The real estate market, though tense, has proven itself to be a great way to build wealth for those who invest in it. Investment tools such as Real Estate Investment Groups have made investing more effortless, accessible, and easier for Filipinos, but the number of investors remains low.
There are a lot of factors that keep Filipinos from investing in real estate, even in a country that is explicitly popular for the real estate market. To know what is stopping them from investing in real estate, we discuss six common fears that affect the investment decision of the Filipinos.
- Lack of Knowledge
Some people find investing very complex to learn and don’t give much time or thought. They fear that they might end up in significant losses with the lack of proper knowledge. However, with the help of professionals or a good realtor, investing in real estate can be a little simpler. If you know a reliable expert, you can explore your investment options with a bit of assistance.
- Low Income
The most obvious reason for low investment numbers is the low income of many citizens; lack of backup money makes investing impossible. People cannot give their limited savings on things that require huge investments. Another thing about real estate is that it is beneficial in the long term, so for some people waiting long on return option goes off the table.
- Cash Flow Mind
Some people don’t want to waste their budget or limit it by adding things they don’t see. They will pay a monthly premium for a vehicle rather than an insurance premium. It is difficult for some people with a cash flow mind to comprehend that real estate investments can get them more than any cash flow transaction.
- Distrust
When you start investing, it means you will be handing over your assets to a professional or company that will spend your money on their businesses. People face these problems of market trust and believe thieves are everywhere. That’s why instead of investing their extra money, they choose to spend it.
- Impatience
Everyone wants immediate results, but investing does not work that way. The idea of waiting is a massive blow to many Filipinos. Waiting is hard for some people, especially those who treat everything as an emergency and treat it the same way if they invest in real estate.
- Incorrect Definition
A common mindset believes that real estate investment is for the rich or the elderly who want to prepare for their old days. Most people are reminded of death when hearing of life insurance. Also, when talking about stocks, there is a thought that the market will collapse. But these things we learned about investing are a result of biased opinions. It is essential to educate yourself financially and learn more about what we fear.
Most Filipinos live in the present and try to stay happy with what they have, but it is vital to recognize the difference between our wants and needs. Our finances require equity, even if it means investing in real estate. Investment may not be for everyone, but you need to explore it first to be sure about it. Get into real estate investing with the help of a reliable platform and broker and know more about it to overcome your fears.