If attaining a secure financial future for yourself and your loved ones is a pressing concern for you, then you’ve no doubt already begun thinking about what assets you should invest your hard-earned money in. Many people start their investing journeys by putting money down in mutual funds, bonds, stocks, and even dollar funds. If you’re looking to diversify beyond these standard assets, you may also want to consider investing in Philippine real estate.
Buying a house or condominium gets you more than just an asset in the abstract, financial sense. You’re also buying a physical space that you can live in full-time, use as a second home away from home, or even rent out for extra income. Before you start looking for scouring real estate ads for good homes near you, however, you’d best familiarize yourself with the many benefits buying a home can bring.
Here are 5 of the most compelling reasons you might want to invest in a home in the Philippines:
You Have a Wide Variety of Options to Choose From
There’s a reason both overseas Filipino workers (OFW) and foreign nationals settle down in the Philippines when they reach retirement age: real estate in the country is widely available, with a wealth of quality options for every location, development type, or budget range. And if you currently live in the Philippines, you’ll likely have an easier time finding suitable housing in the country than if you move elsewhere. Whether you’re looking for a no-frills condo unit in Metro Manila, an affordable but comfortable townhouse in Cavite, or a premium Lipa City house and lot for sale in Batangas, there’s sure to be a housing development out there that will meet your needs exactly.
Payment Terms Are Often Flexible
Another reason Philippine real estate is so accessible is due to the presence of multiple well-funded real estate developers in the country. These companies will make it even easier for you to invest in your dream home by offering low interest rates and a variety of flexible payment options. You’re no longer limited to putting down a huge down payment on a home, as might have been the case in the past.
Its Value Will Appreciate Over Time
Traditional securities like stocks and bonds may fluctuate wildly in value over time, while other tangible assets people might consider investments such as cars, luxury handbags, and other expensive items depreciate in value easily. The value of real estate, however, is much more likely to stay the same and even appreciate over time, as the demand for land and quality homes is basically constant.
You’re especially likely to see your home’s value go up if you choose a location with few vacant homes available, but with a high demand for real estate. If you’re lucky enough to buy a home in a well-loved vacation spot or an up-and-coming urban center outside Metro Manila, for example, you can be sure that many more people already want to move to the area or will want to in the near future. This is all but a guarantee that your home’s resale value will rise in the years to come.
You Can Enjoy Tax Deductions and Various Other Benefits
Real estate investors in the Philippines are entitled to a variety of tax perks and deductions that can net them big savings. In general, the reasonable costs of owning, maintaining, and running a property are tax-deductible. What’s more, the cost of buying and developing a property decreases for the duration of its useful lifespan, which is about 27.5 years for residential properties. Taking advantage of years’ worth of deductions can thus help bring down your taxable income.
You Have Total Control Over It
As mentioned above, the value of real estate is less volatile than that of liquid assets like stocks. Because your property’s value is likely to stay consistent and even improve over the years, it makes a relatively low-risk, lucrative investment. This, in turn, means that you and your loved ones can definitely take advantage of its value when times are hard.
Beyond simply reselling your home at a higher price than you bought it with, there are myriad ways to make a residential property work for you. If you end up wanting to turn an old house or apartment into an additional source of income, renting it out is another viable option. You can also transform the property into lodging for vacationers if you live near a popular tourist hotspot, though do note that this will probably require you to invest upgrades and amenities to add value for potential guests.
Lastly, if you have the resources for it, you can fully convert a residential property into an income-generating establishment. For instance, you might renovate your former house into a café, restaurant, or co-working space. While doing so will naturally require careful planning and smart investment, you may find yourself with a successful small enterprise that can supplement your main source of income nicely down the line.
At the end of the day, there’s no denying that buying a home of one’s own is a worthwhile financial goal for any investor. Whether your ultimate objective is to maintain a healthy and diverse investment portfolio or ensure that your children and other dependents are comfortable in the years to come, investing in a residential property in the Philippines can definitely help you get there.
