The COVID-19 pandemic has disrupted businesses and battered economies at an unprecedented pace and scale.
For Filipino would-be investors, this means adopting a wait-and-see attitude given the uncertainty brought about by the health crisis.
Experts, however, believe certain sectors will be able to outperform others despite the disruptions. The real estate industry, in particular, is seen as one such resilient sector — offering risk-adjusted returns amid rising market demand.
An Asset Where Wealth Grows Over Time
“One of the most pressing and compelling reasons why you should invest in real estate is this: real estate increases in value over time,” said Ed del Valle, business unit head of Avida Land, during a recent webinar hosted by Ayala Land and BPI Family Bank entitled “Investing for a Lifetime: Real Estate in the New Normal.” (To watch the webinar in its entirety, check out the featured video above, or directly visit its Youtube video here.)
The event was held on August 8, part of an ongoing webinar series organized by Avida Land. The webinars feature thought leaders and experts from different industries. The speakers share insights and advice for those who want to reach their goals even through the pandemic, including (but not limited to) buying their own home.
“Real estate is one asset wherein your wealth grows a lot over time, as opposed to assets wherein the value depreciates over time,” Del Valle told the online audience, citing what he described as “an unending demand for real estate” as he urged Filipinos to trust the numbers when deciding where to put their hard-earned money.
“The Philippine population is still young. That’s why our economy is expected to grow by leaps and bounds because of the population boom – what used to be our weakness is now our strength,” del Valle explained. “At least 30 percent of our population 30 years from now will still be in the 30s, and all these young people will get married, have families, and buy houses and lots and condominiums. So there will never be an ending demand for real estate.”
Best Time to Make an Investment
And while many may be tempted to just hide their money under the mattress until the pandemic is over, this period may actually prove to be the best time to make an investment, according to Dennis Fronda, vice president and division head of the retail loans group of BPI Family Savings Bank.
“Whether you are building your retirement or nurturing your health and wealth, seize opportunities to make your money work even harder through a diversified portfolio,” Fronda told the online gathering. “And among the various investment vehicles in the market today, a very, very resilient industry would be real estate.”
Recognizing the instability of the present COVID-19 situation, BPI Family Savings Bank has demonstrated its confidence in real estate as a viable investment by launching a “step-up pay plan” that reduces uncertainty for would-be borrowers. The plan allows clients to pay as low as 30 percent of the regular monthly amortization on the first year, with gradual increases of around only 10 percent per succeeding year.
For a P3 million loan, for example, instead of paying P35,000 monthly in the first year, clients will only shell out 24,000 per month. The regular amortization of P35,000 will begin only on the fifth year.
Pioneers in Masterplanned Communities
As for the right real estate property, Ayala Land corporate sales group head Ida Atayde said Filipinos are spoiled for choice, given the conglomerate’s wide range of residential products that cater to all market segments.
“We now have 29 estates within 57 growth centers. As pioneers in masterplanned communities, we see to it that the character of our development is made suitable for the natural features of the area,” Atayde said.
In an effort to help Filipinos move forward to the new normal armed with a new home, Ayala Land and BPI Family Bank have collaborated to bring a message of hope and a perspective that together, Filipinos can weather this crisis and come out stronger through their “ready to move-in initiative.”
Visit the Avida website to explore the different project locations, homes and lifestyles that are available to invest in – pandemic or no pandemic!