Mary Grace
“Real estate investing even on a very small scale, remains a tried and true means of building an individual’s cash flow and wealth”-Robert Kiyosaki
There has never been any doubt that real estate investing is one of the avenues for financial freedom and economic stability. In this regard, as a real estate investor, you are given better leverage on your finances and profits.
Indeed, real estate investments can be incredibly lucrative when done right. However, this is not to say that it is a quick and easy way to make money. In fact, there is no guarantee that you would break even your expenses but should you approach this endeavor armed with sufficient research and necessary expertise, you can look into a very profitable enterprise. As an investor, you would be wise to practice due diligence in the execution of your plans. Moreover, it is essential that you come up with a meticulously and sufficiently researched plan. Remember, while investors may see the real estate market as a safe place to park their assets, it is still a risk, albeit a calculated one. At the moment, the Philippines might be enjoying a rather robust and buoyant real estate that would promise quite a hefty capital appreciation in the long run. However, before you start looking for condos for sale in the Philippines, it is best if you know which strategies would work best in the country and its present real estate market climate.
Now that you are made aware of all that as well as the possible risk involved, here are the myriad of real estate investment strategies that could potentially be profitable:
- Buy low and sell high
One rule of thumb to remember when it comes to real estate is to always buy properties when the market is down. This is because home sellers are more eager to sell their properties than you are in buying them. In this regard, you can negotiate with their asking prices and would likely have a more favorable offer. Moreover, it gives you more time to browse through properties as you are in no hurry to buy and the demand for houses is not high. After you have acquired your property, all you would simply have to do is wait for the market boom and sell those you have acquired at a much higher rate.
- Buy, renovate then sell foreclosed homes
House flipping has been all the rage in the United States and lately, it has been picking up a steady traction on the Philippine real estate market. It simply involves buying foreclosed properties that are sold under market value, give it a cosmetic facelift and then sell it again. However, do note that this should be done fast as every delay would increase the risk. Moreover, ensure not to bloat your asking price so much and sell it at a small profit instead to go on to the next deal. Lastly, look for houses that only need minor touchups and do not require any major renovation work as this would not only delay you, it might turn off prospective buyers which would inevitably lead you to scale down your asking price even more.
- Buy residential properties to rent out
If you are living in a major metropolis, you are almost guaranteed a buoyant leasing market—depending on where you situate your rental property. Metropolitan cities have a huge market for renters as most people from out-of-town would be looking for places to stay while they are in the city working for a living. However, you need to keep in mind that the property should not only be attractive to would-be renters, but it should be at a location that would encourage tenancy. Look for properties near schools, offices and major entertainment hubs and you can be sure that you will always have a tenant knocking on your door.
- Build a new home and sell it
Think of yourself as a property developer and start building a home with the intention of selling it. Although the risk involved here is relatively high, you can expect a lucrative return depending on how well you executed this plan. Apart from choosing the right location, you would also need to study the market segment you are targeting. After that, you need to assemble a team of professionals, secure all necessary permits and market the house.
