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There are many different types of investments in the Philippines.
But real estate has always stood the test of time.
So, why is real estate in the Philippines the best investment?
Interestingly there are many reasons white real estate is a fantastic investment.
Below are the 14 key advantages of investing in real estate in the Philippines.
Table of Contents
14 Advantages To Real Estate Investing Philippines
1. Real Estate In The Philippines Allows Investors To Diversify
Many famous investors, locally and internationally, have stressed the importance of diversification.
This is a key strategy for a successful Filipino investor.
Thus, real estate offers many unique advantages to investors.
Interestingly real estate in the Philippines is one of the most diverse assets.
For example, an investor could decide to purchase a small condominium, a lot, or larger premises and turn this into a small hotel!
Not many investments in the Philippines allow investors so much choice, which is one of the most significant advantages.
2. There Is A Ton Of Data On Real Estate
One of the most significant disadvantages to modern assets such as cryptocurrency is it there is very little data on the market.
Data does not determine the future.
However, it can guide investors in making smarter investment decisions long term.
Having data is a massive advantage in real estate investing in the Philippines.
Even during difficult market times, data can be used to show us potential opportunities in the market.
Real estate is an essential part of living for humans, so data about the Philippine markets stretch back many years.
As a result, we can see how the market reacted during certain times.
The Philippines is rapidly developing.
Trust me. Data is king.
3. There Are Several Ways To Earn From A Real Estate Investment
If you are considering why to invest in real estate in the Philippines…
One answer that you will find interesting is the option to monetize your investment.
With many investments in the Philippines, there are only typically 1 or 2 ways to make money.
Making money from real estate in the Philippines is different.
It’s so different that we released an entire article and how you can make money from real estate!
For example, if you decide to invest in a large property, you could earn money from a multiple occupancy investment.
You could offer additional services to your tenants, such as cleaning or renting out your car parking space.
There are not many investments in the Philippines that give investors this opportunity.
This is why many see real estate as the best investment in the Philippines.
4. Real Estate Is A Physical Investment
Recently I had a conference call about the metaverse and NFTs!
It was certainly an interesting conversation.
But one thing that did pop up was the non-physical appearance of asset classes.
Until the Philippines and the rest of the world adopt blockchain technology…
They will be unable to compete with other asset classes.
However, a real estate investment in the Philippines has much more physical utility.
Not only is this investment something you can see with your own eyes.
But you can also use this investment for your own purpose (more on this later).
In other words, investing in real estate in the Philippines is far more than just an investment.
5. Philippines Real Estate Historically Appreciates
As mentioned, data is king.
But, historical data is queen.
Regarding real estate data in the Philippines, the data is typically broken down into quarterly sections.
But instead, we’re going to be looking at the year-on-year data (YoY).
As we can see, the data fluctuates as expected.
Over the last few years, the Philippines has experienced a the pandemic and growing inflation rates.
However, the real estate market looks promising as we look into the future.
The long-term data shows us a favourable appreciation rate.
But as mentioned, data can also be used to help investors assess the risks and see the opportunities within the market.
6. Real Estate Can Be Used As a Leverage
In the financial world, there is a magical word called leverage.
And it really is magical.
Leverage (in one form or another) is essential for personal and business growth.
One advantage of investing in real estate in the Philippines is that your real estate investment can be used as a form of leverage.
As an investor, you can borrow against your property to build or diversify your portfolio.
We looked at this topic in more detail when we explored how to make money in the Philippines.
But to summarise, leverage is super significant.
But there are naturally risks with leverage that investors must consider.
7. Real Estate Can Be Used As A Safety Net
Due to the utility and value of a real estate property, real estate is often seen as a safety net for investors.
I remember reading a book about significant life events when I was 17.
The book mentioned that, on average, every 10 years, we will experience a significant life event.
These can be positive and negative, such as losing a job or getting married.
Naturally, some events are planned, but others are not.
Thus, due to this safety net real estate provides…
Many see real estate investment as the best investment in the Philippines.
8. Real Estate Could Also Be Used As A Retirement Plan
Another option for some investors is to use their real estate property in the Philippines as a source of retirement cash.
The significant advantage of this option is that the younger you are, the more likely it is that your real estate will appreciate.
Alternatively, you may decide to rent out your real estate property.
This option allows investors to earn continuous income throughout retirement.
This popular form of income takes us onto the subject of passive income.
9. An Investment In Real Estate Is A Great Source Of Passive Income
Recently we released an official guide on earning passive income in the Philippines.
And other passive income options such as real estate.
Because there are several ways to earn money from real estate in the Philippines…
…There are also several passive income options for real estate investors.
Many investors work with real estate businesses and agents, so their investment can be 100% passive.
10. You Don’t Need A Lot Of Money To Invest In Real Estate.
The biggest question we get asked here at Filipino Wealth is about investment capital.
How much do Filipino investors need to invest in real estate?
Due to Pag-ibig and other financial services investing in real estate in the Philippines is now easier than ever.
As we mentioned earlier, leverage is super crucial in wealth creation.
Therefore…
Using leverage to buy real estate or to increase your real estate portfolio is a standard method used by investors in the Philippines.
11. Investors Have More Control Over Their Investment
If you’re somebody who likes to control your assets, you will love this!
The control is much less when investing in the Philippine Stock Exchange or other investment classes.
But, with a real estate property…
You can decide your monetization options, how much you will charge, your design options, and much more.
It may sound surprising, but two identical properties can make different incomes.
For instance…
If the investor focuses on monetization, making the design appealing to the customers and providing customers with value…
He/she is more likely to earn more money than an investor who does not put the customers or the investment first.
Control will allow you to use your skills and experience to your advantage with your real estate investment.
12. Real Estate In The Philippines Is Cost Effective
This advantage of investing in real estate in the Philippines is significant.
This means that the real estate investment is valuable in terms of financial value vs utility.
P4,000,000 will get you a lot of stock!
But with 4,000,000 pesos, there is little utility, and it is not very cost-effective in terms of utility.
P4,000,000 in a real estate investment in the Philippines is cost-effective compared to the utility the investment offers.
13. The Market In The Philippines Continues To Grow
The markets go up, and the markets go down.
The Philippines real estate market is no different.
But in recent times, it continues to grow, and there are many positive indicators for the future.
For example, the Philippines is a growing tourist destination.
And businesses globally are also starting to enter the Filipino markets.
These are 2 small areas out of many but will impact the overall market.
When considering investing in real estate in the Philippines, it is always essential to look at supply and demand.
As well as the broader economy.
14. It Can Be Used To Beat Inflation
For many years real estate in the Philippines has been seen as a fantastic investment to protect against the increasing inflation rate.
When inflation rapidly increases or decreases, there is always an impact on the broader markets.
There are many emotional triggers for investors…
But you may find that many investors sell the most accessible investment first.
For example, in recent times, we have seen the stock markets crash around the world and investors selling cryptocurrency as they are assets that are easy to sell.
But real estate is different in many ways.
Naturally, the real estate market will be affected by inflation.
However, for many, real estate is a long-term investment where many investors see their highest returns.
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