Making the most out of your earnings can either mean buying products that give you the most value or investing. However, it is not ideal to let all your money rest in a vault or savings account. With inflation rates higher than most bank interest rates, the optimal way to make your money work is to consider investing.
Investing is an effective way to diversify your earnings and build wealth. This is achieved by allocating your funds into different asset classes with the intention of appreciating its value, and generating income through returns in the long run. It ensures present and future financial stability by growing your wealth and at the same time amassing inflation-beating returns. It also instills a sense of financial discipline as you will develop a habit of setting aside a particular amount of money every month or payday towards your investment. With the benefits that investing provides, the question now is where to invest your money.
A good way to invest your money is through real estate. Whether you are a first-time investor or someone who is looking to diversify your investment portfolio, buying a piece of land is healthy to add to your list of assets because a property is tangible, but can also be a liquid asset if you need it to be. Like any investment, there are pros and cons to buying real estate such as the struggles of working as a landlord and an uncertain guarantee in cash flow. But buying a stand-alone lot helps mitigate those risks. Here are some reasons why a lot for sale may be the best investment you can make in 2023.
Low Costs And High Yields
Unlike other forms of investment such as stock, cryptocurrency, and bonds, the value of real estate grows over time, making it a good investment, especially for first-timers. Real estate appreciates at a rate of 3% – 5% per year. Apart from that is the appreciation driven by the maturity and infrastructure development of the surrounding areas of the property, which may further increase its value. With that being said, the value of your investment can be anticipated based on the growth in its surroundings.
Given these factors, choosing the right location can help you select a profitable piece of land. In 2023, investors eye properties within the Greater Manila Area such as Laguna, as its rapid urbanization brings forth job opportunities around, increasing the economy of the area, and providing strong potential for investment in real estate.
While providing promising returns, a stand-alone lot for sale also has lower costs compared to buying a house and lot which has a higher cost per square meter. Buying land allows investors to place their money elsewhere. Apart from this land is inexpensive to own over time, as there are no utility bills needed.
Lots Are Flexible
There is a vast window of opportunity for land owners especially here in the Philippines. With proper understanding of local zoning laws in your area. You may explore the potential things you may do with your land.
In times when demand for real estate is booming, building a single-family home or an apartment is an ideal use for your piece of land. You can either sell it for a greatly profitable amount or have it rented out, creating an extra passive stream of income. It can also serve as an asset for your future when you want to start a family and build a dream house. Your land will give you a jump start as you will only have to worry about building costs. Whether the dimensions of your lot is big or small, building a home will always be worth considering.
Another great thing about your piece of land is that its value inflates over time. While you patiently take time to think of what you want to do with it, its value appreciates together with the area around it. With this being said, holding on to land and selling it in the future brings great revenue. Investors have been doing this over the years and call this method “hold and sell”. They buy a piece of land in a rapidly urbanizing area, wait out a few years, and sell it at a much greater price. Others, on the other hand, literally flip their pieces of land, buying it at a flexible payment term and selling it outright with a significant markup. This allows them to use the revenue for other forms of investment, diversifying their assets.
Regardless of what use you have in mind for your land. Buying a lot for sale is a profitable choice in investment.
Low Maintenance Needed
Another factor to consider when choosing an investment is the time, resources, and effort required on your end. While other forms of real estate such as houses require constant maintenance and upkeep to maintain their structure in pristine condition as time goes by, stand-alone lots require very minimal effort on your end. Simply construct a fence and ensure to keep the grass trimmed to ensure that your lot is in a presentable condition. And due to its value appreciation, the value of your lot will increase even if left untouched.
Being a busy professional, the time, costs, and effort saved on your end allows you to tend to your other needs and yield more profit when you decide to sell your lot in the future.
With the myriad of benefits of owning a piece of land stated above. Investing in a lot for sale is a good idea for a young investor like you. Its low maintenance, flexibility, and promising returns make it the best way to spend your money on. The best time to buy is now, so you can maximize the benefits of its yearly appreciation.
Located in the Lion City of the South, Greenfield Development Corporation houses 3 residential developments within Greenfield City, a 400-hectare self-sustaining network of residential, commercial, industrial, and recreational communities, that puts a premium on open spaces and offers a refuge for those who are looking for a refreshing shift in scenery and lifestyle outside of Metro Manila. The properties, namely Pramana Residential Park, Solen Residences, and Trava, offer a signature lifestyle living the conveniences of most urban subdivisions while being situated in the rapidly urbanizing city of Laguna.
To take your first step towards investing in a lot for sale in Laguna, click here.
Resources:
- https://www.wellsfargo.com/goals-investing/why-invest/#:~:text=Why%20investing%20matters,and%20the%20risk%2Dreturn%20tradeoff.
- https://www.icicidirect.com/knowledge-center/article/why-is-investing-important-and-where-should-one-invest
- https://retipster.com/creative-uses-vacant-land/=
- https://www.globalpropertiesconsultants.com/articles/investment-analysis-of-philippine-real-estate-market/#:~:text=Land%20values%20continue%20to%20appreciate&text=In%20Forbes%20Park%2C%20land%20prices,(US%242%2C089)%20per%20sq.
- https://business.inquirer.net/335602/the-future-of-ph-real-estate