7 Factors to Look for When Investing in Real Estate

What factors should you look for when investing in real estate?

1. Prime Location
2. Appropriate Property Type
3. Low Maintenance Costs
4. Workable Financing Options
5. Good Market Conditions
6. Low-Risk Potential
7. Good CSR Approach

The choice of where to place your investment is something you should not take lightly. That’s why investing in real estate is a big decision. There are several factors to consider, and when these are met, they stand as green flags or factors to look for when investing in real estate. Listed below are some of these key factors for you to watch out for.

Prime Location

The location of a property is one of the most important factors to consider when investing in real estate because it’s critical to the building’s value and potential for appreciation.

It must have the necessary amenities and a track record of real estate price appreciation. While these locations may come at a higher cost, the benefits of a prime location make it difficult to ignore as the value of investing in a good space will continue to go up in the long run.

Appropriate Property Type

If your priority is a good location, you may still need to compromise on space and amenities if the building does not meet your budget.

Hence, it’s crucial to consider the type of property that suits you best. Would a single-family home, multi-unit residential building, townhouse, or twin home be the appropriate choice for you? These are important questions to consider before narrowing down your list of home offerings and commencing your search for the perfect place.

Low Maintenance Costs

Real estate investment is similar to other investments, meaning, it is not a one-time payment. Even if you pay for the building in full at the outset, additional expenses will arise over time.

Maintenance and repair costs are examples of expenses that you should factor in. While occasional maintenance is necessary and you should always set aside some funds for emergency repairs, investing in a low-maintenance building is a good idea since it means you won’t have to make those payments more frequently than necessary.

Workable Financing Options

Financing options for real estate investments typically depend on your financial situation as well as the type of property you plan to invest in. Ideally, the property you choose should offer multiple financing options such as mortgages, loans, and private funding. While many real estate developers offer these options, it’s still essential to verify that your chosen housing developer in the Philippines is open to your preferred financing option. It’s important to confirm this before making any decisions to avoid any issues down the line.

Good Market Conditions

Real estate markets are always subject to fluctuations, so it’s important to consider the current state of the market, trends, and projections. Do your research, and determine the best time and place to invest. If you don’t know where to start, you can consult a real estate professional, but we’ll give you the basics to determining good market conditions here as well:

• Steady economic growth, which is characterized by low unemployment rates, strong job growth, diverse industries
• Low-interest rates
• Increasing population
• Stable or increasing property values
• Low vacancy rates
• Favorable government policies

Low-Risk Potential

All investments come with some level of risk, and real estate investments are no different. Evaluate your chosen area’s potential risks like market fluctuations, rental vacancies, property damage, and location-specific accidents or issues. Understand that overcoming these risks will involve not just financial resources, but also emotional resilience, which is why it’s ideal for a place to be at low risk of issues like crime and market inconstancy. If you know that the place you are interested in is safe, you’ll feel much more secure and content with your decision to live there.

Good ESG Approach

Finally, more and more investors these days are becoming interested in places that practice good ESG strategies. With more and more people valuing the conservation and revival of the planet, it’s only natural that you should care about investing in a place that does the same.

At Pueblo de Oro, for example, our ESG strategies run deep in each of our communities. For over two decades, we have pioneered green living in the Philippines by building environmentally resilient homes and subdivisions, elevating the quality of life for our homeowners as well as doing our part in securing a bright future for the planet.

Key Takeaway

This list has compiled some factors to look for when investing in real estate, but we are aware that you will have some factors of your own when it comes to choosing a space you want to live in, rent out, or otherwise place your money on. All of these factors are excellent guidelines to make sure that the choice you make is one you won’t regret—and for such a big decision, you want to choose only the best.

Look no further than Pueblo de Oro, the top subdivision developers in the Philippines. We check all the boxes in the list above, and we are your ideal partner for real estate investments in the Philippines. Find us at our locations today!