“Landlords grow rich in their sleep without working, risking or economizing.”-John Stuart Mill
One of the excellent avenues for growing your wealth is to invest it in real estate. In fact, it is arguably one of the most efficient and best ways to make money without risking a lot. For this reason, many individuals have tried their hand at investing and dabbed in real estate. However, on your quest for financial freedom, what type of real estate should you start investing in it? Well, you might have set your eyes on condominiums—especially since they are somewhat prevalent in most major metropolitan cities. In fact, it would seem almost impossible not to find one condominium development in every nook and cranny in Metro Manila making condominiums a premier choice for real estate investors. Unfortunately, you do not have sufficient knowledge as regards the comings and goings of condominium investment.
Do not fret, however, as we have listed down a few pointers that should assist you in your real estate investment endeavors—regardless of whether the first property locates in Verdana or anywhere else in the Philippines:
1.) Do not stress about the location
You may have come across a myriad of online articles all proclaiming the same thing: Location is paramount to a successful condominium investment. In fact, it has been heavily preached that it is almost always the initial item that appears in every article as regards real estate investment. However, while it is true that location is a crucial aspect when choosing a condominium unit, it is also true that an excellent location largely depends on the individual in question. This is because there are a lot of people with different preferences, circumstances, jobs and the like. In this regard, a good location would naturally be subjective to a person’s lifestyle. Moreover, condominium developers have done extensive research about a particular area’s marketability and would not just build projects where no one would be interested.
2.) Know your target market
Seasoned and wise investors would buy properties based on their target markets. Much like how these investors choose their target markets, condominium developers build their projects with very specific groups of people in mind. In this regard, you would readily notice how some condos would cost more than other projects with their corresponding prices depending on the amenities offered, unit size, management services and the like. Remember, not all condominiums are built alike, so do your research about the trends in the market as well as your target market.
3.) Consider the developer of the project
All your efforts in real estate investment would be for naught if the developer which you closed a deal with cannot deliver. With this in consideration, it is imperative to choose a reputable condominium developer—one whom you can trust to turn over the property as scheduled. Remember, this is an investment and when it comes to investments, time is an essential resource. If you buy a condo during its pre-selling stage, ensure that the developer can have the condo finished on time and as promised. So, before finalizing a deal, take a look at the track record of your chosen developer and see to it that they can deliver as promised. Apart from timely delivery, it is also essential to check for yourself the quality of their work. After all, you would not want your tenants to come to you complaining about the poor quality of a unit.
4.) Learn how to leverage
Individuals with expertise in real estate investments are familiar with the term leveraging. It means using as much of other people’s money and as little of your own money as you can to purchase your real estate investments. Should you be successful in pulling this off, you would be able to acquire more properties with the limited funds that you have on your own. You do not need to amass millions before you can start investing in real estate so long as you know how to leverage your finances.