The last two years have been rough for the entire world. No country was spared from the havoc that the pandemic brought to the economy. It forced us to change the way we live, and our lifestyle took a shift. How we look at things also changed, while we became more appreciative of life, for the most part our natural instinct is survival amidst all the lock downs we have experienced. Thus; it is our instinct to save whatever it is that we have, especially on the financial part. Thus; our take on investment changed. But is it really a bad idea to invest in this time of the pandemic? Actually contrary to that thought, investing doesn’t have to stop because of the pandemic. In fact, this is a great time to make the most of what we have including diving into a real estate investment.
To help you decide, here are 6 reasons why you should choose to invest in real estate; and why now is the best time to do it!
- Flexible Payment Terms – Because it’s pandemic and the Several banks offer low-interest rates starting last year to help those who are affected by the pandemic to be able to afford properties through flexible terms. Property developers created more flexible terms of payment so it’s convenient for the investors/buyers and will be able to afford buying the properties they are eyeing for. So whether you are looking into buying a new home, a condo, or whatever real estate property, you can avail of a flexible payment scheme through bank and housing loans.
- Lower Interest Rates – COVID19 slowed down the market activity resulting the worldwide market to shift in favor of the buyer. The central bank reduced interests in the attempt to combat the economic drop and the inflation. The Fed is expected to keep interest rates low, around 0%, until at least the end of 2023. If you have plans in buying a new home, now is a great time to go for that property you’ve always dreamed of.
- Discounted prices – Given that many have adjusted and are still adjusting with their lifestyles; real estate developers are selling their properties for a much cheaper price. Some property prices already dropped to 15% as an effect of the different lock downs due to COVID-19. As someone who is looking into investing in real-estate, now more than ever is a great time to take advantage of the benefits of cheaper property costs and let’s not forget that flexible payment options make it easier to figure your loan and purchase real estate properties as well.
- Most Stable Market Value – History has long proven overtime that investing in real estate gives the investor this sense of security because even if the value depreciates, you will still see the physical asset you spent your money on. The real estate industry remain a resilient choice of investment despite the pandemic which caused most industries taking a severe hit. It has always recovered from past economic bubbles so YES! Go for that property NOW!
- Long Term Passive Income– shelter is a human’s basic need, meaning it holds a higher value and demand. Let’s face it, this pandemic is proof that there are many unforeseen factors that can easily empty your bank account. One good way to prevent this is by investing in real estate. Pandemic or no pandemic, real estate remains a popular investment choice in the Philippines as it is easy to generate long-term passive income with your real-estate property and the ongoing pandemic cannot change that fact. Say you invest in a condominium, or a house you won’t be using for a while. All you have to do is advertise it and wallah! Easy passive monthly income out of your investment.
- Favorable Hike Price After the Pandemic – It is anticipated that real estate properties will be on high-value and demand after this pandemic. This projects higher profit for those who invested or those who acquired assets before and during the pandemic. Way to go in thinking ahead! This is indeed the perfect time to leverage your income opportunities in the future and not missing out on taking the advantage of properties price hike in the post-pandemic age.
With all that said, realize that the pandemic is not a hindrance to put your money to where it will surely profit. Get your affordable property investments already! Remember that as we continue to fight against this global pandemic, your future highly depends on what you are investing now.
Here in the Philippines, the most common ways to secure home loans is through Government financing and Private Bank Loans. Here are some leading and established institutions that can help you in calculating or estimating affordability of the property you want to invest in or put into mortgage.
- Home Development Mutual Fund (Pag-IBIG) – a government-owned and controlled corporation under the Department of Human Settlements and Urban Development of the Philippines, the Pag-IBIG fund is mandated to aid in providing affordable shelter financing for Filipinos. In 2021, the Pag-IBIG Fund financed 22,028 socialized homes for low-income Filipinos, 30% more than the 16,975 socialized units funded in 2020, with the amount of socialized housing loans surging 37% to P9.71 billion compared to the P7.10 billion released in 2020.
- National Home Mortgage Finance Corporation (NHMFC) – a government body created to increase the availability of affordable housing loans through the development and operation of a secondary market for home mortgages, the NHMFC aims to address the housing needs of the low-income and underserved sectors of the society.
- Social Housing Finance Corporation (SHFC) – Social housing powers and functions of the National Home Mortgage Finance Corporation such as the transfer of the Community Mortgage Program, Abot-Kaya Pabahay Fund Program have been directed and transferred to this government agency. The agency aims to provide 530,000 organized, homeless, and low-income families with Fair, Affordable, Innovative, and Responsive (FAIR) shelter solutions to their housing needs by 2022.
- Private Banks – you can also refer to these private banks for your best Housing Loan Options.
RCBC , UnionBank, Security Bank, AUB, BPI Family Savings Bank, China Bank, HSBC, Maybank, Philippine National Bank (PNB), EastWest Bank.
If you have more sound tips about investing in real estate amidst the pandemic, feel free to comment them away!