If you are one of those who want to get into real estate, for personal investing purposes. However, you don’t have the money to get started. Buying a property is still possible with no down payment.
How? Then read below carefully the basic fundamental ways on how to invest in real estate carefully with diligence and good knowledge on why you should give your hard-earned money on that property.
I am going to focus on property lots mainly on low cost and developing areas. Why? because these are the ones that have no downpayment schemes and you only give the reservation fee and you pay on a monthly basis with no interest.
For example:
Property Lot is 100 Square Meter
Asking Price is Php2,500.00 per Square Meter
The Total Contract Price Php250,000.00
The payment option is an installment basis without interest payable in 48 months (4 Years)
TCP Php250,000.00
Reservation Fee Php5,000.00
Monthly payment Php4,895.83
Let us assume that the transfer fees are not included which is normally is around 10.5%. Then you are just going to pay an additional fee of Php26,250.00. This is normally used for individual titling costs and payment for transfer taxes on BIR.
These are the fundamental factors that you need to consider before buying a lowcost property lot.
Location, Location, and Location
In real estate, location is still king, you need to consider always the place. You need to know the driving economic activity of the area if what is the major livelihood is it an agricultural driven, tourism-driven or natural resources mining and many other more.
Look at the topography of the area if it is flood-prone, landslide-prone, geological hazards like a volcano, fault lines sinkholes, and near riverside or dam.
Check how it is near to landmarks like Public Transportation, School, Hospital, Church, Market, Parks, Tourist Destination, and Central Business District. These have a major effect on property values within the area and property you are prospecting.
Check market value
Learn and know the existing market value of the area for residential lots. If the area has promising development like circumferential road highways, major developments like businesses that could stimulate the economy of that area or tourism project by the DOT (Department of Tourism), future college or universities that plan to expand, or a major development plan of the government if there are any on the area.
This will make sure that your investment would have a promising price increase in the near future and will not be a dead investment where no one wants to build or leave there because it is rural or it does not promise intrinsic value.
Physically see the property lot
Have a physical site ocular inspection on the terrain of the lot, the exact location of your prospected lot in the development property. See if it is near to the proposed entrance of the property project. Ask, if you can have a corner lot (It is always a good lot option which you can have bigger frontage).
Make sure that the representative seller of the developer pointed out the right property lot. Sometimes if the property is still on its raw state for early buyers. It is proper that you ask if the spot of the property you would like to buy is really there and if they can even pinpoint the exact points of the lot is an added bonus.
Investigate the background of the developer.
Inspect if the property lot has the right permits to sell and develop. Try to learn also the owners of the company if they have good standing within the real estate industry. I always tell my clients that they should avoid JV (Joint Venture) Developments if possible. There are a lot of ways that a developer and property owner’s relationship can get sour, where it will have a domino effect, and early buyers will suffer the consequences.
If all the four fundamentals are good your investment will be surely at best would grow 100% or more. Depending on how well the development and progress of the location. Let us say that you have completed your monthly payment dues and have accomplished to finish the total contract price of Php250,000.00. Then surely the value of properties within the developing area has doubled.
It is already up to you if you would like to sell for a profit after four years of payment. If you would like to reap the reward of your hard-earned money or you will wait again till the property lot owners will put houses. Where the market value of your lot will again appreciate.
Conclusion
These are one out of many that you can earn well in real estate, it is not a quick get rich type of investment. But it is one of the safest ways to invest in a no downpayment scheme unlike on other types of real estate investment where you need to shell out an outright downpayment.
I know, checking and applying the four fundamentals is hard work but you need to do your part. In doing the right due-diligence for your hard-earned money not go to waste. Anyhow, that is where my services can come in if you don’t have time to do the fundamentals.
If you would like to invest in a property lot within the near surrounding provinces of Baguio. Then contact me and I would be glad to assist in every way that I can.