Passive Income in Real Estate PH: Putting Your Money at Work
In life we strive for financial freedom. Although we believe that money is just a tool to trade for our needs. We also find comfort, convenience and broader choices having enough of it. This is why we are all so caught up making ways to make money work for us. One of the most suggested and probably the smartest ventures there is in growing your money is- real estate. Here’s a short context of how to put your money at work through properties.
HOW DOES REAL ESTATE WORK AS PASSIVE INCOME?
Passive income is any form of business that is usually with lesser need of management. This is basically a wait and see type of investment opportunity. People may have it built over the years in preparation for retirement or to level up on their financial stability. In Real Estate, we commonly practice rental or leasing to generate income be it short term or long term. The thing is, in every property type there is a chance to get on to this business; be it raw land, high end condo, vacation houses or commercial spaces. Practically you will just collect monthly payments from your assigned tenants and that is how your money gets in the work. What a joy to imagine getting paid on a monthly basis without having to be present on the operation on a daily basis? This is sort of a low-maintenance type of business, it does not require much of your presence, time or management. But of course, with leasing it is always best to have a property manager or to at least provide a contract with terms & conditions both agreed by the lessee and the lessor.
WHERE TO START BUILDING?
The real estate idea can be overwhelming in the beginning especially in terms of investment purposes. Apparently, there are still a lot of Filipinos out there who are yet to learn this. But how can we really jump start on this? First, you have to check the lightest or most feasible way to establish yourself in the market. Real Estate agents commonly suggest exploring pre-selling projects with lowest possible property value, not to mention the flexible payment schemes which usually make it more possible for younger ones to start.
To help you be more convinced and prepared, it is also encouraged to realize risks. In this way, you may start to address them one by one and manage your strategies and expectations from it. In real estate investment, especially in pre-selling properties, the first risk that you need to identify is the possibility of losing your money. As early as possible you need to ask yourself what if the building never gets done? What if something comes along and I get a hard time paying? What if I suddenly develop a massive change of plans? What happens when the unit never gets rented? Knowing these and managing them will increase your level of confidence and it will direct you on the option you think may work best for you. This may also help you work ahead on the ins and outs of the investment. And you also get to be clearer with pros and cons. It is also best to ask yourself- if you’re going to let the opportunity slip, when is the next time you can actually find something as good as this?
THE PROPER MINDSET
Having real estate investment is serving both ends of the spectrum, you get to fight inflation by putting your money on a more valuable opportunity. And at the same time having the sense of awareness that in a few years time you can turn this to rental property as a strong source of passive income. If you’re wondering how to really start, you can consider consulting professionals so you can also sketch long term plans over this matter. You also have to keep in mind that- real estate investments begin when you start buying. Look for small opportunities where you can confidently pay. This may not make you rich instantly, but it will help you be on the game.
Resus Property Consultancy and Sales Associates Inc. is open for free property consultancy. We cater all projects under Ayala Land Premier, Rockwell, DMCI, SMDC, Megaworld, Vista Land, Federal Land, Ortigas and Co.,
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