ABC’s of real estate investing

Developers like Sta. Lucia Land Inc. offers diverse realty projects, through which prospective buyers can enjoy rental earnings- Jilson tiu

“Location, location, location” has always been the golden rule in buying real estate.

But today, the reputation and the background of a property developer are also of utmost importance in making a major real estate investment, apart from location—be it in Metro Manila or in the provinces.

Condominiums, townhouses, and subdivision developments are just some real estate choices available for clients, even in the provinces. To know which factors you should consider before making that big ticket purchase, here are some tips that may come handy.

A – Work with a trusted real estate agent

It is best that you deal with a licensed realtor who can assist you, protect your interests, and guide you through the buying process at the same time.

B – Value appreciation

Real estate in the Philippines generally appreciates. Real estate investors can enjoy an average of 5 to 10 percent increase yearly. In the Philippines, the best time to buy from a trusted real estate developer is during the pre-selling stage during which you are guaranteed to enjoy value appreciation for your investment.

C – Affordability

Buying real estate has now become more affordable with the stretched payment terms of the developers. Gone are the days when one has to pay the equity outright.

For example, condominium buyers can now enjoy a scheme wherein they can complete their downpayment up to 36 months without interest, while the lot buyers can pay the downpayment of 15 percent up to 12 months.

It is important for every investor to be conscious of the price per square meter.

Some condominium developments may seem affordable simply because they have smaller unit sizes. Once you see the pricing per square meter of the unit, you will realize that the property is priced exorbitantly.

Now that you know what to look for in a property, here meanwhile are tips to determine one’s readiness to invest in a house, lot, or condo unit.

A – Assess your need

People have different reasons when they invest in a property. Majority of Filipinos do so for their future home or shelter. For this, a customer can choose between buying a lot or a house and lot package.

Some invest because they want a source of passive income. Developers like Sta. Lucia Land Inc. offers diverse realty developments like residential condominiums, condotels, and townhouses where prospective buyers can enjoy rental earnings. There are also clients who prefer to save and invest in real estate to enjoy capital appreciation and income.

No matter your reason, what is important is that you know what you need and the purpose for making the purchase.

B – Know your Budget

Owning a property can be rewarding. But before you make that initial step of reserving your choice property, evaluate your finances.

How stable is your income? Know your schedule of monthly payments and make sure that you are capable of paying both the down payment and monthly amortizations.

Do not rely on future salary increases. Your decision to purchase should be based on your current capacity.

C – Commitment

Investment is a commitment truly worth saving for. Know your priorities and always remember that you’ve worked hard for that money.

Liezel Tuason-Magpoc is currently the chief executive officer and executive vice president of Sta. Lucia Ventures Inc., and is now in charge of all the local and international sales of Sta. Lucia Land Inc.