Investing in Philippine real estate can be a great way to grow your wealth – but there are several things you need to consider first. Here’s a rundown.
The Philippines is home to many beautiful beaches, pristine islands, and a rich cultural heritage. But aside from its tourism industry, the country is also becoming an attractive destination for real estate investment. More and more foreign investors are considering the Philippines as a profitable market for real estate investment. With the country experiencing sustainable economic growth, coupled with the increasing demand for quality residential and commercial space in key cities, this is an opportune time to invest in Philippine real estate. But before diving headfirst into the market, here are some things to consider.
Location Is Key
The location of the property is one of the most important factors to consider when investing in real estate. In the Philippines, prime locations are those in key cities like Manila, Quezon City, and Makati. Properties in these areas often yield high returns on investment due to the increased demand and limited supply. Here are some things to look for in an ideal real estate location:
Proximity to Business and Educational Institutions
One of the best advantages of investing in Philippine real estate is its proximity to business and educational institutions. Investing in properties located near universities, business districts, and other government offices can lead to greater returns on investment. These areas are often sought after by potential tenants and buyers, as they offer convenient access to job opportunities and leisure activities.
Accessibility via Public Transportation or Main Highways
The accessibility of properties in the Philippines is essential, as it makes transportation easier and more convenient. This is especially important for potential tenants and buyers who are not car owners. Being located near public transportation or main highways also increases the desirability of a property, as it provides easy access to nearby establishments.
Low Crime Rate
A key factor when investing in Philippine real estate is the crime rate in the area. Low-crime neighborhoods provide a safe and secure environment that potential tenants and buyers prefer. It’s important to research the local crime rates before investing, as this can have an effect on the value of the property. The Philippines has become increasingly safe and secure in recent years, making it an ideal location for real estate investment.
Look for House and Lot Deals
One of the best ways to invest in real estate in the Philippines is to look for house and lot deals. If possible, try to find properties that come with additional amenities, such as a swimming pool or a gated community. These features not only provide extra value to the property, but they can also be attractive to potential tenants and buyers.
For instance, you can opt to purchase a house and lot at General Trias. This city in Cavite offers numerous residential and commercial properties that are close to business districts and educational institutions, as well as near public transportation and main highways.
Crime rates are generally low in the area, making it an ideal choice for investors. House and lot packages at General Trias are a great way to get started in the real estate investment market, as they offer complete packages that simplify the process.
Know Your Financing Options
The Philippines has various financing options designed to help interested investors purchase properties. Each option comes with its own requirements and interest rates, so it’s important to explore your options to find the best deal for your investment. Here are options that you can avail:
Bank Loans
Banks are one of the most common sources of financing for real estate investments. They offer competitive rates and flexible repayment options, making it easy to manage your finances. However, banks often require a high credit score and collateral before they approve loan applications.
Housing Development Mutual Funds
Investors can also avail of Housing Development Mutual Funds (HDMF), more popularly known as Pag-IBIG. This is a government program that provides loans for real estate investment with low-interest rates and flexible repayment terms. To be eligible, applicants must register with the Home Development Mutual Fund (HDMF) and have been contributing to it for at least 24 months.
In-House Financing
Some real estate developers in the Philippines offer in-house financing for investors who are looking for a more budget-friendly option. These in-house financing arrangements often come with lower interest rates and longer repayment terms than traditional bank loans, making it easier to manage your finances. In addition, some developers also offer discounts or other incentives to investors who avail of their in-house financing.
Investing in Philippine real estate can be a lucrative and rewarding move for investors who understand the market’s landscape and know how to navigate it. With the country’s growing economy and demand for quality commercial and residential properties, the potential for returns on investment is high. Remember to consider the location, financing options, infrastructure, market demand, and enlist the services of a reliable real estate agent. By doing so, you can make the most out of your Philippine real estate investment.