The Philippines is a beautiful country with plenty of investment opportunities, especially in the real estate market. The housing industry is booming thanks to the country’s robust economy and strong demand from both local and foreign investors. According to Statista, real estate activities in the country have generated a revenue of 1.1 trillion Philippine pesos in 2019.
This is a contributed post and do not necessarily reflect the opinions of Meet The Harris Family.
So, it’s high time for aspiring investors to tap into the Philippine real estate market. But before making any decisions, there are some things you should keep in mind. Below are essential tips for getting started in the Philippine housing market.
Location is everything.
When it comes to real estate, location is everything. In the Philippines, demand is highest in metropolitan areas such as Manila, Cebu, and Davao City. Properties in these areas will command a higher price tag, but they also have the potential to appreciate at a faster rate.
That’s because these areas are constantly growing and evolving. New businesses are popping up, infrastructure projects are underway, and there’s a constant influx of people moving to these cities in search of opportunities. All of these factors contribute to the demand for housing, which drives up prices.
If you’re looking for a more affordable option, consider investing in property in smaller cities or towns. You can also look for properties near upcoming developments, such as new highways or railways. These areas can potentially experience significant future growth so that early investment could pay off handsomely.
Whichever location you choose, make sure to do your research and consult with a real estate expert to get the best advice. Doing so can help you avoid any potential pitfalls and maximize your investment.
Consider the type of property you want to buy.
The Philippine housing market offers various property types to choose from. So, knowing your options is essential before making a purchase.
One of the most popular property types in the Philippines is the condominium. Condos are often seen as a good investment because they offer plenty of amenities and appreciate over time. They’re also easier to maintain than other property types. Although you may see many condos in the city’s central districts, you can also find plenty in other areas. Especially if you’re in the South, investing in a condo in Alabang Muntinlupa offers a great opportunity. That’s because many Ayala Land developments are underway in the city, which will drive up prices.
Another popular property type is the townhouse. Townhouses are similar to condos but are usually more spacious and offer a more private living experience. They’re perfect for families or those who want a bit more space. Prices for townhouses can vary depending on the location and amenities, but they’re generally more affordable than other property investments.
If you’re looking for an even more traditional option, you can consider investing in a house and lot. However, obtaining these properties requires more maintenance. But if you’re up for the challenge, a house and lot can be an excellent investment. By taking care of your property and keeping it up-to-date, you can potentially sell it at a higher price in the future.
Be aware of taxation rules.
Another critical factor to consider when buying property in the Philippines is taxation. Different properties get taxed at different rates, so it’s essential to be aware of the rules before making any decisions.
For example, residential property is taxable at 2% of the sale price, while commercial property is subject to a 12% tax on leases and a 5% tax on sales. But these are just general guidelines. Other taxes may apply to your specific situation, so it’s always best to consult a tax expert before making any decisions. Without proper guidance, you could end up paying more taxes than necessary. So, it’s essential to seek professional help to avoid any potential problems down the road.
Hire a real estate agent.
One of the best ways to ensure a successful purchase is to hire a real estate agent. A good agent will have the in-depth market knowledge and help you find the right property at the right price. They’ll also be able to guide you through the entire process, from start to finish. And if you’re unfamiliar with the area, they can provide valuable insights into which neighborhoods are safe and which ones to avoid.
When hiring an agent, look for someone with experience and a good track record. You can ask for recommendations from friends or family or search online for customer reviews. Once you’ve found a few candidates, set up meetings to understand their personalities better and whether they’re a good fit for you. This way, you can be sure you’re working with someone you trust and who has your best interests at heart.
When it comes to investing in property, being knowledgable is critical. The Philippine house market is ever-changing, so it’s essential to stay up-to-date on the latest trends. This way, you can be sure to make the best decision for your needs and maximize your investment.
