It seems the world suddenly stopped because of the ongoing COVID-19 global outbreak. Even with the lifting of ECQ in Metro Manila on June 1, there are still many businesses and public transport systems that are not allowed to operate. For those who could operate, the strict social distancing rules significantly decreased their usual incomes. Unfortunately, the health crisis in the Philippines has also led to a financial crisis.
As expected, in terms of property investments, people proceed with great care and caution. They might even search for alternative ways to invest and put more due diligence to secure their investments. As most transactions now are only possible through the internet, many who are not familiar with using online tools might have the hardest time to adapt.
However, wise investors are unusually excited during a crisis because it might mean a once-in-a-lifetime opportunity to take action. Warren Buffet, known as one of history’s most successful investors, once said, “Be fearful when others are greedy, and greedy when others are fearful.”
With the combination of proper mindset and the right crucial information, you can make the most benefits from this ongoing crisis. Lamudi, the country’s leading real estate classified website, encouraged the brokers to consider this time as a great opportunity to maintain close relationships with property seekers.
More Options To Choose From
Since the nationwide quarantine started, Lamudi increased the number of property listings for brokers to maximize the visibility of their offers. This is good news for those searching for deals that match their wants and needs. This is also true for investors, as they can explore all these massive lists and may trip over a good property in an in-demand central business district.
Now is the time to take advantage of online real estate marketplaces. Same with online shopping platforms, you can use the filter options to narrow down your search. Then, you can also bookmark those promising assets.
Better Chance To Negotiate The Price
For the sake of having enough cash in times of emergencies, many would rather sell their valuables to prepare for the worst-case scenario. As this crisis progress, people will need money to buy groceries and essential goods in case of a total lockdown, payment for utility bills, and medical care.
As an investor, now is the best time to ask your broker to start a price negotiation before someone gets your ideal property. According to a report from Colliers Philippines, a world-class real estate company, property sellers are more flexible with their pricing and payment terms during this time.
According to, Joey Bondoc, the Senior Research Manager at Colliers encourages buyers to seize the opportunity of acquiring condominium units now when prices are more attractive especially for mid-income condominium units. The financial crisis is not going to last perpetually. At the same time, the opportunities are not permanent, too.
Diversification To Minimize The Risk
As already mentioned, what is happening now leads to more options with more flexible terms. That would also mean that you can acquire more different investments. Remember, you do not have to put all your eggs in one basket. You can minimize the risk by diversifying to different real estate products in the market.
For example, you can search for commercial or industrial properties. Commercial spaces have increasing demands due to business process outsourcing while the industrial sector has increased thanks to the rise of e-commerce businesses that require space for warehousing.
Aside from asset class, you can also diversify in terms of location. With the Build Build Build program of the Duterte administration, the infrastructure developments in Metro Manila can increase the property value of nearby provinces. Take a look at the performance comparisons of cities in most developed regions to find a potential opportunity.
Maximize The Expertise Of Your Broker
The fear that comes from every crisis is mostly rooted in uncertainties. With many unknown factors, one of the best ways to combat fear is to find the right person who knows what to do and who is also willing to help you. In the world of real estate investing, you need a licensed broker.
One of the brokers’ jobs is to guide you through these dark times to find the best deals that suit your preferences. You may even find someone who is also going through a crisis and still manage to position the investors to buy profitable assets.
For instance, these industry leaders who experienced the 2008 financial crisis are the real estate professionals, hence, they can give you more prudence and confidence with your planned investments.
Building The Foundations For The Long-Term Goal
After deciding on making any kind of investment, be sure to set aside some cash in the bank to make sure you won’t be short on funds. According to financial advisers, a good rule of thumb is having 3 months’ worth of liquidated assets to make sure you have emergency funds at the ready just in case the need arises. However, seeing as the pandemic has somehow ruthlessly dismantled the order of things, it is best to put aside 6 months’ worth of funds instead.
Apart from that, you also need to ensure that you have enough money to pay for legal fees and transactional costs which are part of the expenses when buying real estate property.
According to Forbes, now might be the best time to make real estate purchases when the market is saturated with properties that need to be disposed of at the cheapest. At a time when survival is of utmost priority, people will flock to online real estate platforms and real estate agencies to turn their properties into liquidated assets without much thought about the pricing while foreclosed properties will be on the rise. Investing in these properties now while it’s at its best price will give you the most profitable outcome and soon you’ll come to reap the benefits of your investment.
Prices in these situations are often at its most attractive due to the fearful environment. And as mentioned earlier, in terms of investments, be greedy when there is fear.
During this global crisis, it’s best to be aware of how things have changed in the real estate landscape to know how you can best position yourself and your money. Work with a licensed real estate broker who can give you sensible advice so you can make better judgments with your investments.
Looking for a condo unit around Ortigas? I am Glenn Dineros, a licensed Real Estate Broker with PRC License # 5171. Reach me +63 977 852 3852 or +63 939 588 9352. You may also send your email at inquire@ortigasproperties.com(opens in new tab) so I can help you locate yours.
