Philippines real estate market is considered to be one of the most affordable in the world. Even in the favorite metro cities like Metro Manila, the average price of the property can be very much lower than the property price in most other metros of the world. As more and more people are exploring the profitable real estate market in this country, several new construction projects have been fuelled by Real Estate Investment Trusts. This is great news because for all those investors diving into the Philippines real estate market the pool of options is expanding continuously.
The purpose of choosing real estate as an investment option
There are primarily two types of investors in real estate. The first type is those who invest in a property based on the appreciation value to be able to resell the property with a more significant margin. The second type is the one who spends in an estate as a source of steady income in the form of rent. The purpose for which the investment is made determines the suitable locality and the appropriate type and size of property for the investor. Properties of all kinds, in all budget ranges, can be found on fazwaz.ph.
Consider the rental yields
There is a difference in choosing the locality while buying a house depending on whether it is purchased for personal use or rental income. Not everyone prefers to live in the outskirts and so buying a property here would be good if it is for the long term appreciation or personal use. Families that prefer living away from the crowd and noise of the city might prefer these properties. But for a steady tenancy and to be able to find good tenants who are ready to pay a hefty rent picking a property in the heart of the city or the hottest ‘in-demand’ localities would be a better idea. Condos might be preferred by singles and smaller families. The type of tenant that the home buyer wishes to deal with should also be taken into account while choosing the property type and the property location. Even for those looking for long term returns finding a decent house that can be rented would be significant.
Know the other costs involved
When it comes to finalizing a budget besides the price of the property the size of taxes and other fees should be accommodated. In the Philippines, the following are the taxes that the home buyer would be paying during the purchase of a property –
- Transfer tax
- Documentary stamp tax
- Real estate taxes
Along with this, there is the registration fee to be paid as well. In the case of condos, there is the homeowner association fee to be included. Some of the sellers might also pass on the capital gains tax to the buyer. So, the first step would be to know the different expenses added to the actual property costs and then pick a property that fits in the budget.