How To Earn Back Your Investment On A House And Lot

A house and lot can be more than just your future permanent address. Here are three ways you can make this real estate investment earn for you. By Rizza Sta. Ana


A house and lot, being your primary place of residence, can easily be regarded as a real estate investment. It’s a physical asset whose market value is immediately realized. It isn’t just a home to live in. Once you invest in a house and lot, it also becomes a means to earn back your money, and more.

These are the reasons why:

1. Your house and lot has a leasing potential as a vacation rental.

Some house-and-lot units are located within exclusive subdivisions that offer a relaxed living experience with the following amenities:

  • a well-equipped clubhouse
  • wide-open green spaces
  • fresh countryside air
  • 24/7 security
  • accessibility to various modes of transportation and points of interest

For people who wish to take a vacation but do not want to venture that far out from Metro Manila, they can consider short-term or long-term vacation rentals that have amenities conducive to relaxation and leisure. House-and-lot units in well-planned and secured communities are attractive to short-term lessees and vacationing tourists who wish to be settled in the quieter side of the city, and long-term tenants who wish to settle down with an expanded family in the suburbs.

And tourist arrivals, especially in locations just outside Metro Manila, are not dropping any time soon. In 2016, the tourism department of Cavite anticipated hitting the five-million mark in terms of tourist arrivals, with the Kawit municipality, Tagaytay, and nearby areas getting the most number of tourists.

A home that boasts such amenities as a pool and sprawling green spaces is a perfect option for vacationers looking for locations close to the city

ALSO READ: House and Lot Investments: 4 Valuable Tips to Get Started

2. You can opt to invest on a house and lot, and then sell it at a premium.

A house-and-lot unit is a materialization of your hard-earned money. This means that once you buy a house and lot, it is physically yours. You own your house and lot 100 percent, and can easily put up your property for sale at a premium.

The income you will generate from the sale will definitely be higher, too, especially if it is built by a top real estate developer and is close to a popular point of interest (like a central business district, for example). Demand for house-and-lot units in hot locations like Cavite are anticipated to appreciate over time, so property prices in these areas are at a markup and are expected to go up even higher as more mixed-use developments are being pursued.

Just like art pieces, house-and-lot units are good investments as, with proper care, they appreciate over time and can be eventually sold at a profit

ALSO READ: How Do I Get Enough Money For a Home Downpayment?

3. A house and lot is a long-term investment, and we’re not just talking about the physical aspect.

A house and lot is a financial asset that you can lease out and use the monthly rental to pay for your amortization payments. This is better than paying rent, which goes to your landlord or your property owner. Paying amortization essentially allows you to put your hard-earned money back to you via an appreciating asset.

Once your amortization payments total at least 20 percent of the total sales price of your home, you would already have built enough home equity. By definition, home equity is a financial asset that comes from a potential homeowner’s interest in a home, which is determined by deducting the outstanding home loan balance on the property’s market value. Your home equity can be leveraged to borrow a line of credit for a new business, tuition, or a long-awaited vacation, or another loan for a new real estate investment (also known as a second mortgage).

Moreover, the house and lot is a lifetime investment. You can pass your house and lot to your children, grandchildren, and even your great-grandchildren.

If you’re looking to invest in a house and lot in Cavite, there’s no better time to do it than now. As of April 2017, land values in Imus, for example, are P14,600 per sqm, having increased by 8 percent within a three-month period.

Moreover, house-and-lot units are convenient, flexible, and rewarding investments in the long run. Southgrove Estates by Avida in Cavite, for example, is a 57-hectare master-planned, integrated mixed-use community. Spacious and well-ventilated homes feature a modern contemporary theme.

Surrounded by lush greens and natural open spaces, the residential development has health and lifestyle-oriented amenities. They include adult and children swimming pools, basketball court, and a contemporary-designed multi-purpose clubhouse. Southgrove Estates’ safety and comfort are ensured by Ayala Property Management Corporation (APMC).

Know more about Southgrove Estates in Cavite at