When Is The Best Time To Invest In Real Estate?

When is the best time to invest in real estate?

1. When you are financially capable
2. You qualify for financing
3. When it is a buyer’s market

Investing in real estate is one of the best ways to build long-term wealth. Many investors target real estate properties for their high appreciation rate and lucrative passive income opportunities. However, the real estate market is also known for ​​being volatile, with plenty of factors affecting its value. Economic indicators, consumer demand, socio-economic factors, and government policies can all affect the real estate market. Therefore, it can be hard to know when is the best time to invest in real estate.

Choosing the best time to invest will affect the profitability of real estate assets. Undoubtedly, investors are more concerned about when is the best time to invest in real estate nowadays due to uncertainties about the global pandemic that is plaguing societies. So, how can you tell when to invest in real estate? Continue reading on to learn more about the tell-tale signs signifying it’s time to go for it.

When You Are Financially Capable

Just like any type of investment, real estate assets can cost a significant amount of money. With an average price of Php25,700 and Php31,000 per sq. meter, purchasing a residential investment property in Metro Manila can be challenging for some individuals to achieve. If you are planning to occupy the house, you will also have to take recurring costs such as property taxes, home loan payments, maintenance, utilities, and homeowner association dues. 

In this case, being financially capable means having enough cash to cover all the costs associated with investing in the real estate asset without struggling to pay your living expenses as well.

Before making a final purchasing decision, research the average price of properties in your preferred location. Find out if you are qualified for home loans as well. If you have a limited budget, consider going for properties located in the province side of the country. Take the Park Place Batangas, a subdivision by Pueblo de Oro, as an example. Here, a premium two-story home with two bedrooms occupying 80 sq. meters of land only costs Php1.9 million. Compared to central city districts in the Metro, this can be a more affordable price range for investors with a budget. 

You Qualify For Financing

Real estate investing with cash upfront is not always the viable option for everyone. Thus, another good indicator that it is the best time to invest in real estate is when you qualify for financing. Assessing all your financial options is crucial for making any real estate investment. 

In the Philippines, there are plenty of establishments that offer home financing such as pag-IBIG fund, banks, and third-party financing companies. Keep in mind that applying for a mortgage requires meeting the eligibility criteria of the lenders. Lenders typically evaluate your credit score and employment details.

When It Is A Buyer’s Market

No matter when you plan to invest, it’s important to determine if it is currently a buyer’s or a seller’s market. If you are wondering when it is the best time to invest in real estate, the answer is when it is a buyer’s market.

The real estate market fluctuates based on the forces of supply and demand. A seller’s market occurs when the demand for real estate exceeds supply. During this scenario, there is a high interest in buying properties, but there are only a few properties available for sale. As a result of the property shortage, there are intense biddings, which in turn drives up property prices.

On the other hand, a buyer’s market occurs when supply exceeds demand. To put it simply, there are plenty of properties for sale, but only a few interested buyers. In a buyer’s market, properties tend to stay on the market longer than usual. That being said, sellers will drop their prices to attract buyers and gain a market advantage over competitors. This is the best time to invest in real estate because sellers are typically more willing to negotiate on prices. You have leverage over sellers when supply is higher than demand.

Key Takeaway

There are numerous benefits to investing in real estate such as high appreciation value and passive income opportunities. During these uncertain times, it is understandable to wonder about when is the best time to invest in real estate. Use this guide as your reference for making smarter decisions.

If you’re looking for a real estate asset that is designed for high long-term investment value and affordable prices, Pueblo de Oro projects are the top choice. Click here to inquire about our properties in the Philippines today.