Five reasons investing in real estate should be your next move in 2022

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08 April 2022
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If you’re an avid reader of anything about investments and financial assets, you’ve probably heard or read about real estate investing and its perks.

Real estate is one of the most profitable and strategic investments as it promises higher returns with lower risks.

Buying and owning a real estate asset is a strategic and lucrative investment decision. You can leverage investing in real estate by paying a portion of the total cost upfront, then paying off what’s left with additional interest.

One of the ways you can make money through real estate is through rental properties. There’s also something called “flipping,” or a process where the investor buys a property at a lower cost fixes it up, then sells it at a higher value.

These are just some ways you could earn money through real estate. If you aren’t convinced yet, here are five more reasons you should invest in real estate in 2022:

Real estate beats the current inflation rate.

The Philippine Statistics Authority reported a one percent increase in the inflation rate in March 2022 compared to the 3.0% in the previous month. The 4% inflation rate results from a spike in the prices of goods and services, including food, housing, and transportation costs.

When the inflation rate is high, this is when the real estate market thrives the most. During the inflationary period, the value of real estate properties increases, making it an excellent way to hedge inflation.

Due to the increase in construction costs and services, there’s a decrease in the inventory, creating a higher demand for properties resulting in higher prices.

Here’s how inflation affects your real estate investment

Value appreciation (Higher returns, lower risks)

Now that we’re facing a health crisis, safeguarding our wealth should be one of our top priorities.

While the interest rates are still low, you can double, triple, or quadruple your returns by investing in real estate with lower risks.

With investments, the older and longer the period, the better. The same goes for real estate. 

Once you decide to buy a property this year, you can expect its value to appreciate over time. And when the timing is right, you can profit from it by reselling it at a higher price.

Build your wealth by building equity

When you decide to buy a real estate property, you have to choose from various payment terms and schemes depending on what your developer offers.

As you pay down your fees, such as lumpsum or mortgages, you build your equity which is part of your net worth.

As you build equity and increase your net worth, you can buy more properties in the future, increasing your cash flow and wealth.

Consistent cash flow

One way to earn money from real estate is through rental income. Once you avail of a property, you can occupy the space or rent it out as a source of passive income. This makes real estate a reliable and competitive investment even during a crisis. 

As mentioned above, the value of real estate properties follows an upward trend, meaning that their value only increases as time passes. Compared to other investments, a property’s value is highly likely to increase than depreciate, depending on its location, features, and overall condition.

Portfolio diversification

Real estate is known for its diversification potential. As it is one of the investments' low or negative correlations with other significant assets, adding real estate to your investment portfolio with diversified assets can decrease its volatility and provide you with a higher return per unit of risk.

More about diversifying with real estate and infrastructure 

Summary

  • Investing in real estate can help you beat inflation.
  • Real estate investment promises higher returns through value appreciation with minimal risk.
  • You can use your investment to increase your cash flow through rental income or resell it at a higher value.
  • Investing in real estate helps you build your wealth.
  • Real estate is a good addition if you’re looking into diversifying your investment portfolio.

Get in touch with your developer and get started today

Investments as significant as real estate could be overwhelming, but getting your first real estate investment can be seamless and hassle-free with the proper knowledge and assistance from your trusted developer and agents. 

Get in touch with Empire East, a leading real estate developer, and homebuilder with almost 28 years of experience building ‘affordably luxurious’ homes in and around Metro Manila.

Cop significant discounts on their newest project, the Empire East Highland City, under their latest Fuel Up, Gear Up Promo, and avail of an Executive Studio Unit for as low as P6,000* monthly until April 30, 2022, only!

For more details about the promo, click HERE. You may also visit www.empire-east.com or follow them on social media.

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