Condo investing

There is reason to be hopeful especially when you look at the numbers and the projections coming from both government and private sector.  Economists believe that we will be able to hit the 7 percent growth rate this year which will make the Philippines as the best performing economy in Asia next to China. What makes this growth so notably different from the growth we have had in the past is the fact that the growth is spurred by several industries. Fifteen years ago, the export sector used to be the darling industry which was led by the semiconductors sector which comprised almost half of the country’s exports.

Today, we have many growth drivers that have actively participated and contributed to the growth – manufacturing, BPO services, labor export (OFW remittances), tourism, real estate, retail and many others. We see a lot of people making money these days although we have yet to achieve that kind of growth that will include the 40 percent of Filipinos that are still wallowing in poverty. But I’m hopeful that we will achieve that inclusive growth and pray that P-Noy’s successor is as determined and relentless to remove the scalawags in government.  In the meantime, while we can, we must also contribute in the growth by becoming investors ourselves.

The opportunity is now here with us. It is up to us whether to take it or let it pass.  There is opportunity in stocks. And if you’re the conservative type you may want to put your money in mutual funds or in a participating insurance. Don’t let your money sit in low-earning time deposit. The most that you can get out of your time deposit these days is 2 percent per annum and with an inflation rate of 3-4 percent, you’re actually losing money the moment you put your money in the bank. 

Say you don’t like stocks or insurance, you can open up your own business – something that you are familiar with in terms of process and in terms of market demand. And if time or work does not allow you to run a business, then real estate should suit you perfectly. There is a strong demand for real estate. With the shortage in housing in the country, you may want for example to buy a condo and sell it later. Owning a condo these days is not so difficult and as expensive as it used to because interest rates are low.

There are creative ways to earn short-term or long-term in a property. The most popular is by “flipping.” Flipping applies to pre-sold properties such as a forthcoming condo. Flippers buy condos when they are at their pre-selling prices because they are usually cheap.  Prices of condo begin to increase upon commencement of construction (around 5 percent), and continue to increase when the condo is halfway complete (another 5 percent) and all the way upon completion or turnover (another 5 percent).  Flippers make money by selling their units anywhere during the construction period or during turnover.

Another way to do well in condo investing is letting. Considering the shortage in housing and the scarcity of residential spaces in the urban areas, there is a strong demand for rentals.  Rentals, on the average, increase by as much as 6-10 percent yearly which makes condo investing a lucrative investment for the long term. Rentals also help you unload the worry of mortgage payments as well as your condo dues later thus, when you decide to have your condo rented, you’re actually passing on your financial commitments to your renter.

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Speaking of condo investing, Rent.ph will have a discussion on the opportunities in rentals on May 11, 2013, 4pm at the Bamboo Bay Community at F. Cabahug Street and on May 24, 2013, 6pm at the Rooftop of AppleOne Tower, Cebu Business Park. The discussion is free of charge and food will be served to guests.

To reserve a seat, email me your name and contact number and will be happy to have you accommodated.

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