As first-time investors in the Philippines, you may be curious as to where you might obtain the best return on investment. Choosing the right investment, whether it be stocks, mutual funds, insurance, or property, may be a daunting task, but if you do decide to invest in property, there are several options available to you.
Condominiums are a common kind of real estate investment in the Philippines. The most impressive features of most condominiums are the resort-style facilities and fantastic community choices, such as their convenient proximity to key businesses and landmarks. But, as a first-time investor, you may be able to look beyond these considerations and wonder if purchasing a condo is a smart investment in the Philippines.
Is Condo A Good Asset this 2023?
The real estate market in the country may be undervalued as an investment opportunity, but recent years have witnessed a meteoric surge in the sector. This is because many condos in the Philippines are located right in the middle of bustling commercial districts along popular tourist routes or in the suburbs, providing condo owners with a refuge from the frenetic activity of metropolitan life, making it a perfect spot to generate passive income for your monthly fees.
It’s not out of the ordinary for individuals to claim that condo investment or ownership is a priority. After all, a condo in the city is a great investment in the Philippines since it allows for a more relaxed and stress-free way of life.
Why Condo Investment Property must be considered by Filipino Investors in 2023?
Smart investors have found condos to be an enticing rental property over the previous two decades. In fact, investors that got in at the beginning could now have a unit worth twice as much as they paid for it. But the big question would be still, is condo a good asset this 2023?
We’ll go into this subject and take a look at the factors that increase its real estate market value to condo owners.
1. Lower asking real estate prices than other properties
A trend may have been apparent to those who have just begun their search for a new house through real estate agents or who simply love browsing real estate listings for entertainment purposes. In general, condos have more affordable asking prices than other kinds of homes.
If you have enough budget for this wise investment, you may acquire multiple units of Asterra’s affordable condominium units due to their reduced prices. With a lower cost, you can have a lot more freedom as a condo owner as opposed to being a tenant in an apartment and being subject to the landlord’s rules and regulations regarding rent and other expenses.
2. Commonly built in more attractive locations
Condominiums tend to be located in highly trafficked areas, such as the heart of major cities.
You may only charge a premium for rent if the building is in desirable areas or city centers. Your rental unit’s asking price will go up if it’s located on the opposite side of the street from public transportation, dining, and shopping places.
Real estate hotspots like Cavite and Laguna are only two of the places where Asterra now owns property in the Greater Manila Region. Pampanga, Iloilo, Cagayan de Oro, and Butuan are also other places where new buildings are planned or are already under construction.
3. Getting a certain level of real estate market security at a lower price
Condominiums are a good investment not just because of their price and size, but also because of the added safety that comes with being part of a homeowners’ organization (HOA). Condominium ownership incurs a little increase in these costs.
Associations like this make things easier for passive investors, but they do so by collecting a HOA fee to cover the expenses of maintaining the community. Since some neighborhoods have higher HOA dues than others, prospective buyers need to do their research before making an offer.
4. Condos appreciation rates are driving up
Condos have historically depreciated at a slower rate than single-family homes, but the new market created by COVID-19 might upend this trend.
Like with the rest of the housing market, the supply and demand crisis that has been pushing up house prices nationwide has at least had some effect on the condominium market. Once again, we need to build more homes to fulfill demand. The growing demand for condos has resulted in a higher rate of appreciation.
5. Fewer maintenance requirements
In addition to being cheaper, these condo units also need less upkeep on the part of their owners. This is due to the fact that the outside maintenance of most condos is handled by the building’s homeowners organization.
This means that condos need less money to maintain than single-family homes since owners just have to worry about their own condo unit. While you focus on your own condo, the association will take care of the common spaces that you and your neighbors use. It’s a great perk if you’re always on the go and don’t have time for mundane tasks like mowing the yard. If, on an opposing idea, you want to rent out the condo as an investment property, the ease of upkeep is also a major selling point for your rental properties.
6. Simplify yet modern lifestyle offered to condo owners
Simplicity is the goal of many of today’s consumers, especially those living in urban and suburban areas.
People want to live in communities that provide common facilities including swimming pools, fitness centers, game rooms, outdoor areas, pet parks, and similar places. These perks may be a huge help for those who put their money into investments with the hope of making a profit.
Moreover, most condo buildings are quite likely to last for another 50 years, thanks to the growing popularity of green construction projects, a trend towards sustainability, and the long-term advantages they provide. Demolition is seldom justified, however, when a complex is well-kept and the vast majority of residents feel comfortable and secure in their dwelling.
Savvy investors who would like to put their money in a suburban mid-rise average condo unit must check out the newest condo market in town, Asterra.
The developers of “Asterra” have included smart home technologies in all of the units so that residents may have a more convenient and comfortable experience managing their living area. Real estate investors can now enjoy their smart homes in this contemporary society equipped with lightning controls and digital door locks. This condominium investment also includes remotely controllable security systems for the safety and security of each unit owner.
Check out our state-of-the-art condominium buildings now and start your wise real estate investments option with Asterra.