Traditionally real estate investment has been considered a wise investment, mainly when other options, such as cryptocurrency or stock trading, offer insufficient returns or are too volatile. But here, the big question is what type of property is perfect for bringing long-term success and where do I find the best one? The answer is: condominiums are the best option to choose. Condos are more cost-effective than homes as they are more affordable and they allow you to pay for the properties faster so that you can enjoy the benefits right away.
So, whether you plan to use the condo unit for yourself, want to resell it later, or put the property up for rent, you can assure that the shares in your property will not lose in the air. Besides, it is better to invest in a condo in Las Pinas as the condos have the potential to grow their values. Like other investment types, it only depends on you to make the perfect move toward generating a higher ROI.
Investing in real estate is considered to be the most ignored yet very crucial phase in buying a condo in Laguna.
Now the Question Is Whether Condominiums Are Worth Investing in During the COVID-19 Pandemic Period. Here Are Some Important Details to Consider in This Regard:
Investing in Condos Helps You to Have Consistent Cash Flow With Lower Risk in Investment
As the choices for using this investment option are limitless, the top-quality condo investments offer dependable income flow to the investors. You can choose to rent these properties out for commercial or residential use, or you can also profit from these investments by selling them after several years. Although every investment is risky, investing in condos is less risky than others.
Condo Investment Helps in Equity Accumulation
In most cases, people choose to purchase condos using loans instead of cash. And here the more you will pay down the loan, the more equity you will be able to accumulate. This is beneficial for both the present owners and the owners in the long run as the value of the property increases.
It Is Possible to Leverage Real Estate as the Value Increases
Leverage is one of the tactics that can be employed for securing the prospect as this thing leverages the borrowed funds, which improves the prospective return on investment. This is highly beneficial, mainly when real estate values increase.
Real Estate Investment Is Good for Your Retirement Days
Like other fields of investment, real estate investment is a good option for your retirement days. Investing in real estate is considered to be the most ignored yet very crucial phase in buying a condo in Laguna.
Real Estate Investment Comes With a Lower Tax Rate While Developers Offer Some Substantial Discounts
The condo in Las Pinas come with lower tax rates than homes. Besides, when you buy condos from leading condo developers offer some significant discounts, especially during the pre-selling era. As the condo investment strategy, scouting during this time is perfect.
Condo Investment Is a Pandemic-Proof Real Estate Investment
Although there are many advantages and disadvantages of purchasing a condo, the pros often overweigh the cons, especially in this period of the COVID-19 outbreak. So, if you are concerned about the risks of condo ownership, then here comes some effective advice that you can consider.
• Search for assets, which are less expensive than the replacement costs
When you are investing in a condo, you should consider the cost of purchasing land and constructing properties from the ground up. If you properly budget, investing in a condo is a decent option. This needs properly pricing rentals that must not be lower as the additional buildings would incur higher development costs.
• Search for leases with lengthier lock-in periods
Investing in condos in the Philippines can be easier if you choose ones with lengthier lock-in periods. Condos, where tenants invest in the fit-outs, commit them to it, and as a result, have lower vacancy forecasts.
• Search for tenants with the highest caliber
Like the developer in whom you are investing must be trustworthy, the same thing is applicable when you choose tenants. The COVID-19 pandemic has always changed how businesses urge people to be cautious with their real estate investments. The grade tenants often consider rental charges as a small part of their total revenue. As a result, the tenants would consider these properties as assets instead of just another cost center.
• The leased assets should be paid off
One of the most serious risks of investing in a condo unit is investing in rouge developers or worrying about getting a new renter. Therefore, it is important to buy completed lease assets for mitigating development and leasing risks.
• Try to sign leases with yearly 5% escalations
It is important to be careful about real estate investments. Leases often require a 15% yearly escalation every three years which may be daunting to potential tenants. Rather than that, ask them to sign leases with annual 5% escalations so that it is more manageable and progressive for both parties.
Related Blog: Buying House and Lot vs. Condo for Sale Philippines – Important Factors to Consider
