How to Flip a Condo in The PhilippinesNovember 6, 2021
How do you flip a condo in the Philippines?
- Research the market condition
- Find the most strategic location
- Remember your target marketing during renovation
- Stick to your budget
- Consider hiring a professional
- Set a competitive market price
There are many ways to earn money from real estate. Aside from investing to welcome tenants and earn passive income, many investors in the Philippines can also consider condo flipping. Condo flipping refers to purchasing a unit below market price, increasing its value through renovation and improvement, then reselling it for a quick and sizable profit. If you want to pursue this new income stream, remember that learning how to flip a condo in the Philippines is not easy as it seems.
Contrary to popular belief, flipping a condo doesn’t just mean getting a unit from one of the top condos in the Philippines and getting it newly painted or redecorated. A smart condo flipper knows that this business venture requires proper planning, patience, right timing, and an adequate budget to make sure it doesn’t flop in the market. Below is a guide on how to flip a condo in the Philippines and get the most value for your investment.
Research The Market Condition
As an investor, you must understand that condo flipping comes with its own set of risks. If you don’t have the right knowledge and go over the budget, your unit can get fewer market offers than expected. The longer your unit sits on the market, the more money you lose paying for mortgage, taxes, and maintenance. So before you dive into condo flipping in the Philippines, make sure you understand the current market condition.
Research out about the condo demand right now. After the rollout of vaccines, travel restrictions are easing up and the Philippine economy is opening up again. The outlook for the real estate industry is promising.
Find The Most Strategic Location
Condominiums in the Philippines are known for being smart investment options because they appreciate significantly. However, not all condominiums are made equal. Some condos in the country can appreciate more than others because of their location. Condominiums located nearby business and commercial hubs offer utmost convenience for the daily life of residents, which increases their demand. The demand is set to increase even more after flipping the condo unit.
Take the Kingsquare Residential Suites by Megaworld Manila. This 19-story premium condominium is located in the San Lazaro Tourism and Business Park in the revitalized Manila City, which makes it a convenient location for going to and from Manila’s University Belt, hospitals, public transport hubs, airports, major highways, the biggest malls, hotels, and workplaces.
During the height of the pandemic, condo buyers are looking for convenience when choosing a unit. In the Philippines, you can never go wrong with flipping a condo with a strategic location. Other Metro Manila cities such as Taguig and Paranaque are also gaining market appreciation.
Consider Your Target Market During Renovation
After choosing a condo with a strategic location, you will have to understand what your target market is as well. This way you will know how to properly renovate the condo unit in a way that matches their preferences.
For example, if you choose to flip a condo in Manila, interested buyers would be mostly students looking to accomplish their degree in the Manila University Belt. For this reason, you should renovate your condo unit in a way that is conducive to studying. First, you can start focusing on standard improvements such as minor repairs, adding more cabinets, upgrading kitchen set-ups, and energy efficiency. Then, you can cater more specifically to your target market by adding a study table, lots of shelving space, or even bunk beds.
Stick to Your Budget
Always remember to stick to your budget when choosing your condo unit’s location and making interior design renovations or other improvements.
Looking for the most affordable condo for sale in the Philippines is not easy, especially when you are doing so to get the most out of your condo flipping venture. The good news is that you can take advantage of the current buyer’s market. In an attempt to make the economy recover from the pandemic, central banks lowered interest rates. This resulted in low borrowing costs. You can take out a property loan and you have the upper hand when striking price negotiations because there is an exceeding condo supply.
When it comes to condo flipping in the Philippines, you have to find a unit that does not exceed your budget and take into account all your renovation costs while taking advantage of all your potential financial resources. This is key to earning a significant amount of profit.
Consider Hiring a Professional
If it is your first time flipping a condo in the Philippines, then consider hiring professionals to handle some tasks for you. You can hire an interior designer or broker to enhance your unit’s chance of getting sold faster and at a better price, provided that the fees fit your budget. In the long run, you can learn from the professionals you hire and do everything by yourself.
Set A Competitive Market Price
After flipping your condo, you can now sell it at a competitive market price. Set the price higher than your initial purchasing cost because your unit is ready-for-occupancy and has renovations done. You can also refer to the listing prices of your competitors as a basis. Make sure you are set apart from other sellers and create financing terms that will entice your potential buyers best.
In this guide are some of the most effective ways on how to flip a condo in the Philippines. If you are looking to jumpstart your condo flipping business, then find the best condo unit from Megaworld Manila. As the best condo developers in the Philippines, Megaworld Manila designed condominiums and townships across the country that help clients get the most out of their investments.