Common Real Estate Mistakes Made in the Philippines

Home

The Philippines’ real estate market is looking to stay hot for the better part of the decade. The steady fundamentals and overall growth of the economy see the country fairing on well enough in the face of global challenges. The World Bank, International Monetary Fund, and the Asian Development Bank maintain promising projections for the Filipino economy, set to become the region’s fastest beyond 2020.

Although this is good news, the sobering fact is that as many people are increasingly looking towards real estate investing, the failure rates are accelerating. You should consider having this conversation with a qualified real estate agent. For now, keep on reading.

Missing Out

For most people, the fear of missing out on an excellent investment opportunity is the greatest enemy and a hindrance to self-fulfillment. Real estate in the Philippines is tested with proven year-on-year results. The time is now that the economy is riding the Chinese expansion. The fears that the Philippine economy will turn into Sri Lanka’s tale of the Chinese debt trap are largely overblown. The Philippine economy is fundamentally different; it is not heavily reliant on the Chinese economy.

Trusting Everyone and Everything

Real estate is a widely covered topic online. However, Philippine issues demand Philippine solutions. The challenge is to learn to identify real talk from the noise. The market in the Philippines is ripe. Hence there are so many ‘gurus’ and so-called experts out there selling ‘proven sound strategies.’ Only follow the advice of expert counsel. A real estate firm in its own right, AXE Real Estate, for instance, has helped thousands navigate the regulatory waters in the country.

Getting Emotionally Attached

For enhanced success, you need to develop and strictly follow an investment policy that dictates goals for a particular rate of return. An interesting aspect of investing in real estate is that it is not easy to decide when to sell, especially when things are going well. However, the fact is, if you made an investment at a particular time and achieved your desired rate of return, take it. The steady economic confidence indicates strong foreign direct investment into the country, but the party won’t go on forever.

Trying to go at it by yourself

The Philippine property market looks poised to achieve double-digit gains in the years to come. That’s a good sign to place your bet, but terrible timing to go alone on this one. Real estate investing is a team sport; you really can’t stress this enough. Surround yourself with an army of real estate agents and legal experts to find the difference between success and failure. While the country’s real estate market enjoys stable demand, the benefits will not be enjoyed across the board.

Overspending on Renovations

While luxury condominiums fuelled the bullish residential market in the past, the rising middle class is forming the bedrock that will sustain this boom. In most cases, renovations are bound to get over budget, usually because the investor willingly over-improves a property. Don’t spend on things that won’t benefit your bottom-line.

Final thought

It can often be difficult to assess the opportunity investment presents. As an investor, you need to learn to spot elusive business opportunities and vacuum to ride the steady growth of real estate in the Philippines.

%d bloggers like this: