Which is Better: Iloilo or Bacolod for Investment Properties?

The real estate industry is one of the most resilient sectors that can better recover from an economic adversity. Real estate investors don't even have to invest in physical properties. Case in point: real estate investment trusts (REITs), where companies operate income-generating commercial real estate like hotels and apartment buildings.

However, for those who prefer to invest their money in tangible assets, a rental property would be their best bet. Not needless to say, the location of the particular property must be a top priority to ensure profitability.

If you're eyeing Visayas as your initial investment site to produce rental income, Iloilo City in Iloilo and Bacolod City in Negros Occidental are doubtless two of the best destinations to generate income. Can't choose between the two? Allow us to give you a guide that you can use to make the right investment choice.

Quick Facts about the Cities of Iloilo and Bacolod

Let's start by getting to know the Cities of Iloilo and Bacolod at a glance. Both locations are popular destinations for their culture, traditions, progressive economies, and tourist destinations. Let's get to know more about them below.

Iloilo: The City of Love

During every Valentine's Day, Iloilo City is a popular destination for lovebirds. After all, it's monikered the City of Love, which is attributed mostly to how Ilonggos speak their language with such sweetness and gentleness. Geographically, though, Iloilo is also called the Heart of the Philippines because it is strategically located in the middle of the country.

Bacolod: The City of Smiles

If Iloilo is fondly called the City of Love, Bacolod is endearingly referred to as the City of Smiles. This is because of its crowd-drawing MassKara Festival where street dancers are clad in colorfully smiling masks that provide vast entertainment to residents and tourists. Historically, MassKara Festival was conceived to uplift the spirits of the locals in the 1980s who were then at the receiving end of tragedies brought about by a ferry accident and the economic collapse of sugar prices in the province during the Marcos dictatorship.

Which is Better: Iloilo or Bacolod for Property Investment?

Both property investment locations are prosperous and ideal for real estate investing. But which city reigns supreme in terms of overall accessibility, basic services, costs of living, tourism, and infrastructure developments?

Accessibility

Both Iloilo and Bacolod have international airports that give further boost to local tourism. It also makes it possible for Metro Manila residents and others from the provinces to fly to either cities to celebrate the annual Dinagyang Festival in Iloilo and the MassKara Festival in Bacolod City. Both cities also offer plenty of recreational and entertainment hubs so that tourists can maximize their stay.

Basic services

Residents and prospective homeowners in Iloilo City alone enjoy a wide range of basic services for convenient homeownership, such as hospitals, tertiary schools (27), shopping malls, restaurants, and many more. Bacolod City, meanwhile, does not fall short in its number of colleges and universities (19), healthcare institutions, shopping centers, and recreational facilities, among others.

Costs of living

According to the estimated figures from Numbeo, the living costs in Iloilo are 18.7-percent less expensive than in Metro Manila, provided there is no rent. If there is rent, on the other hand, it is still 64.6-percent lower than the average cost in the country's capital. Livingcost.org also ranked Iloilo City higher (52nd) than Bacolod City (59th) as the best cities in the Philippines in terms of quality of life and cost of living.

Local tourism

Many tourists extol Bacolod City as the cleanest city they've ever been. While Iloilo City earned the admiration of visitors for its better economic boom compared to Bacolod City, though the latter is still considered flourishing and therefore a highly livable place for permanent residency.

As for the best tourist spots in each city, Bacolod City offers a diverse range of tourist destinations such as the Philippines' Taj Mahal called The Ruins, the Negros Museum for art enthusiasts, and the beautiful islands of Sipalay and Lakawon for a nature adventure. For Iloilo City, it offers different affordable beaches that the entire family can go to, such as Sandbar Island Beach Resort, Bearline Paradise Resort, Alta Marr Beach Resort, and Assemblage Point Resort, to name some.

Infrastructure

Both Iloilo and Bacolod have robust infrastructure facilities, especially in transportation. Property developers and other businesses then see this as a massive opportunity to invest in these cities to generate profits, help boost provincial progress, and decongest Metro Manila. Iloilo City has another nickname that its locals and city government take pride in — the Bicycling Capital of the Philippines, which encourages an eco-friendly means of travel and transportation within the city.

Tips to Choose Between Iloilo and Bacolod an Investment Property

Whether you're a first-time or veteran real estate investor, doing your homework before securing an investment property is an absolute must. As such, make sure to factor in the following best practices as you go about choosing between Iloilo and Bacolod for your residential property investment.

Research the location(s) you plan to invest in

Location serves as the most important aspect of investment in real estate. If you can, visit the physical site of your prospective property and see for yourself if it's accessible and near essential establishments such as schools and supermarkets. If you're too busy, you can embark on a virtual inspection of the property. You can do this with Lumina Homes with our showcase area and list of available properties nationwide together with a list of schools, major transports, and LGU offices they are near to.

Assess income potential from both cities

How desirable is the property location for potential tenants? Take it from the perspective of a future tenant. Would you want a community with no easy access to essential establishments? Available amenities also boost a property's desirability and, by extension, profitability. Ideally, a community should have guarded entrances, gazebos, multipurpose halls, a playground for kids, jogging paths, and so on.

Hire a real estate expert

If you feel overwhelmed or are too busy to make your own thorough research, consulting a real estate professional tremendously helps. For instance, a real estate appraiser can give you an expert assessment of property values, compare home prices, and make an insightful analysis based on their gathered data.

Lumina Homes, Vista Land's affordable housing segment, is one of the top real estate developers specializing in affordable house and lot for sale. We also have properties for primary residence in Bacolod City and Lumina Iloilo in the first-class municipality of Oton. Both housing communities entail having convenient access to basic services and other establishments that every homeowner would love.

For your investment, expect price appreciation and capital gain over the years. For the house and lot purchase, meanwhile, we offer flexible options for the down payments and property mortgage. For your affordable house and lot inquiries, don't hesitate to send us a direct message. We're more than excited to help you attain your investment for a house and lot Philippines!