Written by: Vaughn Alviar
A deeper awareness allows people to make smart choices. If the decisions are about real estate, there was no better place to get the toolkit for sound judgment than The Seasons Residences showroom in Taguig last April 4, 2024.
That day, the showroom hosted an INQTalks event with the theme, “Property Picks: Making the smart move in real estate.” Presented by the Philippine Daily Inquirer and Inquirer Property in collaboration with Federal Land NRE Global Inc., INQTalks pooled experts to share their insights on real estate investment: Andoy Beltran, vice president for business development and market at FirstMetroSec; Mikko Barranda, director at Leechiu Property Consultants Inc.; and Joey Roi Bondoc, director at Colliers Philippines.
(From left) Inquirer Property editor Tek Samaniego; Colliers Philippines’ director Joey Roi Bondoc; Leechiu Property Consultants Inc. director Mikko Barranda; and FirstMetroSec vice president for business development and market Andoy Beltran
They tackled everything from market outlook to proper mindsets when entering real estate, currently one of the most exciting and most vibrant industries in the Philippines today.
Growth drivers
Filipinos should make investments because, as Barranda noted, “the Philippines [may] be a trillion-dollar economy in 10 years”.
Growth drivers like information technology and business process management, overseas Filipino workers, and tourism continue to propel the economy upwards. If the Philippines enters an elite circle alongside China, Japan, South Korea, Australia, Taiwan, and Indonesia, growing an investment portfolio right now makes sense.
Real estate in your portfolio
Experts agreed that one could start with the property sector.
Beltran explained that a constant need for spaces and a growing demand from home seekers, businesses, and investors ensure value appreciation. On top of this, real estate also offers many other traditional advantages. It is an excellent inflation hedge, retaining if not increasing its worth over time. If you aren’t interested in occupying, you could profit from rental yields.
Property triumvirate
However, not all projects are made equal, cautioned Bondoc. Before selecting your property, people must research beforehand key considerations like rental prospects, the potential for price appreciation, developer track record, and location.
On location, Bondoc highlighted Central Visayas and Calabarzon Region as strong investment hubs outside Metro Manila, pointing out their economic growths of 7.6 and 7.8 percent, respectively, in 2022. In the same year, the country’s gross domestic product was at 7.6 percent.
Bondoc went on to specify a “property triumvirate” which he identified as Cebu, Cavite, and Laguna.
Quality over price
Besides location, another important consideration is quality, especially in a country obsessed with bargains, Beltran said.
“What we need to realize is that choosing price over quality usually does more harm than good because we almost always end up getting items and products with low durability,” he explained.
Financial readiness
Financial readiness for property investments should be part of the equation, too, according to the experts, especially since real estate is a costly investment that isn’t easy to dispose of at will.
Barranda explained that buyers must ask questions like, “Do you have enough liquidity that, if you are unemployed tomorrow, you can sustain [the property] for a year?” If you say yes to property investment, Barranda said Federal Land’s offerings, like The Seasons Residences, are some of the smartest options today.
Federal Land, he pointed out, “enhances the value of its projects by partnering with renowned international brands.” The projects are “strategically located near key infrastructure projects” and “demonstrate significant capital appreciation, reaching up to 14 percent per annum.”
“Federal Land develops self-sustaining communities that offer an attractive blend of live, work, and play,” Barranda added.
This article is brought to you by Federal Land Inc.
ADVT.
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