วันเสาร์ที่ 20 กรกฎาคม พ.ศ. 2562

Top Factors to Consider in Real Estate Investment in the Philippines

Findings from different surveys and assessments of business and research entities have indicated the Philippines as one of the top destinations for real estate investment markets in Asia for 2014. This is in contrast to the general slowdown across Asian markets, and despite the recent calamities endured by the country, experts see the Philippines' property sector to continue its upward trend with the surge of real estate investment that it currently enjoys.

Specifically, investors are taking notice of the country's market buoyancy along with its positive results, such as various property fronts now being developed to cater to market demands including office, industrial, retail, residential, and leisure. This upward trend is not only seen in Metro Manila, the country's capital, but also in locations such as Subic in the north and Metro Cebu in the VisMin area. This upward trend in real estate development has traditionally been attributed to the information technology - business process outsourcing industry (IT-BPO), but as of date, other sectors has been progressively represented as well, including expansion of back office operations for multinational corporations involved in banking and finance, health management, and game development. In fact, some of Fortune 500 companies are seen as participating in contracts for long-term leases involving world-class developments.

With this positive outlook for real estate investment in the country, it is high time for investors to consider making a good profit out of it. The following factors should be taken into account:

Market An excellent real estate property investment is of course one that will give a good sum of return out of your investment outlay. Primarily, rental income is the main source of profit in real estate. So in making a property investment decision, the following questions should be asked:

1. What kind of rental will you attract? The answer to this question is very important for you to gauge the profitability of your investment, as well as how you would approach it.

2. Does the area have a high rental demand that can sustain your business? For example, if you are mainly after student renters, then you should specifically invest in properties along Manila's University Belt area.

3. Who are your target ฝากขายบ้าน clients/customers and what are their preferences in terms of property type and rental payment schemes? Your answer to question number 2 above largely determines your answer to this specific question.

4. Is there a consistent growth in the area's property market growth?

Growth Growth of your financial portfolio should be considered in any property investment. In order for you to have a gauge of an investment's potential, you should create your own goals in accordance with your financial growth plan. For instance, you may ask yourself the following questions:

1. How much profit do you expect from your investment in the next five years?

2. Does this particular investment enable you to calculate your expected profit?

A good property investment will give you a reasonable ability to project your expected profit. If not, then it certainly is not a good investment at all.

Risk Risk includes the cost that is associated with every investment. The answers to the following questions would be of help in assessing an investment's attendant risk:

1. How much would you need to maintain the investment, especially in terms of amortization and interest rates payments? In the case of the Philippines, business experts agree that the country's interest rates is one among the factors that support sound investment.

2. What is the projected short and long-term changes in terms of demand?

3. Is the market showing signs of growth, stagnation, or shrinking?

After having clear answers to the questions mentioned above, you can then create your business strategy to suit your specific investment needs. Your business strategy should specifically take into account your target market, your profit goals, as well as your risk tolerance.


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