Why Buy Land In The Province

Buy sell Property & Real Estate Investment Guide

Buying Property Tips#1: Choose the Right Location
Before you choose a location, it is of utmost importance that you consider the development prospect of the area. Other factors to consider here is crime record of the area, availability and nearness of public facilities and utilities.
Buying Property Tips#2: Study the Local Market Dynamics
It is important to get well familiar with the local realty market. Learn the variation in property prices by street. Don’t shy away from asking a few realty investment agents questions to get better insight on the matter.

Real estate is one of the best industries to invest in; land is something solid and tangible and its market price typically increases after some time. Even if not for investment purposes, a lot of people purchase real estate properties for their own use.

Among the best areas to tap when buying Philippine properties are the provinces. When you consider land for sale in the Philippines, those that are located in the provinces are way more affordable than land in Metro Manila. Despite the many reasons why a lot of people prefer to purchase land in Metro Manila, there are advantages to buying land in the province. Below are some of them.

Buying Property Tips#3: Choose the Right Property
Getting the right property right away is quite unlikely. First, you need to be clear on why you want to buy an investment property. After that, you will be able to make right decision based on factors like remoteness or accessibility of the property.
Buying Property Tips#4: Do the Math Properly
Get a precise idea on the value of assets you have available. If you are investing in rental property, make sure you can easily cover the mortgage payment through rents. Additionally, get a clear idea on the appraisal value of the property beforehand.
Buying Property Tips#5: Consider Additional Expenses
When purchasing an investment property, it is not only the selling price that investors need to consider. There are various additional expenses such as property tax, home owner’s insurance, repair & maintenance that must be considered.
  • Cheaper cost means more land. Since lands in the provinces are significantly more affordable, you can buy more lands for the same price. The money you would have spent on Metro Manila would be get you twice or thrice the space (or probably even more) and a lot more opportunities. However, do not expect a quick return of investment since appreciation takes a bit of time and depends deeply on how fast the area becomes commercialized or developed.
  • More room for expansion and development. You have bigger lands and more spaces in the province. Remember that with more space comes plenty of reserved room for further improvements. So in case you're your initial investment idea pays off, you have more elbow room to squeeze more profit from your idea.

Let's say you're originally planning put up a commercial center or block as an investment idea, for example. With huge lands at your disposal, you can choose to put up segments at a time. You can set up a small portion to be utilized by a few daring investors (tenants), then use the rest as parking space. When your commercial center takes a foothold and establishes a solid reputation, then you can utilize the remaining space to accommodate more investors (or tenants).

  • Appreciation rates increase. If you choose the province carefully, (by considering all the most recent developments and the trend in commercialization) you can significantly increase the return of your investment because of appreciation. You see, as the area becomes more commercialized and developed, the higher the value of the lands get. So study which provinces are headed quickly for commercialization development, and then invest on some lands there. In just a few years, your hundred-per-square-meter-lands can turn into thousands-per-square-meter estates.
Buying Property Tips#6: Inspect the Property
To ensure that you are getting everything you are paying for, a thorough inspection of the property is essential. Besides ensuring that you are not overpaying, a rigorous property inspection also gives you a good estimation on what the additional expenses might be.
Buying Property Tips#7: Pick the Right Financing Option
While interests on investment property loans are tax free, some borrowing costs aren’t immediately tax deductible. Knowing that, and structuring your financing in accordance is crucial. Don’t hesitate to ask for help from a financial advisor.
Buying Property Tips#8: Invest through Equity
One of the best ways to purchase an investment property is to leverage the equity of another property (including your primary home). This is a preferable way among regular investors, especially due to added tax deduction advantages.
Updated: February 5, 2018 — 1:20 am
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