Living in this time of a pandemic has made a lot of things uncertain for most Filipinos. But we cannot hide the fact that the demand for affordable house and lots as investments for OFWs and affordable condominiums as in-demand investments for millennials is still thriving. It’s because Real estate remained one of the most stable investments for OFWs (Overseas Filipino Workers) despite the pandemic.
The doubt in investing
The current season of our lives involves numerous struggles be it health or finances, existential, or personal. We go about our day and hope to live long enough to take care of our loved ones, and also provide for them. Being in the season of a pandemic, providence could be quite hard to have because jobs are becoming scarce and income is strictly budgeted. Sometimes, we resort to “Isang kahig, isang tuka” wherein we work and hustle all day long, and the pay is just enough to get us by for a few days.
However, investing, if we are able, is something that could possibly help us get that extra income if done right. As we’ve mentioned in our other article, Real Estate is one of the best investment you could have. Although, there are myths about investing and doubts if real estate is still worth it because of the COVID-19 situation, or if buying an affordable house and lot from real estate companies like Bria is a route that people should still take.
This, of course, is an understandable query and a good thing to think about. In this article, we will discuss how Real Estate is still one of the most stable investments for OFWs despite the pandemic. These types of questions and inquiries are good to ask because it leads to a new-found knowledge that could potentially grow your income.
Uncertainties that could lead to certainties
Indeed, times have been scary, and the new normal forces us to adjust accordingly. Uncertainties have also risen as the minimum cost of necessities is rising as well. On the contrary, real estate investments are still a good choice for any long-term or up-and-coming investors as real estate remained to be one of the most stable investments despite the pandemic. These investments can be paid through one-time deals or through PAG-IBIG loan or Bank Housing Loans, in which the establishment or the property generates income through reselling or renting it (such as the Bria home you are looking into or currently paying for).
If you’re looking for a constant thing in your life right now, we suggest you turn to the consistent market value of the real estate. With all of these said, how come this type of investment is still trustworthy?
9 Reasons Why Real Estate is still one of the most stable investments for OFWs
1. It’s a good way to have a steady income
As what Giron (2021) has mentioned, employment is not guaranteed at this time. This could be because most companies are letting go of employees due to decreased customers and income. There is no guarantee that your job will keep you, or that your income will flow at a consistent rate.
With real estate, as soon as you have ownership of the property, you can have it rented by someone else and the rent payment will come in monthly or however term you have negotiated with them giving you passive income. This is a good market because whether there is a pandemic or no pandemic at all, people are in need of housing or their dream house and lot.
Continuing on with what Giron (2021) has mentioned, the rent money they have paid you consistently can serve as the return of investment for the home loan you have acquired for the property or simply the loan payment itself, making it the investment truly worth it. Here’s the 1% rule in real estate investing in case you would like to get into property rentals.
2. In the news
It’s good to be posted or updated with what’s happening in the news in order to know the latest with the real estate market. Speaking of news, Inquirer (2021) mentioned that “Office and residential property markets in PH are set to recover in 2021”.
According to the article, there is a demand for office spaces and residential spaces. Connecting it to the steady income, once you build a space for the demand, you can shift the charges of rent favorable to the situation. Moreover, applying supply and demand law to this, you’re going to potentially earn more through supplying the needed office and residential spaces.
3. The proper time for appreciation.
It’s truly a simple logic: the prices are lower right now and will surge once the pandemic is over. With that, the proper time to invest in real estate is now. Prices are going to be higher, so buying that dream affordable Bria house and lot in the future or after the pandemic is over would somewhat be pricier than it is now. You can consult with the nearest Bria agent and confirm this sentiment. They’ll guide you through the whole process, and even make it easier for you to own your property through PAG-IBIG house loans or Bank loans.
According to Gondra (2021), appreciation of value always rises when it comes to properties. This would mean that it would cost more if you buy after the pandemic. This has just proven that real estate, be it in house and lots or condominiums are still stable investments despite the pandemic. Which is why investing in real estate today might be one of the best decisions you’ll ever make.
4. The interest is low if you’re interested
As we’ve mentioned above, the perfect opportunity to invest in real estate is now. To add to that, interest rates are low right now because of “low market activity”. Simply stating, borrowing money right now or having a loan is cheaper than it will ever be in the next few years, and this is thanks to Banko Sentral ng Pilipinas and other central banks that are working overtime to fight against inflation which in turn, shifts everything in your favor.
Additionally, this will make real estate affordable for more people, having low amortization. The fruit is ripe and ready for harvesting; grab the opportunity!
If you’re looking for what the interest rate is during these times, it’s around 7%; that’s 3% lower than in the year 2019, (Gondra, 2021).
5. Staying away from the “norm”
The rise of online shopping has taken over the nation by storm this lockdown because it’s much safer to purchase online rather than to go to physical stores. Additionally, what is one of the factors that made a trend in this era are the online shopping platforms such as Lazada, Shopee, and various Instagram shops for every need like clothes and accessories. Moreover, there’s also the proliferation of Facebook Marketplace.
Accordingly, there is also much of the situation called “impulse buying” with the free shipping promos and vouchers on iconic dates like 2.2 up to 12.12. However, when you invest, you already have researched thoroughly and of course, budgeted the funds for your respective monthly loan payments.
Consequently, you have less budget for your impulse purchases, equating to a money well-spent because your investment will last a lifetime and is a long-term goal rather than purchases you don’t necessarily need or require. The norm now would be having huge hauls from promos but through investing you make smarter money choices and deviate from more loss of funds.
6. Discounts are in!
Purchasing something that has a scratch-off of that price tag is somewhat satisfying because you get more for what you’ve paid for. Truly it’s the same with this type of investment. Moreover, if you’re still not convinced of the right timing, we’re here to help inform you that properties are also discounted for a fair price this season (Barretto, 2020).
It’s best to get a good agent and also consider it wise to consult with them first to know which loan plan suits your budget and the years you are willing to pay. It’s all in researching and studying the market, and this article serves as a guide and a source on why real estate is still one of the most stable despite the pandemic.
7. Online Convenience at your fingertips
Adding to the thought that because of the lockdown, online shopping platforms have been saturating the local internet space, we get to experience convenience just within the touch of our fingertips. The same level of convenience applies to buying your property.
Prior to the pandemic, site trippings (an event where you go to the site where the property is at) that are arranged need to be physical and face to face. However, due to the much needed safety protocols and precautions to counter the transmission of the COVID-19 virus, trippings to the site are now made available through virtual tours, making it easily accessible at the comfort of your own home.
You can ask your Bria agents to arrange a meeting over any conference applications to guide you on what to do or head on over to our website and Facebook for Virtual Tour videos ready-made just for you.
It’s a win-win situation for both you and our sales agents! This is all to keep everyone safe despite the situation but also help you buy a house and lot (maybe through your PAG-IBIG fund or PAG-IBIG housing loan) and secure that wise investment. Additionally, payments can also be made online with BRIA’s partner banks and E-wallets.
BRIA coping with the pandemic had definitely made it easier for our OFWs to invest in affordable house and lots even when they’re far away from home. For this very reason, BRIA had made affordable real estate as a stable investment that OFWs can get.
8. The time for research is in your hands
To put in simple terms, you have more time in your hands to look into what type of Bank Housing Loan is best for you and as well as which PAG-IBIG housing is just right for your needs. Additionally, the research you can do in this lockdown era is immense and you can look into deals more closely.
Furthermore, you can monitor market behavior as well as zoom out and diversify your choices. In Bria homes, we provide a lot of options and guide you through the processes needed to secure that real estate investment. Take this time to introduce this new form of productivity into your routine.
Having this much time to do this new routine, or not so new to long-time investors, eases off the pressure since we are uncertain as to when this would end (and hopefully would end soon to keep everyone’s safety and sanity). In addition, turn to good sources and pair them with consulting sales agents.
9. The markets are crashing, but you’re still secured
There are a lot of divisions in the market that have taken a hit in terms of their value because of the virus. These include tourism, entertainment, hospitality, etc. However, real estate is still formidable despite the market crash. Why is this? It is because people still have basic rights and necessities and this includes housing. We people still need to have security in our lives that is why we choose a roof over our heads.
This is one of the reasons why it’s good to invest in real estate: you’re fulfilling your or (if you’re choosing the property to be a stable income) your buyer’s/renter’s basic needs in order to survive this pandemic’s lockdown. Truly, that’s a good investment on its own, another reason why real estate is a stable investment in this time of the pandemic.
Getting your dream property is going to be convenient this season of the world and its market. You get to have dibs on lowered interest rates and if you get lucky, some cashback and free cancellations but more importantly, discounts are more likely to be available as well.
With a planned-out budget and a good eye for the needed house and lot or office space, you’ll have a steady income once you’ve done the proper processes. When you budget out properly, you protect yourself from impulse purchases that you don’t need or would not last long. This is a completely safe and secure way of investing because you can avail insurance for the property/home and it all could be done virtually and online, so that means that the virus transmission is kept to a minimum, if not none at all.
Moreover, you get more value for your time during the lockdown because you get to have more allotted time for research and consultation with our Bria sales agents or any realtors of your choosing. Even with the market crashing due to the pandemic, real estate investment still holds a wise weight to it and remaining stable. This is because, in this long-term investment, you get more than a property, you get security.
Baretto, A. (2020, September 23). 7 Advantages of Investing In Real Estate During The Pandemic. Pueblo de Oro. https://pueblodeoro.com/blog/investing-real-estate-during-pandemic/
Giron, B. (2021, January 4). Why Invest in Property Now, Despite the Pandemic. Oh my home. https://blog.ohmyhome.com/en-ph/why-invest-property-now-despite-pandemic/
Gondra, A. (2021, April 1). Three Reasons to Invest in Real Estate During a Pandemic. Lumina. https://www.lumina.com.ph/news-and-blogs/blogs/three-reasons-to-invest-in-real-estate-during-a-pandemic/
Inquirer.net. (2021, January 18). Office and residential property markets in PH set to recover in 2021. Inquirer.net. Retrieved August 12, 2021, from https://business.inquirer.net/315954/office-and-residential-property-markets-in-ph-set-to-recover-in-2021
Megaworld Manila. (2020, September 21). 6 Reasons to Invest in Real Estate During the Pandemic. Megaworld Manila. https://megaworldmnl.com/blog/reasons-invest-real-estate-pandemic/
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