With all the recent news about all time highs in the stock market and new investment vehicles like cryptocurrency, Filipinos are becoming more and more investment savvy. They are watching investment news and joining Facebook groups exclusively for investment.
However, with this newfound knowledge of investments, many Filipinos are forgetting the oldest form of investment – ownership of real property. There are many many benefits to real estate that many Filipinos can use for their own benefit.
So we compiled the top five reasons, you should invest in real estate.
1. Price Appreciation
Real Estate values generally increase over time. This is because of a very simple concept – that of supply and demand.
You see, our population is growing every day and it looks like it would not stop anytime soon. So every day the demand for property is technically growing higher and higher bit by bit. And simple economics dictates that when demand is high, prices follows.
So with more and more Filipinos in need of a home, prices generally go in an upward trajectory.
Also, you have to factor in improvements in the surrounding area. A new access road or a hospital or school a few kilometers away will definitely have a positive impact on the property values.
2. Inflation Hedge
When the new Tax Reform for Acceleration and Inclusion Law came to effect in January 1 of this year, some Filipinos rejoiced at the prospect of having a bigger take home pay. But unfortunately, there is no free lunch. New tax measures on petrol products and some other goods will artificially raise prices on these goods which has a trickle down effect on all prices.
Inflation rears its ugly head and its pegged to be one percent higher this year. Not to mention the fact that with more people with disposable income, more money in the system will also have an effect on inflation.
The great thing about real estate is that it generally follows inflation. The more people are willing to spend on basic goods, the more they are willing to shell out for property.
3. Value Protection
Here’s one of the best investment moves anybody can make. A lot of people can make it big investing in the stock market or cryptocurrency.
The problem is that what comes up, usually comes back down.
A tactic commonly used is that when investors win big in the stock market, they usually take out their earnings into something less volatile but will earn as well.
Real estate prices do not fluctuate up and down. Generally they follow an upward trend most of the time and are not subject to the up and down volatility of the market.
4. Income Generation
Real Estate need not be passive income. What most investors do is that you can put it up for rent especially in areas near tourist locations or work areas.
That way you’ll get a steady stream of income while the value of your property rises. A neat investment savvy move is to get rental income somewhat approximate to your amortization payments. That way you can pay off your property using your rental income.
5) Something for your Family
Probably the best reason you could have to invest in real estate is because it is something you and your family can enjoy.
Imagine all the memories you can have with your children as you watch them play in your house. Imagine the thought of sleeping soundly in a house that you own. Imagine the pride and joy of having something to your name.
Sometimes it is not just the wealth it creates that makes real estate a great investment. It is also the prospect of buying a home, not just a house – something your family will cherish for years to come.
We listed above the top five reasons why you should invest in real estate. Real Estate property is a great addition to any portfolio.
Interested in owning a house today? Give us a call. We will be glad to help you get started with your investment.