Lamudi, a global property website focusing on emerging markets, came out with a 2014 annual report supporting this.
After surveying property owners in PH, 72 percent indicated their reason for purchasing real estate is to have the security of owning their own house. Only 5.6 percent said the property is affordable, while 4.7 percent said they had financial help from family or friends.
But 14 percent said they bought a property as a form of investment.
According to Lamudi, this number will continue to grow in the coming years.
For real estate investors like actress Alice Dixson, she's come to benefit from this investment.
"I was living in Miami Beach for a while and my sister Josie and my brother-in-law introduced me to this real estate broker. He was selling Miami condos at that time, they were so cheap. He was going, 'if you have extra money, invest, invest invest.' I did but I wasn't sure about it. I was only in my 20s and I had no idea that it would quadruple in a matter of less than 10 years. I would have had 75 percent equity within 10 years of holding it," Dixson told ANC's On The Money.
Not buying the condo cost Dixson $240,000. After four years with an initial $60,000, the value of the condo increased to $300,000.
Although this was during the property boom in the US a few years ago, Dixson has since purchased more properties in the US and the Philippines.
But before you bring out your checkbook or line up for that property loan, Dixson has a couple of tips before committing to this big investment.
"First you have to build your line of credit, once you have this, even if you don't have money but you have regular income coming in, and the banks will see that," she said.
Dixson said you also have to pay your debts on time to show banks that you are a responsible borrower.
"Always equity in investing in property, especially in the right location. It can also be gold. You can never go wrong," she said. - ANC On The Money
source: www.abs-cbnnews.com
