Reasons to invest in real estate amidst pandemic

The COVID-19 pandemic brought about losses to everyone’s lives. Many lost their loved ones, career, businesses, houses, and other properties because the economy not just here in the Philippines but all over the world plummeted. I, for one, have stock investments that really dropped and I realized, no businesses are safe during these times. Even the food industry, even if it’s a necessity, I can see a lot of restaurants closing down.

But now that the world is slowly adapting to the new normal and world’s economy is slowly picking up, is it safe now to invest? I asked this myself because if I have extra money, I won’t put it in a bank as savings. Because of high inflation rates, the money won’t grow and it won’t be considered an investment.

real estate investment during pandemic

Reading up on finance management sites, investing in real estate is the best choice. And if you’re thinking of buying a real estate investment, the time is now.

Real estate appreciates in value

Real estate appreciates in value over time. Now that prices are low because of the pandemic, as what financial gurus said, you should take advantage and buy low.

Lower prices and interest rates because of the pandemic

Because of the pandemic, a lot of real estate companies and banks are offering their properties at more competitive rates to attract more buyers. This is favorable for real estate buyers because lower interest rates means more purchasing power for your money. Who knows, you can now afford your dream house with the current rates banks are offering. You might want to use a mortgage calculator so that you can estimate your loans.

Real estate provides additional source of income

Owning a real estate gives you a tangible asset. With that, you can have additional source of passive income in the future. You can have it rented or sell at a higher price.

The pandemic taught us a lesson, that we must not put all our eggs in one basket. We should all be wise about money and diversify our investments and consider the risks involved not just the returns. Real estate is one type of investment that offers low risk and high returns.

I won’t make the money mistake my father made

Since last Sunday was Father’s Day, I just want to share what I learned from my father or from his mistake on how he handled his money. Papa was a seafarer, he was the main man in the engine department. With his position, a lot of our relatives and family friends thought that we have a lot of money. Sure, Papa and Nanay have acquired some properties in the province, jewelries, and have some money in the bank. But are these enough to support them throughout their retirement?

Unfortunately not. The interest in the bank is very small that when you factor in inflation, lugi ka pa. I can’t blame my father though because a lot of their investments were just simply offered to them by relatives and friends. They bought them out of goodwill and pakikisama not thinking of the market value in the future.

Philam funds

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Scouting for good investment rates

For the past month, I’ve been checking out online websites of different banks to compare which bank gives the highest interest rates. When I was still single, I started out with BPI and when Jeff and I got married, we opened another account with BDO. Although we’re happy with both banks, it won’t hurt to look for other options that can give higher rates especially for a time deposit account. I’m eyeing the Perk Dollar Time Deposit of Asiatrust Bank which states that money can earn as much as 4.75% p.a. This is only a modest way to grow our money but at least, we get to save for our retirement early on. It may not be as high yielding as having a gold IRA, but as long as the money is safe, we’re gonna let it stay there for the meantime.

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