For some people, property buying isn’t just about putting a roof over their heads. Early on, they realized that real estate is a finite resource in an infinitely growing world. As a result, they look into the future to foresee which locations offer the best revenue-generating opportunities. Then, they put their money into preselling investment condos, houses, or other property. Often, it’s a matter of time before their initiatives pay off in the form of increased values for their assets.
Of course, timing is of the greatest importance. Invest too early and your location might fizzle even before the first building gets completed. Join in too late and you might have to pay exorbitant prices for properties that take longer to generate returns. For the former, it’s all about performing diligent research before arriving at a deal. For the latter, taking advantage of preselling investment condos means much higher return rates compared to those who bought similar units at full price.
Why Buy Preselling Investment Condos and Other Properties?
Before we answer this question, let’s try to address a relevant question: Why do developers offer investment condos and other properties at preselling rates? Like any other business venture, building condos needs money to make money. To complete a state-of-the-art condominium complete with modern amenities, the developer will need hundreds of millions of pesos or more. Even if the developer can afford to bankroll their project, they’ll often offer early buyers to avail of sharply discounted prices if they buy now. With money now coming in via early birds, there is less worry about financing the project. In addition, early buyers often give others the confidence to sign up as well.
For buyers, the main reason to buy preselling investment condos is the low introductory prices. It’s common for developers to jumpstart the preselling process by offering discounts of 30% to 50%. If the seller is a well-known developer with completed projects under their belt, early bird buyers will come. The lower price also means that buyers can achieve a bigger and faster rate of return for their investment condos.
In addition, pre-selling provides buyers with better options on which units to buy. For house and lot packages, units near the entrance, corner lots, and those with house numbers containing 7 or 8 are among the first to go. For investment condos, it’s those units nearest the elevator or the ground floor, those with a commanding view, or those having lucky unit numbers.
Preselling Investment Condos in the Philippines – Are They Worth Buying in 2024?
If you haven’t heard by now, the Philippines is now a major real estate investment destination. Last year, Manila became the hottest luxury property market in the world, beating top destinations such as Hong Kong, Shanghai, and Singapore. Any real estate investor worth their salt knows that the time to buy already started before things got hot in Manila. If there are preselling investment condos still available, expect a second wave of investment to come swooping in this year.
Another factor for real estate optimism in the Philippines is the country’s seemingly nonstop infrastructure projects. Many projects are focused to decongest the country’s capital and allow more tourists to arrive. Hence, the country is now awash with round-the-clock work to complete new and wider roadways, new airports and piers, extended railways, and even a new subway system. Once these projects are completed, property owners in major locations will see increases in the value of their investment condos. Do we dare envision a future where Metro Manila hums quietly as most people travel by rail instead of car or bus?
Best Locations for Preselling Investment Condos
The major business districts of Makati, Ortigas, and Bonifacio Global City (BGC) have plenty of preselling investment condos available for prospective property investors. Note, however, that since these districts have been around for decades, property prices are higher compared to the rest of the country. As such, you might need more time to recoup your investment before you turn a profit. Then again, these business districts hold the cards when it comes to excellent roads, infrastructure, and job or business opportunities. Which means that property values are more likely to go up than go down.
Aside from the business districts, resort communities in the suburbs and tourist areas are also gaining traction among investors. According to Colliers Philippines, the recent COVID-19 pandemic led to demand for resort or leisure-oriented properties outside Metro Manila. Even after the WHO declared an end to the pandemic, many homebuyers are still looking to own investment condos or houses in areas featuring greenery, fresh air, and a less frantic atmosphere.
Yet another emerging city that’s ripe for property investment is Quezon City. The capital’s largest city is home to major infrastructure projects such as the unified rail terminal, a new line to Bulacan, and stations for the new Metro Manila subway system. This early, developers are anticipating increased demand for housing near the subway and railway lines. They’re all working double time to launch residential projects in the city.
Looking for the Perfect Investment Condos? Ohmyhome is Happy To Help You Get the Perfect
Are you looking to dive into the exciting and rewarding world of property investing? Or, are you a professional looking to finally become a homeowner? Either way, Ohmyhome can help you search for and acquire your dream property faster and more efficiently. We have an extensive listing of available properties from over 200 of the country’s top developers. Instead of going over individual websites and getting confusing information, Ohmyhome’s simple search tool allows you to narrow your hunt based on your preferred home type, location, and budget.
Ohmyhome’s top-notch team of real estate professionals can also help you secure the best deals with developers. They can also help you secure the best financing options from our partner banks as well as with documentation. Sign up today for a free Ohmyhome account and discover the Ohmyhome experience!