Investing in Condo

After the Epic flood that inundated the Metro Manila area, I am considering investing in condominium. I think many will  say that it is not a way a family should live in due to lack of space and loss of privacy, but there may be other reasons that living in a condominium may outweighs these 2 problems.

For those who are considering buying or investing in a condo, here are some checklist that you need to look for before committing your money into it.

1. Check the developer – look for the developers track record in delivering their projects.

2. Check for the location – is it near to any business establishment, malls, hospital, schools, church etc? I think you don’t want to buy a condo in a dull place.

3. Access to public transportation – is it easily accessible to any public transportation?

4. Look out for the condo dues – check the amenities and determine how much dues are you going to pay.

Once you decided to buy a condo, check your cash on hand. In buying a condo,  it is advisable to make straight cash or partial spot down payments to take advantage of the discounts offered by developers.

Many developers gives good discount for a cash buyer and we should take advantage of this opportunity if we can afford paying it in full amount.

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Investing in Philippine Real Estate

Real Estate has been one of the most traditional and good investment since, it appreciates over time. In the Philippines, this kind of investment is well known to most Filipinos.

Before I worked abroad, I have bought some properties in Cavite, Philippines. Right now, I was happy with the value of my properties worth, and of course with the monthly rental income it generates.

Actually, there were shopping malls built near my properties, and this bring a plus factor to appreciates its value fast.

In the Philippines, the growth of real estate is towards the south especially in the provinces of Cavite, Laguna, Rizal and Batangas areas. Prices of land on these provinces are increasing and a lot of companies are establishing their manufacturing facilities in these areas.

Actually, it needs due diligence in acquiring real estate property. Make sure that its location has a proper infrastructure like roads, utility services, a nearby supermarket and church. I guess you don’t want to live in uncivilized place so before buying, at least consider these things.

The only problem I see on this kind of investment is its “Liquidity”. If you want some cash and, you want to sell your land (or house and lot), it takes more time to liquidate. Unlike stocks and bonds securities that you could easily cash out, most of the time it takes a year to sell a real estate property.

I have heard a lot of stories about a properties being sold at a very low price (sometimes below it’s purchase value). To prevent this situation, it is only wise to have enough cash park as an emergency.

I was not good when it comes to Real Estate investing, but I found myself overweight on this kind of  investment.

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Quotes:

Don’t wait to buy land, buy land and wait. – Will Rogers

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