Real Estate Investing
Posted by Chebong Hernandez, Real Estate Salesperson | July 15, 2021 | Blog | Real Estate Investing
Did you know that Real Estate investing is the best way to increase your passive income potential?
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Every time you think about diving on any investment, you always have to check your financial capabilities and set your financial goals. From what stage you are in and what priorities you need to settle first before building that extra money you can roll over investments. This should determine how much time you need in order for you to achieve that financial goals.
You're probably here because you read somewhere that real estate is the best investment you can create in order to multiply your financial assets. Although every business has risks, you might wanna know how this real estate business will work for you.
So why do people invest in Real Estate?
A home is a basic necessity.
That's literally it! Having a roof over your head is one of the basic needs of human, aside from food and clothing. It's basically the first level of the physiological needs of Maslow's Hierarchy of Needs. And one of the tips that coaches teach in business is to go for something that people actually need and provide that service or product to attend to their needs and receive your income in return.
Real properties are tangible assets.
Real estate, when done with due diligence, is the safest investment. You can literally build a house of your own once you purchased a vacant lot. This makes it the number one choice of Filipinos to invest to than stocks or insurance investments which are only document based, and which values also tend to fluctuate depending on the market conditions.
Many people have now realized the value of real estate investments. Look for the Top Billionaires here and abroad and you'll see that each one of them secured their real estate properties as investment. These made most of us motivated to do the same.
The value of the land alone appreciates overtime.
Because lands are limited in supply and no one is ever making it. It is only passing from one owner to another. It cannot be doubled nor multiplied. It can only be divided into several cuts, or developed into residential, commercial. or industrial buildings for rental or for sale purposes.
The demand for real estate is rising due to increase in population and the eagerness of people, especially the middle class, to invest in real estate, whether for needs or merely investment.
How do I know which type of real estate properties to invest to?
There are four types of Real Estate in the Philippines:
Residential - This is where people live like houses, condominiums, apartments, townhouses, and the like.
Commercial - This includes malls, business establishments, hotels, resorts, and restaurants.
Industrial - Under this category are the buildings made for manufacturing, warehouse, and storage.
Land - Includes all the vacant lands like farms and forests that are not yet developed.
There are a thousands of Real Estate Developers who focuses in one, two or all of these types of real estate properties, depending on their capacity because, we admit, real estate in the Philippines may require us a lot of money. But that goes for the developer companies.
There are also small companies who start at buying agricultural lands and subdivide them into smaller cuts for which they will sell at a higher price per square meter so people can buy smaller lots at a very affordable price. These are often in-house financed or bank financed.
How do I know if the price of the property is right and not over-priced?
There is what we call zonal values of the area where the property is located, which determines the minimum price per square meter of the property you are eyeing for. These are base values meaning prices can get higher depending on the market values that the market dictates on that certain area. This can be determined by comparing the values of the recently sold property in the area, and by comparing the structure, if there is, from that of the sold one. News of road construction near the property can also affect the price since it means transportation and potential business establishments are building in the area.
A thorough research about the property you are looking at is very important. You also have to visit the site yourself, or in case of OFW buyers, you may want your trusted relative to visit the site for you and if possible, record in video so you can see as if you are actually there.
But one thing is for sure, the price of the property appreciates and vary from that of three months ago.
Where do I find the real estate properties to invest to?
So you finally realized your financial capabalities and you are now ready to invest in real estate property. Let's say you are looking for a piece of land to put your future home into. But where do you find them good deals?
Well first you need to know where in the Philippines you would like to live and spend the next ten to twenty years. If you are from the City, you might be (most likely) looking for a small farm residential lot that's only a few hours drive from the Metro (for work) or that has access to expressways so you can easily drive back and forth Manila. And one thing that has a very high potential is Metro Tagaytay.
Where is Metro Tagaytay?
Metro Tagaytay is comprised of Upland Cavite cities and municipalities mainly Alfonso, Amadeo, Bailen (General Emilio Aguinaldo), General Trias, Indang, Mendez, Silang, and Tagaytay City. People knew Tagaytay City has a much higher price of real properties and so their next choice would be those from the municipalities beside Tagaytay. These municipalities offer almost the same climate as Tagaytay City which makes it appealing to real property buyers.
If you are eyeing for Metro Tagaytay properties, you may check our Metro Tagaytay Listings and choose which among these properties attracts you most.
For more real estate tips and updates, check our blog every week and we will give you the things you need to know before you dive into real estate investments.
Posted by Chebong Hernandez, Real Estate Salesperson | July 15, 2021 | Blog | Real Estate Investing