Investment Property in Colombo

Investment Real Estate in Colombo

Colombo property investment can be a worthwhile venture if you are selective with the areas you choose to invest in. If not, you could find that your investment suffers due to low rental yields, dwindling demand, and slow property price growth in many parts of Colombo and LATAM .

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Searchable Map of Colombo Investment Real Estate

Colombo (Sinhala: කොළඹ, romanized: Kolamba, pronunciation [ˈkəlɐmbɞ]; Tamil: கொழும்பு, romanized: Kozhumpu, Tamil pronunciation: [koɻumbu]) is the commercial capital and largest city of Sri Lanka by population. According to the Brookings Institution, Colombo metropolitan area has a population of 5.6 million, and 752,993 in the city proper. It is the financial centre of the island and a tourist destination. It is located on the west coast of the island and adjacent to the Greater Colombo area which includes Sri Jayawardenepura Kotte, the legislative capital of Sri Lanka and Dehiwala-Mount Lavinia. Colombo is often referred to as the capital since Sri Jayawardenepura Kotte is itself within the urban/suburban area of Colombo. It is also the administrative capital of the Western Province and the district capital of Colombo District. Colombo is a busy and vibrant city with a mixture of modern life, colonial buildings and monuments.

Due to its large harbour and its strategic position along the East–West sea trade routes, Colombo was known to ancient traders 2,000 years ago.^{[citation needed]} It was made the capital of the island when Sri Lanka was ceded to the British Empire in 1815, and its status as capital was retained when the nation became independent in 1948. In 1978, when administrative functions were moved to Sri Jayawardenepura Kotte, Colombo was designated as the commercial capital of Sri Lanka.

Like many cities, Colombo’s urban area extends well beyond the boundaries of a single local authority,^{[citation needed]} encompassing other municipal and urban councils such as Sri Jayawardenepura Kotte Municipal Council, Dehiwala Mount Lavinia Municipal Council, Kolonnawa Urban Council, Kaduwela Municipal Council and Kotikawatte Mulleriyawa Pradeshiya Sabha.^{[citation needed]} The main city is home to a majority of Sri Lanka’s corporate offices, restaurants and entertainment venues. Famous landmarks in Colombo include Galle Face Green, Viharamahadevi Park, Beira Lake, Colombo Racecourse, Planetarium, University of Colombo, Mount Lavinia beach, Dehiwala Zoological Garden, Nelum Pokuna Theatre, Colombo Lotus Tower as well as the National Museum.

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The increasing financial and political stability of Colombo has translated into a real estate market that rewards forward planning and a willingness to look beyond areas of traditional affluence.

Buy to Rent in Colombo

Renting out your Colombo buy-to-rent out investment property can grow wealth and income.

Whatever your goals with investment property in Colombo are – preparation is key.

Set goals based on how much rental yield will be required and the local rental yield rates in Colombo and be prepared to change your initial outlook.
Thoroughly research the Colombo location with a special emphasis on fringe areas outside the main Colombo metropolis that may be valued lower than their better-known neighbors. Rental yields of around 5% are still attainable in certain areas of Colombo.
Ensure that your target investment property in Colombo appeals to professionals. This is a demographic that ensures maximum income and low voids.
Finding and vetting suitable tenants is a job ideally left to the professionals. Working with an established letting agent such as Physis Realty with local knowledge and experience of property legislation will give you the best chance of success.
You may think that managing your Colombo properties yourself is an easy option, but are these savings justifiable when you run into Colombo red tape? Physis Realty Colombo office in downtown Colombo provides you with peace-of-mind and leaves you time to plan your next move in the growing Colombo buy-to-rent sector.

With our expert guidance, investing in Colomboprovides the secure knowledge that your money is working harder than it would in a local Colombo bank and that future generations of your family will be left with substantial capital growth assets.

We are always happy to advise on buying investment property in Colombo, where we have been established for over 35+ years. Physis Realty has been a firm fixture in the Colombo property market through good times and bad. Our experts have seen it all and our portfolios continue to outperform.

Flipping Investment Property in Colombo

Flipping property in Colombo

Flipping property is when we advise clients to buy a Colombo property below market value, renovate it and then make a profit by selling it at a higher price, all within a few months, and often before the Colombo market has a time to react to the renovation.

The Flipping Strategy in Colombo

Investment property flipping in Colombo is a simple strategy. You find a property that is in need of renovation from our list and purchase it for a low price. These type of Colombo real estate investments are sometimes referred to by professionals as ‘distressed’ Colombo real estate.

What is distressed Colombo property:

Colombo property in need of renovation
Colombo real estate with a change of purpose and use
Oversold Colombo property
Bank repossessions in Colombo

Put simply, long term investors in Colombo purchase the property, renovate it and make it a lot more attractive to potential buyers.

Calculate profit that you make from Colombo investment property flipping:

Final Selling Price less Cost of Purchase less Costs = Profit

Here is an example:

Colombo property purchase price: $220,000

Renovation costs: $20,000

Other costs: $25,000

Property sale price: $400,000

Profit: $135,000

Experienced property developers in Colombo use a minimum profit value of 22% when looking at potential Colombo projects. The reason for this is because there are lots that can go wrong in Colombo property flipping and working on a potential margin of 22% should still leave a good margin of error.

Luxury Property in Colombo

For luxury property investors hoping to add a superb property in Colombo to their luxury real estate investment portfolio, Physis Realty is a trusted partner.

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A world leader in luxury real estate with a portfolio comprising some of the most sought-after real estate in Colombo, Physis Realty caters particularly to high net-worth individuals and families. A luxury real estate investment in Colombo should be entrusted to only the highest-quality agency.

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