Posted August 21, 2021
Photo from: pixabay.com
The astute investor knows that in every challenge, there is an opportunity – and the COVID-19 pandemic is no different. While the global pandemic has reshaped our lives and ways of doing business, as well as realigned our priorities, it has also brought out innovation. In the real estate sector, developers have pivoted to adapt to the changing landscape.
Today, real estate buyers have more choices than ever at their fingertips – and planning, evaluating, and making real estate investments have never been as convenient.
While the pandemic has caused an initial cooling of demand across all real estate categories, pre-selling condominium units have since seen a stable take-up. In the first nine months of 2020 alone, Colliers Philippines notes that the number of sold units outpaced total number of launches, indicating sustained demand.
Strategic real estate investors always take the long view. Grounded by research and sound financial planning, buying a condo today can hold potential for healthy, long-term returns.
If you need further convincing, here are four reasons why condominiums remain to be an advantageous investment vehicle:
1. Access to daily essentials
Various quarantine restrictions over the past year forced us all indoors and limited our movement and capacity to travel. Social distancing mandates also refocused outdoor activities to basic necessities, like doing groceries, banking, or essential work travel. Convenient access to daily essentials, like groceries, drug stores, and health facilities has become paramount.
Location is key to a successful real estate investment, and location is often a top consideration for many investors. A condominium located in a central urban area, like a university or business district, guarantees access to these basic essentials.
Furthermore, condominiums also often have their own limited commercial spaces, which often host essential businesses like convenience stores, restaurants, or laundromats. The self-contained nature of condo developments ensure that their residents are never more than an elevator ride’s away from their needs. This level of convenience continues to be an attractive advantage for investors looking at either residential end-use or renting out their condo units.
2Torre Lorenzo along Taft Avenue, Manila has its own Fully Booked branch on the ground floor.
2. Flexible payment terms
The COVID-19 pandemic has transformed real estate into a buyer’s market. Reduced demand has incentivized many developers to be creative in offering payment options and terms. Common payment terms involve making a down payment towards the total contract price, with the balance being paid through bank loans. Down payment can also be amortized for a fixed number of months or years, especially for pre-selling units, with the balance to be paid upon turnover.
For those seeking to use their property right away, ready-for-occupancy (RFO) units can be a viable option. There are lease-to-own options that offer flexible paths to ownership for RFO developments. Torre Lorenzo Development Corporation's Live, Lease, Own program, for example, offers leasing of RFO units and payment of rental fees, in select residential developments, until such time the buyers are able to convert the lease into a sale.
Actual photo of a model unit in Torre Lorenzo Sur, Las Pinas City. Torre Sur offers RFO units under TLDC’s lease-to-own programs. *ACTUAL PHOTO. All units are to be sold and delivered unfurnished. Details and fixtures shown are for illustration purposes only. Unit layout and finishing are subject to change without prior notice.
3. Proactive property management
The COVID-19 pandemic has underscored the need for an agile and proactive property management for residential buildings – one that can swiftly and strictly implement safety and health protocols to protect residents.
Safety protocols too have evolved over the past year – ensuring residents’ safety now go beyond sanitation of common areas and placing social distancing markers. It has now come to mean safeguarding the health of the entire property management staff.
Long before the rollout of the government’s vaccination program, Torre Lorenzo has been conducting regular testing for all its property management staff, for the safety and peace of mind of everyone within the condominium community.
4. Flexible utility
“Make your money work for you,” is a classic, oft-repeated investment advice, and this is certainly true for real estate. Smart investors know that real estate purchases can serve more than one purpose – allowing you to reap to the fullest the benefits of your hard work. An investment in a condominium located in one of Metro Manila’s university districts, for example, can serve more than one purpose.
For a family with college-age children, a university residence provides a secure and conducive location for students to achieve their full potential. Once their children finish school, however, families can now harness their condominium unit’s potential for rental income. Location, coupled with spacious, well- appointed amenities and fiber internet connection, can also attract young professionals working in or around the metro’s business districts.
Likewise, families with younger children can invest in a condominium unit and use it as a vehicle for rental income before their children reaches college. Many – particularly those living in the provinces - also view condominiums as flexible halfway homes. Others also look at serviced residences, which come with hotel-style services and amenities and can be rented for short and long-term stays.
Pandemic or not, buying real estate is always one of the most important financial decisions anyone will make. Both experienced and first-time investors can look beyond the pandemic and remember that real estate is one of the most enduring economic sectors. Particularly in a developing country like the Philippines, where there is a significant housing backlog and much of the workforce is young and still growing, long-term opportunities in real estate abound.
Looking ahead of the pandemic, Torre Lorenzo Development Corporation (TLDC) is at the forefront of creating new opportunities in the sector. From pioneering premium university residences in the country, the company has grown its portfolio to include mixed-use and leisure developments within NCR and in key emerging regions like South Luzon and Davao.
Quality and investment value are the hallmarks of TLDC’s premium residences, which have become distinct addresses in the metro’s university districts. In Davao, TLDC has partnered with international hospitality brand Dusit to bring Dusit Thani Residence Davao, Dusitd2 Hotel, and Dusit Thani Lubi Plantation resort - providing the most rewarding residential and leisure experiences in the region.