenses. This is where everything - from existing debts to occurring fees - should be listed. The right-hand corner would be revenue. It is in this area where you place all your expected income. The difference between the two is your net value. Ideally, the net value should be positive and enough to support a real estate investment.
Take note that you can always speak with your real estate agent for projects that best suit your budget. Remember that these assets should be comfortable for you. Whether you choose a site in Amaia or Ayala Land Premier, it should be a project that you like and are satisfied with.