A Definitive Guide in Choosing a Location for Condo Investment
March 17, 2021
Share this to:
When choosing a condo for sale for your next real estate investment, every other real estate agent and broker and subject matter expert will tell you that the location is key. But in the real estate market wherein the boom that the country has been experiencing has now slowed down, properties that are in the best locations are able to hold on their own in terms of their market value or depreciate at a much slower rate as compared to other similar properties in other locations.
So how do you choose a location for your next property investment? Here are these considerations in mind before settling on a location.
1. The Quality of Schools in the Area
If you are not a family man or looking for a condo, house and lot, or townhouse to live in one with your family, you will probably wonder why this is a consideration. Think of it this way: while not all prospective tenants care about the quality of the schools in the area, one to two-bedroom properties can demand and sustain marketability and rental attractiveness, especially among starter families. This means that should you decide to put up your property for rent or resell it, you have the capability to demand a premium price on your rental rates or selling price.
The Courtyard COHO by Vista Land, for example, is a modern and exclusive residential development near top universities, international schools, and prestigious educational institutions. This makes the development an attractive place to live in for both local and international students and families alike who wanted to be near their schools. Professionals will also have the benefit to further their studies, thanks to the satellite schools that are near the project – De La Salle University – Rufino Campus, University of the Philippines – BGC, and Philippine School of Interior Design.
Land is a finite commodity, so properties in highly developed cities like Makati and Taguig may not have a lot of room for expansion, but its centrality to important transportation terminals, commercial spaces and modern conveniences is enough for anyone to pay more than the market value of a similar property in order less busy locations.
On the other hand, you should not disregard outlying locations either. In Metro Manila, for example, each city is connected with major throughway or more, making certain outlying locations more attractive because they are burgeoning real estate hotspots that are still priced around their budgets.
Pine Suites Tagaytay, a COHO by Vista Land development, is located along Bonifacio Drive which is accessible to two transport terminals and via the Tagaytay Nasugbu Highway by private vehicle. The property is centrally located that it is just under 10 minutes away from Tagaytay City’s business and commercial hotspots, top schools and universities, hospitals, churches, and even the city’s most-visited tourist destinations.
3. Future Development
While a great indicator of a location to be a prime choice for real estate investment are the present amenities and infrastructure, future ones as well can also provide insight on which locations you should consider buying a property in without paying a premium yet.
For example, the city of Las Pinas is considered an investment hotspot simply because of the upcoming key infrastructures: LRT Extension, C5-Extension, NAIA Expressway (NAIAX), River Drive, and the C5 Southlink project. Once finished, these key infrastructures will open more business opportunities and help develop the city into the Philippines’ next prime address for central business districts, entertainment, and commercial hubs, and even the establishment of top educational institutions. While these infrastructures are still on the drawing board or on the way, their desirability itself will help you recognize locations that offer properties that are within your budget range and still allow you to capitalize on the potential appreciation.
A master-planned real estate location will always have a high walkability score. This is because the planning and development of properties in the area help people who live, work, and play in it thrive well. Millennial property seekers, especially those who are into luxury real estate, are very attracted to these types of locations.
This also rings true with high-density locations. Being able to walk from home to work or school, then to a shopping mall or supermarket, and then back home without spending so much time driving or riding in a hired car or taxi helps people maximize their time and spend the rest to do anything else that they want to do. Moreover, locations with high walkability often have pedestrian-friendly and risk-free infrastructure and systems in place like manicured pathways, seating places, hooded waiting sheds, round-the-clock security, and CCTV.
The Meridian COHO by Vista Land is a mid-rise development integrated with a commercial/retail strip and themed family-friendly amenities in Bacoor City, Cavite that aims to enrich the urban living experience in the city for young professionals, starting families, and even discerning investors. It aims to also bring together Bacoor’s central business districts and leisure hubs to encourage its future residents and visitors to explore what the city offers and still be able to come home safe and relax in an exclusive vertical space while taking advantage of the holistic, rejuvenating powers of nature via its bright painted condo buildings, landscaped pocket parks dotted with animal topiaries, gardens, and paved walks.
5. The Neighborhood
If you are investing in a property purely for rental income purposes, understanding the neighborhood of a location you are considering is key. Rental properties are mostly appealing to students, professionals, starter families and even businesses, so a neighborhood that has a high concentration of these potential customers will most likely be a perfect candidate. You also need to take into consideration the appeal of the neighborhood in general, especially establishments and infrastructure that will not only allow residents to thrive, but also visitors to come back and do business (or pleasure) again and again. Locations with parks, entertainment strips, and even a string of shopping malls and business process outsourcing buildings are certainly great choices to invest in a rental property in. You also need to look at the property turnover in the area to gauge how in demand the location is.
Safety is also an important factor when it comes to selecting a location to invest in. A neighborhood that has an adequate and accessible security presence and systems in place is a good location candidate. With the health protocols in consideration, a location that has a lot of open, green spaces is a better location candidate to invest in a condo unit in.
Demographics, specifically the population growth, job growth and unemployment rates can help you gain insight on how attractive your future investment will be to paying renters and property buyers.
Desirable locations are those that are resilient in the economic effects of unprecedented situations, like the pandemic. For example, locations that have a low local unemployment rate, like locations that are home to top business process outsourcing companies in the Philippines, remain desirable.
You also want to check the population growth of locations, as you want to invest in locations where people are moving in, and not moving out.
7. Public Transportation
Walkability may be enough for residents, but for people who are seeking for properties, public transportation is a key factor as you want to invest in a property that is not only for the people in your selected location, but for property seekers who are looking to move into the location and would like to have easy access to move around and out, then back to their potential new home.
8. Distance and Access of Property From You
While this is not a necessity, sometimes it is a factor that is actually important well after you have signed your contract to sell. If you are planning to invest in a rental property, the physical distance may be key in how well-managed your property be. This is often overlooked by first-time property buyers, especially those who plan to self-manage their investments. While it is ideal to invest in properties close to home, you can consider securing the services of a property management specialist.
COHO by Vista Land also offers its property owners the ability to lease their investments back via its hassle-free leasing service. From the moment you signed the contract to sell to putting your property back to the market as rental property, COHO by Vista Land will be there every step of the way.
More important than the aesthetics, property size to selling price, the number of bedrooms, or the amenities, location should the first consideration you need to make when it comes to choosing your next property to invest in. While the others are considered equally important to you, remember location is the only thing that you cannot make any adjustments or improvements to once you sign your contract to sell.