Jan 08, 22By Ella Espartero

In welcoming the new year, many are venturing on crossing things off their bucket lists that they couldn’t do in the past year due to the pandemic. Financial and economic decline has become apparent during that time, making it difficult to achieve some personal plans. 

Now, as the economy slowly restores, businesses continue to rise here and there while opportunities all while health protocol eases. What would you consider to get as soon as the economy stabilizes? For one, it would now be a good time to consider getting real estate investments. 

Real Estate Industry for 2022

With the economy recovering, offices and commercial establishments are also on the rise. The real estate industry is anticipating a rise in property demand for businesses as well as residential properties. From the recorded 17.6% vacancy rate at the end of last year, the Colliers assured investors about the recovery in the following months.    

Why should you buy a property now and not later? Well, Colliers has reported that the property prices can be expected to have an increase of 1.5% while rents would have an increase of 1.7%. Wouldn’t it be better to get your own home now that there are new supplies? 

Based on the real estate listing site Zillow, it predicts that the home values will most likely rise in the span of a year. Their prediction is that there would be an increase of 13.6% in the prices between October 2021 and October 2022. With these real estate trends, there is a potentially lower level of demand as its prices increase. That’s one thing to think about. 

First-time homebuyers

According to an article from Camella, millennials are seen to be very interested in owning a home. They are already getting off the renting phase as most “home - hunters” are found to be in the 25 - 34 age bracket. With this, houses and properties have become progressive as developers welcome the new generation of homebuyers. If so, what is it to be considered now in choosing their place?

You might want to start by searching about your target location. The things you must consider are:

1. Work Opportunities- if you do not have a stable job yet, you must check the work opportunities near your target location. Does it cover your dream job? Is the salary in that area enough for your financial needs? Or if you already have your job and are just looking for a new home, you must consider the travel time from your home to your work;

2. Cost of Living - salary in every city differs from what region you are in, as well as the tax that you have to pay. It should match your financial goals. With this, your budget should also be considered.

3. Accessibility - you should also check if your preferred location has easy access for transportation going to and from your home and has moderate traffic during rush hour. For some, the distance from work and school is important as well.  

4. Crime Rate- of course, you must feel safe in your new home so you must also check if the city has a low crime rate.

Since you already have an initial idea regarding your target location, you should also check the listings (for sale properties) within the area. Good thing that you can now search it online. You may also check the top real estate marketplace in the Philippines.

In the time of social media presence, developers are able to make showrooms available for people who are trying to look for good real estate investments. 

Legal Considerations

After checking the listing, you must have knowledge about the legal steps of transferring titles or better hire a real estate lawyer to help you with legal documents. This will help you avoid scams or overpricing from the seller. Hiring an attorney will make your buying experience easier. Also, working with a credible real estate agent can be of big help since they can provide you with information and insight on the types of property you are interested in.

Foreign Homebuyer

If you are a foreigner and you want to have a real estate investment in the Philippines, you must have an idea of what property you can only own in the Philippines. Take note that foreigners are prohibited from owning land in the Philippines, but can legally own a residence. According to the Philippine Condominium Act, foreigners can own condo units as long as 60% of the building is owned by Filipinos. Meaning, foreigners can only take up to 40% of the building.

If you are a foreigner and you are persistent in owning land in the Philippines, another option is marrying a Filipino citizen then buying a property under your spouse’s name. 

Where to buy a house?

Of course, mixed-use developments in Metro Manila are one of the clear-cut choices in making a property investment in the Philippines. 

But away from the Metro, there are also other cities that you would want to consider when looking for a place. For one, Cebu City could be a good choice too. It is preferred by most young professionals venturing to the area for various job opportunities. The Queen City of the South is open for a work - life balance which shows its charms away from the urban life. 

Properties as an investment

Properties are investments that will only appreciate over time. Having your own place today can one day have a higher worth in the next few years. Other than this, your property can be turned into a business by making it a rental, selling it, and such. There are some things you can do to your bought property when you don’t feel like living in it yet.

Buying property for income

Buying a home for the purpose of income is also a good investment. Services such as Airbnb are an example of an income property where the place is rented for vacation purposes. 

Managing a rental property

For a first-time homebuyer, it would be a risk to make your first home rental property. You have to be cautious about who you rent your house, your agreement and how the finances would run.  

Buying a property is a good investment, especially for future purposes as the value does not drop to nothing. It will always have worth. It is exciting knowing that you would get your first home as it is everyone’s dream to have one. 

Although, it is important that you must consider every aspect when looking for one and buying it. Consider the quality of the property, its location’s pros and cons, the future trends and more.

If you want to learn more about the real estate industry and trending properties, just visit Signet Properties and read our blogs. Or follow us in our Facebook Page, and Instagram.