Investing in the Real Deal
Nowadays, it’s quite hard to keep things in control where our money goes or how to manage it properly. If you’re still unsure where to invest the money and make it all worth it in the end, have a look at this article to ease into the path of investing. We’ll help you figure it out, what type of investment is best for you?
It’s important to know where we put our money and how likely this will help us in the long run. Moreover, it’s good to know that whatever we buy has some significant contribution to making our lives better and also helps in growing our income again. It’s also good to hope that whatever we put our money into, it will return to us eventually. Adding to that, having basic necessities is one way of improving one’s life quality. It basically is a part of Maslow’s Hierarchy of Needs wherein shelter is the first steps to reach Self- actualization ( McLeod, 2020). So, here’s a sign that Real Estate Investment is not only possible, but a great choice, not only in helping others have this basic necessity, but also to help secure your own income.
This is why investing in the real deal does more good than that of just the plain ol’ impulsive purchases. Impulsive purchases are fleeting in nature, and sometimes wouldn’t last you a lifetime. However, investment is another thing. By investing in something, you actually get a return of investment and generate more income in order to fund other necessities in life. And yes, it can help fund that occasional splurge that is much needed when times get so stressful. So, consider this a good plan to get that retail therapy experience.
Although, why is real estate a good choice? Where do we start?
First things first
We must know what we’re going into and where we’re going to put our money into. What is Real Estate? According to Prachi M (2019), real estate is when you purchase a property. Although you do not use it for yourself per se, you allow other people to rent or purchase it off of you. So, moreover, still according to Prachi M (2019), you don’t utilize this property as “primary residence”, but as an income generator. This can be an immovable but transferable land, building, or an infrastructure. So, if you’re dreaming of that type of income, know that it is feasible in BRIA Homes real estate. You may invest through Bank Housing Loans or PAG-IBIG Housing Loans in which it can have installment plans catered to your budget. You can still reside in it in the future, of course, given the proper circumstances and deals. However, this could be your new and good stable source of income while you’re not residing in it. In this way, when you buy a house and lot, not only will your renter be the one who will benefit from the house by securing a shelter, your PAG-IBIG house and lot would benefit you as well in the long run. This long run thinking is the new “in” wherein people are being smart about where their money goes and they are already securing their future. Millennials are becoming more and more attuned into the whole investment thing, so that they could reap their harvest and also share their hard work with future families, or enjoy the fruits of labour.
So now, why should you get in on the trend? Specifically, why is Real Estate a good choice for you? We now list down the reasons, and here’s to a bright future ahead with your affordable house and lot from Bria.
Reasons why to invest in real estate
If you’re still having second thoughts on buying your first real estate as an investment, or still deciding whether to buy a house and lot, we’re here to list down seven (7) reasons for you. Also, this would help in clearing up those second thoughts and decisions on what type of investment would be best for you (or anyone, in general)!
1. Liability? No, it’s going to be a great asset
If you’ve been looking around and finding an affordable house and lot for sale, then you come across Bria Homes and then you ask yourself: is this really worth it? The answer is, it depends on what you do with it. Although, generally, investing in real estate is actually more of an asset rather than a liability. According to Harris (2017), in being a homeowner, you can actually have insurance to protect your property. However, it is depending on the policy that you have chosen in PAG-IBIG or Bank Housing Loans. So, choose wisely! This is also a good choice for an asset because in stocks, according also to harris (2017), they can go as low as zero whilst here in your real estate, you are insured.
2. You’ll have a flow of cash, readily available
After all the mortgage and the operating expenses are paid, there would be a cash flow of net income (Palmer, 2021). This will come in handy when you’ve reached your equity and also according to Palmer (2021), the build-up would be great the more you take care of your mortgage. Adding to that, cash flow would come if you are going to be a responsible investor. It’s good to plan out ahead your budget on how you want to pay your Bank Loans or in full. This would mean that there is already an allocated budget for the mortgage and all your hustle eventually pays off with the income generated by this type of investment.
3. Rates get higher; the time is now!
As any vintage jewelry or item that gets discovered, over time real estate properties also get higher in prices. Therefore, when you buy in the future, rates would have gone up because of inflation and materials would get even more expensive. Consequently, if you purchase now, these are the best prices in the market you could ever have in the era. In fact, one of the benefits of the Build Build Build Project in this administration is that this is the Golden Age of Infrastructure. Thus, projects such as this type of investment are highly feasible (Filipino Homes, n.d.).
4. Completely Customizable
Your properties are completely customizable in the sense that you can upgrade or downgrade any area of the house and lot you purchased. Accordingly, the rate of which you can sell your house also depends on your customization. Your pricing varies and depends entirely on how you want it priced as reasonable as you could. As stated by Nirode (2020), you can pretty much have it rented out or sold for more than what you have paid to get it to look the way you want it to look. In the end, it’s like that one song; you truly got the whole “world” in your hands.
5. Minimalist effect on the Taxes
Indeed, there would still be taxes. Nonetheless, you pay a minimal amount of it, as stated by Prachi M (2019). The income flow of this investment type is low, but of course to a certain extent. Accordingly, you run this business, so according to Roofstock (2021) here are some tax write offs:
- The mortgage interest paid on the loan
- Origination points paid on the loan
- Maintenance expenses
- Depreciation (spread out over 27.5 years)
- Real estate taxes, homeowner’s insurance, and HOA dues
Subsequently, always ask your tax advisor which of these taxes you can write off.
6. Consider it a precious heirloom
To illustrate further on how it is highly beneficial for the future, you could pass it down to your kin. According to Roofstock (2021), your heirs can legally still consider the real estate as an asset because they could still profit from it by either renting it out once more or selling it. With that said, you’re not only passing down some good ol’ cash, you’re actually passing down a potential business venture. This is which, in most people’s books, is pretty awesome stuff. Sure, cash could be a good inheritance, but inheriting a cash flow sounds a bit nicer, too. Your legacy continues on, and on and on. That is until the law allows it.
7. One word: Secured.
This goes out to the millennials and above or Gen Z who can already afford it: you’ll get that satisfying feeling of being secure. Ever get that gnawing feeling in your gut that the future is bleak and you just can’t quite ease the restlessness flowing through you? Well, in investing, you could secure your future. No more worrying about where you’ll get home; your Bria house and lot awaits you. Cash flow awaits you. This could be the perfect retirement plan, as per Roofstock (2021), because you can have your passive income when your bones can’t handle all the hustle anymore. It adds to your savings! There are tons of other investments out there that you can venture into, but this real estate one takes the bag. Not only can you yourself in your prime benefit from it, but also when you just want to retire and hang out at the beach every single day and sip some cocktails while sunbathing. That’s because your cash flow says “yes, you can!”.
8. To conclude, why choose this?
There are tons of other investments out there. Even your hobbies can be an investment such as collecting various items. These can range from Fountain pen, designer handbags, precious antique and stones, and the likes. You can also include a car as an investment, or even investing in services (or people). Adding to that, business ventures are always an investment, too. Additionally, more and more people are getting into stocks and cryptocurrency.
Now, these are all good ones but how do they all differ from one another and to real estate? The answer is quite simple, actually. Some, if not all we’ve listed here, do not have insurance on them. Getting a property with a good policy through PAG-IBIG or a Bank housing loan can insure you when worse comes to worst. Sure, you can earn millions of pesos in stocks and cryptocurrency, but really, it’s a calculated risk with no insurance that you’ll get your money back. It’s a good investment, but the risks are higher and if worse comes to worse, you’ll end up getting absolutely nothing or zero in return. One of the cons introduced by Amadeo (2021) is that stock market investments are full of ups and downs, and require loads of research before you even get into it. In contrast, real estate’s planning and research method allows you to, yes, shell out money as well like in stocks, but there is a higher probability that it has a market that would have return of investments for you. This, of course, if things go well.
On the other hand, cars are a good investment, too. You could use it to drive around efficiently. Although there could be a problem because cars go out of trend and would eventually lose its value over time depending on their model and use. Adding to that, collection of bags and hobby materials could also go out of style so further research is required as well as experience in order to know which models would appreciate in value and would be sought after. Making sure it is a timeless piece is a gamble, because fashion or utility can depreciate over time as trends come and go.
These investments all have their own cons, but it doesn’t mean they do not have enough benefits to them. It is just a matter of how much you are willing to sacrifice in order to secure a better future for yourself and for your future kin (if you are planning to have a family). It is also a matter of how far you’ll go to reach goals of cash flow and desired outcome of events with your savings. Of course, everything is all up to you and how you decide. However, Bria homes is here to help you in choosing the best property for you, if you ever acquire the taste for this type of investment.
Amadeo, K. (2021, March 19). Pros and Cons of Investing in Stocks. The Balance. https://www.thebalance.com/stock-investing-for-the-individual-investor-3306182
Filipino Homes. (n.d.). Why invest in Real Estate now, and not later? Filipino Homes. https://filipinohomes.com/blog/why-invest-real-estate/
Harris, J. (2017, November 16). `5 Reasons Why Real Estate Is a Great Investment. Entrepreneur Asia Pacific. https://www.entrepreneur.com/article/304860
M, P. (2019, March 27). Real Estate Investing. The Investors Book. https://theinvestorsbook.com/real-estate-investing.html
McLeod, S. (2020, December 29). Maslow’s Hierarchy of Needs. Simply Psychology. https://www.simplypsychology.org/maslow.html
Nirode, V. (2020, October 8). 19 Reasons Why You Should Invest in Real Estate Today. HomeLIght. https://www.homelight.com/blog/buyer-why-invest-in-real-estate/
Palmer, B. (2021, March 25). Key Reasons to Invest in Real Estate. Investopedia. https://www.investopedia.com/articles/mortgages-real-estate/11/key-reasons-invest-real-estate.asp
Roofstock. (2021, July 8). 8 Reasons Why Real Estate Is a Good Investment. GeekWire. https://www.geekwire.com/sponsor-post/8-reasons-real-estate-good-investment/
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 Adrianne Jane Patinio