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Real Estate: Best Investment for Retirement

Not all Filipinos have retirement benefits, and only 20% of Filipino senior citizens are covered by either an SSS or GSIS pension. This implies that more Filipinos have no retirement funds.

Some young adults of this generation may take this for granted. Manulife recent research reveals younger Filipinos have become more conscious of saving, budgeting, and investing for the future after the financial and mental difficulties caused by the prolonged COVID-19 pandemic.

As you age, your needs and perspectives change. Your lifestyle may change over time depending on your experiences and financial status. So, as the world is still thriving to end this pandemic, your desire to have a better future should remain intact; however, it must also be practical.

With all the tempting promotions in online selling, malls, and many other material goods, food, and travel destinations, you need to guard yourself in handling your finances. Having a stable income is not a guarantee for you to have a worry-free retirement someday. You need to manage your needs vs. your wants and set priorities. Most importantly, you need to set aside funds for different purposes.

Although it may differ from your retirement fund, investing in something long-term must include in your retirement planning. But always remember to check your financial status first and see if it can match your ambitions.

What is Investment?

It is an asset or item acquired to generate income or appreciation.

There are many kinds of investment schemes. It is recommended to always consult with a financial expert to guide you and do a lot of research before investing. Like in any business, you are also taking a risk. You can win or lose. But timely and well-planned investments will make you earn more over time. You cannot do this overnight. It will entail a lot of sacrifices, efforts, time, and resources depending on the value of the investment. This time, we share one of the most in-demand industries that can be great for your future–investing in the real estate business.

Here’s why you should invest in the real estate business now for your retirement.

1. Real estate industry is one of PH’s key economic drivers.

The Philippines, despite the many negative events, remains Southeast Asia’s fastest-growing economy. During the second quarter of 2021, the country generated a gross value added of nearly 126 billion Philippine pesos due to the growing middle-class population and the sustained remittances from overseas Filipino workers (OFWs). In recent years, Filipinos’ purchasing and investing power in real estate properties gradually increased.

In a survey on consumer expectations in the second quarter of 2021, 38.7 percent of all Filipino households expressed their intention to buy a single-detached house from the past six months up to the first quarter of 2022. On the other hand, 19.7 percent desired to buy an agricultural lot. Furthermore, the report also shows that the percentage of Filipinos who intended to buy real estate properties sold at a maximum of 450,000 Philippine pesos.

2. Competitive and innovative developers

Philippine developers consist mainly of the richest people in the country. Your investment will not be wasted since you have financially stable and credible developers. Just make sure to deal with licensed agents with clean track records.

3. Increasing tourism demands

The pandemic has crippled the tourism industry for almost two years now. Despite that, many foreigners and even locals have an unlimited thirst for travel and leisure. There is even a bigger chance for travelers to stay long in the country because of the country’s rich biodiversity and the characters Filipinos are known for–the attitude of hospitality and resilience. Nowadays, putting up resorts, hotels, or even buying a condominium unit and opening it for rent is in demand.

4. Appreciation of property value

A real estate property’s value varies over time and is usually favorable to you, although it may vary from market to market. Given that, it is still very reasonable to invest. Luxury items like bags and cars may depreciate, but the real estate business has a bigger chance for a higher value depending on the market. Real estate properties are expected to increase their value. It is true because of demand, especially if you bought the property within the city.

5. You can make money from it, and it’s now easier to market.

With many people, both local and foreigners coming in and out, particularly during holidays, summer vacations, and the improved mentality of Filipinos for self-care after tiring work, school, and other daily obligations, it is very much possible to market your properties. In addition, social media is easily accessible, and online selling has been a trend and has even become the best way to get customers. You can opt to post on your account or page for free or get paid ads. Many online marketplaces are now easy to access and connect clients who wish to rent their properties to people searching for accommodations in specific localities.

6. Your properties’ equity can be useful in many ways.

Home equity is the value of an owner in her home. If you bought a house worth PHP 1.5 million and made a down payment of PHP 700,000, PHP 700,000 is your automatic equity. The value of your ownership increases as you pay your mortgage over time. Since the property’s value appreciates, your equity also has a high potential to follow that trend.

Moreover, home equity can have several uses. Applying for a loan to fund expenses using your equity can be possible. You can also use it to renovate your house. You can also use your equity to capitalize on your other expenses and purchases, such as a new car, another property, or a business. But of course, you can only achieve this if you never miss a monthly payment. Furthermore, you can also revamp or remodel your home to increase your property’s value.

Real estate offers many advantages for you, and it can make you even richer if you only know how to manage your finances and focus on your goal. Innovation and discipline go together. Start changing your mindset that it should last longer and be more beneficial when you spend your money and time. Of course, we do not disregard that you also have your temporary wants, and that’s okay. Just know how much to spend and when to spend.

It will not be an easy-peasy journey, but it surely will give you a more rewarding experience as years pass up to your retirement. Real estate investment can give you peace of mind in this unpredictable world.

You need not worry about being first-timers because real estate firms can help you. You have all the power over your property. Use it for storage if you have other businesses or live in it. Having a passive income is also possible for this.

Everybody dreams of a worry-free retirement! It is time to check your bank account, research some real estate properties near you, and approach your agent. Start now and not later. It could be the beginning of your real estate investment and your way to a happy and prosperous retirement.

Have you decided?

Contact your trusted developers now and make this dream come true!

READ: What To Expect When Buying A House In 2022

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