10 Reasons Why You Should Invest In A Condominium
By: Jaz Mendros, www.Propertier.ph
In-spite of the huge number of rising condominium buildings seen everywhere in the Philippines, still a majority of Filipinos have no idea or has a wrong concept of condominium investment. For example, they think that it is only for the rich and “sosyal”, and so many more. But let me teach you otherwise and learn how you can benefit from this booming industry.
10 Reasons Why You Must Invest In A Condominium
1. Condominiums normally APPRECIATES IN VALUE at a rate that is almost consistently higher than the inflation rate.
2. Condo investing is considered a SAFER area of real estate INVESTMENT and is perfect alternative for more risk averse investors.
3. Condo investing is also great for long term investors, since on average, the longer you hold it, the GREATER your RETURN ON INVESTMENT will be.
4. FINDING an OCCUPANT for a condominium apartment IS also relatively EASY, as vacancy rates are extremely low in many major cities in the Philippines like Davao, Cebu and Manila.
5. Condo investing is extremely convenient as many of the management and maintenance PROBLEMS are TAKEN CARE of by the condominium corporations which enables investors to focus more on the investment facets of the property and NOT TO WORRY about maintenance and upkeep.
6. Individuals investing in condos are PROTECTED by the bylaws and regulations set up by the condominium corporation.
7 Condo investing is GENERALLY a CHEAPER alternative than investing in a house because houses of similar sizes in the same neighborhood cost even more.
8. It also gives individuals investing in condos the ability to purchase an investment property in a BETTER NEIGHBORHOOD.
9. Condos offer a CONVENIENT AND LUXURIOUS LIFESTYLE because its buildings are located near shopping and transportation centers, equipped with services and amenities like gym, swimming pool, 24/7 security and many more.
10. Best of all, YOU DON’T NEED TO PAY ALL OF THE TOTAL CONTRACT PRICE. Because condo developers only asks investors to pay a certain percentage of the total contract price, usually at 20% (serves as down payment) which if often in deferred/divided payments in 24 to 36 months. After that paying period, investors went into bank financing that is stretch most likely up to 10 to 15 years. Within that period of time, you can start putting your unit into rental which makes it a self liquidating asset. (Note: Make it sure that your rent price is higher than your bank amortization)
Simple Formula: Rent Price – Bank Amortization = Money in your Pocket!!!
Example:25,000 php – 16,000 php = 9,000 php
(more or less you get the idea)
Therefore, individuals investing in condos are on the right track of purchasing an asset that is both rising in demand and value. Also, you get to have bragging rights because you are now like Mr. Henry Sy, into real estate rental/leasing business (lol). Seriously, I want you to grab this opportunity to start investing. Other countries in Asia like Malaysia were once in this status that we have in right now, but look at how the prices of their condominiums and other real estate appreciates in value. We are heading in this direction like Malaysia, Singapore and other 1st world countries, so take action and invest now.