Like every other real estate endeavor, timing and location are of the utmost importance. You must think of it in terms of the stock market. "Buy low, sell high". The same can be said for real estate, but there is no pun intended. In Manila, you can open the local paper to see various new high-rise condo projects in either their pre-construction or mid-construction phases. These projects will usually be offered for investment at a discount prices since they are not yet completed. You therefore will have the unique opportunity to lock in the "ground floor" price.

"Buy low."

Most projects will take about 3 years to complete and usually range from 20-40 floors of units in size. In recent years, most investors will typically observe a minimum of 15% return on their investment, with some projects appreciating in value at a 25% rate. So if you bought a unit for $50,000 in 2001, its present value will be listed for about $63,000. By the time of opening, your $50K unit is projected to be valued at around $70,000.

So you have made $20,000 on your money in 3 years.

"Sell high!"

But the investment period is not necessarily complete. You may continue to hold this property (or live there) and expect to see an appreciation of about 5-10% per year, depending on where your condo is located relative to current city growth. It does not take a genius to discover the current growth areas in the sprawling metropolis of Manila.

More coming soon....