Real estate is consistently a wise choice when it comes to investment. Perhaps you already own a property and want to invest in more properties through home loan, or perhaps you’re an OFW who wants to spend your money carefully in order to provide a comfortable life for your family and reconnect with them as soon as possible. One way people might achieve this is by investing their hard-earned money in reliable assets, like getting a property in the Philippines. But purchasing and owning property can appear intimidating to Filipinos who are new to this endeavor. In either case, it’s critical to understand the fundamentals of real estate investing. Stocks and bonds cannot guarantee growth and stability, but real estate can. Even if you’re a novice investor with no prior knowledge in this industry, your first property purchase might turn out to be profitable. Hereby, it’s critical for real estate investors to comprehend the idea of property appreciation. Why does real estate appreciate? Simply put, property appreciation is the rise in the value of a certain piece of land. This could be caused by a variety of factors, including population growth, inflation, and economic situations, and may be determined using home appreciation calculator.
Property Appreciation
The increase in value of a real estate asset over time is known as property appreciation. As it may affect the rate of return of investment and the amount of equity that can be built up, property appreciation is important to take into account when making a real estate investment. Location, the state of the economy, the facilities offered by the property, and the market trends are some of the variables that might affect property appreciation.
Your property’s market value rises in tandem with its price growth. Given that there is a bigger demand in the fair market, selling properties following price appreciation implies that you get to make more money than you did when you first bought it. A price increase also increases your equity. Then you can utilize this to get home loans to enhance your property and raise your net worth.
Computing the Future Appreciation of your Property
Due to its consistent appreciation value, real estate, whether it be a lot or a house or a condominium, is consistently an excellent investment. As development never stops, property values rise. For instance, a development complex can provide an amenity that will draw more people, raising demand for the nearby properties and their value.
You’ll find it important to know your property’s value if you’re thinking about selling it, attempting to figure out how much of a stake you have in a shared property, or need to report your property’s value for tax purposes. If you want to calculate the appreciation value on your own, the first thing you need to know is your property’s market value. This represents the price that the current market would be willing to exchange for the property. The following are the procedures you can follow to generate a good estimate:
- Evaluate your property by comparing it to the nearby properties. You may visit the Bureau of Internal Revenue (BIR) website to see the zonal values per square meter for your neighborhood, or just search online for homes that are currently for sale nearby.
- Pick a property that is nearly identical to yours, then jot down a list of the similarities between the two. Compare them based on their location, size, shape, and, if a building, the quality and care of the property.
- Make 5% to 10% changes to the property’s value. Reduce the price by 5% to 10% if you believe that another home is preferable. Do this for each factor. To determine your net adjustments, add up all of your “adjustments,” then multiply that amount by the property’s transaction price. That roughly represents your property’s market value.
- Attempt to be really objective. No matter how objective you think you may be, it is inevitable that you would show a little partiality for your own properties. It is challenging to distinguish between special values attached to properties by owners or buyers and the market worth. Depending on the sort of property you own and the purpose of the valuation, a licensed appraiser will be able to assist you in determining market worth utilizing a variety of approaches to value.
The simplest way to figure out how much a property has appreciated is to divide the current market value by the initial cost, then multiply it by 100. You may now see the property’s appreciation represented as a percentage.
To compute for the future appreciation, you may use the home appreciation calculator tool. Home appreciation calculator is used to predict the future value of your home. The future worth of a property is calculated using the present home value and the annual appreciation rate. City by city, there are differences in the rate of house appreciation. How quickly or slowly a property can appreciate is not subject to any strict rules. The location of the home, the general state of the economy, and the stock market are some of the variables that affect the rate of appreciation. Some years may see a greater increase in home values than others. A housing boom can cause prices to soar, while a recession might cause them to plummet.
After careful calculations, you will establish an appropriate expected appreciation rate for a property. The rate of home appreciation will vary. It is conceivable for them to rise sharply one year, hold steady for a while the next, or even fall during a recession when people are losing their jobs and homes are being foreclosed upon. For the sake of simplicity, we shall estimate the future value of a property using a constant appreciation rate. To utilize the home appreciation calculator, follow the formula:
A = P(1+ r/100)^n where,
A = The final value of home price
P = The initial value of home price
r = appreciation rate
n = number of years
Knowing the true value of your property will ease your mind knowing that, if the time comes to sell it, you did it at the right moment and will receive what is fair.
Get the Most Out of Your Property with Bria Homes and Home Appreciation Loan
When searching for your first or next piece of Philippine property investment, Bria Homes is the place you need to start looking. Although there are many other properties available in the country, you should always choose with the one that offers high-quality yet affordable house and lots and other properties like condominiums. Aside from that, the one that offers rent-to-own homes at affordable pricing. These are catered by Bria Homes which makes it perfect for Filipino families.
Bria Homes offers three standard house and lot packages to Filipinos throughout the nation. The project locations available for consideration total more than 50. Whether you choose to move to Mindanao, the Visayas, or Luzon, there is a Bria Home for you.
You can experience priceless bonding moments with your loved ones for generations by making the investment in the safe haven your family deserves. If you’re looking for a house and lot for sale, make Bria Homes your top pick.
Bria Homes and Pag-IBIG Fund also work together to help Filipino families. Using Pag-IBIG funds, you can pick from a variety of Bria Homes residences. Specifically, you can borrow money at extremely low interest rates based on the net value of your home to finance other life goals, home improvements, car purchases, furniture and appliance purchases, and other purchases through the home appreciation loan.
With the Pag-IBIG Home Equity Appreciation Loan (HEAL), eligible Pag-IBIG Housing Loan borrowers may apply for another loan based on the net value of a mortgaged property. Existing borrowers are eligible to apply for loans with extremely low interest rates and lenient terms that are repayable over a maximum of thirty (30) years.
