Investing in real estate can be a highly rewarding endeavor in the Philippines, and one of the key determinants of your investment’s success is the appreciation of real estate properties. If ever you plan on investing on real estate property, say in a subdivision in Cavite, understanding how property values increase over time is crucial for making the wisest of decisions and getting the most out of your returns in the Philippine context.
Let us further discuss how real estate appreciates here in our country, and how your eyed property at the subdivision in Cavite, or even your current real estate, can be enhanced. Any one, especially those who are new to the real estate market, can use expert tips of real estate appreciation.
What you need to know about real estate appreciation value
Real estate appreciation, both in the Philippine context and in any place around the world, pertains to the increase in the value of a property over time. This is why real estate is a great investment. While the value of cars decrease once you take it away from its shop, if maintained well, the home appreciation of a real estate only increases. This increase is influenced by several factors, including the location, market demand, economic conditions, and improvements made to the property. Investors are keen on identifying areas with strong potential for appreciation as it directly affects their return on investment (ROI), so if you want to strive to become a successful real estate investor of a subdivision in Cavite, you must do thorough research and take note of the following details regarding the factors that makes a home appreciate.
1. It is always about location.
There is a popular saying that goes, “Location, location, location!” and you may think what an absurd quote that is but really, it just goes to show that location is very important to the point that it can already stand on its own in an advice quote, and maybe even in real estate. Properties that are in the middle of the hassle and buzzle of the crowd, such as areas near cultural hubs, transportation, markets, and schools, are very much expected to have high value. Everybody goes there so indeed the profits are always skyrocketing! With this advice, do not invest in just in any property. You do not want to rent a handful of condominium units that are in the middle of nowhere. Study properties geographically as well!
2. Be knowledgeable on demographics as well!
Aside from learning about locations, you also need to be well-informed of the people the area you are eyeing to invest property in. What are the majority of ages in the area? Are there more student there or families? If there are lots of students and colleges around the area, investing more on condominiums or apartments are advisable than having a house and lot. Additionally, what do these people like? Would they rather be in a contemporary, city-like space, or would they want to live in the cozy and quiet? Indeed, a property is valuable based on how its customers see it. If the property does not meet the customers’ needs and wants, its value will surely decrease.
3. Upgrades and renovations add value as well
Obviously, a property that has been damaged definitely has its value decreased just as how a property with newly built forts or even an added swimming pool definitely has a lot of added value. This is why before investing on a property that is not new, you really need to check for any damages all around the house. From the roof to the plumbing, any scratch from these can decrease the home appreciation. On the other hand, if you feel like selling a property, make sure to sell it in proper maintenance so your client would not have to ask for discounts. If you want to, you can even add a floor into the home so that its value can go up to the millions.
Buy and Hold for the Utmost of Home Appreciation
One of the tried-and-tested strategies of successful real estate investors is called the “buy and hold” investment strategy. It is a well-tested approach for maximizing real estate appreciation in the Philippines and around the world. This strategy is basically getting properties and not selling or renting them up in purpose. With the intention of not putting it for sale would allow allows investors to capitalize on both property appreciation and rental income over time, leading to a better deal on their part in the future.
In comparison, short-term real estate investments can be riskier and more subject to market fluctuations. The “buy and hold” approach provides a sense of security and long-term stability, making it an attractive option for risk-averse investors in the Philippines.
Investors who adopt the “buy and hold” strategy in the Philippine real estate market have the advantage of weathering market fluctuations and benefiting from the compounding effect of appreciation over the years. Additionally, if you are the buyer, perhaps it is worth the risk to buy things earlier rather than later. As the years go by, we know how inflation rates usually go up rather than it goes down. Just think how totally affordable a Jollibee franchise is before compared to its price right now.
But, again, never forget to do thorough research.
Real estate appreciation is a powerful force that can significantly impact your investment returns. But one must always remember that properties can be the most expensive thing a person could buy so one must thread carefully when trying to be a real estate investors. It can be the greatest investment of all, but it isn’t cheap either. By understanding the factors influencing appreciation, adopting smart strategies, and staying informed about the local market, you can position yourself for success in the competitive world of real estate investment in our country. Good luck!
Related Blog: How Does a Property Increase in Value?
