You’re probably one of those who are sold to the idea that passive income is the way to earn wealth. Now, you probably have seen people going crazy about buying condo units, and you figured this must be the way to go. And you’re right. A condo unit has a lot of earning potential. But just like any investment, there is risk involved, and one of the most significant hurdles that you need to scale is the lack of knowledge.
What Do You Need to Know Before Buying a Condo Unit?
If you don’t know enough about real estate investing, you might end up throwing money down the drain. The following pointers will help you get started. It is not a complete guide to buying condo units, but you’ll get an excellent start to your real estate journey.
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Consider the location
In real estate, location is king. Once your unit is built, there is no way you can transfer it. If you end up not liking what you bought, your best option will be to sell it and look for a new one. The good news is, real estate developers are good at spotting the right location to develop. For example, buying a pre-selling condo along C-5 road is a good investment because it is in a prime location. On top of that, pre-selling condos are cheaper to invest in than RFOs.
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Understand your target market
In most cases, developers have target markets for their units. You’ll notice that they have different prices for different projects. So if you’re a wise investor, you have to study your target market too. Is investing in a cheaper unit a good idea? Or is it better to invest in a more expensive unit because your potential clients have a better capacity to pay the rent?
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Timing is everything
Timing your investment is crucial. If you mess this up, you might end up buying a property that won’t return your investment for years. You have to make sure that your condo unit will be available for occupancy at the time your target market needs it.
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Know the developer
Since timing is critical, you have to know that your developer can deliver your unit at the time they promise they would. You have to see the track record of your developer. Are they known for delivering on time, or are they known to cause headaches to customers?
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Know your financing option
Unknown to most people, you don’t need to be filthy rich to invest in a condo unit. There are a lot of financing options where you can leverage other people’s money and less of your own. The most common financing option for employed Filipinos who got their first condo unit is Pag-Ibig.
As a new investor, you should understand that what you know is key to succeeding in any form of investment. The most important thing that you should do is never stop learning about the area of investing you want to engage in. These suggestions will give you a good headstart in buying condo units.
