Why Invest in Real Estate?
Real estate is a tangible asset. Investing in real estate is equivalent to high profit if you want to sell your property in the future. In addition to this, you should also note that such properties’ value appreciates over time. Depending on critical factors that may affect the increase or decrease in its prices, you can always have a guarantee of good returns when it comes to having your money’s worth with real estate.
Real Estate can do two things in one go: it preserves the value of your money and grows it.
Real Estate investing is good for people seeking to preserve and grow their wealth in the long term.
Real Estate values typically appreciate through the years, bucking the trend for other investment vehicles.
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Why Invest in Real Estate?
Real estate is a tangible asset. Investing in real estate is equivalent to high profit if you want to sell your property in the future. In addition to this, you should also note that such properties’ value appreciates over time. Depending on critical factors that may affect the increase or decrease in its prices, you can always have a guarantee of good returns when it comes to having your money’s worth with real estate.
Real Estate can do two things in one go: it preserves the value of your money and grows it.
Real Estate investing is good for people seeking to preserve and grow their wealth in the long term.
Real Estate values typically appreciate through the years, bucking the trend for other investment vehicles.
Real Estate Investment lets you enjoy attractive yields which may not be achievable through other investment vehicles.
Investing your hard-earned savings into a property will provide potentially higher returns than keeping your money in the bank.
According to Bangko Sentral ng Pilipinas data, property value has appreciated by 25% between 2017 and 2022, In contrast, the total returns of the Philippine Stock Exchange index was at –3.44% in the last five years, a loss for stock investors.
Real Estate Investments are also a way to keep pace with inflation, or the rising prices of basic goods. Higher property valuation means you can realize higher returns to your initial investment, countering the effect of inflation that would have reduced your purchasing power.
Property prices are relatively stable even during the COVID-19 pandemic and restrictions. Prices of condominium units saw a 5.8% increase in 2020, followed by a modest 1% decline in 2021. By 2022, condominium prices rose by 13.7%, with a faster increase recorded for developments within Metro Manila.
The most unique benefit of acquiring a property is that you can fully use the property even when you have not fully paid for it. You can already move in and stay at your new home or earn monthly rentals with just a down payment. In short, real estate allows you to generate early gains even while you are paying it off – and that’s how you maximize value beginning day one of receiving the keys to your home. Early birds who purchased the property earlier are also rewarded with bigger yields. Properties have a high resale value and return of investment if bought during the pre-selling phase.
Type of Properties
Single-family homes are generally more expensive than condominiums and townhouses, which can attract buyers who prefer more space and privacy. Apartments, which may come with shared amenities such as swimming pools and gyms, can also be attractive for buyers looking for a more convenient way to live. Moreover, commercial or establishment properties, such as shopping malls and office buildings, are much more expensive due to higher potential returns.
Locations
Wherever you go and whoever you ask, the location of a residential property is consistently included among the factors that affect house prices. The proximity to amenities, such as schools, hospitals, and shopping malls, can also affect the prices. People purchase a house or a condominium, not just for what is inside. They also want to consider its location, convenience, and accessibility and how it can benefit their lifestyle. Urbanization and gentrification can affect how much a property is worth, also affecting its market value. Due to increased demand, property values often rise as more businesses and people move into a specific area.
