Why invest in condominium Philippines: Investing in a condominium in the Philippines is a big step but is it a step in the right direction? Overall, this question would be yes, but there are many pros and cons to consider when purchasing a condominium. Nevertheless, today, we will focus on 11 straightforward and legitimate reasons why invest in a condominium in the Philippines.
Suppose you are looking to invest in a condominium in the Philippines. In that case, it is recommended to take today’s list and add any other advantages and disadvantages of investing in a condominium to your list. Finally, you will then be able to fully compare your options and decide which path is right for you as an investor.
Why Invest In A Condominium Philippines
1. Most Condominium Units Appreciate In Value
Over the last few years, the condominium appreciation rate in the Philippines has fluctuated. Historical data from 2015 to 2022 shows that the average growth rate for houses is 3.4%, but what about the condominium appreciation rates?
It has been suggested that the annual appreciation rate of condominiums in the Philippines is on average 3 – 8%. However, this is an estimate only based on verified historical data. Furthermore, we discovered that several factors could impact the condominium appreciation rate in the Philippines during our findings.
The factors that can impact the appreciation rate of a condominium are the location, the type of property, the age of the unit, how accessible the condominium is, the upkeep and maintenance of the building, the condominium developer, the Philippines real estate economy, and the current market demand.
2. Potential For Long Term Income
When looking at why invest in a condominium in the Philippines, you may wonder what the advantages and benefits are for you as an investor? Of course, one advantage comes in the form of regular income. However, similar to a condominium appreciation rate, there will also be several factors that impact this opportunity.
If you invest in a condominium in the Philippines with a good reputation and high demand, you may find several opportunities to maximize your gains. This can be through weekly rental on Airbnb or a full-time tenant with a one or two-year contract agreement.
Additionally, when investing in a condominium in the Philippines, you may also consider additional options to increase your income. This could be renting out your car space, providing Internet, or anything else that brings value to the tenant. Naturally, some tenants will be willing to pay for extras while others will not, depending on the individual.
3. High-Quality Condominiums Are Often In Demand
A common question that we often get asked here at Filipino wealth is, is investing in a condominium a good idea in the Philippines? Yes, it is a good idea, but this will heavily depend on the unit type. Some units are naturally more in demand than others. For example, a highly accessible location that is high quality will always be in demand.
If there is demand, there is an opportunity to capitalize and earn extra money from a condo investment in the Philippines. But how do you know if your condominium is high quality or not? High quality is not just the cost but also the experience. For example, is the building clean and well maintained? And does it have an overall positive atmosphere?
4. Highly Accessible Location
One of the most important factors that are often spoken about when looking at why invest in a condominium in the Philippines is the unit’s location and general accessibility. But why is this so important, and why does this affect your investment in a condominium in the Philippines? Simply because it’s one of the main deciding factors for customers and tenants.
Most of us wish to be close to our work, the gym, friends, local hospitals, or shops. This is why condominiums in a prime area with easy access to these facilities are often in demand. As we discovered earlier, several factors can impact the profitability of a condominium in the Philippines, but in most cases, accessibility is one of the highest priorities.
5. Options For Monthly Payments
One of the fantastic options when you first invest in a condominium in the Philippines is that you have the option to pay for the unit in monthly installments. This tends to apply when you first purchase a condominium in the very early stages of its development (pre-building stage).
For example, if you decide to invest in a high-rise condominium in the city, the developer’s turnaround time may be as long as five years. 3,000,000 pesos is a lot of money. However, stretch this across 60 months (5 years), which becomes more manageable for investors. This is one of the top reasons why many invest in a condominium in the Philippines.
6. Offers And Discounts During The Pre-Build Phase
Another benefit of investing in a condominium during its early development is that if you can pay off a lump sum or 100%, you may be entitled to special offers and discounts that can total up to the thousands. Additionally, some developers will also give additional items to investors, such as refrigerators, washing machines, and so on.
You will find that if you can pay a large down payment or pay 100% of the condominium price, you will often be able to negotiate a better option. However, monthly payments can sometimes be risky for developers. Therefore, they often prefer the full value, so the ball is in your court during negotiations.
7. Strong Internet Connectivitiy
One of the benefits of purchasing a condominium in the Philippines is that you will find that the Internet connection is strong or better than average in most situations. Unfortunately, this is not always the case, but developers consider it an important factor when choosing the location. In addition, connectivity is an important factor if you work online or need access to the online world.
Luckily, several sites can check the Internet strength remotely, depending on your location. For example, suppose you are investing in a condominium that has already been built. In that case, it’s recommended to contact the local Internet provider to see if they serve the area and the connectivity’s overall strength.
8. Popular For Travelers And Foreigners
So why invest in a condominium in the Philippines? One reason is that condominiums are often extremely popular with travelers and foreigners. In addition, condos are straightforward, and there was always help available from the reception or the back office. This makes it a perfect option for Filipinos traveling to different cities or international travelers.
If you have invested in a condominium in the Philippines in a prime area (such as mango avenue in Cebu city or overlooking the beach in Palawan), you will find that your unit is in high demand. During high season, this can become very profitable.
9. Condos In The Philippines Are Much Cheaper Than Houses
If you are looking to invest in a condominium in the Philippines, one of the best times to invest is during the beginning stages. As we discovered earlier, this stage can often offer fantastic discounts and deals. You will find that, on average, condominiums are much cheaper in the Philippines than houses.
This is an advantage for those who wish to invest and one of the main reasons why invest in a condominium in the Philippines. If you are looking to step onto the property ladder and build your property portfolio, condominiums offer a fantastic opportunity to investors.
10. Security And Other Extras Are Included With Condominiums
There are several benefits of investing in a condominium in the Philippines, and one of these is the added extras. These added extras include security, access to a swimming pool or gym, an office, a rooftop, and so on. These are all included when you pay your condo dues, and some condo dues can be substantial. Hence, it’s best to investigate this before investing in a condominium in the Philippines.
Naturally, the more facilities are included, the more expensive the condominium and the dues will be. Therefore, the careful calculation investors must do when investing in a condominium in the Philippines is to consider the price and the facilities and how this will impact future profitability.
11. Community Atmosphere
So today, we have looked at many reasons why invest in a condominium in the Philippines. But this last option is very rarely spoken about but is also very important for investors, and that is the overall atmosphere of the condominium unit. The atmosphere can make or break a living situation.
I’ve known tenants and customers who have spent a long time in a condominium that they did not like just because they have built a strong community. There’s an old saying which goes your home is where your heart is. if you can invest in a condominium that has a good atmosphere, this will positively impact your investment, reviews, and even profitability
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