Why You Should Invest in Real Estate: Safest Way to Increase Savings

Is Real Estate the Safest Investment for Filipinos?

With an unstable economy, it’s challenging to find a steady source of passive income. Finding the safest way to invest your hard-earned money is the best option. However, it’s important to understand that even the safest investments may equate risks. While there’s no guarantee for a safe investment, you can make sure that the risks will be worth it in the end. In this article, you will learn why you should make safe investments in real estate properties with a market value that grows over time.

Benefits of Real Estate Investments

What makes a real estate investment safe is that it can provide you with a stable, passive income in the long run. If you’re still having some doubts, here are the best reasons why investing in real properties is the safest investment you can make in the Philippines.

Increasing Value Over Time

When you invest in residential properties such as a house and lot in Baguio City or other provinces, the value of your property will increase over time. The growing market value of these assets makes real estate the safest investment, even for young investors. The key is to invest in things that appreciate over time instead of depreciate after purchase. Consider important things like accessibility, lot area, and location when buying properties.

Generate Passive Income

Make the most out of your real properties by leveraging them to earn a passive income. You can rent out your condominium, house and lot, or subdivision unit to make money on the side. Rental properties are the best way to generate passive income while the property value increases in the long run. Before renting out your property, assess the maintenance costs and other fees to ensure you make enough profit.

Protection From Inflation

Since risks are inevitably involved in any investment, it’s crucial to understand how inflation can disrupt your purchasing power with increasing interest rates affecting the consumer price index. Rising inflation means property value increases as well. If you rent out your condo in Baguio City, for example, the tenant will be the one to experience the effects of rising inflation as rentals also go higher.

Better Tax Benefits

Real estate investors enjoy tax benefits as they pay fewer taxes than those who invest in other asset classes. Even if you own just one property, you can minimize tax expenses and increase your land’s market value over time. However, you need to follow the process to maximize your benefits, including deductions for property tax, mortgage interest tax, capital gains, and other pass-through deductions.

Check out the official REALS Corporation website for an updated listing of properties for sale in the Philippines, particularly in Baguio City. We are Baguio's leading real estate brokerage company, with decades of experience and trusted agents ready to help you. Register on the site to sell or buy your dream property and become a homeowner today!

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