The definition of real estate includes the land and any permanent improvements that it covers whether natural or man-made like waters, buildings, homes, fences, minerals deposits, and bridges. Real estate does not include personal property such as furniture, jewelry, farm equipment, and land or water vehicles.
Real estate investing grants people several opportunities to build wealth over time. There is a steady rise in the market price of real estate properties in the Philippines. Condo investing is one of the lucrative ways to build assets.
Before anything else, an understanding of the types of real estate is necessary to solidify knowledge about big purchases, investment needs, and goals. Real estate is a critical driver towards economic growth. Lucrative jobs of being engineers, accountants, real estate, and insurance salespeople down to welding and carpentry create a steady stream of income for most. A lot of businesses also depend on real estate which includes property management, construction supplies, architecture and interior designs, and many more.
Land vs. Real estate
The land is the surface of the earth to its center upwards to the airspace above which includes trees, waters, and minerals. While the Real estate is the land itself and the permanent man-made improvements like drainage, water, sewer system, houses, and other buildings. Real estate gives people the rights of ownership, sell and lease of the land.
The types of Real Estate
Residential Real Estate
Residential real estate is any property used for housing. These are called family homes, duplexes, and condos. This type ideally fits the preferences of people who are looking to start a family, have their dream homes built, or build wealth with a diversified portfolio.
Preselling condos are in high demand due to their primary location. The popularity of condo living is drawn from convenience and access to essential services like shopping malls, quality schools and neighborhoods, and hospitals.
Residential real estate yields good returns through value appreciation, sales, and rental income. One can have a house built and have some of the rooms rented out.
Commercial Real Estate
Commercial real estate includes any property that has the main purpose of hosting business operations and services. These properties include apartments, gas stations, hotels, hospitals, parking areas, and the like.
The investors who need this kind of real estate property look forward to creating a workspace and establishing their businesses’ brands in a strategically chosen location. While sales and transactions create its cash flow, most returns come from the rental profits. Some can have land, build small houses and a pool to list on Airbnb, or build a coffee shop where students can frequent when they need good places to study. It’s also wise to have a shared workspace since offices in urban areas are much more expensive—this solves the problem of entrepreneurs who cannot afford big office spaces yet.
Industrial real estate
Industrial real estate refers to the lands, buildings that can accommodate industrial-sized activities like processing and production, warehousing, manufacturing, and product distribution.
Zoning laws specify where these real estate properties can be designated to prevent disrupting residential areas and people’s health and quality of life. Permits need to be secured before any operation can be done. Industrial waste storage and disposal can be challenging to get approval of.
Land
The land defines the undeveloped property and agricultural land like farms, ranches, and orchards. This real estate property is perfect if an investor is looking for affordability in the meantime as this might require no property insurance. It cannot, however, generate income on its own without any developments.
Farming can greatly help for a start, but if a parcel of land has great foot traffic, then it might help better in wealth-building if a business that provides services or fast-moving goods is put up. Nevertheless, the choice of land is incredibly helpful in making sure that real estate is indeed an investment.
Real estate investing tip from Vista residences
If funds are already available, it’s best to start young. In the changing fortunes of life, real estate solidifies a good future. Backing it up with a diversity of investments is still highly recommended to prevent selling it lower than the price it was bought for. Building emergency funds and purchasing necessary life savings, and health insurances are still a must.
Any personal belonging if they are not income-generating are considered liabilities. A perceived need for a car needs to be carefully considered. It is wise if an employee with a car subscribes to being a driver for driving app on some parts of the week. Otherwise, the need to pay for parking, gas, and maintenance will add up to expenses over time.
One always needs to think of better options. If renting to own a house is better than just giving away a certain amount of money to a landlord monthly, then it’s time to know where the hard-earned money should be. If commute costs a person so much time and money, then some location of the workplace might not be best. To live happily, people still need material possessions, and basic life needs like food, shelter, and even enough amount of rest to sustain energy and work productivity.
The mindset of millennials and the younger generations evolved such that work-life balance is considered. This is why condo living is now the most popular investment in the biggest cities in the Philippines. The time value of money is carefully considered by the younger generation. Imagine having to spend four hours a day for a commute when one can spend some of it at the gym, drinks with some friends, study new skills and other more important things that can sustain a better life besides spending it in an office and going home.
Vista Residences provides great opportunities to make life so much better by being one of the best real estate developers in the country. Investors enjoy renting out their condominium properties by partnering with the leasing team. Filipinos abroad normally prepare for their retirement homes or revenue-generating properties as they grow old or as they desire early retirement. Foreigners are also given the opportunities to invest in Philippine real estate when presented with the best tourist spots that can only be found in the country.
If you are thinking of moving into a new condominium, check out Vista Residences!
Vista Residences is the condominium arm of the country’s largest homebuilder, Vista Land & Lifescapes, Inc. that offers ready for occupancy and pre-selling condominium projects in Manila, Makati, Mandaluyong, Quezon City, Ortigas, Baguio, Cebu, and CDO that are strategically located within major cities, in close proximity to premium universities, transit-oriented locations, and developed business districts.
At Vista Residences, unit owners can take advantage of the property’s centrality. The properties of Vista Residences are strategically located near the country’s premium universities and CBDs, making them an attractive investment for both local and foreign investors.
Living in Vista Residences enables you to enjoy convenience, where everything is pretty much within walking distance or a few minutes away from the property; comfort because the project features and amenities are designed to deliver comfort at all times, which makes condo living a worthy investment; security that is 24/7 and CCTV monitoring, which makes the residents safe and secure within the property.
In line with Vista Residences’ thrust to offer convenience among its residents, it also features an AllDay Convenience Store and Coffee Project in all its projects.
For more information on Vista Residences, email [email protected], follow @VistaResidencesOfficial on Facebook, Twitter, Instagram, and YouTube, or call the Marketing Office at 0999 886 4262 / 0917 582 5167.
