Is Buying a House an Investment

Mabalacat Pampanga house buying as investment

Looking for an investment or a house? There are numerous house and lots on sale in Mabalacat, currently. Marketers use the words “invest” liberally, and one must pause and think why so. Are houses really investments or are they mere structures to serve as our shelters? If the purpose of buying them is not to resell or rent them out then how can houses be investments?

Investment by definition is expending money with the hope of earning income or profits from the assets bought. It’s not debatable that if one leases out the ready-for-occupancy (RFO) house he or she bought that it is an investment. Collecting rents across multiple months, through years, can both pay you back your capital and thereafter earn you profits. It should take time, but the asset is yours even for generations to come. The house can be passed on as inheritance to one’s child and as long as the house is kept in good condition can last for several decades.

Time is a Friend of Real Estate Investment

Through time, generally, it’s been proven that house and lots and most any type of real estate appreciate or increase in value. Thank the Law of Supply and Demand for this. As population grows, and it rarely goes reverse, more people demand homes to live in. This is while the supply or availability diminishes. True, condos of the vertical kind, the high-rises, may appear to dispel this assertion. However, real estate is location specific and each unit is unique. A buyer or renter has eyes set on particular areas only or particular types or qualities. This makes options or the effective availability narrower or more limited. Land is finite. Your choice of home is limited.

Whether one buys a house to live in or rent out, the house continues to grow in value through the years. Depending on location, but the rate of increase in real estate prices in most places, hover around 3% to 6%. How much does your money in the bank grow?

Location as a Factor for Value Appreciation of Homes

The area of Mabalacat City in Pampanga is one of the places where property appreciation can be expected. The development of Clark, the numerous infrastructure projects being built surrounding it, the inflows of investment from foreigners and local corporations and the inherent industriousness of Kapampangans help push the growth of the area. 

Another alternative that some house and lot buyers do is buy-hold-and-sell. Once they’ve fully paid the price, they wait for a proper time where they’d be happy with the margins they can gain when they sell. For some, it takes a few years, some just a few months. Others make improvements, renovate, or add finishes to the bought house to make it more attractive. The added value will be reflected in its new price more than offsetting the cost on improvements made.

If one uses the house as one’s own home and has no intention to sell or rent it out, could it still benefit him financially. The answer is “yes”. Once the house is fully paid, one can use it as collateral to a loan. If the loan will be used for a business or a money-generating project then the house served the home-owner financially. One risks to lose a home doing this, so be forewarned. Unless you are certain of the viability of your investment, try using other securities for your loan.

Thus, whether you buy to live in it or buy to rent out or resell, house and lots do make a great investment.

Mabalacat City House and Lot

Ideal House Investment

Talanai Homes in Sapang Biabas, Mabalacat City is one good property to invest in. It’s not yet at its prime, meaning it has more room to grow. Prices now are comparatively lower than in the city center; but eventually, with said developments, prices will rise. Take advantage of such opportunity. Be where prospects of progress are better. Choose investing in better quality products with affordable prices. Profit can be better enjoyed or life can be better lived in such a developed community.

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