#ADULTING: SHOULD YOU SERIOUSLY THINK ABOUT INVESTING IN REAL ESTATE NOW? (You should consider it)
You’re young. The world is your oyster. You feel like you can do anything!
But don’t just go and take advantage of all that the world has to offer. Take the time to also think about your future, what you want, and start laying some foundations.
One of the things you might want to think about even this early, is buying your own home. What kind of home do you like? What are your options? You don’t need to buy something right now, if you’re a bit scared about it. But, it is still a good idea to go and learn about and widen your knowledge on property investment and home buying. This will prepare you when the time comes when you are ready to buy.
Most millennials, if not all, have already entered the so-called ‘adulting’ phase. Some of them are already in the final stages of their college lives, while others have already established themselves in the industry they are in. Many still do not bear the responsibilities of supporting a family, and can be more flexible in managing their income and expenses. It is a good time to be laying a solid foundation for their future.
According to the most recent labor force survey, Filipino millennials make up around 40% of the current workforce. It is projected that in a few years, this generation will dominate the talent pool and become the driving force of the country’s labor economy.
Millennials are often characterized as being adventurous and thrill seekers. With their spending power, they are frequently seen posting photos of their #travelgoals in different social media sites. They often sport the latest gadget from major mobile phone makers. They usually mix and match branded with unbranded clothing for their #OOTDs. However, when it comes to saving up for a rainy day or building an investment, millennials are quite disengaged, as they are sometimes preoccupied with the instant gratification that experiences and material things bring.
One of the most complicated decisions these millennials have to make involves investing in a home. It takes discipline and knowledge to commit a portion of their monthly incomes to something that would not necessarily give that instant sense of fulfilment they always seek. The challenge is for them to realize that the earlier they invest, the sooner they will get the hang of it and be able to enjoy the benefits in the long run.
While buying real estate may sound intimidating, it is one of the most lucrative forms of
investment, if you make the right choice. I urge you to learn everything you can about owning property, and to think about yourself and what is feasible for you – what do you want, what do you need, what type of real estate are you looking for? Do you want a real estate property to live in? Do you want property that will provide you with some passive income? Do you want something that will increase in value over time but you don’t have the desire to actively manage it?
Owning a home is in every Filipino’s bucket list, and there are several options in the market that would fit your needs and financial capacity.
If you are thinking about buying your first property, here are a few more reasons why it is a good time to invest in an affordable home now:
You can take advantage of the Philippines’ robust economy
The World Bank expects the Philippines to maintain its strong economic growth in the next three years. As it remains to be Southeast Asia’s fastest-growing economy, millennials would be able to get greater deals for the houses they wish to purchase.
Investing in a home in this thriving economy would unlock the growth potential of your home. Properties purchased this early are expected to increase in value in the next few years, making them a great asset to have in your arsenal. Early investing gives you the most time in the future to harvest the fruits of your labor. If you are planning to raise your own family, it is advised to start investing in a home as early as possible—it would not be wise to play catch up when you already have a lot of responsibilities.
Investing is more practical than renting in the long run
A Lamudi research in 2014 revealed that around two in three Filipinos or 69% prefer renting than buying a property. This strong bias towards renting has always been apparent in the younger generations.
While it is true that renting allows flexibility, it would still be better to put your money into something that could potentially be your asset in the future. When you rent, the money you are shelling out every month goes straight to your landlord’s pockets. The home you are currently living in will never be yours even after many years of payments.
Now, imagine if you dedicated these monthly payments to pay off a mortgage. In as early as ten years’ time, you may have already finished paying for your home.
It could be a steady source of passive income
For millennials looking to diversify and widen their sources of income in the future, investing in real estate is the way to go. Putting a property up for lease could provide you with a steady source of money, which you can use either to settle the mortgage of the home, or in other investment vehicles like stocks, mutual funds, and variable universal life insurance (VUL). To succeed in your real estate investment, you have to buy a property in a strategic location and attract an ideal tenant. You can either put the property up for long-term leases, or under home-sharing services like Airbnb.
Explore your options at the Lamudi Affordable Housing Fair
The upcoming Lamudi Affordable Housing Fair provides an avenue for millennials to connect with industry players and be in the know about the latest happenings in the real estate scene.
Organized by leading online Philippine real estate platform Lamudi, this two-day event happening on June 30 and July 1 (Sat-Sun) at the Glorietta 3 Activity Center in Makati will offer free investment and home buying seminars, which will further help you understand concepts like pre-selling, foreclosures, and build-and-sell properties.
The event will also be a great opportunity to know more about how to finance your property investments and what kinds of home loan will be suitable for you. Attendees can also look forward to games and raffles, as well as freebies from exhibitors and sponsors.
All this is free, so if you are interested in buying your first property, take this opportunity to learn all about affordable real estate at the Lamudi Affordable Housing Fair. Check out what properties are available, learn more about them, and hopefully, find something that is right for you.
I hope you enjoyed this blog post. Please feel free to leave a comment below, I love hearing from you!