As a young professional, one of the best things to do as you earn your money is to find an investment opportunity that will allow your money to work for you. Nowadays, as the price tag of everything is going upward due to global inflation, it is best to safeguard your hard-earned money to make sure that it does not lose its value due to inflation. A great way to do this is investing in a house and lot in a developing city such as Laguna. There may not be a one-size-fits-all approach when it comes to the ideal investment, but because of some factors, real estate is the best option when it comes to investing as a young professional. To help understand why here are 4 reasons why a house and lot in Laguna is an excellent investment for the young professional.
It is a Tangible Asset
Among the many forms of investment that one can put their money into in order to keep it safe against inflation. Investing in tangible assets is favorable, especially for young professionals, as these assets offer diverse income flows which are helpful against uncertain economic conditions. Experts believe that tangible assets such as real estate and gold represent a higher chance of getting high returns compared to capital assets such as stocks, bonds, and crypto.
These assets exist outside of account balances, financial statements, or exchange markets as tangible assets have a physical form that has its own natural value. Even small purchases of material things such as pieces of art, antiques, or jewelry are considered tangible assets, as they have value to retain no matter how economies fluctuate. These asset classes tend to have little correlation with the stock and bond markets as they can reduce your exposure to market risks in a way that most capital or intangible assets cannot do.
If you have a house and lot in a promising location in the country such as Laguna, your investment is already looking at promising returns. Aside from this, your house and lot can be used as your home or can be rented to others for them to use, giving you multiple streams of income as you can generate revenue while accruing gains from your investment as time goes by.
It Offers Diverse Income Streams
One of the reasons why many successful investors recommend buying a house and lot as a young professional’s first choice is the promise of passive income in real estate. This is a strategy through which an investor can yield profit or earnings without the need to spend long hours and effort being involved in it. The term “passive income” is loosely used, as the level of required activity and involvement varies based on the investment type. Some common examples of this real estate income include rental properties or earnings made from investment portfolios.
Earning passive income is beneficial for young professionals as it is a revenue stream that does not require active work for it. This gives you more time to invest in other things such as enjoying life, bonding with loved ones, or finding other ways to earn. As you passively earn these funds, you may use them for many purposes such as building a retirement fund, saving for your future plans, expanding your savings, or investing in other channels. It can also offset any monthly bills or fees to pay on your end. By investing in real estate, you will create monthly cash flow that will generate passive income over time. The one-time payment that an investment requires will be returned to you over time as the investment generates income.
The first step to generating passive income from your house and lot in Laguna is by having it rented out. Since these houses and lots are commonly used as single-family homes, these properties can be rented out to a single tenant. Single-family tenants tend to take more psychological ownership over the home during the time of their stay, leading them to take better care of the property. Your income from rent can be used to offset any ongoing payments of your property and its taxes, and whatever is left of it goes straight into your savings.
Others gain profit by flipping houses and lots, this means buying them and eventually selling them at a marked-up or more profitable price. While this has a more tedious process than renting out your investment property for passive income, flipping properties can get returns faster. Since real estate developers usually offer flexible payment terms, what most investors do is purchase a property in a location that has planned developments in its surroundings using these friendly payment terms, and sell them after a short period of time in cash. Not only will they have a large cash on hand that they may invest elsewhere before paying their monthly amortization, but the development around the property will cause the price of real estate around to rise due to zonal appreciation, allowing the investor to let the property go at a higher price, giving them instant revenue from the sale.
By investing in a house and lot in a strategic location such as a budding city like Laguna, you can make the most of its value by utilizing its various streams of income.
It Can be Used for Personal Enjoyment
Many tangible investments can create psychological benefits. You may purchase a collectible, a piece of art, or an antique piece of furniture because you value its display in your home as well as its investment potential. When buying a house and lot in Laguna, aside from it being a major asset in your portfolio, there are a multitude of things you and your loved ones or peers can do in it which can cater to your personal enjoyment. You may use it as a rest house when it is not being rented out or you may enjoy the amenities within the community such as public parks, pools, and more.
Investment in tangible assets such as a house and lot offers the unique experience of immediate personal satisfaction, or utility, depending on you. Aside from this, the potential for increased future consumption through price appreciation may be less likely with intangible assets, making it ideal, especially as a first investment.
Its Location Invites Appreciation
Aside from the various benefits that investing in a tangible asset brings forth, purchasing a house and lot secures your property as an investment from losing value to various factors such as inflation, population growth, and shady economic conditions. This is because of appreciation. It has been stated that real estate prices go higher as time goes by compared to other physical purchases such as gadgets and cars. This is because of various conditions that surround the property such as its location, accessibility to key areas, and neighboring amenities surrounding the property.
By choosing a strategic location that appeals to the conditions above, the value of your house and lot investment will surely rise over time, safeguarding your assets and providing you good returns.
Located in the heart of the Lion City of the South, Greenfield City offers residential properties that embody the traits mentioned above. Invest in houses and lots located within a 400-hectare self-sustaining network of residential, commercial, industrial, and recreational communities that are in close proximity to key locations such as shopping centers, schools, hospitals, and golf courses. It is accessible through the South Luzon Expressway and has easy access to Tagaytay. Imagine an investment that both you and your future tenants can enjoy. To learn more about these excellent investment properties, click on the link below:
Reference:
https://greenfield.com.ph/project/greenfield-city/
https://www.investopedia.com/ask/answers/041615/why-should-you-invest-tangible-assets.asp