Crown Asia The Premium Brand of Vista Land Premium Real Estate Developer In The Philippines
Crown Asia The Premium Brand of Vista Land Premium Real Estate Developer In The Philippines

Is It Worthy to Invest in a Condo in Las Pinas in the COVID-19 Pandemic Period

November 29, 2021

Share on:

Traditionally real estate investment has been considered as a wise investment, mainly when other options, such as cryptocurrency or stock trading, offer insufficient returns or are too volatile. But here, the big question is what type of property is perfect for bringing long-term success and where do I find the best one. The answer is: condominiums are the best option to choose. Condos are more cost-effective than homes as they are more affordable and they allow you to pay for the properties faster so that you can enjoy the benefits right away.

 

So, whether you plan to use the condo unit for yourself, want to resell it later, or put the property up for rent, you can assure that the shares in your property will not lose in the air. Besides, it is better to invest in a condo in Las Pinas as the condos have the potential to grow their values. Like other investment types, it only depends on you to make the perfect move towards generating a higher ROI.

 

Condo In Las Pinas

Investing in real estate is considered to be the most ignored yet very crucial phase in buying a condo in Laguna.

 

Now the question is whether condominiums are worth investing in during the COVID-19 pandemic period. Here are some important details to consider in this regard:

 

1. Investing in condos helps you to have consistent cash flow with lower risk in investment

As the choices for using this investment option are limitless, the top-quality condo investments offer dependable income flow to the investors. You can choose to rent these properties out for commercial or residential use, or you can also profit from these investments by selling them after several years. Although every investment is risky, investing in condos is less risky than others.

 

2. Condo investment helps in equity accumulation

In most cases, people choose to purchase condos using loans instead of cash. And here the more you will pay down the loan, the more equity you will be able to accumulate. This is beneficial for both the present owners and the owners in the long run as the value of the property increases.

 

3. It is possible to leverage real estate as the value increases

Leverage is one of the tactics that can be employed for securing the prospect as this thing leverages the borrowed funds, which improves the prospective return on investment. This is highly beneficial, mainly when the real estate values increase.

 

4. Real estate investment is good for your retirement days

Like other fields of investment, real estate investment is a good option for your retirement days. Investing in real estate is considered to be the most ignored yet very crucial phase in buying a condo in Laguna.

 

5. Real estate investment comes with a lower tax rate while developers offer some substantial discounts

The condos come with lower tax rates than homes. Besides, when you buy condos from leading condo developers offer some significant discounts, especially during the pre-selling era. As the condo investment strategy, scouting during this time is perfect.

 

6. Condo investment is a pandemic-proof real estate investment

Although there are many advantages and disadvantages of purchasing a condo, the pros often overweigh the cons, especially in this period of the COVID-19 outbreak. So, if you are concerned about the risks of condo ownership, then here comes some effective advice that you can consider.

 

• Search for assets, which are less expensive than the replacement costs

When you are investing in a condo, you should consider the cost of purchasing lands and constructing properties from the ground up. If you properly budget, investing in a condo is a decent option. This needs properly pricing rentals that must not be lower as the additional buildings would incur higher development costs.

 

• Search for leases with lengthier lock-in periods

Investing in condos in the Philippines can be easier if you choose ones with lengthier lock-in periods. Condos, where tenants invest in the fit-outs, commit them to it, and as the result, have lower vacancy forecasts.

 

• Search for tenants with the highest caliber

Like the developer in whom you are investing must be trustworthy, the same thing is applicable when you choose tenants. The COVID-19 pandemic has always changed how businesses urge people to be cautious with their real estate investments. The grade tenants often consider rental charges as a small part of their total revenue. As a result, the tenants would consider these properties as assets instead of just another cost center.

 

• The leased assets should be paid off

One of the most serious risks of investing in a condo unit is investing in rouge developers or worrying about getting a new renter. Therefore, it is important to buy completed lease assets for mitigating development and leasing risks.

 

• Try to sign leases with yearly 5% escalations

It is important to be careful about real estate investments. Leases often require 15% yearly escalation every three years that may be daunting to the potential tenants. Rather than that, ask them to sign leases with annual 5% escalations so that it is more manageable and progressive for both parties.

 

Related Blog: Buying House and Lot vs. Condo for Sale Philippines - Important Factors to Consider

Terms and Conditions | Privacy Policy

2022 © Crown Asia Properties, Inc. All Rights Reserved