How to Start Your Real Estate Investment

Posted by Regine Louise Mendoza on August 4, 2022

Sparking conversations about a memorial lot plan in the Philippines is deemed taboo by most people since they immediately associate it with death. Most of them think that doing so is a way of spoiling the gift of life; as much as someone has to be proactive about the future, one should not torture oneself with the lingering fear of oblivion. Yes, death is inevitable–everyone is destined to lie beneath a coffin after either a solemn or tragic death. Nonetheless, there is a need to pinpoint the reason why dialogues about this matter are essential–acquiring memorial lots is a form of real estate investment.

It is not a surprise anymore that the value of a particular currency today will never be the same after some time. In just a matter of weeks, its purchasing power can be higher or lower, depending on socio-political and economic factors such as the local inflation rate and the status of international trade. Hence, there is a need to emphasize the real essence of its time value; aside from simply putting it in a commercial bank to grow interest, there are other ways how one can make one's money work for them.

And this is where real estate investment permeates through the picture. This type of activity deals with purchasing fixed assets such as property, plant, and equipment. In this way, when the investor needs money for his or her immediate needs, he or she can pull off the benefits that he/she can derive from the said deal through rental revenues.

And if a big question mark appears on your forehead on how you can start your venture with real estate investment, here are some fundamental know-how that you need to be aware of concerning setting aside a portion of your monetary assets for a memorial lot plan in the Philippines.

1. Identify your investment budget for the real estate

Since the topic of concern in this conversion revolves around money, the first thing that you must do is to identify the amount of cash that you're willing to invest in a real estate venture. A common misconception by a lot of people about the general concept of investment is that you must have at least a bank balance with six digits. 

But to debunk that myth, all you need is a bit fewer resources and a higher amount of courage. Investment is not for the faint-hearted; one’s future, along with those of others who depend on him/her in an economic sense, is at stake. Moreover, there are no guarantees that the results of this pursuit will always end up being favorable in one’s interest. There are times when you gain profit, but there are also moments when you acquire lessons from losses and learning experiences. That is why at the onset of any investment, you must know how much money you are willing to gamble in uncertainty and how heavy the weight of the risk is that you can tolerate.

2. Make an in-depth company check

As much as a memorial lot plan in the Philippines is concerned, an aspiring investor must also be knowledgeable about the background of the investee company that he/she is trying to close a deal with. In the general sense of investment activities, this step is one of the most crucial ones that someone must be aware of. Otherwise, he/she will end up incurring absolute losses and finding himself/herself helplessly groping for hope in the pit of shame.

An aspiring investor must exert the necessary effort to assess the profitability and stability of the company as an economic entity over time. Having said this, not everyone is encouraged to invest in start-up firms especially if an individual only has a conservative risk tolerance. Setting aside monetary assets to enter into a transaction with companies who already proved their respective names in their industry is the highly suggested feat to pull off concerning this step. 

3. Choose your preferred type of memorial lot inventory.

Once you’ve identified the budget that you will set aside for your real estate investment and the company that you’re willing to invest in, the next thing to do is to select the type of memorial lot that you will buy. Just like houses, memorial lots come in different forms; each of them with a predetermined market value, landscape, and capacity to hold.

For instance, lawn lots can accommodate two body remains, while garden lots can accommodate at least 5 remains of deceased individuals. Depending on its range, potential buyers associate a particular memorial lot with a specific price bracket. As an investor, you have to consider what a typical loved one of the departed looks for in an ideal lot–eyeing to close the bid for a commercially potent lot is one of the ways to realize maximum gains in real estate investment.

4. Ensure the particulars of your lot title.

When buying memorial lots, one must be aware that memorial parks do not issue a land title since it is incumbent to them, as the principal owner of the whole land area. Lot titles are issued instead to buyers of the said real estate property. Thus, as you close the deal with them, you must secure that your title is properly accomplished to avoid having disputes once you come across the point in time when you will sell your owned lot to someone else.

5. Prepare for ways to conduct lot maintenance.

Unlike vehicles and other types of equipment, the value of land appreciates over time because of the scarcity in its supply. This rationalizes the logic behind the notion of real estate properties as a highly profitable investment product. However, as an investor, your task does not end with getting your hands into the lot title. 

From time to time, you have to maintain the property that you’ve bought to preserve its quality and sustain its appealing appearance to potential buyers in the future. Not doing so can give you a hard time in selling the same in the long run. 

Indeed, there is so much to learn about real estate investment than just a matter of purchasing properties and looking for potential buyers. Sure thing, one may feel overwhelmed with the steps that he/she must be aware of to kick off this venture. But with due diligence in every action that you do, you can pull off a sweet victory from your initial investments anytime soon–by taking a leap of faith, you can receive your return on capital at a higher rate than what you’re expecting for in the first place.