As the world’s population continues to grow, affordable housing is becoming more important. Many people are looking for affordable homes that are large enough to accommodate their families and give them a sense of ownership and independence. Let’s explore what’s happening in the Philippines’ real estate sector for 2023, especially in condominiums through this article.
Rising demand for condominiums in the Philippines
With the increasing number of population growth around the world, it is critical to find a house or a home that will bring great comfort, safety and security, easiness, and is budget-friendly.
As we are now in the year 2023, it is indeed a new beginning for everyone of us to build new memories, new experience, new found friends, and possibly acquire new condominium unit that will serve as a new home to greatly start the year. With the real estate investments that is now a boom in the Philippine market, it will still continue rising in the next few years.
There is a boom in the Philippine real estate market, especially among condominiums. The demand for condominiums is strong, as they are in high demand among young adults working in Metro Manila.
Will condominiums be more affordable for 2023?
It is reported that appetite of luxury apartments and condominiums in the Philippines has a stable demand. However, as more and more homes are needed by the average Filipino worker, developers who offer affordable real estate properties in the country emerge.
Although it its true that condominiums could sometimes be priced higher than regular house and lots, more and more options start to emerge to cater to the needs of Filipinos. However, to make costs of condos affordable, these properties are often located outside the country’s centers.
Most affordable condominiums are located in the outskirts of Metro Manila where cost of construction and living are much more affordable. Condominium developers are in hopes that these condos outside the Metro will help bring in tourism and value appreciation to the location since condos offer a reimagined city living – outside the city.
Needless to say, housing market predictions lean towards cheaper condos in the country while luxury living is also o
Tips for Buying in Today’s Condo Housing Market
1. Plan on how your condo will be
Determining the use of the condo you’re going to purchase is one of the first steps to do when planning to buy one. Is it for a home? or for an investment? Either way, the condo will bring good returns but using it for investment might bring you higher returns.
You can still get a good investment return if it will be your own home, as you get the chance to experience your hard-earned money. However, making it as rental business will secure a stream flow of passive income and will definitely pay your debts and bills. So, think first what would it be.
2. Strike while the iron is hot
When there is a chance of investing into a condominium, seize the opportunity. With the current trend of condo market in the economy, it is expected to increase homebuyers and investors when it comes into this business. That means there is a great chance to sell condos fairly and quickly.
Philippine real estate industry continue to rise and the housing market forecast, it is good to strike the iron while it is hot. Yes, the rising prices and higher interest rates may have an effect on its home value but there is a shortage of properties and new constructions cannot kept up to the demands.
You better risk your money to a greater value with a high chance of reward in the long run.
3. Seek advice from industry experts
Consulting and working with trusted professionals are deemed necessary because you better work with the person who is more knowledgeable on that field and will give you a better sense of condition on the local market rather than any publication.
Seeking help with real estate agents with vast experience in the field will definitely give you a wide market outlook for the year 2023.
Remember that you can rely with the experts and answer your questions about home buying processes, home prices, and the likes. They are the one who can give you the best prices that is suited to your budget and give you a lot of options when it come to purchasing a unit.
4. Always stick to your budget
As a homebuyer or as an investor, we do not want to exceed to our allotted budget but to always stipend. You should first organized your finances in order to maintain and afford the condo after you bought it because you never want to over-extend yourself into homeownership.
What you need to do is to competitively bid and move as quick as possible when you find a home that suits to your taste and budget. But if you are out of budget in buying your dream condo unit, you should think to spend more time saving-up money to make a large down payment. However, if it is not really possible to buy your dream unit, I guess you should lower down your expectations or your standards in a higher priced condo and look at a home you can afford.
5. Explore different condo options
Do not settle for just few options or just checking one property, you must expand your choices when it comes to visiting properties. Take a look at every condo unit that the agent is suggesting, it is always better to have various options.
The real estate sector provides a wide choices for the homebuyer and states all the possible house prices of every unit. Think of what they can offer to you as a possible home purchase.
Take your time to research and find a best deal options with low mortgage rates. Next thing you’ll know, you own the condo unit that you deserve which will reciprocate all the hard work you put into it.
Three different roads for interest rates
When it comes to interest rates there are three types of this namely the nominal interest rate, the effective rate, and the real interest rate.
1. Nominal Interest Rate
The nominal interest rate refers to the stated rate of interest of a loan or an investment without any adjustment or fees. This rate must be paid by the investor or the borrower to the lending company or in the bank.
For example, a borrower get a loan for 100 dollars at a rate of 6%, the borrower is expected to a pay a 6 dollars interest.
2. Effective Rate
On the other hand, the effective annual rate takes into account compounding over the full term of the investment. It also reflects the real percentage rate owed in interest on a loan, credit card, or in any other debt.
3. Real interest rate
Lastly is the real interest rate is the lending interest rate adjusted for inflation as measured by the Gross Domestic Product (GDP) deflator. It is useful when considering the impact of inflation on nominal interest rate.
This means that if the nominal interest rate is 5% and the inflation rate is also 5%, the real interest rate is effectively 0%.
An increase in the house mortgage rates
For many people, investor, or businesses, a modest increase in the interest rates directly affect the affordability and the investments in the market which it has a significant impact in our economy and in the seller’s market.
When interest rate goes up, mortgage becomes more expensive. You better find a housing or an investment with low mortgage rates which will help your ability to pay for your home loan.