Did you know that passive income real estate is known as one of the best
ways to gain an additional source of revenue, which can help you achieve
financial freedom and retirement security?
According to FortuneBuilders, passive income real estate is a strategy through which an investor can create earnings without having to be actively involved. The term “passive income” is used loosely, as the level of required activity and involvement varies based on the investment type. Some common examples include rental properties, or earnings made from investment portfolios.
Investing in real estate and renting out your property are some ways to generate passive income. However, it is not as easy as you think especially if you want to maximize your profits. If you are planning to make passive income by buying a condo property in Manila or Quezon City, you have to take an active role in managing it like a business.
It all should start with research – make sure to familiarize yourself with the potential market who will lease your condo property as well as the local real estate trend and rental rates. This can also help you choose the right property that could give you a good cash flow.
If you are a first-time passive income investor, you have to ask as many questions as possible before going into an investment deal. Here are some questions that you need to ask yourself to be able to come up with an informed decision:
1. How will I find my first property investment?
Try researching on investment groups that can help you find investment properties in profitable markets. Read the latest news on real estate trends and check the different projects being offered by developers today. Check and compare the property deals being offered by different developers.
2. What’s being built near the property?
Check on the new developments that can greatly affect the value of the property. Learn about the public and private infrastructure improvements within the area and check the local government website for any project updates that may affect the location of your property.
3. How much is the property worth?
Research on property prices within the area of your choice and use this for validation during price negotiations.
4. Is this a good rental market?
Check the availability and quality of potential tenants. Remember that market with higher price-to-rent ratios are more favorable to renters.
5. Is my priority value appreciation or cash flow?
Your investment strategy can change depending on your financial priorities. Buying and selling properties can help build equity through appreciation while rental returns from buying and holding properties can produce cash flow.
6. What does my ideal tenant look like?
Think of your ideal tenant – are they a starting family, university students, or young professionals? Make sure that the features and amenities of your property will be able to attract your ideal tenant.
7. How much work am I willing to put into maintaining my personal investment?
Managing and sustaining your property investment is not an easy thing. Evaluate the amount of time, money, and energy you are willing to put into your investment property. Research the pros and cons of hiring a property manager and being a landlord.
After the research phase and initial assessment comes the execution phase where you have to strategize on how you will get and be able to manage your tenants, finances, lease contracts, and the property itself. If you have enough time to manage it like a business, then try doing it by yourself. At least you get to learn the ropes and enjoy being a hands-on owner at the same time. Lucky for you if you are able to get long-term lessee or if you are able to get daily bookings through an Airbnb-type of rental property business.
Meanwhile, if you want to rent out your condo easy and hassle-free, you may also want to explore availing the leasing services being offered by most developers.
Top condo developers like Vista Residences offers in-house leasing and property rental management services for its condo unit owners who are looking for a good investment opportunity and for renters who are searching for a place to live.
They have a dedicated team who will help you manage your property. You can just literally leave that stressful job to them and they will take care of renting out your condominium unit. All you need to do is to register your property through the Leasing Office or send them your contact and property details through Vista Residences website.
If you are looking for a stable method of building your financial freedom over time, then perhaps passive income real estate investing is the right investment strategy for you. However, you have to keep in mind that whether it be searching through condo properties near universities or business districts, screening tenants, hiring a property manager, or addressing repairs, you have to be actively involved in the process.
You want to earn passive income through real estate investing. Now ask yourself, are you ready with the responsibility?