Tuesday, November 26, 2013
When choosing to invest in any real estate property, location is crucial. This ultimately depends on your purpose for the investment, whether you’re looking to buy and sell the property or lease it out. Another important factor is your intended target market. Knowing the demographic you want to sell or lease out the property to will help you narrow down your options.
The most popular choice for real estate investment these days is perhaps a condominium unit in a business district. The main target market for a business district location is people working in the vicinity. Many are interested to buy or rent a weekday home, just to avoid rush-hour traffic and wasted travel time.
The three main business districts in Metro Manila are Fort Bonifacio, Makati and Ortigas. Fort Bonifacio is the newest of the three locations and has pricier investment options, but the area also offers a great neighborhood, with well-maintained roads and drainage systems. Makati is bigger than Ortigas, and would usually require a more expensive investment, but the market is bigger and rent is higher as well.
Another good option is developments near universities, where your target market would be the students. Students who live far away from their school, especially those that live in provinces, often choose to rent out a condo unit while they’re enrolled in school.
Stick to the areas beside bigger universities, so you can benefit from a larger market. Browse for investment options along Katipunan Avenue near the Ateneo de Manila University, Taft Avenue near De La Salle University and College of Saint Benilde, and the University Belt or “U-Belt” area near major universities such as University of Santo Tomas and Far Eastern University.
The importance of safety and security of residential homes has become very much valued in recent years. People are now willing to pay more for the security offered by private subdivisions. However, the buying and selling or leasing of townhouses and single-detached houses is trickier than condominium units, because houses are definitely more expensive. With the right location and timing though, this could also turn out to be a worthy investment.
Heavy traffic and flash floods are common concerns of Metro Manila residents. Think ahead and consider your potential client’s needs and concerns. Avoid properties in low and commonly flooded areas. If the property is in an area with hardly any floods, check the vicinity to be sure. Roads to the property might not be passable during heavy rains. - Aislinn Kee