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Mekati City: condo investments
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Is it a good idea to buy a small condominium for investment purposes in Mekati City Philippines now?
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Hi there, I personally would, but the choice is ultimately up to you. "According to estimates by the Global Property Guide, residential property values in the Philippines are growing by about 10 percent over a one-year period, about 32 percent over five years, and about 75 percent over 10 years (the increase in property values typically decelerates over time). Thus, the typical Filipino homebuyer can, at least at this point, count on a stable investment for his or her hard-earned income. " – Manila Times, Sept.2014SPECIAL REPORT: Sizzling property market shows no signs of cooling – The Manila Times Online In terms of price growth, this is a great article on Slowdown in residential property price rises in Manila If you are using it for passive income, there is a high rental yield on Condominiums in Makati if you decide to put it up for rent. Friends of mine are currently doing this to help pay of the monthly costs and earn on the side. My advice is to really weigh the options on the type of properties to invest in. Look at the paying options and the developer. My friends have preferred to invest in rent-to-own properties. Pre-selling is alright too since you're getting it at a comparably lower rate. Some people don't mind this, if you are one of those people, make sure you get it from a more reputable developer. If perhaps the first tower of a development is up, try to see what people are saying about the property. This article helps, Pros and Cons of Investing in a Preselling Property | ZipMatch . Hope this helps, you can also check out buildings and units in Makati hereCondominium for Sale in Makati City, Metro Manila. They have building reviews on their project pages, which can really help in your process.
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In my personal opinion, no. I believe the Philippines property market is overheated and headed for a crash. Best to keep your money safe and when the bubble bursts, that's when you can swoop in and get distressed assets at bargain prices. One other problem in Philippines condominiums is that they are depreciating assets. Strata corporations are generally incompetent, so the property values go down after turnover. Maintenance is usually mediocre, which contributes to the downward spiral. The only way investing in Philippines non-landed property would make sense today, is if you can get in during pre-selling phase where the discounts are substantial. Then hopefully by the time TOP occurs, you can immediately flip the unit for a nice profit.. because the value will go down from there. The problem is that buying a condo unit during pre-selling forces you into a 3-5 year time scale, and who knows what will happen in 3-5 years. If the market free-falls, you'll be in a hole. If you can tolerate a 3-5 year time scale, put your money into an S&P 500 ETF, like Warren Buffett recommends.