Real estate is popular because property values in the Philippines are rapidly rising. Furthermore, certain real estate companies provide flexible financing with low-interest rates.
However, like every other investment, real estate has its drawbacks, too. You will have to spend a considerable amount of money to acquire it, but the good thing is, that you can benefit immediately from reselling it.
Most affordable real estate in the world
The existence of numerous well-funded developers in the Philippines makes the investment more appealing, even to young professionals who are still starting to earn. The real estate market is open to both licensed and unlicensed investors. Brokers who do not have a license can also participate in the pre-sale option.
Diversify your investment portfolio
When you invest in real estate in the Philippines, you get to stabilize your financial portfolio. The valuations of mutual funds, stocks, and other securities will always vary in response to market conditions. That is why a non-liquid investment such as real estate is recommended. You will be able to offset the effects of market volatility. Houses, condominiums, and farm estates are all increasing in value. As a result, while the value of mutual funds and equities falls, the value of homes in the Philippines remains constant. You are thus protected against monetary loss or possessions.
Source of Passive Income
Investing in real estate can also generate passive income as a supplement to a business. Selling the property at a higher price is a simple approach to make money from real estate. However, this could take several years. That is why leasing or renting the property makes sense. You might potentially turn the property into an Airbnb or a hostel near a tourist attraction. But, keep in mind that you should conduct some updates and renovations more frequently to offer value to your guests.
Homes appreciate in value over time
Aside from ROI and liquidity, the major reason you’re starting investing is to increase your financial capacity. When you invest in Philippines real estate, you will have the opportunity for many streams of income. The low entry cost is another key advantage of investing in real estate in the Philippines. While all high-priced products depreciate rapidly, real estate values will grow. Demand will play a role, as when you buy a house in a city with limited availability but high demand.
Enjoy Tax Benefits and Deductions
Real estate investors might benefit from tax breaks and deductions. As a result, tax savings are realized. There is a deduction for reasonable operation, maintenance, and ownership expenditures. Furthermore, the cost of purchasing and expanding your investment property depreciates with time. For commercial assets, we have 39 years and for residential homes, we have 27.5 years. As a result, you can take advantage of decades of deductions that reduce your taxable income.
If you’re looking to purchase a house of your own, visit Elanvital Encalves or contact its sales at +63 9271440196.
