How to Choose your First Investment Property
As a young professional, you will always hear the saying “make your money work for you”. It is a call to action to put your money into investments with the promise of yielding better returns than keeping money in the bank. Investing diversifies the streams of income you get, yielding you more money for roughly the same amount of work.
First time investors usually aim for investments that pose low risks and those that consume less time and effort. That said, it’s strongly advised to have a variety of investment options to determine which one brings the most returns. This allows you to “test the waters” and widen your financial literacy while already generating passive income.
One potential investment opportunity is real estate. Compared to other investment types such as stocks and cryptocurrency, the housing market is faced with relatively lower risks than most. Choosing which property to invest in can be overwhelming when presented with all available options. Knowing which would appeal to you and your potential renters can be tricky especially when trying to determine which factors to consider when choosing between different properties. Here are some tips that can help narrow down your search criteria and lead you to your first investment property.
Know the Location
“Location, location, location”. This popular mantra was coined by real estate experts worldwide, emphasizing the impact of a property’s address. Factors such as accessibility, type of neighborhood, and distance from business districts and tourist destinations play a big role in determining a property’s overall value. There are many things that can change in a property, like furnishings or establishments near it that may or may not increase its value. All these can change, except for its location, making it one of the most crucial aspects of finding a property to invest in.
Strategic locations, such as an emerging neighborhood, are beneficial in terms of the property’s appreciation because of the gradual improvements in its surroundings. This also increases the value of the property because it heightens the demand in terms of rentals. As an added note, consider pedestrian friendly and safe environments. They tend to be more appealing to potential residents, making it a characteristic you may want to look for when choosing your first investment property.
Sucat in Muntinlupa is a fine example of a convenient location considering its accessibility to CBDs while maintaining a conservative distance that allows for a relatively tranquil atmosphere. Being a few kilometers away from the Ninoy Aquino International Airport, Alabang CBD, Makati CBD, and Bonifacio Global City, properties in Sucat inherently have that desired accessibility, making it the ideal location for an investment property.
Know Your Market’s Needs
After determining which location you would want to search for your ideal property, the next step is identifying your target market and their needs, which will help you narrow down your options when it comes to purchasing property.
Know what best suits your potential tenants. Factors such as demographics, size of the household, demands in space, type of lifestyle they are accustomed to, and their daily routine can help you determine what their needs and wants are. Once you’ve determined this, you will have a good idea what property they’ll most likely invest in. Their business location, workplace, and children’s schools will mostly likely determine their location of choice.
If you’re looking into targeting families as your renters, consider investing in big unit cuts. Usually having 3 to 5 members per household, they prefer spacious units with access to business districts, shopping malls, and schools. Targeting families as potential tenants would be beneficial in terms of demand for rentals for your property.
Consider Features and Amenities
Another important factor would be ensuring your soon-to-be property’s features and amenities are ideal for you and your potential renters. As an example, if you are aiming for families as your target market, think about investing in a property with well-maintained amenities that address their needs.
Look for amenities such as playgrounds, swimming pools, or recreational centers since these promote an active lifestyle, making it more appealing to the single family market. Having sprawling greenery and wide open spaces where children can safely explore is a haven for growing families.
If you’re targeting young professionals, consider their needs – a gym for maintaining a healthy lifestyle, a nearby chain of restaurants and bars where they can potentially hang out with their friends.
Know the Qualities of a Good Developer
Being your first investment, it is ideal to choose a property developer who is reputable, reliable, and considerate of the needs of their investors and residents. Respected developers are known for the strategic locations of their properties and their allocation of staff to ensure proper management and maintenance of each unit.
Look for a developer who works hand in hand with investors by assuring them that their investments are in safe hands. Knowing that your properties are being thoughtfully looked after and maintained gives you peace of mind. It also keeps you confident about getting a tenant in the soonest possible time.
Lastly, some developers help you find tenants for your investment property through leasing services. Rockwell Land Corporation, for instance, offers to do this through one of its many convenient end-to-end services.
With its potential returns and minimal management requirement, investing in a property is a great way to diversify your investment portfolio. It may seem challenging to choose the ideal unit to invest in, but given enough knowledge and proper guidance, you will definitely find a strategic property, run by a good developer who can help you get the most out of your investment.
Aiming to bring quality experience to its residents and unit owners, Rockwell Primaries brings together all the right elements a property needs, from its strategic locations to its thoughtful mix of amenities. Their residential properties promise comfort, convenience, and security with their spacious unit cuts, exclusive amenities, open spaces, and retail component.
Located minutes away from various business districts and retail hubs in the south, Rockwell Primaries’ East Bay Residences in Sucat, Muntinlupa, offers its residents accessibility while maintaining a peaceful atmosphere. Its continuous transformation into a pedestrian and child-friendly zone, and its family oriented amenities appeal to the single family rental market.
East Bay Residences also has its own property management service, looking after each unit and amenities’ maintenance, functionality, and security. They provide essential services that ensure the safety and convenience of both unit owners and their residents.
Ticking off the boxes on this list, Rockwell Primaries’ East Bay Residences is the ideal first investment property you may be looking for. The property currently offers The Fordham Tower at the pre-selling stage making this a more promising investment since its market value has the potential to appreciate by the time units get turned over to the owner.
Let Rockwell Primaries welcome you to your fresh start in investment. Visit their website to learn more.