After two years of uncertainty and instability brought on by the pandemic, the Philippine real estate market is finally ready for a comeback. Investors will have the chance to purchase properties before prices reach all-time highs.
With the country's recovering economy and booming tourism, knowing how to profit from real estate investing will be helpful during these times. Specifically, a condo unit investment will produce revenue either through generating passive income over time or by selling the entire unit for more money.
Who wouldn't want to earn extra cash while you are sleeping? Continue reading for suggestions on how to earn passive income from a condo rental business in the Philippines.
1. Rent Out Your Condo
Investing in rental properties is a common method to generate passive income. You can rent out your condo units to students, families, professionals, and expatriates depending on its size and location.
Since the Philippines is undergoing a real estate boom, condominiums are strategically located in high-traffic areas, such as core business districts and tourist spots, mostly in Metro Manila.
Urban professionals and students, for example, have proven to be a highly profitable renting market. In addition, unit owners can also benefit from a growing number of international students coming to the Philippines to study.
City dwellers, both young and old, appreciate the condos' proximity to their workplaces, universities, and favorite locations to unwind. They also like the convenience of on-site amenities such as gyms, recreational areas, pools, and atriums.
2. Rent Your Parking Space
Did you realize that you could rent out your parking spot? Parking spaces in condominiums are typically limited. If you don't own a car or are renting out your condominium unit to tenants who don't, you can charge for a separate rental fee.
You can also offer your parking space to your condo neighbors. Some cannot afford to buy a parking space right now and would like to rent one instead. You can ask the administrator's office whether there are any tenants looking for one and simply ask the property developer if parking spaces can be rented.
3. Rent Your Condo As A Vacation Home
You may have purchased your condo as a second home or a midway house in the city, and you may not use it frequently. Or you may have purchased it as a retirement house, and it will be a long time before you need it. Or you may be living overseas and purchased it as a holiday property and would like some assistance in paying for it.
If any of the following conditions apply to you, you may want to explore condo rental property business to earn passive income.
Many people who want to stay in a city for a few days want something that seems like a second home, a place where they can cook and do laundry and other similar things. They may also choose a facility that provides more than just a room and includes a living area and a kitchen, but is still less expensive than a typical hotel stay.
Condo rentals are the answer, especially given they provide the same hotel-like amenities like swimming pools, landscaped gardens, and comfy lounge areas. Now is the time to put your resort-style condo investment to good use.
4. Purchase Pre-selling Condos
Pre-selling and re-selling condominium units are frequent strategy for generating passive income in real estate. Pre-selling refers to developers marketing their units to customers before the development process begins.
This means that condos are sold before they are completed, and developers can compensate people who purchase pre-sale units by giving them first pick from their inventory of properties.
You might profit from this business idea if you buy early. The pre-selling price of the condo rises almost every time a tranche of inventory is sold. For instance, with every 100 units sold, the market value may rise by around 5%.
Buyers must, of course, choose the apartments with good location and features. Before investing, you must find a developer who allows early reselling and make sure it's in their comprehensive contract.
5. Participate in Community Events
Leading home builders go above and beyond to ensure that their condo communities go above and beyond merely selling units.
Such developers frequently allocate a major amount of property sites to open spaces in order to improve the quality of living in the city, forgoing the chance to sell more units. These are utilized for amenities that promote wellbeing, such as swimming pools, basketball courts, playgrounds, and beautifully designed gardens.
Another thing to look forward to more than renting out your condo is the fact that local events or fairs are organized by condo associations and property management companies across the nation.
They encourage events in their quest to become community builders. In this way, you can also share your interest or rental business with the potential renters and owners of nearby condo units.
6. Flip Your Condo
Flipping is the practice of acquiring an asset with the intention of quickly selling it for a profit rather than keeping it for future price growth.
Try connecting with vendors to find the great opportunities in your favorite neighborhoods thanks to a broad network of brokers, agents, and developers, which will also make it simpler and faster for you to flip your condo property.
Examine the real estate market, rental industry, and overall economic prospects for the upcoming year or two before making an investment. In doing so, you'll be able to predict the short-term real estate sentiment and avoid mistakenly holding onto your investment during adverse market conditions.
7. Sign Up on AirBNB
Turning your condo into a profitable AirBNB is another wonderful option to earn money from your apartment when you are not using it. Aside from the passive income stream, you get to help other tourists and get to show off your city to everyone who wants to visit.
AirBNB will guide you through the entire process of listing your house with minimal effort. The technology will even assist you in determining how much rental rates to charge. With a calendar that allows you to block out dates, you may have complete control over when you want your house rented out.
It is also best to fill out your profile with as much data as possible. This will assist you in establishing trust with prospective tenants. Also, make a list of the amenities provided by your unit.
Furthermore, you can also increase the online presence of your rental space by using social media platforms, including Facebook advertising and search engine optimization, among others.
Start Your Real Estate Business Venture
Have you chosen whether you want to be a homeowner or a real estate investor? Finding the right long-term or passive investment for your requirements is critical, regardless of who you decide to become.
Just make sure to do your proper research in finding a home that meets your demands and provides the best value for your hard-earned money, as investment property acquisitions can be expensive.
Now is the time for investors to buy assets at lower prices before the market inevitably recovers. Make the most of your investment funds by purchasing one of the most adaptable passive income ideas. Buy, keep, sell, or rent your way to a profit with a condo unit!
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