How strategic property planning, asset protection, and long-term thinking can safeguard real estate investments despite market volatility
As we persevere through this phase of uncertainty and volatility, securing the future of our resources, particularly with real estate assets, is a top-of-mind preoccupation and a firm priority. We must guard our real estate investments and protect them from any possible risk and untoward challenges, while keeping an open mind about opportunities to take advantage of. Nonetheless, this is not the time for an aggressive gamble. Instead, we should be putting our focus on how to glide through and surpass the current financial landscape.
Secure your assets. Safeguarding ownership is the chief step in the protection of properties. Any pending issues that can clip title ownership should be processed expeditiously for immediate completion. Minimizing delays in title documentation should be prioritized.
Focus on the Long-term. Real-estate investments don’t always bring immediate returns. With the understanding that values increase over time, it is important to be prepared and be accepting of the fact that short-term losses are a part of the process. “To stay ahead of inflation, focus on long-term value by keeping your property well-maintained and ensuring your legal documentation is fully updated,” according to Roque Sorioso Jr., President of Aviso Valuation and Advisory Corp., “That’s my advice. A clear title, and a patient ‘hold’ strategy is called for because I expect any inflation to eat up any gains in the short run. A focus on security and maintenance when costs rise will aid your asset, outpace inflation and protect your equity over time.”
Consider Income Generation. Ownership of a property gives one the liberty to make use of tangible space as a means of passive income. Whether it be through leasing it out, or making use of a property as headquarters for a business or service, the added revenues aid in increasing the means to cover daily expenses. To shed more light on the matter, Real Estate Consultant, Pedro Picornell says, “One major way of securing your real estate assets during times of uncertainty is to focus on income stability. Prioritize a longer contract even if it is at a lower rate to make sure that the property is always generating income.”
Avoid Emotional Speculations and Focus on Permanency. Real estate purchases are a preferred investment for Filipinos. However, the type of real estate matters in unstable times such as this one. Productive real estate that one may benefit from the most could be a choice between residential rental properties, commercial rentals, or even productive farmland. This would depend on one’s expertise, location and budget. To secure stability, one must go with the most pragmatic choice, and not take a chance on the unrealistic or aspirational, no matter how enticing it may look.
Diversify and Trust the Professionals. Diversification is one way to cushion the volatility of real estate markets. One can diversify within the bounds of real estate, or, one can explore options outside the property sphere. Trusting the right people is paramount in helping one make the best and correct decisions for financial stability during unpredictable times. Mike Ferrer, Chief Executive Officer of asset management firm ATRAM affirms, “Filipinos can stay confident even during challenging times by prioritizing diversification, disciplined investing, and professional asset management. In order to diversify, investors may want to consider expertly managed funds, alternative investment opportunities, as well as strategic real estate assets which help protect wealth, navigate uncertainty, and build long-term financial security.”
The country is still currently abundant with expansion and development, and holds a growing population that is ceaselessly future-focused. But for now, it is the virtue of patience that needs to be practiced, together with the determination to ensure financial security through acute rationality and proper preparation. Given that it is impossible to fully eliminate risk, especially through a period of uncertainty, the Philippine real estate and investment landscapes still present a very promising future.
