5 Reasons Why Now is the Right Time for a Real Estate Investment

Today’s yuppies are savvier than ever when it comes to money matters, and are continuously learning how to grow their hard-earned money. They long for more of life’s comforts and security, and they know it’s within their reach, with a little learning. These days, you no longer have to solely rely on the expertise of a broker to decide where you’d like to invest in. With the digital age and the wealth of accessible information on the Internet, educating yourself on the best instruments to put your money into is no longer such a daunting task.

If you were to invest in something, you might want to consider real estate. Because it’s a tangible asset, real estate is a good investment to throw into the mix if you’re diversifying your investment portfolio—it’s also a good strategy to help balance out any risks, especially when the stock market is not performing well.

There are a lot you can look at to assess a property’s market value—location, proximity to business districts, the developer’s track record, among others. Apart from these, there are also other considerations that make real estate investments all the more attractive, despite unexpected shifts in the Philippine economy. Surprisingly, it’s actually the right time for a real estate investment. Here’s why.

1. The Philippine real estate industry is booming.

Positive credit outlook
The country’s credit outlook is moving upward, from ‘stable’ to ‘positive’, according to Standard & Poor’s Global Ratings (S&P), an international credit agency. This means that the Philippines’ ability to borrow money and pay for its debts is showing clear improvement.

Surge in foreign direct investments
According to Forbes.com, the Philippines in 2017 amassed a whopping $10 billion dollars in investments, which set an all-time record high, a significant increase at 21 percent versus the amount of investments in 2016.

Foreign investors are drawn to the country’s young and attractive labor force, because we have so many skilled Filipino graduates who can perform a variety of tasks. As a result, the U.S. News and World Report also ranked the Philippines number one among a list of 80 countries to invest in for 2018. The current administration’s infrastructure program, with its strong tourism marketing and rising overall consumerism were also identified as key contributors to the size of investments.

2. Sales at a record high

In a statement from Colliers International Philippines, 52,600 condominium units were sold in Metro Manila alone in 2017, which is higher by 24% than that in 2016 (42,500 units). This is due to the high demand from starting families and yuppies, the amount of which has been steadily growing in the last five years.

3. Increasing capital values

In the same report from Colliers International Philippines, growth rates fetched between 1 to 2.5 percent for properties located in business districts, again boosted by the strong demand from starting families and yuppies in 2017.

4. Strong demand throughout 2018

For the rest of 2018, there’s a healthy forecast for the demand of condominiums, despite capital appreciation. Among our Asian neighbors, our condominium’s rental yield—or the rental income a property is able to provide each year—has actually been significantly more impressive.

The rental yield already includes costs such as brokerage fees, renovation, and other maintenance costs. It’s also a good measure of your return on investment and how rewarding one real estate investment is over another.

5. Home loans offering low interest rates

Don’t worry if you can’t pay for a property in full and in cash. It’s much easier now to apply for a home loan because local banks offer different home loan options, payment terms, and competitive interest rates. Among these banks are PS Bank, UCPB, and BDO.

Taking these factors into consideration, it’s good to know that there are still ways for prospective investors such as yourself to secure or occupy a property at affordable rates. Century Properties’ MIN 2.5, for example, is a program offering individuals to “Move In Now” (MIN) for a minimum of 2.5 percent down payment.

Based or working in the north? Commonwealth by Century may just be for you. Located along Don Antonio Avenue in Commonwealth, Quezon City, The Residences at Commonwealth by Century is a mid-rise multi-tower community which offers accessibility (a 5-minute walk from Commonwealth Ave. and the upcoming MRT Line 7), uncommon amenities (rock and roll studio, arts and crafts studio, show kitchen, on top of sports and fitness amenities) and top-notch security (extensive CCTV and manned security). MIN 2.5 is also available for Commonwealth by Century.

Acqua Private Residences, situated between the bustling districts of Makati and Mandaluyong, offers residents with proximity and accessibility to these two key districts, while creating a lush, green space in the middle of the metro. The Pebble, a waterfront clubhouse, runs through all six of Acqua’s buildings, hyper-amenitized to cater to various recreational and fitness pursuits.

If you wish to try it out, experience firsthand a taste of #condogoals through a staycation at Siglo Suites, Century Properties’ serviced residences. Other properties available include Azure Urban Resort Residences,The Gramercy Residences, Knightsbridge Residences and The Milano Residences.

For more information, visit www.century-properties.com.

Stock images from pexel.com

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