Signs That the Real Estate Market Is Hot Right Now
The COVID-19 pandemic might have changed your priorities right now, but it doesn't mean you shouldn't look at some golden opportunities around you. In particular, take a look at the discounts and deals being offered by real estate companies. Many of them are now offering properties for lower interest fees and lower down payment.
Buying real estate, such as a pre-selling condo near Ateneo or other schools in Manila, is always a good investment. But to make sure that you won't have to wait for years before your investment appreciates, you need to look at the factors. From employment rates to migrations, these factors will help determine if the property is a sound investment.
High Employment Rate
If you plan to rent out the property, you should look at the employment rate in the city. High employment rates mean there are more jobs, which leads to more job seekers. Once these job seekers are hired, they will choose to stay near their places of work. The more people want to stay in the city, the higher the value of your property. You can either sell or rent it.
Have you noticed that more people are moving to the area you are eyeing? If there are a lot of real estate developments in that area, that might be the best sign that you should invest in it. Whether you plan to move into the house or rent it out, migration usually entails progress. People who plan to relocate to the area will plan to either buy or rent a property there.
Days on the Market
You can measure the development in an area by looking at how many days houses for sale or rent stay on the market. The ideal time is for properties to remain open for less than 21 days. If it remains unrented or unsold after the 21 days have elapsed, that might mean that there is no actual demand and interest from the market. It does not indicate that the area isn't the right place for investment. You can still invest in it, but you may have to wait a while for your property's value to increase.
Old Houses Are Selling
The perfect market indicator that you should invest in real estate is when old houses are still selling. Whether developers plan to renovate them or turn them into high-class rentals, that is a good sign that you will find buyers and renters in the area. In prime real estate, older homes still sell for a reasonable price.
Supply and Demand
Look at the demand in your area. Is the demand higher than the existing apartments, condo units, and houses available? When it is higher, you know that it's time to invest in real estate. Join the market. Start shopping around for properties that you can put your money into. Ideally, you will get a return on an investment after only a few years of renting the property out.
The question you should ask yourself before you even think about going into real estate is if you have the money for it. Mortgage payments are no joke. You'll have to pay an average of $1,500 a month for your mortgage. So make sure you have the money to go around before making that downpayment.