It’s no secret that many Filipinos’ finances have been hit hard by the effects of the global pandemic. As a result, a lot of people have been more focused on short-term expenses, while putting off investing in portfolio items like real estate.
However, rather than viewing the economic downturn as a time to focus on immediate needs, this is actually one of the best times to enter the property market as an investor.
Unlike most other tangible assets, real estate generally increases in value over time – making it an excellent vehicle for wealth-building. And the pandemic has created a situation where wealth-building with real estate has become easier, not harder – if you know how to turn the situation to your advantage!
Here are a few key indicators that show why real estate is so promising these days, for investors who can act fast.
Take advantage of more flexible terms for buying real estate. Given that many Filipinos are currently struggling financially, most companies have reduced their interest rates and started offering more flexible arrangements in the hopes of stimulating the local economy during the lockdown.
The government has also stepped in by increasing big banks’ capacity to lend money for real estate, to the tune of PHP 1.2 trillion in added funds. Hence, purchasing a property has become more accessible than ever.
Use pandemic “savings” to spend on buying a home. Due to the implementation of quarantine measures, most Filipinos have been forced to stay at home for several months. But rather than viewing this as an inconvenience, you may want to see the lockdown as a chance to build up your funds.
With commuting costs, tollgate fees, and eating-out costs eliminated by the need to work from home, you can use the money saved from these activities to make an investment that can earn you something in the long run – and serve as a home for your loved ones too.
Benefit from real estate’s strong historical performance through downturns. The real estate sector has historically bounced back faster from economic downturns than other parts of the economy. Ayala Land (ALI), for one, has seen increasing residential sales even in the midst of the enhanced community quarantine, covering the months between April and June.
Over the long term, investors in ALI properties have very good reasons to be optimistic about the future value of their holdings. ALI President and CEO Bobby O. Dy points to Ayala Alabang – its lots cost P230 per square meter in 1978, and cost up to P110,000 per sqm today thanks to a compounded annual growth rate (CAGR) of 16 -17 percent through several recession/recovery cycles.
As Bobby Dy puts it, “If you look at long term trends of property, taking into account various economic cycles, I believe property continues to be one of the best, if not the best, performing asset class.”
This is good news for anyone who buys today; when the COVID-19 situation clears up, the recovery is likely to increase the value of your real estate investment.
These are just a few of the many reasons why you may want to consider buying real estate during the pandemic. As long as you spend your money on safe, sustainable and future-proof properties, you’ll be sure to turn a profit down the line.
And if you’re ready to start investing, you can’t go wrong by choosing a reliable real estate developer that is just as invested in your future success as you are. Visit Avida Land’s website now to check out the various types of properties that they currently have on offer.