Renting? Speculating?
I was just speaking with someone about investing in units to rent. They told me that back in the 90s the market as for renting was well worth the effort and very good. But after 2000, the market for such easy ventures dropped. I told them it seems many have not yet gotten the message. This is a reminder on how we and so many other unit buyers were and still are being told that renting is an option when investing in the purchase of a condominium unit.It is too bad so many did not and do not properly run the numbers as far as purchase price and all the costs associated with the buy along with subsequent loan payments against the current and realistic future rental charges. If this were done, the gloomy picture many are facing would not now be their reality.
Unless buying a unit at a fire sale price and all other factors carefully examined such as location, nearby flooding, etc., making a yearly profit on a unit will apparently not take place. Additionally, values are depreciating with so many units coming online across Metro Manila within the next two to three years. So even if one were to rent and hope for appreciation the risk seems too great. And even if there is a small appreciation of a unit rented, the cost of repair to wrap that package nicely for sale will take from a potential profit. And, is the time and aggravation worth the psychological expense?
I had written about renting in the past. It is a gamble as was speculation. Speculation is now over in the condo market with renting seemingly over, too, given current prices.
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