Despite the current challenges, the Philippine real estate industry remains resilient as ever. The industry has suffered major setbacks because of the pandemic. However, real estate developers quickly shifted their efforts into going digital. Given the growing population, urbanization, and increasing middle-class families, the demand for real estate will only continue to rise. Additionally, the increase in BPO companies nationwide and OFW remittances play a vital role in boosting the real estate market.
Generally, real estate investing is a safe option for novice investors. There are several opportunities to earn profit in real estate so long as you are updated with current trends in the real estate market.
For starters, here are two common ways to earn profit in real estate:
Buy-and-Hold Strategy
In this strategy, an investor buys a property, the value increases over time, and the investor sells the property for profit. This is probably the most used technique and a classic buy and sell move. There are some properties that take more time to appreciate in value and in rare cases, there are properties that do not increase in value at all.
TIP: Always ask the rate of value appreciation of your developer before closing the deal. Their rate will determine how long you should hold off the property before selling it.
Flipping
Similar to the buy-and-hold strategy, this involves buying a house unit and revamping the whole unit to make it look brand new. The house, at the time of buying, is usually a reopened unit because it is cheaper and has room for a greater mark-up.
Simple and easy, right? These two strategies are perfect for OFWs. They can acquire a house and lot in the Philippines when they initially arrive home and decide whether to hold off their unit or renovate it. Then, after months of renovation and looking for clients, they can finally sell off their home investment. These strategies take time and patience since it takes a few months or even years for a house and lot unit to appreciate in value.
This article originally appeared on Vistaland International. Click here.
Surely a lot of reasons to buy a home in the Philippines.