If you do the right move, real estate investment can be key to a fruitful future.
Written by: Icel Dy
“Gone are the days of stability — where you could spend 40 years working for the same company and retire comfortably. Nowadays, people are looking for alternative means for generating wealth and financial security,” writes Rahul Varshneya in his article.
As this holds true, people are turning into real estate investment as a source of additional income, especially for retirement. If the right steps are taken, you could be fruitful in this endeavor. Here are three ways to make your real estate investment a significant source of additional income.
1. Rental income
This is the most familiar one when the topic of real estate investment comes in mind. A comfortable retirement requires a passive income and real estate properties has the ability to give you that. Make sure that each rental property that you own regularly gives you a significant cash flow. This means that you have a significant amount of earnings after all the maintenance and other expenses of managing the rental properties are deducted.
Having this kind of passive income can go a long way, especially if you have a number of properties already and if they are managed well. You should make sure that all of your rental properties are occupied by great tenants to ensure a steady cash flow. It is also a good move to increase the rent strategically to long-term tenants.
In real estate investment language, appreciation is the real properties’ rise in value at a given time. For example, if you purchased a property worth PhP 3 million today and in the next 5 years, its market value becomes PhP 4 million, you will earn PhP 1 million from selling it.
It is important to invest in real properties that are of high quality and in good location. Usually, these appreciate greatly over time.
3. Flipping houses
If you enjoy investing in real estate, perhaps you could try flipping houses so you can earn quickly. Flipping houses is buying and selling real properties in just a short period of time — like a year. It is quite simple. You need to find rushing real estate sellers and buy the property. And then, you need to find buyers willing to pay in cash so you can have an easy and quick transaction. Within a short amount of time, you can earn a significant profit from this.
But be careful. When buying a real property from a rushing seller, research the history of the property first. Why is it needed to be sold at such a short period of time? Is the owner migrating to another country? There are a lot of factors so be sure you do the smart move. Don’t hesitate to ask a trusted real estate advisor to guide you.