Property flipping is now common in the Philippines.
How does it work?
Real estate investors purchase properties below the market price. Conduct a renovation to increase its value. Later on, resell it for a quick profit.
Don’t confuse it with development investing. The latter means you buy property under development. Your main purpose is to sell or rent the unit whenever it’s ready for occupancy.
Flipping properties in the Philippines is more preferred.
If you want to venture into this, do it the right way.
Take note of our advice for you.
Best Advice when Flipping Properties in the Philippines
Flipping properties is not that easy. Well, if you don’t know how to properly do it.
Read on and understand flipping houses flip in the country.
Do your Research
First and foremost, research. Just like when you plan to procure a house.
This time, do intensive research.
Know where to find a below-market-value property. Identify the best location. Choosing where in the National Capital Region (NCR) is convenient.
Consider the nearby amenities as well. Leisure and relaxation activities are a great factor.
Community security is another consideration.
Get these things right. You have a brighter chance to bag an undervalued house.
Identify What you Want
Research is the soul of flipping properties.
At first, you search for what is best in the area near you.
Your next step is to research the kind of property you want to purchase. Search for the type of property and location that comes after.
Emphasize on what kind of property is preferred by many. From here, you can decide on how to construct, improve and develop the house. Work on it and sell it for the highest possible price. Take note that you shouldn’t shell out so much.
Be Surrounded by Trusted People
Have a network of diverse people from different industries. It comes handy in your flipping plan.
A contact in the construction, interior design and architecture is helpful. It brings your plan to life.
A person from the construction industry assists you in choosing the best yet affordable materials. Also, they give expert advice on how to go in a construction or improvement project.
Ideas from interior designers attract prospective buyers.
Know someone from the legal industries. Achieve your ultimate goal without breaking any law.
With this group of people, your business flows easier than ever. These professionals are experts in their own fields.
Thank them and pay them back for every favor.
Know where and from whom you’ll get your finances.
Secure more funds aside from financing the project. In some cases, there are expenses you have to pay.
Just like when you take out a loan from banks or some shady offices. The loans offered are either little or no down payments. Rather, they impose a higher interest rate.
Consider a lot of factors. If you have enough money, you can solely acquire the property. Don’t forget the underlying extra expenses. Construction, development, and improvement might cost you but it will definitely be worth it. Especially when you found an enthusiastic homebuyer.
Understand your Taxes
Everywhere you go, whatever you do, a tax comes after you.
So, when you do property flip keep in mind the tax. This type of investment earns profits and is considered as a capital gain. Your tax depends on how long you own the property.
When fixing your budget, consider the interest and tax rates that will be imposed. It is essential to know these details. Maximize your profits. Decide wisely.
Home sellers tax pay upon the sale of a property. Your capital gain tax is imposed on the gains presumed by the seller from the sale, exchange, or disposition of capital assets.
As of now, 6% of the tax rate is imposed on real properties.
Be knowledgeable about everything you do. Flipping properties in the Philippines is a consequential matter. Make it worthwhile. Ponder on the advice stated above.
Importance of Flipping Properties in the Philippines
In the Philippines, the land is a valuable commodity.
Citizens search for land for sale according to what they want. But, it cost them too much. They need time and effort for a successful purchase.
Good thing a lot of real estate investors are available. Flipping properties is actually hard. You have to fully commit yourself to become successful.
This is what you’ll gain after all the hard work.
Obviously, flipping properties in the Philippines makes money.
If you committed to this venture, the returns of your investments are significant.
It is a lucrative business, especially if you are given the right scenario at the right time.
Before you proceed on flipping properties, you may also consult a feng shui expert and understand how it works. For sure, you’ll gain profits more than you can imagine.
Flipping houses take a lot of time and money.
Nevertheless, you’ll learn valuable lessons and unforgettable experience.
This type of business develops your negotiating skills. It is applicable whenever you purchase homes and materials for development.
Time management is another unlocked skill. Ability to delegate tasks and hold people accountable is another, on top of the construction and real estate learning.
Stress is always a part of any business. But a big weight is lifted off your chest when it is done right. Think about what you’ll gain in the end. Flipping properties in the Philippines is a fun and advantageous journey.
Flipping properties in the Philippines is good money. Make the right decision. Deal with legit people. It might take a lot of work and investment but with perfect timing, you’ll harvest more than you can imagine.