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Real estate is one of the most prized commodities that families pass down to the next generations. It makes sense if you consider the favorable returns that real estate yields. Its significance in your personal life, as well as your financial growth, make it an investment that can truly benefit generations.
Investing in real estate is more than just buying a house. Here’s why it remains a great investment for you, your children, and future grandchildren.
Property Value Increases Over Time
Most people invest in real estate because its value increases as time goes by. While buying a house and paying for the mortgage can take a huge chunk of your budget now, it’s something you can call your own and continue to improve upon as the years pass.
Real estate prices increase depending on factors such as zoning laws of an area, the livability and convenience of its location, and inflation policies. This means if you buy property in regions on the rise, you have a good chance of seeing great returns in the future. You also get them for a good price if you pursue the purchase at the right time. For example, buying a house and lot or a condominium during its pre-selling period means you are securing a piece of property for your family before it becomes more expensive near completion.
The sentimental value of the property as it’s filled with memories of your family also adds to its personal history. This, on top of the financial benefits of owning property, is enough to make future generations feel grateful about the legacy you will leave behind. When they don’t have to worry about monthly rent, they are free to allocate their finances to savings or other life improvements.
Homes Offer Versatility
Purchasing houses and lots can also be a springboard for other life decisions. As you are considering investing in property, one of the factors to think about is its location. This can benefit your family in the future especially if you buy real estate in a popular staycation destination or near prime areas. As your grandchildren get to college or start their first job, they might also benefit from the property if it’s used as a halfway house due to its proximity to their school or work.
If the property purchase you are considering right now is not your primary residence, it can also be a second home for the family. This gives you and the future generations of your family a safe haven when disasters arise. The second home may also be used as a vacation house where your family can create more memories.
Then, as members of the family start their own, your condominium unit or second home can be the primary home they will raise their own children in.
Real Estate Can Generate Income
While second homes are recently becoming more popular in the Philippines, many also invest in residential developments to generate passive income. You can rent your property to young professionals who want to live close to their workplace, or to tourists looking for staycation homes.
This secures that even the future generations will have a source of income if they continue leasing out the property they’ve inherited. The income generated from real estate may also be invested back into your portfolio of investments, to get more properties and therefore a higher income stream for generations.
Real Estate Can Last a Lifetime
“Real estate is always there,” said Dr. Eduardo Ong, President of Edward King Global Consultants, Inc., during the second episode of Lamudi’s Special Webinar Series: Surviving Broker Business in the Time of COVID, which focused on the topic “Continuing Broker Business and How to Invest in Real Estate during COVID.”
Real estate is a hard asset, one that is tangible and can be used for various purposes. For Filipinos, who value their family more than anything else, sharing the home across three generations is a common occurrence. While it retains its value, your home serves as a shelter for you, your children, your future grandchildren–and beyond. This is in stark contrast with stocks and bonds, which are intangible assets that are easily affected by market changes.
Owning property allows you to enjoy the stability of having a home while creating lifetime moments with your family. And one day, you can give them the same stability as a way of supporting them in their future endeavors.
As Dr. Ong said in the webinar episode, “Real estate will always be a sunshine industry. It is still the best investment you can have.”