"The Time To Buy is When There's Blood in the Streets." - Baron Rothschild
With the ongoing pandemic and the disruption of business and everyday lives, In the past few months, there are a lot of negative news being reported from negative economic growth that lead to recession, inflation of basic commodities including food and rising fuel costs, and the rising unemployment brought about by this sad ordeal in our country because of complacency and lack of foresight among key leadership. There are still opportunities arising from the sudden halt of our existence. People have learned to adapt in such events and scenario for the good or bad.
Land and Property Values Rising
Land remains number one investment for speculators with big capital. Either to be used for different purposes like, agricultural, industrial, residential and commercial use or just for plain speculative purposes of buy, hold and later sell-off it has become lucrative for many. Many developers have been doing land banking for more than two or more decades before developing the properties from "urban planned townships" complete with residential neighborhoods, commercial shops, industrial sector for manufacturing, warehousing and a lot more which were written in our previous article "A Look Back on 2020 and Beyond: The Philippine Real Estate Sector".
Rising Foreclosures and High Defaults
There are a number of residential condominium owners who are selling off their property due to loss of tenants coming from the POGO sector which are mainly employing foreign workers from China. Property rentals have artificial growth over the past three years and have normalize recently. While residential condominium felt the effect of economic loss. Recently, bank have tightened their loan requirements because of the rising cases of real estate defaults and foreclosure due to P 7.7 billion economic loss and the current recession ordinary Filipinos are experiencing. We have written an article on "Getting Your Hands on Foreclosed Real Estate Properties: An Investment Strategy" a few years ago and still relevant with current situation.
Demand For Provincial Residential Properties Growing
Growth areas like Central Luzon have been trending over the past few months as people are looking for better places to live, work and relax with less stress and pollution unlike in Metro Manila which is overpopulated, polluted and have bigger disparity in cost of living among rich and poor.
Conclusion
For speculators, investors or those who still have liquidity on their hand, opportunities abound the bold person with real estate as a connecting factor to one's fortune. Some financial advisors who have no knowledge of how real estate work would might argue that real estate is not liquid - meaning hard to sell off or dispose this asset but it truly beats inflation.
For our country to recover, an implementation, execution of the roll-out of vaccines would be needed to open up the markets and move the economy again.
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About the Writer
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