Want to invest in a market with a historic rate of return of 9%, especially when today’s mortgage rates are so low?
Of course you do. That’s just one of many reasons why real estate is a great investment option. Especially in the Philippines, wherein a resilient economy, growing population, and increasing urbanization are all observed. Therefore, investing in real estate in the Philippines is perfect.
If you’re wondering, why invest in real estate, look no further. Here’s exactly what you need to know.
Rental Properties Bring in Passive Income
When you rent out your property, you create passive income. As the homeowner, you assume the risk of any damage to the property. But there are a lot of laws to protect you from unscrupulous renters.
Are you worried about fixing toilets, searching through applications, and managing the tenants? Consider going through a rental agency. The agency will handle all that, and you can relax knowing your property is in good hands.
And you can rent out the property at a rate high enough to cover the mortgage. Make sure it’s big enough to save for repairs, taxes, and other expenses of owning a home.
Want to know how to prove your passive income? Check out a pay stub generator here.
Real Estate is Safer than Stocks
Real estate has a historic rate of return of 9% annually on your property. And over the past 40 years, the stock market has pulled between 8% and 11% return, there’s been a lot of volatility.
Even look at the last few months as the DOW plummeted sometimes 600 points in a day. Investors are constantly screaming conflicting information.
But a house? A house historically holds safe, lasting returns. If an owner weathered the 2008 housing crisis, they would still see a return on their property.
Property Makes a Great Nest Egg
Many investors have turned to real estate property as another form of retirement planning. This has three main tactics.
1. Living in a paid-off home during retirement keeps housing costs practically non-existent. This is vital when your budget is typically at its lowest. Medical expenses are also at their highest. So when you don’t have to worry about housing costs, you can live a more luxurious retirement.
2. You still have passive income. Do you have rental properties along with your main house? They’ll still bring in passive income during your retirement. This way you don’t have to worry about money.
3. The property is ready to pay its returns. As we’ve talked about, houses go up in value. If you want to sell your property, you can typically do so for much more than you paid for them. Should you choose to downsize, you have a massive chunk of money to make your retirement cozier.
Why Invest in Real Estate? It’s a Stable Way to Grow Your Wealth
Investing in real estate is a great way to diversify your portfolio and build your wealth. Real estate sees great rates of return. They’re more stable than the stock market, and they can make retirement comfier.
Why invest in real estate? Because you want a stable financial future, that’s why.