Why Buying a Second Home Is a Good Investment for Filipinos
Real estate is one of the most popular investments for Filipinos who have cultivated a solid financial bedrock with their hard-earned money. And in recent years, more Filipinos are turning to real estate as a way to elevate their lifestyles and build their wealth. Owning a single “forever home” is often the ultimate goal, but with the Philippine real estate sector geared towards post-pandemic recovery, now is a great time to look into top-of-the-line homes to serve as a second residence.
More than just a means to pursue indulgence, purchasing high-end properties also brings a lot of practical benefits—both for you and your successors. Beyond the immediate perk of having a “rest house,” owning another home also brings advantages in the way of refuge, convenience, and income generation. To illustrate further, here are some of the key reasons why investing in a second home is one of the wisest decisions you will make.
You Have the Assurance of a Retirement Home
One important aspect of retirement planning is determining where you intend to stay. If you want to make the planning process easier, you can buy a second property that will serve as your retirement home. Some retirees prefer apartments or condominiums due to their convenience and easier upkeep, but this choice often comes at the expense of space and mental well-being, especially if the property is located in a crowded and busy metropolitan area. On the other hand, properties in locations that are too geographically isolated can be inconvenient and unsafe.
As such, you may want to consider properties in areas that balance urban practicality and rural comfort. Lipa City in Batangas, for example, is an economically competitive area that aims to offer the conveniences of the metro while still allowing residents to enjoy a more laid-back vibe. Purchasing a premium house and lot for sale in Lipa, Batangas, like one of the homes offered by Golden Home Realty Development in the Periveo development, will benefit seniors and their families who need easy access to essential services and establishments but prefer the elements that only a probinsya can provide.
You Will Get a Practical and Private Space
Most Filipino families, especially those who originate from urban environments like Metro Manila, prefer owning second homes in the countryside or suburbs to maximize the benefit of greenery, fresh air, and utmost privacy. In addition, staying at your own home in the provinces is usually more practical and cost-efficient than renting a villa or booking a hotel suite for out-of-town vacations.
On a related note, a lot of families also use second homes as an alternative to dorms or boarding houses for their children who need to study or work in far-off locations. Having the option to lodge in their own homes will help students and working adults in the family save on boarding expenses and eliminate rent-related hassles.
Relocating and Evacuating During Emergencies Will Be Easier
Relocating for a job entails a lot of preparation as a family. You need to move your possessions, have the kids transferred to another school, and work on settling in. As mentioned previously, having your own property is a pragmatic option since it relieves you of the burdens associated with finding lodging. Without a home in the area, you will need to spend time hunting for apartments and periodically shelling out money for rent as a long-term tenant.
Another key benefit of having a second home is the assurance it brings in times of disaster. The Philippines is frequently riddled with natural calamities such as typhoons, earthquakes, floods, and even volcanic eruptions, which can displace families from their homes. Disasters can also come in the form of health emergencies, with highly infectious diseases within households or families having the capacity to put everyday routines on hold. Besides all that, our homes are not immune to the effects of fire, water leaks, and other forms of property damage.
That said, a second home can serve as your family’s shelter and quarantine house in times of crisis. Even though Filipinos are naturally resilient, you still need to keep your family safe in a reliable shelter when unforeseen circumstances hit.
You Can Earn Passive Income
A lot of investors buy real estate to diversify their wealth portfolios and generate long-term income. That said, investing in a second property gives you an opportunity to gain another income stream and sustain a stable source of funds.
If you don’t intend to use either of your properties frequently, you can lease one of them out as a transient house or vacation rental. Alternatively, you can become a landlord and lease out your property to long-term or short-term tenants. The profits generated will serve as your passive income, which you can use to fund additional costs for maintenance, improvements, amortization payments, and real property tax.
You Can Pass Down Your Property to Future Generations
Homes are great forms of inheritance that your children will benefit from as they grow older. Once they inherit your home, they can use it to experience the other advantages mentioned on this list. Property values also tend to appreciate over time, giving your children the assurance of shelter in a tough real estate market as well as high returns from selling the property in the future.
Whichever way your children choose to make use of your property, owning another home is a win for the whole family. At its core, the home you pass down to future generations serves as your legacy—the ultimate symbol of your love as a parent—and a way to preserve and grow your generational wealth.
A Few Things to Consider
We’ve already established that a second home is a good investment, but there are a couple of things you need to consider before buying your property. Apart from the location, you must also assess the property’s value and how urgently you need to buy the home. Mapping out a reasonable timeline and identifying your ideal location is essential to making investments you won’t regret in the long run.
But regardless of what purpose your second home might serve, you need to have an idea of what the property will mean to your family in the years to come. Because no matter how much your property costs, it’s the good memories and sense of safety that make it a worthy investment in the end.