Homeowner or Lessor? A Millennial Can Be Both in Real Estate

Millennials are known to be goal-oriented, motivated, and confident in themselves. They tend to focus more on achievement rather than personal development. They are born with digital devices that bundle entertainment, communication, and shopping all in one. It’s no wonder you can find many millennials investing in stocks, bonds, and real estate.

So, if you were born between 1981 and 2000 and have those characteristics mentioned above, you are a millennial.

How Millennials Are Reshaping the Real Estate

Lamudi’s The Outlook Report 2021 shows that younger generations, or ages 25-34, are the most active on various property listing website platforms. Most are now interested in buying condominiums or properties near the city instead of renting. Their main objective is to pursue their passion or career without the hassle of commuting and traffic.

In fact, 43 percent of homebuyers are millennials in 2022, which triggers the other generations to invest in real estate. With their drive to fulfill their achievements and career stability with a higher income, they become the key driver in reshaping the real estate market in the Philippines.

Now, if you belong to this generation and are planning to make your first real estate investment, get to know the perks of investing in a house and lot in the Philippines. 

5 Advantages of Real Estate Investment for Millennials

Gone are the days when millennials used to be called “generation rent.” Thanks to being a tech-savvy generation, they become financially aware of what profits they can earn from real estate investing. 

Whether it is a condo or an affordable house and lot for sale, these are the perks of millennials in real estate investment.

1. It is a tangible asset.

Real estate properties have physical and financial value. Compared to other assets like stocks, hedge funds, or bonds, properties increase their value after a few years. Thus, it has long-term benefits, which is a good investment for the future, especially if you have plans to sell it.

2. It is your asset as a home.

Living in a property you call your own boosts your confidence and sense of fulfillment. Therefore, it is not just a typical home; it is an asset designed to fit your lifestyle as a millennial. Many residential communities are located near the business districts where it is accessible to support your needs. It includes shopping malls, government offices, schools, entertainment venues, and more. 

Moreover, having an affordable house and lot can be an ideal gift for your aging parents. Or, it can be a perfect home for you if you plan to start a new family.

3. Convert your home into a rental property.

The Philippines is among the most attractive country destinations as the global pandemic slows down. Many tourist spots like Boracay, Palawan, Batangas, and Cebu now accept domestic and foreign visitors. Owning a home near the top destinations in the Philippines can give you an edge to rent it out. 

Moreover, many college students are also looking for a place to stay near their schools. If your home is close to these schools, they can be one of your potential tenants. 

Placing them on various rental property listing websites like AirBnB or tapping a reliable property manager will attract more travelers and renters. It means you can be both a property owner and a lessor in real estate.

Important Note About Landlord Insurance Coverage

Regardless if it is your primary residence or not, you must ensure it is covered by personal property coverage or landlord insurance coverage, especially for rental properties. Standard homeowners' insurance covers all your personal items and liability within your home in case of destructive events like fire and earthquakes.

So, ask your insurance agent or seek an insurance company to include landlord insurance for liability coverage, property damage caused by prospective tenants, and lost rent or lease due to damage caused by a disaster.

1. You can enjoy tax benefits.

One of the significant benefits of buying a house and lot property is tax benefits. Your mortgage interests can be deductible from your income tax during the filing of taxes. Thus, it also lessens your tax burden.

2. It also offers emotional benefits.

Millennials are known to be passionate about what they want to achieve in life, especially in terms of financial freedom and stability. Buying a home helps you manage your income and become financially responsible. As a result, it makes you feel you have accomplished something from your hard-earned money, even at a young age.

Why Millennials Should Invest in Lumina Homes

Lumina Homes is an excellent investment for millennials due to the following reasons:

Affordability

Lumina Homes offer affordable housing packages for Filipinos. It is designed to meet housing needs without struggling to pay mortgages. They partner with several banking institutions and the government's PAGIBIG for affordable housing with the lowest interest loans. Hence, Filipinos have access to these programs to avail. Besides, it is also an excellent starter investment for first-time millennial buyers.

Suitability

Most residential communities of Lumina Homes are developed to suit every homeowner's lifestyle. These are modern-designed homes with various amenities and facilities that enable you to live independently and conveniently.

Furthermore, these communities are made for all ages. So, if you want your aging parents to live here, it can be an ideal retirement place for them. Lumina Homes feature an environment-friendly community so they can live a peaceful and healthy life.

Accessibility

As a young professional, you always prefer living closer to your work or passion. What's best about Lumina Homes is that they are situated near the city center. Most public amenities are a few minutes away from the community and sometimes walkable, so you can conveniently roam around. Plus, it has a safe and secure community. Expect that you'll go home without the worry of experiencing unfortunate accidents.

Enjoy a Great Lifestyle in Lumina Homes

Millennials often invest in stocks and bonds because they can easily be accessed at their fingertips. Being a tech-savvy generation made them more aware of how to become financially independent. But as time passes by, millennials begin to understand the importance of investing in a home property because they can also earn a profit from it. That is why Lumina Homes offers a housing community that will enjoy living and having a lifestyle of what millennials truly are. 

So, are you looking for the most suitable location and accessibility right for you? Get in touch with our accredited sellers now. We have over 50 key locations you can choose from for millennials looking for homeownership and excellent investments.