PHILIPPINE PROPERTY INVESTMENTS MADE SIMPLE

Greetings Friends!

So far, I'm almost on my 3rd year of being the the Philippine real estate industry and I've learned a lot. Having had a unique background in IT entrepreneurship and business consultancy, the previous experiences and my constant exposure to diverse information over the internet, plus my constant interaction with real
estate people - agents, brokers, clients and buyers, has given me the following perspectives:

1. Most investors/buyers are not really investment savvy people
2. Many often fall prey to big-name sellers and are later on regretting their purchase

3. Most buyers in the Philippines are either Balik-bayans(mostly from US) or OFW's who are looking for the best value-for-money properties for investments.

If you fall into one or more of these, don't worry, all is not lost. Real estate investment need not be painful and a cause for headache. Here are the pitfalls that one should look out for:

1. Big-name - Does not necessarily mean Good Buy. Many big name developers make their units small to maximize the number of units per floor. These condos are so small that its literally suffocating just thinking of living in it.

2. Pricing - One should pay attention to the peso-per-square meter value of their intended purchase. Do not give in to the prodding and pressure of the agent in front of you. They're after meeting a quota, not really after your best interest or are ignorant of their product's flaws.

3. Location - Again, as with all of my posts, location is a big consideration. But now, let me change this a bit. Its not necessarily the best option now to be located in the heart of a commercial area. Especially if you or your intended occupants are going to be on the road on a daily basis. Commercial areas have terrible traffic during rush hours for hours on end. Especially during the holidays or mall-sale days. But again, if you buy one that is located too far away from these commercial areas, it will likely be harder to get a better price for future rentals.

4. Finish - If you're planning to be able to use your condo from its turnover, be clear with your seller that it should be at least painted, tiled and with complete fixtures. I often hear sad stories of people first moving in to their condos with the impression of moving in to low-income housing for the poor. If this matters to you, then take heed.

5. Density - I used to work in an office at a Cityland building. Oh boy, was it such a pain to get a ride on the elevator. The number of lifts for the number of units simply wasn't enough. There were often long queues to these lifts which also took a long time to make a full trip due to its stopping at almost every floor. I would recommend a lower density development.

So now you know more about what to take heed of, what considerations you really need to know for a more satisfying condo purchase.

Cheers!

Tony