Investing in real estate properties can be a smart move since their value grows over time and it increases your net worth. Real estate properties can guarantee you long-term passive income when managed properly. But before you spend your hard earned cash, you must know what kind of property you want to invest in and why. Of all the real estate options available in the market, condominiums are probably one of the best investments because it packs convenience, accessibility, and luxury in one.
Keep in mind that before you invest in a condominium you must decide how the property will be used; residential or for renting out, as this can help you decide where your condo should be located. As the title suggests, this post is intended to those who are planning to buy a condo as a source of income.
Consider the location of the building. If you are going to rent out your property, buy a condo in a location near business districts and conveniently accessible to transportation. This way you can get the most out of the rental fee you are going to charge your long-term tenants.
If you plan to rent the unit for short periods of time, consider buying a unit near resort areas, and tourist or vacation spots. This way you may rent it to vacationers at a price which is cheaper than most hotels. Whenever the unit is available, you can save on cash as you don’t have to check in a hotel during the summer vacation.
Know the amenities and facilities of the condominium you wish to purchase. They should be appealing enough to entice prospect tenants. A gym attracts both men and women. Keep in mind that most yuppies nowadays are fitness junkies. A pool or clubhouse regardless of size should be considered as well as most tenants have friends and families that visits them regularly.
It’s better if the condo you will purchase has accessible commercial spaces that provide some of the necessary services such as laundry, water refilling stations, fast food chains, restaurants, etc. This suits young professional well as majority of them don’t have enough time to cook or fix their laundry.
Screen your prospect long-term tenants properly. Make sure that they have a stable income to avoid any future payment problems. If possible, interview them to learn their personalities – getting to know them will help you establish a better relationship and avoid future conflicts.
Lastly, it is ideal that you charge your tenants more than your monthly expenses. This will ensure that the cash flow is enough for you and you still get more for your savings.
Remember a condominium’s value appreciates overtime this is why it’s one of the best properties where you can put your hard earned cash. Making a business out of a condo invest can be a daunting task, but it can be done with proper planning, management and mindset. If you are a first-time investor, consider getting a condo unit in Illustrata Residences, one of ProFriends rising condominium project in Quezon City – one of the best cities in the Philippines to invest in. Good luck!