Tips for investing in real estate

The business of selling real estate is being professionalize to keep up with new needs of investors, said Betty Sy, president of ReHaus, Inc., a real estate marketing and consultancy group. More than owning property, she said buyers now look into the prospect of the property appreciating in market value, expecting a return from it once it is either rented or sold.

“Once a developer begins a project, it carries with it a certain value which is what the buyers pay. Subsequently, the value multiplies as the project nears completion, when it is ready for occupancy, and years thereafter, since prime land increases in market value as the surrounding area develops,” she said. Ms. Sy added the increase in property value ranges from 30% to 50%.

One of the first things an investor must look into is to determine if the project is a sure investment winner. “This would require an expert’s analysis, evaluations and appraisal of a certain project,” she said.

“It is always best to consult real estate professionals to evaluate if the project has potentials for good investment, if the location is progressive, if the technical specifications of the project meet the standards, and if the price is competitive to other projects in the area. All these things should be considered carefully because it validates how much appreciation the property can reach,” she said.

Ms. Sy suggested would-be investors are still ahead even if they buy property through bank financing. She said property value appreciates faster than the loan interest in the bank. “Both industries (real estate and banking) enjoy a symbiotic relationship that makes it impossible for one not to consider each other,” she said.