Almost three years ago, a coronavirus outbreak wreaked havoc globally and killed millions of people and livelihoods. Unemployment was rampant, and the whole world waited for a vaccine that will put an end to our collective suffering. Thanks to our global health experts and medical frontliners, we are much safer than ever, economies have recovered, and businesses slowly but surely reopened.
Fast forward three years later, it’s 2023 and we’re almost back to pre-pandemic times and face masks are no longer mandated. Still, we’ve come a long way and predictions for better times ahead are optimistic! This includes coming back to investing in income-generating markets, especially the real estate industry.
Recognized by financial experts as one of the most, if not the most, resilient investment types, it is gauged that 2023 will be a good year to start a real estate investment for newbies and experienced investors alike! If you still have qualms, this article will give you all the reasons why real estate is a wise investment this 2023.
7 Reasons to Invest in Real Estate This Year
To help you decide whether it’s safe and wise to start a property investment this 2023, we prepared seven reasons to help you make an informed decision. These are as follows:
1. Ample Housing Supply
Many foreign nationals and Overseas Filipino Workers (OFWs) choose the Philippines for permanent residence for the ample availability of housing options. This real estate investment is typical among people reaching retirement age, when one could relax and be stress-free in a calming neighborhood after decades of working to make ends meet.
Not only that: housing options in the Philippines are also diverse when it comes to location (major lifestyle perks in the metro, urbanized but less crowded cities, and provinces proximate to essential establishments), house types (rowhouses, duplexes, single firewalls, townhouses, condominium units), and serious homebuyers’ budget range (you can get affordable yet quality housing below one million pesos!). Also, an ample housing supply indicates a flourishing local economy.
2. Great Demand for Real Estate Properties
Bountiful supply is also being met with increased demand for real estate properties. This upward trend can be attributed to the national economic recovery after the pandemic, more and more employment opportunities for Filipinos, as well as population growth and massive infrastructure developments, fueling the demand for more residential real estate.
Take, for example, the completed and proposed infrastructure projects in Rizal province. Rizal enjoys being near Metro Manila, but the lack of infrastructure delayed its provincial progress. But with its growing economic boom, Rizal residents who chose to live in the metro to be near their office can now go back to Rizal and have a much shorter commute time. Hence, infrastructure developments like this are a boon for both homebuyers and homebuilders.
3. It’s a Long-Term, Low-Risk Investment
Long-term investments are oftentimes understandably high-risk as well, but the real estate market is an exception. Compared to high-risk money-making markets such as stocks, there are little to no fluctuations to make you worry about negative cash flow or adversely affecting your net worth.
Real estate properties are tangible assets, which alone makes them relatively low-risk than most liquid investment ventures. However, it’s always wiser to have a mindset that takes caution to always make informed decisions. After all, no investments are absolutely free of risks. Only ones that are less risky than the other.
4. Rental Units are on the Rise
If you’re planning to buy a property to lease out for future tenants, the current market conditions for rental units show promising indications. As homeownership goes beyond just a house purchase, it could be less ideal for some people to make a purchase even with additional funding from a financial institution such as Pag-IBIG, banks, or real estate developers. This is where rentals come into the equation.
Renting out a property is more flexible and arguably cheaper than purchasing a house alongside future maintenance, upgrade, and repair needs. Renters are only being practical with regard to their current financial situation. As for property owners, leasing out homes will be lucrative as a source of passive income. This could be done even if you’re still paying for the property you’re about to lease. Your income from this could then be used for mortgage payments and saving up the rest.
5. Property Values Appreciate Over Time
As mentioned, the real estate industry is widely considered to be one of the safest and less risky investment vehicles to hop on and generate income sources from. Residential property values appreciate as years pass by, which means that buying an affordable house and lot now will up your chances of reaching higher property values in the future. In other words, the sooner you invest, the higher your chances of reaping tremendous financial rewards down the road.
6. Enjoy Tax Deductions and Other Perks
If you invest in real estate this year, you will be entitled to tax deductions and other benefits. This is attributed to the fact that operating, owning, and maintaining a residential real estate property is costly in itself. Hence, as an “incentive” for investing a huge amount of your hard-earned money in real estate, the cost of homeownership will allow you to have tax deductions from your total taxable income. To maximize your earnings, you can use your savings to diversify your investment portfolio and invest in other money-making accounts.
7. Total Control Over your Property
Aside from being less volatile than liquid assets, you have total control over your property. This means having the liberty of whatever you plan to do with it. Note that this is not just about the prospect of reselling your home at a higher price than how much you purchased it with. It could also mean being wise with how you can leverage your investment property.
Aside from the obvious path of renting your old property, you can also consider turning it into a temporary lodging for transients and vacationers. This is ideal if your property location is in proximity to a tourist destination. Also, you may opt to turn your property into a commercial establishment, such as setting up a restaurant or a cafe. With a carefully planned investment, you can assure yourself of a much brighter financial future for you and your loved ones.
Invest in a House and Lot in the Philippines this 2023
This new year, real estate investing has renewed its vitality for people who are on the hunt for an affordable house and lot for sale. Lumina Homes, Vista Land’s fastest-growing housing developer, is a wise investment choice to seal a property purchase this 2023.
With over 50 key developments strategically located in Luzon, Visayas, and Mindanao, it gives people a variety of house options to choose from wherever they are. If proximity to Metro Manila is what you desire, you can invest in Lumina Binangonan, Lumina Baras, and Lumina Pililla in Rizal province. You can also opt to seal a home deal in Lumina Tanza in Cavite.
If you want to be near nature attractions, Lumina San Miguel in Bulacan is a great choice for nature lovers! San Miguel is home to the historic Biak-na-Bato National Park, where hiking, swimming, and spelunking adventures will surely exhilarate adrenaline junkies. If you want an Instagrammable background and an overall relaxing atmosphere, Lumina Legazpi is the best deal, where the world-famous Mayon Volcano is within reach.
All this and more makes Lumina Homes a prime provider of affordable and quality housing, all situated in desirable locations for the convenience and comfort of present and future Lumina homeowners. Invest in a house and lot in the Philippines through Lumina Homes today and expect the many perks and amenities in store for you!
