You have your money in the bank but are unsure of the best place to invest it in order for it to develop and provide you with a good return. Due to a lack of information and the belief that it is too complicated, you were hesitant to place it on stock. The answer to your question is simple: to invest in high-end real estate.
Investing in real estate is the process of purchasing real estate in order to generate income.
Beautiful houses with beautiful view at Crosswinds, Tagaytay | Photo from Brittany Website
Why Real Estate?
You don’t put all your eggs in one basket because, in just a blink of an eye, it can all be gone.
One great option where one can put an investment is in luxury real estate. Real estate investments or purchasing houses and lots of properties for sale can never go wrong. You can enjoy it by staying on it and waiting for its price to rise, or if you are business-minded and very mindful of cash flow, you can let it join the property rental market that will generate monthly income for you and wait again until its price increases on the market after some time. Either way, property investment will give you the return that you desire in the first place.
Why Property Investment? | Photo from Unsplash Website
Why invest in real estate if there are other ways to grow your money?
Investing in luxury real estate helps generate a passive income that will produce a stable cash flow for you. There are tax advantages when you acquire luxury houses in the Philippines, especially during tax time. There is a special deduction because of the reasonable costs of ownership, operation, and management of the luxury real estate property.
As you step off the starting line of your property investment journey, there are things you can consider doing as you choose your first investment.
To Do List as You Choose Your First Property Investment
There is no such thing as a hassle-free first-time home buyer experience. Everyone experiences their fair share of highs and lows when making their first real estate investment.
As you make your first real estate investment, we can reduce the likelihood of making mistakes if we follow, or at the very least consider following, the recommendations in the guidebook.
Study and Do Your Own Research
Some of the real estate agents for some of the most beautiful houses in the Philippines tend to be quite aggressive. They will do everything to sell their available house and lot, so they will give you good figures and numbers to persuade you to acquire their properties.
The best way to be spared from trouble is to do your research. Study the property you are eyeing. Find out the numbers yourself and do your math. Make sure that you have turned up all the stones around the property. In case, a problem arises in the future, you will know that the blame is all on you.
You might also want to look for property investment consultants from Brittany, a luxury real estate brand of Vistaland, to consult for some tips and advice on how to invest in real estate properly.
The best way to spare yourself trouble is to do your own research. | Photo from Unsplash Website
Consult the Experts
Property investment is no joke since you will be dealing with a large amount that usually represents the luxury houses in the Philippines. One good piece of advice as you choose your first property investment is to consult professionals in the real estate industry. You need to assemble a competitive team.
Be humble enough to admit that you don’t know every area of it. Create a team of real estate agents, real estate attorneys, financial advisors, and/ or property managers. In this way, you will save money and time, and it will also save you from severe headaches. You will not lose a thing when you ask for help from others.
Property investment is not designed for a one-man team. Brittany Corporation, for one, is an example of a real estate developer that produces competitive real estate professionals. They don’t just have good quality products and services, but also amazing people that help the company succeed.
If you are still not able to buy the property that you so desire because your budget wouldn’t allow you, you can start with what’s in front of you. That will still be a potential way to reach your bigger goal. It may be a small house and lot for sale, or a small studio unit, but try your very best to make it fruitful to give you a return that will allow you to take on bigger projects.
Start with small things, and when you do that first and learn things from the lowest part, someday you might be owning and managing one of the most beautiful houses in the Philippines.
Be Clear with Your Goals
Evaluate your goal for why you are buying a property, such as a house and lot for sale. Revisit your motives to know exactly the purpose of your property investment. Is it generating a passive income or getting back your capital quickly?
Remember your “why” in pursuing property investment because it will be the same reason that will keep you going as you continue to market luxury houses in the Philippines. Being clear on your goals is the very first step to reaching the end goal.
Clarity in goals is important in property investment | Photo from Unsplash Website
Make it Part of the Future
Your plans for today must be aligned with your plans for the future. Property investment is not a one-day event that will give you a good result in an instant. It will take time and need marination to produce a great outcome.
It is important that as you decide to make your first property investment, you will remember your bigger picture. Property investment must coincide with your bigger plan for your life.
Be Guided on Properties with Reasonable ROI
Your ultimate goal in real estate investing is to earn a profit on your investment (ROI). A house and lot for sale that does not generate a return on your investment is clearly not a good investment opportunity.
According to Tara Hotchkis of Compass, buyers should look for a house and lot property for sale that has a goal return on investment of 15 percent or higher. Your money will grow as a result of this strategy.
Where and What to Buy?
You might overlook this along the way, but deciding where and what to buy is important. Being more specific with your goals will make property investment hunting easier since there are a lot of luxury houses in the Philippines.
You must specify whether you want a multi-unit property or a single-family home. In this way, it will be easier for you as you search for your first property investment. The geographical location of your property investment is very important as well, so checking out the most sought-after locations might help you as you buy your first property investment.
Choose the Financing Option that will Fit for You
If you will pay in cash when you choose your first property investment, disregard this point. But if you are not, you might want to consider some financing sources that will be helpful to you.
If you are unable to pay cash for any property acquisition, whether it is an investment property or a primary residence, there is something called investment property finance. Financing is classified into two types: conventional financing and asset-based financing. In either case, securing a financing source prior to beginning your property hunt is a prudent move.
Financing Sources are big help in property investment | Photo from Unsplash Website
Decide whether to get a Property Manager or Not
Another thing to consider as you choose your first property investment is whether you will choose to be your very own landlord or hire someone else. The only downside of hiring a property manager is the cost, but seeing the potential that can happen with a property manager is much more than the possible expense.
A property manager, particularly in the case of luxury residences in the Philippines such as those in the Brittany Corporation, is a someone who can be relied upon. The fact that they will assist you on a day-to-day basis will spare you from having to deal with too much hassle and headache.
They will price your property appropriately, market it to possible customers, research and even credit check potential tenants, collect rent, and handle all property issues, maintenance, and bills. Hiring a property manager will cost you at least 10% of your monthly rent yet save you almost 100%.
Decide to hire a property manager. He will do the work | Photo from Pexels Website
To Invest in Real Estate is a Real Deal
Choosing your first property investment will require so much of your time, energy, and resources, so having the factors listed above will be helpful for you. Property investment is a real deal and is hard work.
The good news is with Brittany Corporation, your experience in choosing your first property investment will be much more manageable because of the effective professionals they have. Apart from their quality house and lot properties for sale, their people are very quick to respond and very accommodating to answer your possible inquiries.
Luxury Home from Augusta Santa Rosa | Photo from Brittany Website