Buying your own home is the best investment you can make.
At one point in your life, you may have been encouraged by your parents, a relative, a friend or even by a real estate consultant to invest in a real estate property. After all, it is one of the basic necessities in life. But have you ever thought that there's more to real-estate buying than just so you can have a primary residence in the future?
If you are looking for a source of passive income or an avenue to invest your money, then you might want to consider rental investments or particularly to "Buy-to-rent".
What is "Buy-to-rent"?
Buy-to-rent refers to the practice wherein a person purchases a property and rents it out to a tenant or a lessee. The owner or the lessor will be responsible for paying the mortgage and costs of maintaining the property. An ideal strategy is to bill a fairly-priced rent which should just be sufficient to cover expenses until the mortgage has been fully paid, at which time the majority of the rent becomes profit. Alternatively, he/she can charge more in order to achieve a higher rental yield.
Is today the best time to invest in "Buy-to-rent?
Recurring Income. According to Lamudi's latest report about real estate in the Philippines, a resurfacing trend in the real estate industry is income generating assets. While purchasing a high-end space is a huge leap for someone who is just starting to invest the real-estate property, there are budget to mid-priced units or spaces that Filipinos can invest into.
For instance, you, as a fledgling investor, can start just right by renting out a newly-purchased house and lot. Each month's rent money from the tenant or lessee shall be just enough to cover the mortgage and other maintenance expenses. The remainder of the money is your profit; with this, you have already started a steady cash flow or a recurring income.
High Demand Rate. Philippines, in a large scale, is a "rental society". Not all have the purchasing power to actually buy their own house. Many still choose to rent than buy, and so the demand for rental properties from budget to affordable house and lot continues to build a strong demand. In fact, according to Lamudi's most recent report, 60% (from a sample size) of Filipinos still prefers or dwells in a rental property.
Is there an affordable property that you could "Buy-to-rent"?
With its thrust to continuously bring innovations into every Filipino's life, Camella - the flagship brand of Vista Land & Lifescapes, Inc. - introduces its newest home offering: The Manors. During its initial public offering last September 2016, a 30 sq. m. unit is priced at 1.4 M but due to a strong and rising demand for condominiums in metropolitan south value appreciation was realized. Hence, its price of 1.8 M as to date.
Assuming that you purchased a unit priced at 1.8 M, paid 20% down payment of total contract price (TCP), whether in installments or in deferred payment and has an annual interest rate of 8% - this leaves you with a monthly amortization of P12,000. As a case in point, you can rent out your unit at the most affordable price of P13,500 to P15,000 which is still considerably affordable and reasonably priced given The Manors' features, amenities, and most importantly - its location.
The Tuscan-themed vertical village consists of 10-14 midrise vertical towers that offer affordable 30 sq. m. studio units complete with modular kitchen, bathroom and laundry area. In addition, each tower is also fully-equipped with modern facilities and state-of-the-art amenities such as great hall, pergola walk, summer reading nook, swimming pool, children’s playground and play court.
On top of it all, this promising community is strategically located in the heart of Vista Land's communicity development in Daang Hari - Alabang. It is easily accessible via Daang Hari Road, which leads to more access points: from Daang Hari road to Makati via MCX; from Las Piñas to Alabang-Zapote Road via Marcos Alvarez Road; and from Manila to Coastal Road via Molino Boulevard.
Check out The Manors video tour to experience the perfect blend of condo living convenience and the friendly embrace of a caring community.
So whether you're going solo or with a growing family or investing your hard-earned money, you are off to a good start at The Manors.
What Do I Get From Renting Out My Property?
By renting out your property, you are generating a passive income while the value of the property also increases over time, which in the long shot will provide you a steady cash flow during your retirement years or when you are no longer able to work. Alternatively, you can make money by selling it in the future, at which time your property has surely gained higher value.
What are you waiting for? Now that you are already knowledgeable about real estate in the Philippines, income generating assets as a promising trend in 2017, and the even more growing demand for rental properties, it is with no doubt that now is the perfect time to enter and join the niche.
With help and assistance from Camella's seasoned and licensed real estate consultants, they can show you where the best location is to buy a rental property and give you options on the best type of house to buy that suits your budget for the purpose of having it rented out in the future.
Want to know which Camella projects are around you? Visit our official website at www.camella.com.ph or call us at (02) 226-3552 or 09998872923. Like “Camella Official” on Facebook and follow “@CamellaOfficial” on Twitter and Instagram.