Our featured Broker is known to almost everyone who is practicing real estate in the Philippines. He...
Investing in real estate ensures steady returns in the long term. Unlike stocks, property investments are stable and post consistent growth year-on-year particularly in strategic locations.
In fast developing countries with large population, the property market is expected to post long-term growth, providing investors with steady and consistent returns.
Over time, investments in real estate properties can yield a substantial income. To take advantage of opportunities in the market, it is advisable to seek the assistance of real estate agents who know high-yielding properties.
A real estate agent can provide assistance and expertise on handlig the following properties: residential real estate, commercial real estate, vacant land, and manufactured homes; commercial real estate structures designed for business, including office buildings, warehouses, shopping centers, and stadiums; vacant land that can be developed into residential, commercial or industrial properties; and manufactured homes that are constructed in a factory-controlled environment and stand a greater chance to be marketed and sold at a profit than does residential real estate.
Returns and benefits from real estate investments can come from various forms, including rental income which may exceed monthly mortgage if the location is good and the economy is strong. If the price of the property goes up pretty past, selling it after a few years will translate into a jackpot, like double the price in five years. Again, this happens in fast-rising urban areas.
Overall, the net income from a real estate investment minus the operating costs is called cash flow. Real estate investors can generate a lot of cash flow if they build up equity.
In some countries, real estate investors can save lots of money because of tax breaks and deductions. Consult with your real estate agents to know if these beneficial results are available in your area.
Unlike stocks, real estate is a high tangible asset which means its price will not fluctuate as much. This is because land is one of the most important assets in the world.
Over time, the value of real estate assets increase because the global population continues to grow, and demand for housing, commercial and industrial space increases. But you have to know which areas and properties are suitable to take advantage of this growth. Real estate agents can help you spot which properties tend to increase in value.
Investing in real estate means building your equity, or the portion of a home that you now own, minus the mortgate or loans tied to it. It is wise to ensure that the value of the home is growing faster than the interest of your remaining loan. Increasing your equity in the home or paying your loan faster will mitigate your exposure to any price fluctuation.
In many markets, a home equity loan is available. You can set this up in the form of credit or a conventional loan. You can pay for education, rental property, renovation etc., with the money from a home equity loan.
Holding on to your property for a considerable period (reoccurring) to get a high return is termed as ‘keep through.
There are other high return strategies that the investor can get. One of them is flipping the property. The investor either purchases the property outright for a higher price or looks for a buyer for an existing tenant.
Another strategy used for investing in real estate investment is ‘asset appreciation’.
To help you out in real estate investments, a good real estate agent recommends something with a long-term duration, such as a leasehold property or a piece of fixed property that results in achieving a good return on the initial capital investment of any investor.
Look for a trusted real estate agent who can help you in your real estate investment and grow your assets over the long term.