How To Own & Earn At The Same Time In Real Estate
In the Philippines, renting has become a common practice. But, many property owners are already stuck with long-time deals not knowing about the opportunities they might be missing compared when they let wisely use their properties for short-term deals which can be planned and strategized to be generously income-generating.
Today, one-bedroom and studio type units are all around. There are even bed spaces available especially in Manila where a bunch of people go to seek opportunity of studying or working. Now, experts see and encourage owners because this is the right time and a wise move to utilize your unit as an investment.
This is why a lot of property developers use this strategy to make use of a unit and earn more than they could when they give it in for a long term deal. Come to think of it: having a unit rented by an individual client compared to converting it so that it can cater multiple subjects which will also generate you multiple additional revenues. Of course, it still depends on the unit and its current value. But in the Philippines, it works more advantageous to convert your unit for a short term deal.
Short-term leasing is the answer for demands on foreign and domestic tourists, millenials and overseas Filipino workers who are just on a vacation. This means temporary stay and settlement is all they need. There are seasons where demands could rise which will give you the opportunity to make your price go up as well compared when you give it to someone for long and deprive yourself from the opportunities of having bigger income. Also, long-term leasing is not always wise in business because there are a lot of problems being observed to people holding the properties like not being able to pay on time (while the owner has got nothing to do because his property has been held by that particular person for a long time already.) Poor maintenance is also being seen on most long term-leased properties compared to the short-terms.
On the other hand, space is very precious nowadays. And along with the booming industry of real estate or property business is the decrease in available space especially on hotspots and high-value areas. Now, this triggers an upsurge to the prices so, it will only become beneficial if you already own a property within the area but if not, then it’s more likely to cost you a huge amount which you cannot be sure if you could make use of especially if you just plan to have of giving it away with a long-term deal. Believe it or not, with that kind of strategy, the investment is less likely to pay-off. But, with enough space and good location plus the right short-term deals, you could surely make the best out of the property.
Owning and earning at the same time is possible and it is absolutely wise for someone who wants to have a truly valuable investment. Managing it properly can also make it even better and maximize the earnings. All you have to worry about at the end of the day is to maintain or even develop the quality of the property so you can also know if you can preserve its worth.