Overcome Inflation Through Condo Ownership

The inflation rate in the Philippines is not expected to go down anytime before the end of the year. According to Bangko Sentral ng Pilipinas (BSP) Governor Benjamin Diokno, they will continue to monitor emerging price developments and inflation’s effects on the cost of living.

But how does inflation affect us? Are there ways to save ourselves from this inevitable situation? Read on to learn about inflation and what we can do to overcome it.

What are the Effects of Inflation?

The continuing fuel inflation, along with the increase in food prices, goods and services, wage and price controls, higher prices in electricity rates, and peso devaluation are the sources of consumer price inflation. It is also a loss for the consumer’s purchasing power because their income cannot keep up with the controlling inflation.

Take note that inflation already happened in the past. Germany experienced hyperinflation after World War I. The country experienced economic hardships and hyperinflation due to the large number of reparations it has to pay in the aftermath of the war. Germany printed paper notes to buy foreign currencies, which also led to high inflation rates.

In today’s generation, the Singapore Department of Statistics’ Consumer Price Index (CPI) reported that food prices in Singapore rose to 49% between the years 2001 to 2020. Prices on public transportation also increased by 30%, healthcare by 50%, and education by almost 74%.

Further policy hike rates in the Philippines also heightened. The Bangko Sentral ng Pilipinas (BSP) forecasted that the inflation rate will hit between 6.6 to 7.4%. The BSP said in its statement that it is prepared to take further policy actions to bring inflation toward a target-consistent path over the medium term, consistent with its primary objective to promote price stability.”

How can Condominium Units be an Investment

How to Fight Inflation?

Since inflation is not a new concept, the government has already thought of ways to keep inflation at an optimal range that promotes economic growth without losing the country’s purchasing power of its currency.

Overcoming Inflation #1: Price Control

The first step the government does is to cap the prices of particular goods and services. Wage control is also implemented to prevent wage and cost push inflation. However, this method seems to be ineffective, just as what happened in the United States in 1971. Former US President Richard Nixon implemented price controls to counter inflation, but the US government was not still able to control inflation as it skyrocketed to its highest level since World War II.

Overcoming Inflation #2: Contractionary Money Policy

The contractionary money policy is a new method of fighting inflation by reducing the money supply within the economy by increasing interest rates. This results in slower economic growth by making credit more expensive, thus reducing spending for both businesses and consumers. This policy is used by the United States Central Bank, known as the Federal Reserve, to control inflation.

Overcoming Inflation #3: Investing

For investors, it means it’s high time to move their financial assets elsewhere that would keep their money supply growing. Some invest in stocks as stock prices rise during this period, while others invest more in themselves so they can afford to buy things during these uncertain times. You can invest in the following assets:

Overcoming Inflation #4: Commodities

Investors always turn to their tangible assets when inflation spikes as their values also rise. Gold has been one of the leading commodities for centuries. You can buy gold from a bullion or con dealer, but you can also buy it indirectly by investing in an exchange-traded fund (ETF) or mutual fund that owns gold. Other commodities include agricultural products or raw materials like copper, oil, cotton, and soybeans.

What are the Effects of Inflation

Overcoming Inflation #5: Stocks

Stock prices always keep with inflation. However, not all equities are the same, as some high dividend-paying stocks get mostly hammered like fixed-rate bonds when inflation hits. Investing in stocks may be risky, and that’s why investors must choose companies that pass rising input costs to their customers.

Overcoming Inflation #6: Loans or Debt Obligations

Loans are also a great hedge against inflation. Banks and financial institutions can raise interest rates charged so that the return on investment (ROI) keeps up with inflation.

But for real estate brokers and investors, real estate works in overcoming inflation. They highly advise acquiring luxury real estate before the inflation rates get high and prices rise.

Overcoming Inflation #7: Real estate

Real estate is considered the most effective hedge against inflation. Research shows that luxury real estate investments have a low correlation with equities and bonds and provide diversification benefits. This means that luxury homes have more stable and predictable returns on investment than other investments mentioned above.

But what benefits can we get from real estate investments? The first beneficial aspect of having real estate is that its value appreciates over time. According to Zillow, property values increase between 3% and 5% annually.

The second benefit is the increase in rental income. If you own a luxury condo unit and decided to rent it, you will additional cash flow monthly for that rent. Higher home prices can also lead to higher rent prices and it will also generate even more cash flow than your original investment.

If you are an investor, and you want to overcome inflation, owning a luxury real estate is ideal. But if getting a house and lot for sale may be too intimidating for you, you can opt for owning a condominium unit.

How can Condominium Units be an Investment?

Owning a condo unit yields a higher return than cash savings in commercial banks. That’s why it’s a good idea to invest in pre-selling condo units because by the time it is finished, their value will have increased.

Here are some ideas on how owning a luxury condominium unit can help you combat inflation.

Own an Already-Appreciated Condominium Unit

Buying a pre-selling condo unit means you can look forward to a brand-new and fully furnished unit. The best part is that you also receive investment returns even if you don’t have the physical property yet!

CBD places in Metro Manila, such as Alabang, are one of the most sought-after places for investment. You can look into condo units in Portofino to see their units being sold at lower prices.

Spend Less and Earn More with Pre-Selling Condo Units as Prices Rise

Pre-selling condo units are known for low introductory prices with low-interest rates. These units are also great for investors to expand and diversify their portfolios. And once you own a condo unit, you can have several strategies in the financial market, so your money supply grows well to fight inflation. Brittany offers modern and world-class luxury condominium units that will surely fit your household budget.


As price increases over time, having a stream of income from your condo unit is a good idea. And once you have a steady cash flow, you can use it to reinvest in other assets. In the long run, investing should be done in this way so that your finances and investments would not remain static.

How to Overcome Inflation Through Condo Ownership

Pros and Cons of Investing for Inflation

There will always be pros and cons to any type of investment, but investing for inflation can be a bit riskier. Here are the cons of investing for inflation:

  • Risk exposure
  • Diversion from long-term goals
  • Overweight portfolio

If you have a certain financial goal and you want to preserve your portfolio, don’t swerve and divert from your goals. Always invest depending on your risk appetite and comfort zone.

On the other hand, investing for inflation doesn’t always mean it’s not a smart move. The pros of investing are:

  • Maintain or increase in purchasing power
  • Diversify holdings
  • Preserve portfolio worth

Diversification can lead to asset-growing strategies, such as investing in luxury condominium.

Have your Condo Lifetime Ownership with Brittany

Now that you’ve decided to invest in condominiums, make sure to consider Brittany Corporation’s luxury real estate! We have a list of properties to choose from to have a world-class living experience.

To know more about Brittany, you may visit our website, LinkedIn and Youtube accounts, or give us a call at 55-8BRITT local 0335-36. Our customer service agents will provide you the best deals as you are getting one step closer to your new home.

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