LOW RISK AND HIGH RETURN OF INVESTMENT 11/03/2009
The rental returns from letting residential condominiums in central areas of Metro Manila range from 8% to 15% yearly, according to a survey just released by the Global Property Guide.
The smallest apartments in each segment earn the highest yields. For instance, studio apartments in the prime areas of Metro Manila can earn around 13%-15%. But the highest returns are available on the smallest studios (30 sq. m.), which earn rental returns of an average of 15.1%. Larger studio condos (40 sq. m.) earn slightly lower returns (12.9%).
The same pattern holds in other condominium segments. One to two bedroom units (measuring 50 – 90 sq. m.) earn around 12%-15%, but the highest returns can be earned on the smaller (60 sq. m.) condos, which earn rental returns of 15%. Larger 1 – 2 bedroom condos (80 sq. m.) earn rather lower returns (11.5%).
“The pattern is unusual,” says Matthew Pollock, publisher of the Global Property Guide. “Instead of a smooth progression from high yielding units to low, we have high to low with high-yielding ridges or lumps at particular apartment sizes - which correspond to the smallest case of a particular number of bedrooms.”
Here are some of the benefits you may wish to consider:
· Condominiums generally appreciate in value at a rate which is almost consistently higher than the inflation rate.
· Finding an occupant for a condominium apartment is relatively easy in because of low vacancy rates.
· There is an increasing demand for the condominium lifestyle and the luxury and convenience that it provides.
· Because a minimal amount of upkeep is involved, the economic benefits are more attractive for the first-time investor.
· There is the convenience of having many of the management and maintenance problems taken care of by the condominium corporation, and the professional management company, if any.
· Facilities such as tennis courts and swimming pools are maintained by the condominium corporation, thereby freeing the new investor from the responsibilities of upkeep.
For investment please call Mr. Norman C. Garcia at +639175667626 / +639238889574.