CNN Money recently predicted that the Philippines will be the fourth fastest growing economy in the world in 2015. The promise of a strong economic climate means more consumers will be making crucial financial decisions. The real estate industry is one sector that is enjoying the perks of this shift, thanks to the higher purchasing power of consumers. But how do we know if we’re ready for such big purchases?
“You have to make sure you have financial independence,” said wealth management expert Johner Fernandez. At an investment seminar hosted by property developer Ovialand, Inc. last week, he said “if you are earning enough to cover your daily needs, and still have enough left to invest without short-changing yourself, then you’re ready.”
Fernandez said one mistake people make when buying a house is looking at savings and investments as similar concepts. “Before you buy your own house, you have to keep 10% of your regular monthly income for short-term savings, and 10% for long-term savings. The money that you should use for your property should be on top of these,” Fernandez advised.
Promising venture
Real estate is one of the most promising industries in the country. Many property developers are now eyeing other locations as possible new growth hubs.
“It’s all about location,” Fernandez said. “With efforts to distribute services and resources in Manila, the provinces near it are the ones most likely to receive its growth traffic. You also have to consider the possible progress of the place. Think of Ortigas. Prices of properties there were very affordable before. Nobody would have thought it would grow into a business district.”
Sto. Tomas, Batangas is among South Luzon’s provinces that have been showing significant progress. Supported by strong infrastructure and its competitive location, the once rural town is steadily transitioning into the next business and social hub with industrial parks, global companies, and commercial centers.
Best partners
Find a developer that offers flexible transactions can make purchasing a home more manageable,” said Fernandez.“This is where the credibility of the property builder comes in. You need to study the company, see how they work, and how they build houses.”
“Buying a property should be viewed as a form of business partnership with your developer,” he said. “To make the venture a success, you should look for the best partners.”