Filipinos prefer to invest in properties

By Mia A. Aznar

Monday, May 2, 2011

ALTHOUGH there are many other products to invest in, an official of a real estate company admitted that most Filipinos prefer to put their money on property.

Thomas Mirasol, head of sales and marketing of Ayala Land Premier, said investing in real estate is simple and it is generally seen as a good investment.

He also noted that in Cebu, local options for rental are seen as limited, which drives up rental rates.In a recent forum on money and investment, Mirasol said real estate should not be the only investment.

Advantages

Still, he said there are advantages to putting one’s money in real estate.

Mirasol said that real estate is considered more stable and non-volatile, compared with other investments.

He said that there is no need for too much study on real estate, compared with investing in the stock market.

And unlike time deposits and other investments, Mirasol said the investor can use his
investment by either living in it or leasing the property.

Another advantage he cited was that real estate is mortgageable and the investor will be less nervous about it compared with other investments.

He admitted that the downside to investing in real estate are the liquidity and high tax and holding costs.

Asked if there could be a saturation of the market for real estate in Cebu, especially in vertical developments, Mirasol assured that developers will stop building as soon as they realize people will stop buying.

But should developers stop building condominium and office buildings, Mirasol said this would not mean that the value of property will go down.

Mirasol pointed out that the development in Cebu has not been “intense” until recently and that currently, there is not a single lot for sale at the Asiatown IT Park. He added that the buildings at the IT Park enjoy 99 percent occupancy while the remaining one percent are small spaces that have not been considered because these did not meet requirements of companies in need of office space.

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