Everyone needs a place to live, this perhaps is why house and lots are regarded as one of the safest and most secured investments out there. Some people may not know this, but your home is an investment in many ways, there would always be value in your property whether you are renting it out or simply living in it. Investment properties like house and lots come with numerous benefits and advantages. So, if you are thinking of investing here are the 7 best things about affordable house and lots as investments.
1. House and Lots are Tangible Assets
One of the great things about investing in a house and lot is that they are tangible assets. Tangible assets are physical things owned by an individual that holds monetary value like gadgets, equipment, vehicles, land, etc. Buying a house and lot means acquiring a physical property. You can see the actual thing that you spent your money with. Thus, it provides an immediate personal satisfaction of acquiring ownership of something. Compare this with investing in intangible assets such as stocks, bonds, and cryptocurrencies where there is no physical form. You do not actually have ownership of anything concrete other than a document as proof of your investment.
Furthermore, tangible assets allow you to have more control over your investments therefore there is lower risk of loss the longer you keep your property, unlike in the stock market where there is greater risk since everything is beyond your control. If the market crashes you could potentially be left with nothing but with real estate, your property will always be worth something. There would always be value in your home. This makes tangible assets a much more stable and ideal investment than intangible or financial assets.
2. House and Lots Can Predict Cash Flow
One attribute of a great investment is if it can predict good cash flow. However, not all kinds of investments can predict cash flow. This is what sets real estate apart from other investments. In real estate, cash flow is the amount of profit you collect from your property investments after deducting all your operational expenses.
If the income generated from the property is higher than its maintenance expenses, then it has positive cash flow. But if it is the other way around, it means the property has negative cash flow. Instead of just investing your money on financial assets and gaining it back once you decided to sell it like stocks and crypto, investing in real estate particularly in rental properties like house and lots can provide you a positive cash flow. You may check out the 1% rule in real estate investing, this is usually used for successful rental businesses.
Cash flow is the lifeline of rental businesses. So, if you are looking for investments that can generate regular cash flow, Bria Homes might just be for you. Bria Homes offers affordable and high-quality house and lot packages that are very ideal for rental businesses. Bria Homes’ most affordable unit, the Elena Rowhouse is perfect for first-time investors who are wanting to profit from their investments without spending too much money. With your investment, you can earn monthly cash flow by renting out the property. You do not have to do much work, yet you earn passive income from your Bria Homes property investment.
3. House and Lots Generate Passive income
Real estate investment and passive income are two concepts that practically coexist together. If you are on the look for a passive income stream, then house and lots can be one of the best passive investments available out there. Passive income is a very powerful money-making tool in real estate. It is the income that your property investments earn for you without your active or ongoing participation. There are lots of opportunities for you to create and generate passive income through real estate, giving you a boost in real estate income. Perhaps one of the common examples is house and lots that could be rented out. You could also work out ways to maximize your revenue and generate more passive income the longer you hold on to your house and lot property. After all, it is every investor’s goal to make enough passive income to achieve financial freedom and attain retirement security.
4. House ad Lots Appreciate in Value
Over time, real estate value appreciates naturally. It is like wine, the longer you keep it the better it tastes. According to Investopedia, appreciation is the rise in the value of an asset, such as currency or real estate over a period of time. If you invested in a house and lot a few years back, chances are it already appreciated in value, making it worth more than what you initially paid for. Of course, a number of factors can determine a property’s value appreciation like the property’s location and future development plans. In real estate, the average appreciation rate is between 3% to 5% a year. So, the longer you hold onto it, the more money you will make.
The great thing about house and lots is that not only does the house appreciates but the land where it is built also grows in value over time. Moreover, you could also raise your property’s appreciation rate by doing certain home improvements like repairs or renovations. For instance, adding an extra room, remodeling the kitchen, or doing minor household upgrades can have a drastic effect on the value of your property. The increase in value of your house and lot can be very profitable once you decided to sell the property.
5. House and Lots Can Diversify Your Investment Portfolio
Investing always comes with risks, which is why it is very important to diversify your investment portfolio. Diversification is the act of investing your money in a wide variety of assets, this practice spreads out the risks across several different properties, therefore, minimizing your portfolio’s volatility over time. Imagine putting all your money on a single asset, if the market collapses all your investment could be gone in a single blow. Learning to manage your risk comfort level is one of the key factors to a successful investment.
Most investors nowadays diversify their investments across different sectors but mostly within the stock market—which is far riskier and more volatile. Branching out into real estate gives investors a fresh option outside of the stock market. Furthermore, real estate particularly rental properties like house and lots are a better and safer way to mitigate your investment portfolio and create multiple dependable income streams.
6. House and Lots Are Very Versatile
House and lots are very versatile. There is more than one way to utilize your property, you can use it as a primary residence, a vacation house, a retirement home, you could also generate income from it by renting it out or selling it. It can also be a safe haven for you and your family when disasters arise. Another unique advantage of house and lots is that they are improvable. You can do a lot of home modifications and renovations that will not only utilize the property to suit your taste and needs but also improve its value. For example, adding an extra bedroom or a second-floor extension. You can make your property worth more by improving it. Owning a house and lot can provide you the freedom to create something special not just for yourself but for your family as well.
7. House and Lots Are Great for Retirement
Retirement is a very daunting aspect of everyone’s life as it is full of uncertainty. Real estate investments on the other hand can offer you a sense of security and stability in the future. Investing in real estate particularly in house and lot properties while you are still young can guarantee you a secure retirement. Your property investment brings a host of advantages as they are tangible assets that can be used for various purposes. Whether you decide to live in it, rent it out, or sell it. It can be a great way to save for retirement and supplement retirement income. They are assets oriented towards future returns, so when you invest in real estate you invest in it for the long term and in return can help you secure a comfortable lifestyle in the future.
BRIA Homes is a subsidiary of GOLDEN MV Holdings, Inc., .one of the largest real estate companies in the country. BRIA Homes is primed to bring quality and affordable house and lot packages and condominium units closer to ordinary Filipino families. This is the goal that drives every single employee in the company, for which the ultimate fulfillment is seeing a client happily moving into BRIA’s homes.
To know more, visit their website at www.bria.com.ph, like and follow “Bria Homes, Inc.” on Facebook, Twitter, Instagram, YouTube, Pinterest, Spotify, Viber Community, Telegram Channel, Kakao Talk, LINE, and WhatsApp, or call 0939-887-9637.
Written by Marie Antoanette Gomez