Philippine Real Estate: Is Your House an Asset or a Liability?
For many Filipinos, owning a house is a major life goal and, traditionally, a significant financial milestone. But in the Philippine real estate market, what does it really take for a property to become a true asset?
Turning Property Into Profit
A house becomes an asset when it starts putting money into your pocket. One common way is by renting it out, especially if it’s located near business districts or tourist spots. Platforms like Airbnb have also opened new opportunities for homeowners to earn from short-term stays, particularly in cities with growing tourist traffic.
Creative use of space can also boost income potential. Some owners tap into the remote work economy by converting parts of their houses into coworking spaces or small studios. Others explore property flipping or long-term leasing in emerging areas with strong potential for value appreciation. This is where understanding Philippine real estate can help you identify profitable opportunities.
Real Estate Investment Options
There are now many ways for Filipinos to make real estate work for them, provided they use their property wisely and focus on building wealth. Beyond traditional homeownership, Real Estate Investment Trusts (REITs) offer a passive investment route, allowing people to invest in income-generating properties like malls or office buildings with as little as ₱5,000. Popular options in the Philippines include Ayala Land REIT, Citicore Energy REIT, and Megaworld REIT.
Flexible ownership schemes such as rent-to-own and pre-selling units also make real estate more accessible, especially in growing areas outside Metro Manila.
READ: How Megaworld and JLL Are Reimagining Real Estate in PH
So, is your house an asset or a liability? The answer depends on how you manage it. If your home generates income through rent, short-term stays, or appreciates in value, it becomes a genuine asset in the context of Philippine real estate. However, if it only drains your resources without returns, it risks becoming a liability.
