Are you thinking of investing in real estate? Do you feel inspired by the fact that many of the richest people in the world have amassed their wealth through this industry? Many people are aware that real estate investment is one of the very few ways that an average Juan Dela Cruz can hit it big without having to leave the country as an OFW. Because of this, investing in real estate has become a popular option among many Filipinos.
However, there are certain things that make some people aloof to this kind of undertaking. Lack of knowledge on the ins and outs of the industry as well as insubstantial finances are just some of the many reasons why some people hold back from embarking on this type of investment.
But the truth is real estate offers a vast array of opportunities even for the beginning investor. Mortgages and loans are available to offer financial assistance to first time investors. Aside from that, with the right attitude and perseverance, you can study your way into becoming a knowledgeable investor. Combine that with years of experience and you can become an expert in no time.
As a beginning real estate investor, you need to check out these several options on investment strategies and discover which of these is most suitable to your needs and skill.
1. Buy and Sell
Buy and sell is probably the most widely known way of earning profits in real estate. In this strategy, you purchase a property and then sell it for a higher price. How is this possible? For one, you can let the property sit and wait until its market value appreciates over time. When it does, you can put it out into the market for a bigger price tag.
Now, if you want to take immediate action, an alternative would be to increase the value of the property or site through renovation and improvement. You can refurbish an old house, buy new furniture, have the walls repainted, and fix the garden lawn. After that, the value of the house increases significantly.
Another option would be to buy properties that are below market value. Examples of such as foreclosures as well as properties that are in need of urgent selling. You can then sell the property at the current market value and earn your profit.
2. Rental Option
In this option, you buy a property such as a house, commercial space, or apartment and then you rent it out to tenants. The monthly rental fee can then be used to pay for the mortgage you have taken out to purchase the property. When calculating the rental fee, do not forget to include other expenses such as taxes so that you can have a positive cash flow.
3. Pre-construction
With the wide proliferation of condominium constructions all over the metropolis, investing in a pre-constructed condominium unit has become a popular option for many Filipinos. Buy a property direct from the developer for a lower price and then market the unit upon completion for a higher value. Since you can sell the unit in cash, you can instantly pay for the mortgage you have acquired to pay for the unit during its pre-selling stage.
4. Real Estate Stocks
If you are the passive kind of investor and you do not want to be overworked with having to deal with tenants and mortgage payments, you have the option to place your investment funds into the stock market through the equities of major builders and developers.
Real estate investing is not exactly a new endeavor, at least for people who have tried their luck in this field. If you can discover how you can make money in this business, you may be able to quit your 8-5 day job and live a life with an enduring income from your investment properties.
