Effect of Pandemic in the Markets and Real Estate

 

The COVID-19 crisis has brought the world on its knees and has greatly affected our lives in different multitude of aspects since its onset last January 2020. Millions of lives lost, way of living was uninvitingly transformed, several finance sectors drastically plunged, thousands of jobs lost, people moving to the provinces affecting properties or real estate sectors, among others. 

I, for one, has diversified my position with the market and properties. And although, properties do not usually decrease its value, pandemic has proved us otherwise leading to a massive -50% decrease on the rental prices in Metro Manila as young professionals of several industries resorted to work from home set-up. Hence, opting to go back or go to the provinces where cases are low, low cost of living, and better way of life while maintaining their jobs. 

Before the pandemic, I have even planned to add more investments in the real estate sector. But it was a blessing that plans changed because it would have led to a much difficult position today. Today, however, given that prices were forcibly changed to its lowest. It would be wiser to do so given that the Philippines has reopened its borders internationally and domestically. Vaccination drives has been given to more than 50% of the population leading to more movements in the country. The industries are slowly returning to office last March as well, resulting to a surge of people looking for places to rent as they slowly come back to the metro. 

When considering these options, one must be aware of the current interest rates offered by local and international banks in the Philippines, how to calculate the payment terms, what is the estimated loan amount, what is the estimated monthly payment options offered. Over the pandemic period, I have been re-assessing my positions and visiting https://www.mortgagecalculator.uk/ to do these kind of considerations. The calculator may originally cater in UK market but the math for the monthly payments works the same just about everywhere other than the currency units and prices. It also offers graphs of loan repayment along with the monthly or yearly amortization tables using.

 

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