The invisible group of money makers
If you take a drive through some of the Philippines’ central business districts (CBDs), you may find yourself wondering who owns the land on which these skyscrapers stand.
For sure, the companies behind the buildings plaster their names in large, glowing letters on top of their structures, but the actual owners of the land are rarely disclosed. Truth be told, many companies do not own the actual land they have built on. Many owners of commercial properties remain hidden to the public.
Despite their apparent invisibility, however, these owners earn exponential figures that would rival any lottery winner. By purchasing a strategically-located parcel of land, these investors have secured the finances of not only their immediate families but also of their descendants in future generations.
With commercial lots, leases are usually longer, rent yields are often higher and demand is so significant that both local and foreign clients are attracted.
If you’re thinking of joining this invisible group of money makers, you’ve got the ultimate guide in your hands. Here are the reasons why you ought to become a commercial land investor today.
Long term stability
Have you ever seen a skyscraper being built meticulously, only to be torn down a few years later? Probably not.
Commercial structures, including office buildings, retail centers and industrial warehouses, are often designed and built to last for decades, if not for a century.
For this reason, commercial leases typically extend for years—even decades—providing better financial security. While it might take time to secure a tenant, just one long term lease can already yield substantial returns. Commercial lots thus represent excellent investments for generating consistent income for many years.
Great returns
According to Colliers International Group, a real estate brokerage and investment management company, commercial properties can yield up to 12 percent rental returns annually in the Philippines.
This can be observed in properties in well-located areas—those near or within transportation routes, urban centers and major businesses. Even if your lot is located in the province, there is still potential, as your property can jumpstart new businesses and hone existing ones.
You’ll be surprised how many companies explore new opportunities in areas outside major cities. As a commercial lot owner, you’ll be the first one to directly benefit from new developments and investments in such areas.
Various financing options
While you do need to have substantial capital to start investing in commercial lots, you don’t need to have the money right away or all of it.
Developers allow private partnerships, bank loans and even Pag-IBIG financing to finance commercial real estate purchases. You can explore various financing options to determine which one is ideal for you.
If, for example, you are able to secure financing that has low interest rates, you can actually make money by leasing out your property even while you’re still paying for it. It’s a win-win situation.
Unique investment factors
Commercial lots are not usually affected by the same factors that influence stock markets and even residential real estate. They help protect your wealth in times of recession, allowing you to earn money when other businesses are on a slowdown.
By including a commercial lot in your investment portfolio, you are able to diversify your income sources. Investing in a mixed-use estate may prove wise, as it can benefit from residential and commercial clients even in the worst of times.
Manageable risks
While it offers numerous benefits, investing in commercial real estate should be taken with a grain of salt.
Economic downturns, new taxation laws and land use procedures may affect the performance of your investment. Natural catastrophes such as floods and earthquakes may also affect property value and market demand.
Despite these possible detriments, you can still make wise commercial lot investments if you do your due diligence.
Analyze external factors such as proximity to transport hubs and accessibility. Research your potential market to determine the likely performance of your investment. Explore legal restrictions and familiarize yourself with local zoning regulations prior to purchase. By doing your homework before making a big investment, you can avoid unnecessary mistakes and reap the benefits in the long run.
Play big to win big
To sum up, investing in commercial real estate may prove to be the best decision you’ll ever make in life. While commercial lots usually cost more than residential ones, they earn money and can set you up for long-term financial stability.
Take your shot and explore commercial lots for sale today. You’ll be able to join the secret league of money makers, quietly earning millions for generations to come.
References:https://richestph.com; RDNE Stock Project, Yong Ser, Pixabay and Ali Ramazan Çiftçi via pexels.com
