Why this is the best time to flip real estate in Baguio City?
Pinewoods Golf and Country estate subdivision, Baguio city
If you are looking for a right investment today, you are at the right page.
Flipping real estate may not be a commonly used term in the Philippines but may have already been a common investment strategy. Like other kind of investment, this is a gamble. But, a gamble on a place such as Baguio City might be a worth shot. Let’s check it out.
According to the article of Lalaine C. Delmendo in Global Property Guide, the strong economy today made the housing market in the Philippines competitive. It is highly unlikely for this to be just a bubble considering that the remittances from Overseas Filipino Workers (OFW) are high and the Philippine employment ratings is satisfactory.
The real estate price in the Philippines is still strongly on the rise. Note, however, that Metro Manila’s Central Business District has slower pace in price increase compared to other areas.
Generally viewed, the economic growth of Baguio City is driven by exports. These major contributors are electronics, machinery, wearing apparel, textile, plastic production and service enterprises. A number of Business Processing Outsourcing – Information Technology (BPO-IT) companies are already sitting in Baguio City.
In Camp John Hay, an increase in business enterprises by 51% has been recorded in 2015. Jobs generated also increased by 261%.
The next question in flipping real estate in Baguio City is “to whom are you going to sell it?” As mentioned in No. 2, you could sell the real estate to the employees. Count in the BPO employees and the English Second Language (ESL) teachers since they may be among the top income earners.
Flipping condominium in Baguio City may also be a better option considering that most of the foreigners describe Baguio City as their second home. Foreigners cannot own a residential house and lot. Also, many foreigners in Baguio City are either investors or students for ESL programs.
Flipping real estate is a flexible investment. You have an option to sell it immediately. On the other hand, you may have it rented for continuous cash flow.
Aim for either selling or renting both for a long term and short term as they are on an increasing trend. You can have properties rented for a long term to people who have stable jobs or business within the City. You can also have it rented as vacation house to tourists.
You might also want to use it as vacation house during summer, Christmas holiday or flower festival.
The City Government of Baguio City is prioritizing the increase in business and real property taxes. The revenue will be used for the improvement of City Government’s service.
Improvement of government service may mean that we can save time in availing their services. However, this also means that budget for tax expense will increase. We could then say that while the Government has yet to implement the tax increase, this may be the best time to purchase the property.
On another hand, improvement in public service will also cover both the preservation of economy’s growth and the environment. We may then be able to foresee a longer term investment in Baguio City.
To wrap it up, we would like to leave you with quick tips.
1) Set specific budget for property and renovation cost.
2) Create specific timeline to save time and money.
3) Consult experts. We still have plenty of experts to name but your best friend here should be real estate agent in Baguio City. They know the business and the place.
4) Review Master Deed and Restrictions especially before making renovation. Construction bond and design plan may be required.
5) Be patient when making decision.
Reference:
http://www.globalpropertyguide.com/Asia/Philippines/Price-History
www.investopedia.com
http://www.forbes.com/sites/navathwal/2015/06/30/top-5-cites-for-house-flipping/2/#1c3138a02df0
http://www.advisoryhq.com/articles/how-to-flip-a-house/
http://www.foreclosurephilippines.com/members/v1-what-you-need-real-estate-investing/
http://www.malaya.com.ph/business-news/business/it-bpo-mapping-growth-path-economy
http://www.sunstar.com.ph/baguio/local-news/2016/07/14/baguio-sees-additional-p650m-revenue-485374
Flipping real estate may not be a commonly used term in the Philippines but may have already been a common investment strategy. Like other kind of investment, this is a gamble. But, a gamble on a place such as Baguio City might be a worth shot. Let’s check it out.
- Housing Market in the Philippines is Hot
According to the article of Lalaine C. Delmendo in Global Property Guide, the strong economy today made the housing market in the Philippines competitive. It is highly unlikely for this to be just a bubble considering that the remittances from Overseas Filipino Workers (OFW) are high and the Philippine employment ratings is satisfactory.
The real estate price in the Philippines is still strongly on the rise. Note, however, that Metro Manila’s Central Business District has slower pace in price increase compared to other areas.
- Baguio City’s economy
Generally viewed, the economic growth of Baguio City is driven by exports. These major contributors are electronics, machinery, wearing apparel, textile, plastic production and service enterprises. A number of Business Processing Outsourcing – Information Technology (BPO-IT) companies are already sitting in Baguio City.
In Camp John Hay, an increase in business enterprises by 51% has been recorded in 2015. Jobs generated also increased by 261%.
- Housing Market in Baguio City
The next question in flipping real estate in Baguio City is “to whom are you going to sell it?” As mentioned in No. 2, you could sell the real estate to the employees. Count in the BPO employees and the English Second Language (ESL) teachers since they may be among the top income earners.
Flipping condominium in Baguio City may also be a better option considering that most of the foreigners describe Baguio City as their second home. Foreigners cannot own a residential house and lot. Also, many foreigners in Baguio City are either investors or students for ESL programs.
- Flexible Investment
Flipping real estate is a flexible investment. You have an option to sell it immediately. On the other hand, you may have it rented for continuous cash flow.
Aim for either selling or renting both for a long term and short term as they are on an increasing trend. You can have properties rented for a long term to people who have stable jobs or business within the City. You can also have it rented as vacation house to tourists.
You might also want to use it as vacation house during summer, Christmas holiday or flower festival.
- City Government at work
The City Government of Baguio City is prioritizing the increase in business and real property taxes. The revenue will be used for the improvement of City Government’s service.
Improvement of government service may mean that we can save time in availing their services. However, this also means that budget for tax expense will increase. We could then say that while the Government has yet to implement the tax increase, this may be the best time to purchase the property.
On another hand, improvement in public service will also cover both the preservation of economy’s growth and the environment. We may then be able to foresee a longer term investment in Baguio City.
To wrap it up, we would like to leave you with quick tips.
1) Set specific budget for property and renovation cost.
2) Create specific timeline to save time and money.
3) Consult experts. We still have plenty of experts to name but your best friend here should be real estate agent in Baguio City. They know the business and the place.
4) Review Master Deed and Restrictions especially before making renovation. Construction bond and design plan may be required.
5) Be patient when making decision.
Reference:
http://www.globalpropertyguide.com/Asia/Philippines/Price-History
www.investopedia.com
http://www.forbes.com/sites/navathwal/2015/06/30/top-5-cites-for-house-flipping/2/#1c3138a02df0
http://www.advisoryhq.com/articles/how-to-flip-a-house/
http://www.foreclosurephilippines.com/members/v1-what-you-need-real-estate-investing/
http://www.malaya.com.ph/business-news/business/it-bpo-mapping-growth-path-economy
http://www.sunstar.com.ph/baguio/local-news/2016/07/14/baguio-sees-additional-p650m-revenue-485374
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