Are you planning to invest in your future? Do you have any idea what will be the best and secured investment for you? Consider house and lot as one of the investments for your future. Why? It may sound hard to get, but a house and lot is one of the best and secured investments to fund. We listed down reasons as to why is real estate one of the safest investments especially for beginners.
There’s a lot you can do when you own a house and a lot. You can use it as a shelter for your future family. If you have your own home, you can use the house and lot as a source of income by renting it. It generates income that can help you become stable in life. When you get old, you can pass the title to your heir or heiress. Investing in a house and lot has many advantages that can help you become secure in life. As a beginner in investing, a house and lot should be your priority. It is something that can help not just you, but also your present and future family. By choosing a house and lot as one of your investments, you should find someone that can help you with that. Someone that will not give you headache and stress.
Here are the reasons why you need to invest in real estate:
1. You can leverage your investment
There aren’t too many securities that allow you to put all your money on assets that are worth much more than you invested in. If you have Php 10,000 to invest in the stock market, for example, you can usually buy approximately Php 10,000 shareholdings. That is unless you invest on margin (borrow), which enables you to be an investor with substantial assets.
First reason as to why real estate is one of the safest investments for beginners is that you can invest in real estate by placing a fraction of the home’s cost. Let’s make the assumption you find a home for Php 100,000 and put down Php 10,000; supposing you have great credit and a steady income, you should have been able to find a loan to finance the balance.
That means you only have to invest 10% of the asset’s value to own it. Then, as you pay down the property, you’ll be able to maintain more of the investment throughout the period, improving your level of interest not only by paying down the mortgage but also by the natural development of real estate.
2. You can force appreciation
Unlike stocks and bonds, real estate can be forced to appreciate. This could sound absurd, but that is possible.
First of all, recognize that real estate grows over time which is why it is one of the safest investment for beginners. Real estate rises at a rate of 3% to 5% per year on average, and you don’t have to do anything other than sustaining it. Renovations or repairs, on the other hand, can increase the process of appreciation.
Since not all modifications increase a home’s value, seek a professional assessor or real estate agent to identify the optimal (most valuable) renovations to do.
You won’t get a dollar-for-dollar return on your investments, but some modifications can pay you back as much as 80% – 90% of the money invested.
Renovations do not have to be extensive. Of course, adding a room or finishing a basement will add more value to a property than simple cosmetic updates, but even minor kitchen and bathroom updates can have a significant impact on its value.
3. You’ll Get Tax Benefits
Real estate investors, like any other business owner, can take advantage of numerous tax deductions. When you own a property and rent it out, though, you are running a business – you are the landlord. As the business owner, you can often write off the following expenses:
- 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
Always consult your tax professional before thinking you can deduct expenses, but keep in mind that real estate investment is a benefit. You can only write off capital losses if you sell an asset for less than you bought for it when you invest in stocks or bonds.
4. You Can Earn Regular Cash Flow
Fourth reason as to why real estate is one of the safest investments for beginners is that you can generate monthly cash flow renting out real estate if you buy and hold it, which boosts the benefits from owning real estate because you aren’t dependent solely on appreciation but also on monthly rental revenue.
Buying investment real estate, finding suitable tenants, and managing the property may be daunting, but there are numerous resources available to assist you.
Roofstock Marketplace is an excellent source of information. They often do not offer potential investment properties in the area; many of them already have tenants and leases in place. As a result, when you purchase a home, you automatically become a landlord. Roofstock also does a lot of the legwork for you, so all you have to do is select the best property for you.
Of course, there was always the possibility of tenants defaulting or abandoning the property early, but then any investment comes with such a risk. There could be no profit when there is no risk.
5. You may feel Financially Secure
When it comes to investing in the stock market, there isn’t much to be sure about. However, as the year 2020 showed, it may all change in the blink of an eye. You have a large investment one minute and then lose it all the next.
When you invest in real estate for something like the long term, you know you’re getting a valuable asset. Housing may have to go through highs and lows, losing some value along the way, but if you hang on to this one long enough, it usually recovers.
Many people buy real estate to supplement their income in the future. You’ll improve your retirement income even if you own the property even when you’re retired and then use the monthly rental cash flow to supplement your income, or you sell a property you have held for so many years and profit.
Some people feel more comfortable knowing their money is being invested in a hedge against inflation (real estate) rather than in a money market account or even in the stock market.
6. You can pass down the real estate to your heir or heiress
If you want to leave a legacy but don’t think going cash is the best option, passing down real estate may be a better option.
Not only will you be giving an income-producing asset to your successors, but it will also attract more investors. Even though they have the option of keeping the land and preserving the legacy, or selling it and profiting.
7. You Can Use the Equity to Increase Your Real Estate Portfolio
Growing your real estate portfolio is a popular approach to use the equity from an investment property. Let’s imagine you own a property and have Let’s imagine you own a property and have Php 50,000 in equity. You can refinance the loan, take Php 50,000 out of it, and use it as a down payment on your next home.
To help you more in deciding on why real estate is one of the safest investments for beginners, we want to introduce to you the home of affordable and high-quality houses, Bria Homes.
Bria Homes is known for its affordable house and lot. Its main goal is to address the problem of housing in the country. They offer affordable, yet high-quality houses to every Filipino who dreamed to have a home for their family. Bria Homes also aim to ultimately fulfill its client’s happiness and finally moving in it. Bria Homes is the best choice for every Filipino who wanted economical, but first-class quality houses.
Reasons to invest in a Bria House and Lot
BRIA Homes is dedicated to providing average Filipino employees, particularly those who are just starting out in the real estate market, with the opportunity to purchase high-quality homes at a fair price. They can now get their dream homes for as little as Php 1, 897 each month. Bria’s house and lot packages cost between Php 460,000 and Php 1.5 million, while condo units cost between Php 1.5 million and Php 3 million.
Aspiring clients can also choose the financial funding (PAG-IBIG Funding or Bank Financing) suitable for them. These funding options can help ease the load of payment for Bria’s client.
Mabilis (Fast Construction)
It employs new home construction technologies in every project to save construction time. BRIA Homes ensures that each home is well-built and fulfills its high-quality standards, in addition to ensuring that construction is completed quickly. Bria Homes’ architects and engineers also ensure that their homes will withstand any weather.
Maganda (Pleasant Communities)
Nobody wants to live in a bad neighborhood. As a result, BRIA Homes strives to create a welcoming and integrated environment in its communities. This is because its amenities, such as covered basketball courts, surrounding walls, and a guarded entry, make residents feel safe and attractive.
In addition to that, if you are one of those nature lovers, BRIA Homes are perfect for you. Bria communities provide a relaxing atmosphere due to the trees located all over the area, making Bria’s home buyers feel like nature.
BRIA Homes has since encouraged green living and healthy living in its communities, in addition to the pleasant atmosphere. It recently launched “Project Communitree: An Adopt a Tree Program,” which aims to educate the public on the significance of a cleaner environment, as well as “Sa Bria Lulusog ang Pamilya,” which promotes the importance of a healthy diet to Filipino families. This is because Bria feels that a cheerful home is one that is healthier and greener.
Apart from the community, Bria also creates eye-catching and fashionable homes. Its designs are on par with those of contemporary architecture. Bria’s client has a variety of housing alternatives to pick from, including Elena, a 22-square-meter unit on a 36-square-meter lot; Bettina, a 44-square-meter unit on a 36-square-meter lot; and Alecza, a 36-square-meter lot on an 81-square-meter lot.
Mahusay (Good Service)
BRIA Homes ensures that its personnel will be able to provide the best service possible. All personnel has been instructed to reply to consumer inquiries as soon as possible.
Bria’s clients can be confident that they will receive excellent care and will have the finest possible experience while living in one of Bria’s communities.
Malapit sa Lahat (Within Close Proximity)
Bria communities are deliberately located in areas that will enhance the clients’ quality of life.
Nearby places of worship, hospitals, schools, and business establishments can be found in every Bria community around the country. They’re also close to major highways and roads.
If buying and renting out real estate is too stressful for you, there are a variety of other options, including:
- Buy an undervalued property, fix it up and flip it (fix and flip)
- Be a wholesaler working as the middle man between motivated sellers and a network of buyers.
- Use house hacking, which means you buy a 1 – 4 unit property, live in one unit, and rent out the others using the rental cash flow to cover your mortgage.
- Invest in a Real Estate Investment Trust
Everyone wants to know what property is the best to invest in in order to make the most money. While there isn’t a one-size-fits-all solution, there are some characteristics to look for when investing in real estate, such as:
- Look for an area that’s attractive for renters or with fast appreciating homes.
- Make sure the area has all the amenities and conveniences most homeowners want
- Look at the area’s crime rate, school ratings, and tax history.
- Invest in homes that renters want in the area (1 unit, townhome, condo, etc.)
- Please pay attention to the prices of recently sold homes to see the average sales price today and its comparison to historical prices.
Now that you already know why real estate is one of the safest investments for beginners, how will you respond to it? While you are young, invest in something you can use in the future and can help you to become secure in life. It is better to choose what is best for you and for your 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.