Friday, May 16, 2014
Spotting a good property investment takes patience and skill. Here’s how to assess the potential of a property…
Neighborhood and future development
Investors typically look for a good neighborhood to invest in. The factors to consider are proximity to jobs and business districts, schools and universities, malls and leisure activities. Being close to these amenities is generally desirable for a home location, thus making an investment property in this area easier to sell or rent out.
However, as an investor, another way to ensure profitability is choosing a location with a number of future developments already being planned. Buying a property a couple of years before the development emerges may give you better value growth in your investment.
Building permits are submitted to the local government office. Go the extra mile by asking local officials about it.
Security and crime rate
A top concern for most Manila residents, security, is another feature that makes for an attractive incentive for renters or buyers. Check whether the streets are well lit at night and if there is a lot of graffiti in the area.
Buying into a gated community may be another strategy you can take. However, another way to assess the safety of the area is to find out about the crime rate in that part of town.
Listings and vacancies
Instead of focusing on just the one property, drive around the neighborhood to see if there are other ‘for sale’ or ‘for rent’ signs up. A great number of unsold homes or vacant rentals are a bad sign. If you work with a real estate agent, it’s also a good idea to ask him about this.