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How to Build a Real Estate Business in the Philippines

Success is quite elusive. Some people spend their whole lives searching for it only to end up fruitless. Others are lucky enough to find an environment that they’re skilled at and eventually build enormous wealth and achievements. That’s the thing about being successful; you need the perfect balance between all of your available resources.

If you’re still struggling with chasing victories one after another, perhaps you should try your luck in the real estate industry of the Philippines. In a country that’s made up of over 7,000 islands, the diverse culture, environment, and people will provide you with lots of opportunities to build your future.

Whether you’re a local or a foreign businessperson, the Philippines’ real estate industry is a great avenue for entrepreneurship, and this article will help you with that journey.

What to Focus On

Some people immediately lose whatever it is they have built because they tend to lose focus and motivation. Without these two, it would be particularly difficult to succeed. In your real estate business venture, here are the things you need to focus on.

Buy Low, Sell High

As with any real estate market, the major rule or guideline in property management in the Philippines is to buy low and sell high. It may be difficult, ridiculous even, to comprehend how simple it is, but that’s primarily what will get you successful in the real estate industry. Observe the market and purchase properties when it’s low, then rack up the price once the market booms again.

On the other hand, you can also try looking for desperate sellers needing funds for various reasons. These homeowners who need urgent money would most likely sell their property at a much lower price than its original value.

Find Your Market

The next thing you need to address is to find your market. The purchasing power of Filipinos is quite diverse, so you want to make sure that the market you find is suited for the properties you are selling. Overseas Filipino workers also wish to see the fruit of their labor and sacrifices by being away from their country and families. You can try buying properties in the Philippines and selling them to OFWs, and then help them secure housing for when they return to their homeland. This is a potentially active market, so it would most likely jumpstart your real estate business.

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Vacation Rentals

Speaking of an active market, the more than 7,641 islands of the Philippines is home to numerous wonders of nature that are untouched by modern technology and pollution. This makes the country an ideal tourist destination. Exploring the different tourist spots in the Philippines is not just a popular activity for locals but for foreigners as well. Having said that, the real estate industry benefits a lot from this fact. You can purchase properties close to these popular tourist attractions and open them up for short-term rentals. This can generate significant amounts of money for your business.

Location Over Condition

One common misconception among realtors is that the only way to make real money in this industry is to purchase affordable houses and sell them at a higher price. We’d like to go against the grain and suggest that you also try valuing the location of properties over their condition. What that means is to look for houses that are located in developed or developing areas even if they are shabby or require renovation.

One advantage of doing this in the Philippines is that the materials and labor you will need for a renovation project are not as expensive compared to other countries. This means that you can purchase properties at 70% value and significantly improve your return on investment by renovating them.

Build a Network

Another advantage of starting a real estate business in the Philippines is that Filipinos are naturally warm and welcoming. This means that you can easily build a network by getting in touch or close with the locals. You can try purchasing a property and partner up with a celebrity or popular personality. Sooner or later, you will find that you have a network of interested people looking to grow their wealth.

Additionally, potential clients would most probably be the ones to contact you if they want to purchase a property of their own. You can earn around 5% to 10% of the total value of a house just by being the middleman between the seller and the buyer.

Real estate is an industry that can significantly grow your wealth rather quickly, especially if you have the potential. Understanding how and where are the best places to begin will help you achieve your goals faster. Give the Philippines’s real estate industry a shot.

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