A house and lot, being your primary place of residence, is also your real estate investment. It’s a physical asset whose market value is immediately realized. It isn’t just a home to live in. Once you invest in a house and lot, it also becomes a means to earn back your money, and more.
Pursuitofpassion, a portal on life hacks, explains why:
1. Leasing potential as a vacation rental.
Some house-and-lot units are located within exclusive subdivisions that offer a relaxed living experience with the following amenities:
• a well-equipped clubhouse
• wide-open green spaces
• fresh countryside air
• 24/7 security
• accessibility to various modes of transportation and points of interest
For people who wish to take a vacation but do not want to venture that far out from Metro Manila, they can consider short-term or long-term vacation rentals that have amenities conducive to relaxation and leisure. House-and-lot units in well-planned and secured communities are attractive to short-term lessees and vacationing tourists who wish to be settled in the quieter side of the city, and long-term tenants who wish to settle down with an expanded family in the suburbs.
2. Sell it at a premium.
A house-and-lot unit is a materialization of your hard-earned money.
The income you will generate from the sale will definitely be higher, too, especially if it is built by a top real estate developer and is close to a popular point of interest (like a central business district, for example). Demand for house-and-lot units in hot locations like Cavite are anticipated to appreciate over time, so property prices in these areas are at a markup and are expected to go up even higher as more mixed-use developments are being pursued.
3. It is a long-term investment
A house and lot is a financial asset that you can lease out and use the monthly rental to pay for your amortization payments. This is better than paying rent, which goes to your landlord or your property owner. Paying amortization essentially allows you to put your hard-earned money back to you via an appreciating asset.
Once your amortization payments total at least 20 percent of the total sales price of your home, you would already have built enough home equity. By definition, home equity is a financial asset that comes from a potential homeowner’s interest in a home, which is determined by deducting the outstanding home loan balance on the property’s market value. Your home equity can be leveraged to borrow a line of credit for a new business, tuition, or a long-awaited vacation, or another loan for a new real estate investment (also known as a second mortgage).
Moreover, the house and lot is a lifetime investment. You can pass your house and lot to your children, grandchildren, and even your great-grandchildren.
The longest-running, most trusted and biggest Philippine investment event in the Middle East region, Philippine Property and Investment Exhibition (PPIE), is back. It has helped thousands of OFWs own their very own home. Be part of PPIE 2019 on April 26-27 to reach your aspired home. Like @ppieuae on facebook to get tips and alerts on unbeatable deals.
