Investing In Residential Lots In Cebu

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Investing in residential lots or house and lot in Cebu? This is one question that a number of people are asking when they think about investing in Cebu. For people who have no problem with their budget, this question is a no-brainer. They would definitely go for a house and lot. In fact, they may even buy it outright to take advantage of the discounts available for spot cash payments.

However, for many of us who may not have the budget to buy a house and lot, we may have to settle for a residential lot. This is actually the most practical thing to do. There are a number of developers offering residential lots at a reasonable price. I am using the term “reasonable” since you cannot get cheap residential lots in and around Cebu City. If you want to buy cheap residential lots, you would have to take a long ride away from the city.

The reasonably-priced residential lots I am referring to are located just outside the city. And it would be better to buy these lots when they are still being developed since their prices would be lower compared to lots in subdivisions that are already developed. For instance, I know of one development just north of Cebu City where residential lots were priced at around 1,800.00 per square meter when they were initially offered in the market.  However, after around a month, the price went up to P 2,500.00 per square meter before increasing to P 3,200.00 per square meter. I think the current price tag of this residential lot is already at P 4,000.00 per square meter. To think, these residential lots were only offered in the market last November. In a matter of seven months, the value of the residential lot increased by over 100 percent, which makes it practical to think about investing in residential lots in Cebu.

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Real estate is always a good investment since the value of real estate would, more often than not, increase as time passes. The only time it may decrease if there is a war, natural disaster or any other event resulting to the death of thousands. This may be the only time when land prices will decline. However, it will not stay down for long since they are expected to increase once the place is able to recover.

I remember a story my grandfather told me a long time ago. He was one of the survivors of the Bataan Death March. He said when they were released from the military prison after the Death March, he and his fellow-survivors were offered a piece of land somewhere in Manila. The area was actually a marshland at that time, and was offered at a few centavos per square meter (I don’t know if the price was accurate but I think this is possible since the country was in the middle of a war at this time). However, since he already missed his family, he hesitated and in the end did not purchase a single plot of land in the area.  That marshland offered to my grandfather over seventy years ago is now the city of Makati.

This just shows that even after a war, once an area is developed again, its value will increase exponentially, albeit it may take a number of years depending on how fast the development is made.  This is another reason why you should take into account investing in residential lots in Cebu.

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The price of land in Cebu City has increased so much in recent years that it is not possible for you to find residential lots within Cebu City priced at less than P 10,000.00 per square meter. In fact, this price is also true to a number of areas in the outskirts of the city. Although it is still possible to find residential lots priced lower than P 5,000.00 per square meter in the outskirts of the city, it is important for you to buy these residential lots while they are still being developed. The moment, the areas around these residential lots are developed, the price will definitely increase. This makes it important to think about investing in residential lots in Cebu as soon as possible.

There are also some residential lots available for purchase without any interest for a five-year payment period. This means, you can actually own a piece of land by paying the same monthly amount for the next five years. Since the price of land increases as more development comes into the area or as time passes by, the earlier you buy the residential lot, the bigger would be the value of your investment after a period of time. For example, if you are going to buy the lot at a current price of P 3,000.00 or P 4,000.00 per square meter today, it may go up to P 5,000.00 or even P 7,000.00 per square meter after a few months or years. In fact, it is also possible that by the time you are able to fully pay the residential lot, its value may have doubled or tripled already. This means, you have doubled your investment within a five year period, which you cannot get from a time deposit from any bank.

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By the time the residential lot is fully paid, the area would already be developed, which makes it easier for you to sell it at a huge profit.  Or you can opt to build your house on your new residential lot.

Investing in residential lots in Cebu is actually a practical thing to do since Cebu City may become the next Makati. This means land values around Cebu City will skyrocket once this happens. If I had the cash, I would definitely think about investing in residential lots in Cebu since I know that in five years, the area will be developed and the value of the lot that I bought would increase by at least fifty percent, if not, by one hundred percent.