Do you recall when was the last time that you could fill your car “full tank” for less than 500 pesos? As we have been recently surprised by consecutive oil price hikes, and an impending increase in prices of other basic commodities, we once again foresee a looming inflation that might hit us.
How can we possibly hedge or beat inflation? Can we protect ourselves and our assets from its risks?
As the government places Metro Manila and most regions of our country under Alert Level 1, the local economy is now coming back to life. But some economists are concerned with the light-speed return to normal life because too much and too fast consumer spending might result in higher demand, which in turn can potentially lead to an increase in prices and big-time inflation.
While inflation is a natural occurrence in the market economy, there are numerous ways to hedge against it, including investing in gold, commodities, alternative currencies, stocks, treasury bonds, and real estate. Such investments are often fueled by investors’ price speculation. For instance, people can speculate when stock values are about to go up. Foreign currency hoarding can affect exchange rates, values of jewelry can increase over time, and interest rates on bonds can also go up, which makes them more volatile. Among these options, real estate investment can provide higher gains with lower risks.
Real estate investors who are earning rental income can benefit more during an inflationary climate like this. A perfect example would be condominium unit owners. They can simply speculate rental rate increase coincides with inflation which is an opportunity to earn higher rental income.
Moreover, the values of real estate properties, particularly condominium units in high-rise developments in key urban areas, tend to stay in an upward curve, making it a good hedge against inflation. Purchasing a property today will definitely be a smart investment decision, especially when you buy during the pre-selling stage. In the coming years, its market value will appreciate, beating the effects of inflation.
If you are looking at renting out your condo property, you may choose a transit-oriented development in a bustling city, such as The Paddington Place in Mandaluyong. Just a 3-minute walk going to the MRT-3 Shaw Boulevard Station and a stone’s throw away from the Ortigas CBD, this 4-tower modern cosmopolitan enclave promises a strong leasing potential.
Another property that can guarantee you high returns on investment is the rising township in Pasig-Cainta area in the East of Metro Manila, the 22-hectare Empire East Highland City. Complete with a luxurious shopping mall, a sprawling green park, an exclusive sports club, and a private residential complex. This uphill community has close proximity to the newly opened LRT-2 Marikina Station and the upcoming MRT-4 Cainta Junction Station, which will also connect to the much anticipated Metro Manila Subway. These developments in the future will contribute to the township’s market value appreciation.
Beat the impending threats of inflation by investing in real estate today! Call (02) 8810-3333 or send an email to inquiry@empire-east.com to learn more about these prestigious residential communities by top-notch developer Empire East. Connect with us on social media to know the latest project updates and promos.
References:
Empire East Highland City
The Paddington Place
Mango Tree Residences
Kasara Urban Resort Residences
Covent Garden
The Rochester
Pioneer Woodlands
Little Baguio Terraces
San Lorenzo Place
