Save money. Call it a resolution every new year but it should be a lifestyle. And traditionally, we always go to the banks for safekeeping. As personal deposits increase, we realize how minimal the growth of the figures. So we scan through alternatives in the hope that the hard-earned paychecks will satisfy us in digits. We discover mutual funds, bonds, insurance, equity, stocks and real estate. The last option is actually a far cry from the rest and it is just today that it has evolved into becoming a great investment. CebuBestCondominium.com explains why real estate is.
Tangible – Condominium. House. Be it any real estate property for that matter is in a solid state- tangible. You can see the growth of where you placed your money right before your eyes. From the conceptualization of the project, to the land development, to the construction and until the time of delivery. The process in itself is factor that makes real estate a safe and secure investment.
Good Collateral – In putting up a business, a capital is always needed. If funds are insufficient, financing institutions are the solution. Before any amount will be released, a guarantee is a requirement. Real estate has long been considered good collateral. If one has several properties, not to mention those are assets, lending will no longer be a problem.
Value Appreciation – Many fail to forget, except for accountants, that a physical structure reduces in worth over time, but not the land underneath it. If the property zeroes into the essence of real estate which is “location, location, location”, value appreciation will not be a question especially if the area is continually developing.
Inflation Hedge – According to Investopedia.com, inflation hedge is “an investment that is considered to provide protection against the decreased value of a currency. It typically involves investing in an asset that is expected to maintain or increase value over a specified period of time. Alternatively, the barrier could involve taking a higher position in assets which may decrease in value less rapidly than the value of the currency”.
- Passive Income – At this modern age, people are no longer buying properties for residential purposes. They continue to acquire one for passive income purposes. And real estate has the ability to provide just that. A person may buy a condominium or house and have it rented out. Even while there is primary source of income, there are payments to be collected monthly.