Buying an apartment in Metro Manila can be a reliable, lucrative passive stream of income that can help you build upon your wealth and set you up for early retirement. This said, it is important to know things you should avoid while correcting misconceptions when it comes to buying an apartment building. One of the first things you should remember is that the outcome of your apartment investment will largely depend on the kind of time and the amount of money that you are willing to dedicate to buying the multifamily property. Here are common misconceptions and mistakes you want to avoid when looking at apartments for sale in Metro Manila
- Buying solely on the basis of future appreciation – While a good appreciation rate can be an attractive characteristic, you should never buy an apartment building based solely on future appreciation. Instead, make your purchase decision by looking intently on the property’s current cash flow.
- Investing blindly – Before deciding to buy any property (especially an apartment building), it is wise to acquire local market knowledge so you won’t have to rely solely on your real estate agent for guidance in your decision. This will help you validate the value of your prospect property and how it will attract future tenants.
- Self-managing the property – While managing your own property is a good way of maintaining full control of your investment, it may be more beneficial to hire an experienced property manager who can do the job more efficiently. This is especially true for inexperienced investors as well as those who want to expand their estate by spending more time finding new investment opportunities than overseeing the property.
- Skipping due diligence – Due diligence is always a critical step in property buying as it allows proper verification of property details, income and expenses, leases, and active contracts.