As newbie condo buyer in Manila, it is very easy for you to get tempted to buy every seemingly desirable condo property that is offered to you. That’s fine. For if something seems too good to be true, “then it must be good” some may say. But if you are buying a condo solely for an investment or for you to generate a passive income, that is not always the case. To be a successful condo investor, one must have a sound strategy. Newbie investor? Check “Quick Condo Investment Tips For Beginners” to start you up.
Advantages Of a Good Condo Investment Strategy
A good condo investment strategy gives you a well defined course of action. Or some people may call this a goal or vision. A strategy will help you determine if you have met your investment goals or short of it, prompting you to choose a right decision to fill the gap.
Efficiency. By having a condo investment strategy, it will be easier to choose only the actions that will add up to the success of your investment ventures. It will minimize mistakes which may lead to a wasted resources and time.
More profit. Profit should be the main goal of your condo investment strategy, more of it. By designing your condo investment strategy to maximize opportunities, partnered with efficiency in mind. A good profit is more likely to be an outcome.
Competitiveness. To protect your condo investment’s profitability, competitiveness should be one of your priorities. Your investment strategy will let you take advantage of the opportunities that are not accessible by usual means alone. Example, buying a condo at a pre-selling price will be more competitive compared to a condo bought at a much higher price.
Predictable results. Predictability of results is a by-product of a good condo investment strategy. This is often enjoyed if you have been using your strategy for while and done the same things many times. By harnessing the advantages listed above, predictability of results will be your best advantage when investing on a condominium. It is either taking advantage of an opportunity over and over again, or not making the same mistake twice.
Condo Investment Strategy Samples
Yes I admit that the insights above are somewhat vague without good examples. So here they are.
- Buying studio units near top schools and universities in Manila. Targeting students.
- Buying one bedroom units near tourist destinations like top shopping malls. Catering to tourists on a budget.
- Buying two to three bedroom units near CBDs like Ortigas Center or Bonifacio Global City. For renting families.
- Getting the lowest monthly amortization to get a positive cash flow. This may require higher down payment.
- Getting the most discount for a higher profit margin.
Numbers 1 to 3 is an strategy where you buy specific condo units at specific location with an aim of catering to a single market segment. Your market could be students, tourists or families. By using this strategy, you have the advantage of simplifying the process on how you serve your costumers. This will give you a chance to gain an in depth experience on a particular market segment and increasing your competitiveness by knowing your market more than anybody else.
Numbers 4 and 5 are best utilized together with numbers 1 to 3. An investor may simply mix them for a more advantageous position. There are of course a lot of condo investment strategies out there and the ones listed above are just samples.
Disclaimer: Though the owner of this post believe in its viability, the sample strategies above do not serve as a recommendation to readers and therefore does not guarantee positive results. The owner of this post shall not be held liable for the losses made as a result of following the sample strategies above.