At some point in your life, you may have thought of buying or investing in luxury property for sale in the Philippines, only to be stopped by family, peers, and financial advisors. Difficult as it was for you then, the power of the opposition may have been too powerful and you decided to put your plans on hold for a later time. Well, what if we told you that now is the time to dust off your luxury property investment folder and set the wheels of your plan in motion?
Compared to stocks, currency, and gold, real estate is shaping up to be one of the wisest and safest types of investment in this day and age. On average, real estate prices are stable and investments are almost always profitable. Luxury real estate, on the other hand, has significantly steeper ups and downs. What this means is that there are a drastic rise and drop in buying and selling prices. In short, it is a fickle market which makes it a little less attractive to some. This, however, also means that there is a much higher return if you can time your purchase and sale right.
Assuming you aren’t forced to put your luxury property for sale in the Philippines at the wrong time and have the power to decide when to sell it, then you’re pretty much guaranteed to be in the black. Of course, this also assumes that you ticked all the correct boxes when you bought, used, and sold the property. If neither of the two applies, then you’re better off going with normal real estate and properties. On the flip side, if you hit both marks, then you’re in for great and big profits which you can then use to make other investments or however it pleases you.
Through this little picture we so carefully painted to show you what luxury property investment looks like, you should be able to realize how challenging it is to gain success in the market. Difficult as it may be, it’s something worth doing especially when you have the desire and funds to do so. We’ve even written out this detailed guide to help you invest in the best luxury property for sale in the Philippines!
Crucial Pieces of Advice for Investing in Luxury Property
Properly investing in a luxury property for sale in the Philippines takes a lot of time and money, and those are things that you shouldn’t and wouldn’t want to waste. In order to avoid that and increase your chances of success, keep in mind these crucial pieces of advice!
Set and Work Towards Definite Investment Goals
When it comes to property investment – luxury or not – the worst thing is to lack purpose. Without any set goals and objectives, your decisions will have absolutely no basis and your investment is going to end up in flames along with your money. You’d just be buying properties for the heck of it and in hopes that you would somehow gain huge profits.
On the other hand, if you have properly defined goals to work towards, you’d be prepared to make important decisions. If, for example, you’re looking for a fast profit, then the best choice is to buy a discounted luxury property, flip it or remodel and redecorate, and sell for a higher price. That’s a one-time-big-time profit that is sure to fill your pockets, but that’s only one approach. There’s a way to consistently generate income and that can be achieved renting out to those in need. You can also finance a full project from the ground up and put it for sale or rent after completion.
The approach to take and other consequent decisions depend heavily on your investment goals and objectives so make sure you have those set before you even spend a single penny.
Figure Out How to Finance the Investment
There’re two ways to finance your property investment – you can pull it out of your own pockets and pay in full and in cash as to not accumulate any debt or you can borrow money from reliable banks and/or loan services.
Before you ask, we’re going to tell you that there is no better way between the two. Besides, not everyone has the financial resources to purchase luxury property – that is easily priced somewhere in the fifty million mark – in full. You’re lucky if you do, but it doesn’t mean that you’re bound to fail if you don’t.
Getting loans is a completely acceptable way to finance any investment. You just have to make sure that you can pay back and that you’d have enough left over for your own profits.
Do Not Rush into Any Decision
The luxury property market may be fickle but not so much that you have to rush every single decision you make. You’re always going have enough time to do thorough research and think things over, so you aren’t forced into anything.
That said, however, you also need to be ready to act whenever the time comes. Golden opportunities only come once in a while and they may disappear in the blink of an eye. So while you’re waiting on those rare chances, make sure to do your part and equip yourself with knowledge and skill – and money – to take them.
5 Best Cities for Property Investment in the Philippines
Any real estate expert will tell you that the largest success factor for any property investment is location. You could buy the most beautiful and luxury property in the Philippines but not have any takers because of horrendous location that is inaccessible, far from prime business districts, and short on commercial centers and other important facilities. This is the reason market and location research is so important and also why we’ve listed down the best cities for property investment in the Philippines.
1. Makati City
Home to 40% of the top 1,000 multinational and prestigious companies and corporations in the country, Makati is rightfully dubbed as the “Financial Capital of the Philippines” and the “Wall Street” of Metro Manila. It is also known for its abundance in entertainment and commercial centers, well-managed and -maintained streets, top-notch security, and accessibility.
There’s nothing you can’t find in Makati except for low property rates, which makes it one of the leading choices for property investment in the Philippines.
2. Taguig City
There is another prime business and lifestyle district in the Philippines and you can find it in the heart of Taguig. We’re talking about Bonifacio Global City or BGC as it is often called. BGC is a master-planned district built by two of the country’s biggest developers.
Much like Makati, it is jam-packed with offices, commercial establishments, and residential units that are perfect for any and all who have enough buying power. Currently, prices are already quite steep and they’re expected to grow even more in the following years.
3. Muntinlupa City
There are two things that make Muntinlupa a prime spot for property investment. One is its proximity to the provinces of CALABARZON (Cavite, Laguna, Batangas, Rizal, and Quezon). This is made possible thanks to the CALAX or Cavite-Laguna Expressway which connects the city to famous vacation spots and other business districts.
The other is its status as a premier industrial hub in the Philippines. Two real estate projects – Filinvest Corporate City and Ayala Land’s Madrigal Business Park – allowed for this to happen and changed the landscape of the city.
4. Baguio City
If you’re looking to bet on the power and boom of tourism, then Baguio is one of your best choices. Ever since, it has been known as the country’s summer capital because of the influx of visitors during the summer months of March to May. This is the time when heat is intolerable in parts of the country outside Baguio and few other select places.
The thrive of tourism doesn’t mean the fall of business. Rapid developments are being made in the city to accommodate the dynamic business scene and economic growth which is heavily driven by exports.
5. Cebu City
We now head to the Queen City of the South or Cebu city which is the prime hub for the IT and BPO sector – sectors that employ thousands of locals. Due to this, the demand for residential spaces, condominium specifically, are at an all-time high and expected to grow in the foreseen future.
Despite being as developed as Metro Manila, however, it has still managed to retain its provincial vibe along with its natural resources and pristine beaches which makes it one of the most ideal spots for property investment.
6 Tips for Buying Luxury Property for Sale in the Philippines
We’ve already given you important advice on property investment and the best cities to put your money on, so we’ll now give you a few tips on how to buy luxury property for sale in the Philippines.
- Set your finances straight before you start your search. Substantial figures are involved in buying and investing in a luxury property so it’s best to have all bases covered, financially speaking. You might not even be able to view luxury properties if you don’t have a stable financial situation or a stellar bank statement much less start negotiating with sellers.
- Study the search process intently. The search for luxury properties isn’t as easy as looking for average real estate. Most of them go unlisted in order to protect the seller and ensure their privacy. You won’t be able to randomly come across such properties and will have to use personal connections or rely on online sources.
- Look beyond the pictures and don’t dismiss or purchase properties based solely on them. Pictures aren’t enough to showcase the luxuriousness and extravagance of a luxury property. You have to see it in person in order to fully appreciate it.
- Document everything because there is heavy scrutiny today in the luxury property investment market. It is critical financial documentation because that’s your gateway pass into the market.
- Get your timing right. We’ve mentioned this before but timing is extremely important in luxury property investment. If you want the most bang for your buck, buy when the prices are relatively low and keep it until they soar.
- Work with an expert. When we say expert we mean realtors or real estate agents. Many have the misconception that working with an expert means that they make all your decisions for you but the truth is that they only make suggestions. Working with one is sure to increase your chances of success because they know the ins and outs of the industry.
6 Tips for Selling a Luxury Property in the Philippines
The tips for selling luxury property in the Philippines are mildly similar to the tips for buying a luxury property in the Philippines, so you may see a few repeats. Don’t worry, though, because each of these tips serves a purpose:
- Understand the value of the property and market accordingly. There are some sellers who have a sentimental attachment to their properties – often because it used to be their home – and inappropriately increase the price. Buyers, however, don’t see any value in those warm memories and only base the price of the property on the actual structure, so you have to put the right price on it.
- Make use of the right marketing and advertising tools. The internet is a powerful tool for buyers and sellers alike. Utilize social media platforms where millions of people gather because all of them are potential clients. You can also use real estate platforms that are widely used in your country to advertise your property. Just make sure to use photos or videos that do the property justice because buyers value first impressions.
- Highlight the neighborhood along with the actual property and its amenities. The community and neighborhood surrounding these luxury properties greatly contribute to their appeal. Indicate in your ads that it is located in a great neighborhood where many prominent families live or that it is close to golf and country clubs, exclusive gyms, prestigious private schools, and the like.
- Try to avoid open houses. When it comes to real estate, the majority assumes that open houses are a necessity but that’s actually not the case. The general consensus on open houses for luxury properties is to avoid them. There is a high level of curiosity around this type of properties and people love to view them just for the sake of it even if they don’t have the financial ability to actually make a purchase.
- Time the sale right. You may have noticed that we mentioned the same thing in the previous section and that’s because timing is important in both buying and selling. You have to put the property up when it’s in demand and prices are soaring. Moreover, you have to ask fast because, as we also mentioned earlier, the market is fickle and prices fluctuate.
- Hire the best agent who can help you determine the price of the property, find potential buyers, and ensure that you gain a lot of profit from your investment. There are thousands of agents out there but you need one who specializes in handling luxury properties and have knowledge on the market.
List Sotheby: The Ideal Partner for Luxury Property Investment!
If you play your cards well and get things right, investing in a luxury property for sale in the Philippines is sure to bring a tidy profit. However, doing so isn’t as easy nor the same as selling a modest property, which is why it is crucial that you have an expert to guide you through it. This is most true if it is your first time diving into property investments and you haven’t yet gotten the lay of the land.
Since you not only need but deserve the best, it’s best to partner up with us, List Sotheby! We have properties across the country and countless specialists who understand areas and communities like the back of their hands. We also have a great and established track record of selling luxury properties, so that should give you a reason to put your trust in our abilities for real estate in the Philippines – whether its modern homes or industrial houses in the Philippines.
We vow to be the most reliable partner for all your property investment and advisory needs and to ensure that you not only gain sizeable profits but also have fun while doing so. In order to find out more and get a peek at our luxurious listings and track record, don’t hesitate to contact us via this page!