Economist: Now is the best time to invest in real estate

Updated April 27, 2009 12:00 AM

CEBU, Philippines - While interest rates are currently on its lowest, consumers are advised to seriously consider investing on real estate or house and lot packages.

“Now, is the best time to build homes and take advantage of the low interest rates offered by banks and even Pag-Ibig,” said Cebuano economist Perry Fajardo.

He said the prices of homes and even other real estate properties are growing so fast, and Return-of-Investment (ROI) is assured.

Fajardo, who sits as the Dean for Economics Department of the University of San Carlos, said that prices of construction materials are now at its lowest, and while demand for construction works are not really that high nowadays, fees for construction workers and even the neighborhood “panday” is now very negotiable.

Significantly, he said banks are now extending their offering for real estate products, especially housing loans with very competitive interest rate packages, to cope with the tough competition in the banking industry.

Consumers are encouraged to take advantage of this favorable opportunity to invest on housing products, Fajardo said.

For monthly salary earners, it is the best time to utilize the Home Development Mutual Fund or Pag-ibig—housing loan, while everything is low.

“Those who do not have a lot—borrow a lot,” Fajardo said explaining that the market for real estate now is on the loose, while some or most consumers are tied with the impression on holding on to their money and investment plans-- until the economy recovers.

Fajardo said for the real estate opportunity--now is the best time to let go of their money. Aside from low interest rates, developers are also offering attractive packages for buyers to cope with the tough competition.

He emphasized that with the present volatile economic movement, real estate offers the most safe investment opportunity, as value is guaranteed to be increasing.

However, for faster ROI, Fajardo said “be sure to buy the right location” for real estate investments. Those lots acquired that is within the neighborhood of a developing area, growth of value appraisal is faster, than those located in the far-flung communities.

According to Fajardo, those who have money, and are capable of borrowing capital for real estate investment, and even to achieve the desire of owning a house—now is the best time to realize the plan.

In the next few years, when the economy settles and on its recovery tract assessment value for real estate products will multiply significantly, and those that are wise enough to invest in these lean times will reap the good returns of their investments.

Cebu, specifically is one of the fastest growing urban centers in the Philippines, investment for real estate is at its ripe time now, or else those that fails to act now, will have their regrets in the future.— Ehda M. Dagooc