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Real estate, a thriving industry amidst the global pandemic

Real estate, a thriving industry amidst the global pandemic

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Despite the threat of COVID-19, forecasts for the real estate industry show that property as an investment remains a stable and safe option. Since the second quarter of 2021, demand for residential properties has been on an upward trend.

According to industry experts, the property sector has “continuously demonstrated resilience over the last decade, posting record highs in take-up, supply, prices, and land values.”

Similarly, despite the pandemic, data from research show that property investments yield consistent and lucrative returns, preserve wealth, and generate capital appreciation, demonstrating how real estate is one of the best long-term investments for individuals and families.

All of this highlights the fact that the real estate industry continues to be one of the safest bets for investors.

In the Philippine context, exclusive communities in Batangas have increased by 20 to 46 percent in comparison to their 2019 values, confirming the trend in the luxury property market.

Following a two-year pandemic slump, the Philippine economy is gearing up for a rebound, determined to reclaim its place among Asia’s rising economies. Reports indicate that multinational corporations are in expansion talks with the Philippine Economic Zone Authority (PEZA), the government agency that promotes the establishment of Philippine economic zones for foreign investment.

Leading real estate developer BRIA Homes, which continues to launch housing projects in key towns and cities throughout the Philippines, is at the forefront of all of this.

Known for its massive footprint of over 50 developments in major Philippine cities and municipalities, BRIA Homes is dedicated in bringing quality and value-for-money residential communities closer to everyday Filipino families.

Growing trend vs loan applications

While there is a growing global residential property industry trend, there is still a gap in the loan application process that connects consumers to banks. Homebuyers are still intimidated to begin their home loan search for a variety of reasons, including not knowing whether they are qualified for a housing loan from any of the local banks.

Despite various initiatives by both the private and public sectors to bridge the gap between financial institutions and unbanked Filipinos, a large proportion of the Philippines’ total population remains unable to secure, apply for, or obtain property and commercial loans.

Homebuyers facing higher interest rates

In UK, The Guardian reported that house prices hit a record of £282,753 in March but are likely to ease over the next year as homebuyers face higher interest rates and the cost of living squeeze, Halifax House Price Index has said. Halifax is UK’s longest running monthly house price series with data covering the whole country going back to January 1983. See topic: UK house prices hit record high but cost of living crisis likely to cool market.

According to Halifax’s monthly property index, the average cost of a home increased by 1.4 percent in February and is 11 percent higher than a year ago, the largest annual increase since the 2007 financial crisis.

The new high is about £28,113 more than a year ago, which is close to the average UK earnings of £28,860 over the same time period.

In the United States, financial institutions such as Bank of America and JPMorgan Chase have unlocked their own digital mortgage lending platforms with the goal of improving customer experience and lowering the possibility of fraud among borrowers. There are also rental assistance available online that can help during the current crisis and ease financial burdens like Local Housing Solutions and will provide housing response plans for tenants and landlords.

Everyone with internet access can easily adopt online systems and conduct convenient digital transactions. Property buyers and investors are encourage to use such platforms to avoid having to go out, visit banks, and obtain options from various institutions.

Digital and internet platforms aiding property investors

One of the websites that provide tools available on the internet that can help you calculate your payment, estimate your loan, and estimate monthly payments is MortgageCalculator.uk. It also provides an introduction to the UK mortgage market.

MortgageCalculator.uk help expand beyond the sort of standard user experience people find on most sites. Examples points of differentiation include: Instant Calculations and Amortizing and Interest Only Payments. They have also added a couple other calculators like UK mortgage affordability calculator, UK mortgage amortisation calculator, UK mortgage overpayment calculator, and UK remortgage calculator.

In 2020, the COVID-19 pandemic affected every sector of the economy all over the world. The UK Government published a guide on home moving during the coronavirus outbreak.

In October 6, 2020, Prime Minister Boris Johnson announced a 5% mortgage deposit scheme for first-time home owners. With 5% deposit guaranteed by the government, borrowers can access more mortgage products. This provides options for those who cannot not afford a 10% deposit.

The Bank of England (BoE) cut their interest rate to 0.1% as early as March 19, 2020. In spite of the BoE easing policy, many banks have tightened lending standards.

During lockdowns, far fewer homes were sold across the UK. This led to record sales from pent up demand after the initial lockdown ended.

Real estate recovering from pandemic slump

According to a Cebu-based real estate company quoted in a Philippine News Agency report, “the increase in sales and sustained housing demand is an indicator of recovery from the coronavirus disease 2019 (COVID-19) pandemic.”

The Subdivision and Housing Developers Association (SHDA) anticipates that the Philippine housing industry will expand this year as developers work to clear the backlog that accumulated during the pandemic.

This outlook was shared at SHDA’s first Kapihan session for 2022, titled “Paving the Way Forward for a Vibrant Housing Industry,” which was held on February 16 in collaboration with the Department of Human Settlements and Urban Development (DHSUD) as part of DHSUD’s third anniversary celebration.

The rebound in economic growth and recovery from the pandemic provides an excellent opportunity for homebuyers to seek out residential properties that will be ideal, particularly for those who are just beginning to raise a family.

While the cost and expense of property loans, whether purchased or rented, become the primary concern when making a major decision, the expansion of real estate construction projects allows future homeowners to benefit from convenience and access to essential destinations such as schools, hospitals, malls, groceries, banks, and pharmacies. As for mobility, BRIA communities are located close to major road networks and highways.

Through the use of the calculators from the website, MortgageCalculator.uk can assist homebuyers and property investors in making sound decisions.

Anonymous

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Admin - Metropoler

Metropoler is a social media-centric news website in the Philippines that covers the intersection of financial, business, media, tech, science, tourism, food, entertainment, art, politics, and culture launched on June 1, 2020.
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