What to consider in PROPERTY INVESTING... a.) Price per square meter - When investing in properties thru a developer, it is best to invest in the project at the earliest time possible so that you can avail of the maximum discount being offered by the developer. Note that on average, the prices of these projects increase by 3% every 6 months. In retrospect, some of the condominium projects started at around PhP 1.3M for a studio unit. At present, these units are now priced at PhP 1.8M. Based on a survey I conducted, the Philippines has one of the most affordable properties in the world (Please refer to the table below). b.) Annual Property Price Growth - Generally, real estate would follow an upward trend in terms of price movement. This is not however the case for Greece, Cyprus and Spain who are experiencing deflation and are being badly hit by the global economic brunt. While at present, it may seem that the prices of properties in these countries are very competitive, you would not want to end up investing in a PhP10M property and end up maintaining a property valued lesser than your acquisition cost. As for the Philippines, property growth has been on a steady upward trend and fundamentals indicate it to continue on this trend. Remember that it is an investment and not an expense hence, where the price is going from the time you acquired the property is crucial in making your decision. c.) Gross Rental Yield - Finally, investors should look at the average gross rental yield in the area if their plan is to eventually rent out the property. Gross Rental Yield is simply dividing the annual prevailing market rent in the area with the acquisition cost of the property. If you intend to go the route of a lessor, it is not enough to just compare prices. Gross Rental Yield should also be included in the equation. If you have further questions and clarifications, please feel free to contact me. Edgar Sarceno Wealth Portfolio Manager International Property Consultant Mobile No. / Viber: +639177419804 Email: edgar@investincebuproperties Skype: edgar.sarceno Source: a.) Property price per sqm. globalpropertyguide/Europe/square-meter-prices globalpropertyguide/Asia/Philippines/square-meter-prices therichest/expensive-lifestyle/location/top-10-countries-where-property-value-is-going-up/ b.) Property Price Growth globalpropertyguide/ c.) Gross Rental Yield globalpropertyguide/North-America/United-States/rent-yields globalpropertyguide/Europe/rent-yields globalpropertyguide/Asia/rent-yields
Posted on: Thu, 09 Oct 2014 09:33:20 +0000
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