Making money in real estate is more than just renting out your property. There are a lot of creative ways that you can employ to earn big from your property investments that don’t always involve dealing with tenants or shelling out a hefty capital.
Here are some investment strategies that can make real estate in the Philippines work for you this 2019:
Long-term residential rental
Renting out your property is one of the easiest and most common ways to make money out of real estate. Having a property in a prime location gives you the best chance to rent it out to a long-term tenant.
You can also use the income you get from your rentals to pay off your mortgage. Just make sure that you choose your tenants wisely so that they can positively contribute to your real estate income.
If you want to make a profitable side hustle through real estate, then you should look into short-term rentals. (For Avida properties you can enroll your unit with Avida Leasing Services to help find potential tenants.)
Once again, the key to making short-term rentals a substantial passive income stream is location. Your property should be ideally within a tourist hotbed with high traffic.
It’s also important to note that your occupancy rates may fluctuate depending on the season. Guests may also be more demanding than long-term tenants, so you should maintain your property to keep up with the competition within your area.
Commercial real estate rentals
Investing in commercial real estate is one of the most lucrative ways to earn big on properties.
People always need retail and office space for their businesses. Since the people renting your property are business owners who generate income themselves, you can impose a higher rental fee on them than residential home renters. You also get to collect rental income from more than one business if your property is big enough to house them.
Consider doing this if you’re already a seasoned real estate investor who has a hefty capital and knows how to add value to your property through upgrades and renovations.
Buy and hold scheme
Buying and holding real estate is a conventional way of making money in properties.
In this method, you buy a piece of real estate and hold it as long as possible before selling it for a bigger profit. You may opt to have your property rented out, or you can live in it for the meantime and sell it once its property value has increased over time.
Flipping a home
Another way to earn big from real estate is by flipping houses. You buy a rundown house, renovate it to make it livable, and sell it for a higher price.
While this is a profitable venture, it’s important to select the right home. Otherwise, you might find yourself on the losing end.
To do this successfully, make sure to choose a home located in an attractive neighborhood. Take into consideration the money you need to spend on repairs and renovation, as well as its value after the repair. It’s best to consult a general contractor to get accurate estimates.
Don’t have enough cash to pull off the strategies mentioned above? In the next article, we’ll show you more strategies to earn big from real estate in the Philippines even if you don’t have a huge capital to start with. Explore avidaland.com to see what properties fit your budget and preference. Happy house hunting!