22/07/2024
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Ito pampa-antok:
WHY INVEST IN PROPERTIES?
(A 3-minute read on the value, advantage and importance of owning properties)
1. VALUE APPRECIATION
Just like gold, due to increase in demand and limited supply, as a basic principle in Economics dictates, price for Real Estate Properties increases in a stable manner; even drastically during recessions. Properties worth 1 Million Pesos a few years ago is now worth 5 Million. Therefore, as the pattern strongly suggests, what is worth 1 Million now, will be worth 5 Million in the near future.
2. HIGHER DIVIDENDS
Saving your money in a bank is technically lending it to the bank. As an interest, the bank pays you at an average of 1% per year. Therefore, if you have deposited 1 Million in your bank, you can earn as much as 10,000 per year. Whereas placing your money in Real Estate Rentals/Leasing will yield approximately 1% per month or 12% per year, which is way significant than what banks can and will offer. In rental payments, you can get 100% Return of Investment in a matter of 8 years whereas in bank interests, it will take 100 years at 1% per year to get 100% Returns.
3. RESISTANCE TO INFLATION
Inflation is a necessary part of a healthy Economy. But a sudden and significant drop of the buying power of a currency can result to hard-earned savings being futile. We have seen this happen in some countries, which as a desperate measure, print money that have million and billions in it but can only buy what a dollar can. Imagine you have 1 Million in a bank that can now buy a million's worth of commodities. Then suddenly, due to hyperinflation, can only buy a dinner. I know this is extreme but it has happened to other countries and can happen in the Philippines. That is the weakness of liquid cash and the strength of assets such as properties. No matter how much inflation happens, price for properties will adjust and adapt since the demand for them is constant. Nothing will protect your money from inflation as assets like properties can.
4. RESISTANCE TO INNOVATION
Innovation can render products or companies obsolete in a matter of few years. We have seen this happen to Nokia and its phones, Blockbuster and its Movie rentals, and faceshields. In the same manner, cryptocurrencies are hypervolatile. It means they can bring millions from your investment then take them back in a blink of an eye. Nobody knows what can happen on such investments since the demand for them is unpredictable.
On the other hand, demand for properties are predictable. We are well informed about future projects and developments that will guarantee the increase in their price. When you invest in properties, you can live peacefully without the stress and pressure of a sudden innovation that might take away everything you have built and worked for.
5. ASSURANCE OF SPACE
No matter what happens, when you have your own property, you and your family will never have to experience homelessness. At the end of the day, you and your children will have a place to come home to.
(If you are interested to venture into real estate investment, we offer properties in Manila that are currently underpriced and have a projected higher demand, maximizing your profits for the least risk. Please send a message for more details.)
-Yours Truly
Urban Deca Homes Ortigas
