Price vs. Location: Investing in the Right Property

Investing in property has been a traditional way to accumulate wealth. The list of the top entrepreneurs in the country can attest to that. They know that the value of real estate increases proportionally to the rate of inflation. Your real estate property is your hedge against inflation.

In making that investment decision, will it be price or location that will determine your purchase?  Below is a comprehensive explanation to help you arrive at the best decision.

Prime Location

If you are planning to gain from rental income, then you are relying that your property is going to be attractive for renters to keep showing up year after year. You need to have a property that has high traffic as you are counting on earning every month. Renters would want to reside in a condominium or have a store or business outlet where it’s near workplaces, trendy and convenient.

You need to make accurate decisions on how your property can be an affordable commodity in the future. You need to foresee how the investment will still be attractive to gain profit several years from now. You need to ask yourself which locations are going to have the most business growth and which spots will continue to thrive, wherein people will want to go to work or set up business.

If you are planning to invest from short-term to medium-term and keep the property for less than 20 , then you need to see which areas would be attractive in that span of time. Rental prices are driven by factors indicating if your location is attractive or not.  It should also be made clear if the property would be considered a prime location in the future. 

Affordable Price

As the Business Process Outsourcing industry expands, so do the gains in real estate. If you are planning to invest, then placing your hard-earned money in condominiums is a good choice as your investment offers shelter, a very basic need. More so, if your investment gives you an early return of investment.

The prevailing industry practices right now are very favorable. Investing in condominiums offer you affordability as you can start making rental income as early as two months after. It is fairly common to find condo units where you need to pay 20% equity or down payment before having access to the property. Nowadays, you can even find developers which offer less or even zero down payment (but with higher monthly amortization). In the market there are even owners and developers with rent-to-own programs that would all mean less money for you to shell out now. After the developer turns over the unit to you, you can then start placing an ad and attracting potential renters. Having an early move-in date means an early monthly cash flow for you.

If on the other hand you choose to avail of a pre-selling term, which means the turnover date is not within this year but four to five years from now, it is still an affordable option. And this is because of price appreciation. Prices of condominiums appreciate about 7 to 8% annually. By the time the property is turned over to you, your property would have around 30-40% price appreciation.  And if you invest in luxury condos in areas like the Bonifacio Global City, you can expect this amount to be significantly higher.

Although the potential to make a lot of money in real estate is high, it’s important to remember not to rush into a decision that you’ll regret later on. Do additional research to discover important information that will help you arrive to the best decision.