How To Start Investing In Philippine Real Estate

Real Estate Philippines: 7 Ways To Invest In Property
​

 Real estate is a long-term investment that can generate passive income. Although it involves a steep learning curve, getting into real estate investments may bring potential rewards that can change your life. In the Philippines, real estate is a lucrative and safe investment option for those who wish to grow their money. But how do you get started in this avenue?
 
Read on as we answer how to start investing in Philippine real estate to start your investment journey and generate more profit.
​
5 Ways To Invest In Real Estate Property

1. Flipping Properties

Flipping properties is one of the fastest ways to generate money in real estate investment. You look for properties sold at a lower price to buy and resell later for a higher value. Once sold, the profit generated from the sale is invested by purchasing another property. Investors repeat this process to make more money.
 
While this method is easy, flipping properties has a steep learning curve for beginners. In addition, it does not guarantee long-term success since it is a risky investment choice. But if you have a good eye for scourging underpriced yet marketable properties, purchase foreclosed properties in the Philippines at a cheap price.

2. Rental Properties

For investors with big finances, consider investing in rental properties, a passive source of income. Rental property is a long-term investment that offers a monthly income manageable by a caretaker. However, there are many things you should consider before investing in rental properties, such as the purchase price and location of the property.
 
Investors should also consider the rental price and renovation costs whenever a tenant moves out or if the unit requires repair and maintenance. Additionally, there are various rental properties, like apartment units, townhouses, house-and-lot, commercial, condominium units, and land leasing – ideal for those who don’t have the finances to build a property.

3. Room Rental (Airbnb)

Another easy way to invest in Philippine real estate is through room rental or Airbnb. Renting out a room is a great way to generate extra income. For instance, if you have an apartment or spare room, you can advertise it on home-sharing websites and other online platforms, like Airbnb and Facebook. Room rental is a profitable investment for properties near tourist spots or central business districts (CBDs).
 
You can rent out your room or entire house if near tourist attractions. Furthermore, it is a flexible investment method since you can rent your property for days, weeks, or months. The profit is also higher than traditional rental properties, given it is in a prime or touristy location. 

4. Buy & Hold/Sell

Whether you’re into short-term or long-term rewards, consider the “buy and hold” or “buy and sell” method. The "buy and hold" strategy involves building or buying a property. Investors hold the property for a long time and may rent it out. Once its value appreciates, you can sell it at a higher price.
 
Meanwhile, the "build and sell" investment involves building a property to sell it for profit. But before investing, ensure that the property you're building has high demand to guarantee a return on investment.

5. REIT

REIT stands for Real Estate Investment Trust, managed by corporations that own real estate properties that generate income, like hotels, office buildings, and shopping malls. This investment option offers lucrative rewards in the long run since you can earn rental income without the hassle of handling tenants. In the Philippines, you can invest at Ayala Land REIT (AREIT), Filinvet REIT (FILREIT), Megaworld (MREIT), and Robinsons Land REIT (RCR).