Everybody Is Renting. That's Why You Need To Invest In Real Estate Now!
Is it a good time to invest now?
I’m going to share with you some real life examples- with a few modifications, especially the age, to set the mood.
Ryan, 34 years old, a car lover now turned motor enthusiast is a senior manager at a multi-national company. Aside from good pay, he is enjoying his status as a bachelor. But he is still not fixed on buying a house. He prefers to rent than to buy a property because he values mobility. Current status: Renting a house near place of work.
Darwin, 31 years old, who hails from General Santos and whose family owns a fast food chain, works in Cebu City as a project manager. He has a family but do not want to buy a property yet because he has not decided where to settle permanently. Current status: Renting a house near place of work and near school for his kids.
Buddy, aged 36, a chief strategist and a family man with 3 kids, already owned a house nearby the City. But his eldest son will soon go to college and is looking for a place to rent near a university. This smart dad prefers a condo over an apartment so that they can also have a place to stay if they visit. Current status: Looking to rent a condo near a school.
So, what am I trying to say?
Not everyone-even if they have the means to buy a house or condo will do so. They want to be mobile or they have not decided where to permanently settle and do not want to be burdened with the responsibility owning a house in a place, they will not call home. And there are those that would want to rent a property for their kids when they begin to go to school.
And once the pandemic is over, hopefully sooner, and when our economy tries to rebound, tourism will surely be heavily promoted by the government. More tourists will once again come back and visit our beautiful country. Some of them will look to buy a condo but majority of them will look to stay short term and rent a property near a beach, near a prime location or near the airport.
So, if most of these people are looking to rent, who then provides them with the place to rent?
Of course, big investors are the top of mind and those with deeper pockets.
But I really hope that that person is you. And it starts with the mindset of investing in a property right now.
Its okay to get scared. It allows you to play it safe. But it should not stop you from making big, even life changing decisions.
If your concern is cost, the answer is buy a PRESELLING project. This is a type of project that allows you to begin paying for a property in instalment basis while construction is still in progress.
And if your concern is you don’t know how to do it or don’t know a property to invest in, my answer is choose a PRC accredited real estate salesperson.
Now let’s go back to the reason why I really recommend that you invest right now- not for you to stay in it but to use it for rental.
Let’s count the reasons:
- The demand is there. Well maybe not right now because of the pandemic. But that is actually the reason why a preselling property makes perfect sense. Not only is the payment stretched but also the construction period. Most condo projects have a target turnover of 48 months, giving enough time for the economy to recover.
- Entry point is easier. Real estate is not exclusively for those that have deeper pockets anymore. Preselling properties changed all of that. Even mid income earners can already own a property. Rule of thumb, you should only spend about 30% of your income to buy a property.
- You cannot work forever. At some point you will retire, or your body will give up. What then? Will your pension be enough to cover your medical expenses? By creating passive income while you are still at your peak will allow you to still generate income when you can’t work anymore. Make money work for you. Not the other way around.
- And the last reason why you need to invest is because most of us, especially the younger generation are not even thinking about investing. And having that investors mindset early on will allow you to take advantage of that opportunity.