14 TIPS TO MAKE REAL ESTATE YOUR PASSIVE INCOMEAugust 22, 2022
Investing is one of the popular ways to earn money. You may opt to keep your money in the bank or invest it in Real Estate.
In recent years, real estate is in its prime in The Philippines. Owning a property is a very good way to increase your net worth. Are you a condo homeowner in the country? Are you looking into earning from your home investment? Here are some tips from people who have invested in real estate and earned a considerable amount.
- Rental income should cover your unit maintenance. This should include — repairs, insurance, taxes, mortgages, and property management fees.
- How can you say you are already earning passive income from real estate? Your earnings should cover your mortgage, renovations, appliances, taxes, insurance, and utilities.
- Real estate value does not automatically fall. It is often protected against inflation because rental rates increase incrementally.
- How can you earn monthly or weekly? Try to consider long-term and short-term leasing.
- How can I decide on pricing my unit? Make sure to include your monthly expenses. Do not forget to add 20% on top of your estimated budget.
- Real estate has stable growth and protects you during market mood swings. Even during inflation, real estate benefits from it. Because it increases value rather than goes down with the trend.
- Buy real estate properties in different areas. Consider those with high per-capita income. You should also consider the potential for improvements and commercial structures. This ensures an increase in property value thru the years.
- Want to upgrade or add value to your condo home? Consider the following — the appliances should be updated. The kitchen should be functional. The bathroom should be classy. The flooring should be easy to clean and of high quality. There should also be enough shelving or cabinetry.
- The surrounding areas where your real estate is located are important. There should be nearby banks, hardware, dental and medical clinics, and other businesses as such. The area should also be accessible to transport hubs. It will be an advantage if there are recreation areas nearby, and educational institutions.
- Are there other ways to increase the value of a condo home? Yes! You can turn it from a normal unit to an exquisite or extraordinary unit. A simple coat of new paint or wallpaper. New furnishings or a rug to make a room feel homey. Accent furniture or pieces can be added to decorate a room.
- Make sure that the condo home is well maintained. If it is, you can definitely negotiate a good price when you decide to sell. Investments made in real estate have given the highest returns of up to 20% to investors in the last 2 decades.
- When flipping units, work on a budget. Work on a timeline. Do not overspend.
- Rent out your parking space when not being used. I am sure that there are a lot of unit owners who are looking for parking rentals.
- You can also consider posting your condo home on rental sites. There are websites that enlist units that can be rented on a daily, weekly, or monthly basis.
With all these being said, you can consider that Real Estate investing will also allow you to earn and require a very little time commitment, a few management and record-keeping skills, and no need to follow up on a daily basis.